A default isn't the end of the road. It's a detour — with a way back.
Missed payments, a default, arrears, even a discharged bankruptcy — none of it makes you unlendable. Specialist lenders assess your whole story, not just a number, and secure the loan against property so it can be done responsibly. The honest goal isn't to keep you in a costly loan; it's to get you in now, help you rebuild, and refinance you to a mainstream rate when your credit has healed.
The path back to prime.
Specialist lending should be a bridge, not a destination. Here's how it actually works — and why we set the exit as the goal before you even start.
Get in, secured & responsibly
A specialist (non-conforming) lender considers your full situation and lends against the property. Expect a higher rate and usually a lower LVR than a prime loan — that's the cost of the risk, and it's temporary by design.
Rebuild the file
Make every repayment on time (your 24-month repayment history is what lenders watch most), take on no new defaults, and bring debts down. Quietly, your credit profile heals.
Graduate to prime
With a clean recent record, many borrowers qualify to refinance to a mainstream lender at a sharper rate. We plan this exit from day one and come back to you when the timing is right.
Indicative pathway, not a guarantee — how quickly you can refinance depends on your lender, the recency and severity of the impairment, your repayment record and your equity. Specialist lending is priced for risk and confirmed in writing. Repayment History Information is held for 24 months (OAIC), which is why a clean recent record matters most.
Please don't reach for an unsecured "bad credit" or payday loan.
When money's tight and your credit's bruised, high-cost unsecured lenders are the loudest voice in the room — and usually the worst answer. They're capped at a 20% establishment fee plus 4% a month, which stacks up fast and is often simply unaffordable for someone already under pressure.
That's $1,360 more than you borrowed — money that makes the hole deeper, not shallower. ASIC has publicly warned that some payday lenders may be breaching consumer-protection law. If you own or are buying property, a secured specialist home loan with a plan to graduate to prime is almost always the more responsible path — and if borrowing isn't right for you at all, we'll tell you that too.
Source: ASIC MoneySmart (payday loans); SACC fee caps 20% establishment + 4%/month; ASIC media release 25-036MR (2025). Consider free financial counselling (National Debt Helpline 1800 007 007) if you're in hardship.
Nobody can "wipe" an accurate listing — but everything fades.
Beware any "credit repair" firm promising to erase real defaults; a genuine, accurate listing can't legally be removed. What you can do is fix actual errors for free, and let time do the rest. Here's how long the common marks stay on your file.
Source: OAIC (Privacy Act 1988, Part IIIA; Credit Reporting Code). Financial hardship information stays 12 months and cannot be used to calculate your credit score. A paid default remains for 5 years but is marked as paid — which lenders view more favourably. You can correct genuine errors for free by contacting the credit provider or credit reporting body.
Often smaller than the fear of it.
A number, on a scale
Credit scores run 0–1,000 (Experian/illion) or 0–1,200 (Equifax). "Below average" on Equifax is 0–459 — but a low score alone doesn't decide a specialist application; the full story does.
Not any late payment
A default can only be listed if a payment of $150 or more is 60+ days overdue, after a two-notice process. One forgotten bill isn't automatically a default.
You have rights
If you're struggling, you can ask your lender for a hardship arrangement. Since July 2022 it's noted on your file — but it can't be used to lower your credit score.
If your credit's taken a hit, you're far from alone — and it's not a moral failing. Thousands of Australians hit financial trouble every quarter, often through job loss, illness, separation or a business that didn't make it. What matters now is the plan forward. That's the conversation we have with you: honestly, confidentially, and without judgement.
Source: AFSA quarterly personal insolvency statistics, March quarter 2026 (1,749 bankruptcies + 1,356 debt agreements + others).
If you're consolidating debt into a home loan, do it with eyes open
Rolling credit cards or personal loans into a secured home loan can lower your repayments and simplify life — but it also moves that debt behind your home, which is now at risk if you can't pay, and stretching it over 25–30 years can cost more in total interest even at a lower rate.
We model the real total cost and make sure any refinance genuinely leaves you better off — because under responsible-lending law, and by our own standard, it has to.
General information (ASIC MoneySmart), not personal advice. Responsible lending: NCCP Act 2009, ASIC RG 209. Specialist home loans are arranged under Esteb & Co's credit representative authority.
Bad credit home loans, answered straight.
Can I get a home loan with bad credit in Australia?
Often, yes. Specialist (non-conforming) lenders assess your full story rather than just a score, and can consider defaults, arrears or a discharged bankruptcy — secured against property, usually at a higher rate and lower LVR while your credit recovers. Whether it's the right move for you is exactly what we assess first.
How long after a default do I have to wait?
There's no fixed waiting period — some specialist lenders will consider you even with a default still listed (it stays five years). That said, more time since the event, a clean recent repayment history and a larger deposit all widen your options and improve the rate.
Do specialist (bad credit) home loans cost more?
Yes — they're priced for the added risk, so expect a higher rate and often a lower LVR than a prime loan. The point is that it's a bridge: as you rebuild, we aim to refinance you to a mainstream lender at a sharper rate.
Can I refinance to a prime loan later?
That's usually the plan. After roughly 12–24 months of clean, on-time repayments and no new defaults, many borrowers qualify to refinance to a prime lender. We set that graduation as the goal from day one and check in when the timing's right.
Should I get a "bad credit personal loan" instead?
Usually not. Unsecured "bad credit" and payday loans carry very high fees — a $2,000 payday loan can cost around $3,360 to repay — and often make things worse. If you own or are buying property, a secured specialist home loan with a plan to graduate to prime is almost always more responsible. And if borrowing isn't the right move at all, we'll say so.
Can defaults be removed from my credit file?
Only if they're wrong. A genuine, accurate default stays for five years and can't legally be "wiped" — be wary of any firm that promises otherwise. But you can correct real errors for free through the credit provider or reporting body, and paid defaults are marked as paid. Mostly, credit repair is time plus a clean recent record.
What's the maximum LVR with impaired credit?
It depends on how recent and severe the impairment is, and on the lender — heavier impairment generally means a lower LVR, so more deposit or equity. We'll give you a realistic figure for your specific situation rather than an optimistic headline.
Let's look at your situation, honestly.
Confidential, no judgement, and no credit check to start. Tell us what's happened — we'll tell you the realistic options and the plan back to prime.
Check my options →