Who this guide is for
Sydney buyers with low credit scores (under 600) due to defaults, late payments, multiple credit enquiries, or unresolved disputes.
- Buyers with credit score under 600 from defaults
- Multiple late payments hurting your score
- Many recent credit enquiries (loan/credit card applications)
- Bangladeshi or multicultural families with credit issues needing language support
The local picture
Major banks decline applications below ~620 credit score. Multiple defaults, judgments, or recent enquiries make it harder. Most general brokers don't know which non-conforming lenders accept low scores.
How Mortgagefy helps locally
Mortgagefy works with specialist non-conforming lenders that accept low credit scores. We assess your specific credit situation, identify lenders that'll work with you, and present applications properly.
Bengali support. Free advice, no judgement.
How it works — 4 simple steps
Free credit score chat
20-minute call (Bengali support) about your credit situation.
Compare specialist lenders
We identify lenders that accept your credit score range.
Application support
We package your application with explanations of credit history.
Settle your home
You move in with ongoing support.
Frequently asked questions
My credit score is 550. Can I get a home loan?
How much deposit needed with low credit score?
How long does a default stay on my credit file?
Should I dispute the default before applying?
My multiple credit card applications hurt my score. Now what?
Talk to a specialist low-credit broker
Free 20-minute call with Bengali support — no judgement.
Related guides
Get your personalised answer in 2 minutes
Free, no obligation. We'll match you with the right lender for your situation.
Bad Credit Home Loan Pathways
Timeline: When Lenders Will Look at You
- Defaults (missed payments): Stay on credit file 5 years from date cleared. Timeline: 2-3 years cleared → specialist lenders approve. 5+ years → Big 4 may approve.
- Bankruptcy: Discharged bankruptcy stays 5 years. Timeline: 12-24 months post-discharge → some specialists approve. 3-5 years → wider lender access.
- Debt agreements (Part IX): While active = decline. Post-completion wait 2-3 years, then specialist lenders assess.
Credit Repair Strategy That Actually Works
Steps to improve your position BEFORE applying:
- Dispute errors on credit report: Login to credit agency (Equifax, Experian, Illion), identify wrong items (defaults that weren't yours, accounts you didn't open). Dispute = often removed within 30 days.
- Settle debts in writing: If you have an old default, contact creditor + ask for settlement letter. "Settled" status weighs better than "unpaid" with lenders.
- Build 12+ months of clean payment history: Every on-time payment rebuilds credit score. Specialist lenders often require 12 months of clean record before approving.
Lender-by-Lender Acceptance Criteria
Not all bad-credit lenders are equal:
- Big 4 (CBA, Westpac, NAB, ANZ): Typically decline recent defaults (<3 years). Will consider bankruptcy 5+ years post-discharge with strong income/deposit.
- Specialist lenders (Liberty, Pepper, Firstmac): Accept 2-5 year old defaults. Recent bankruptcy (12+ months post-discharge) with 15%+ deposit often approved.
- Deposit requirement increases with credit damage: Clean credit = 10% deposit. Recent defaults = 20% deposit. Recent bankruptcy = 25% deposit.
Model your scenarios: Use our free home loan calculators to estimate borrowing capacity, repayments, and savings.