Can You Get a Loan at 17? Secure Your Future (2026)

Are you 17 and dreaming of buying your first car, or perhaps you're 20 and thinking about investing in your first home? Navigating the world of loans as a young Australian can be daunting, especially when you're just starting out. But don't worry, whether you're 17, 20, or 22, there are options available to help you achieve your financial goals. In this guide, we'll break down the possibilities for obtaining a loan at these ages in Australia, providing you with the information you need to make informed decisions.

Understanding Loans for Young Australians

At its core, a loan is a sum of money borrowed from a lender that is expected to be paid back with interest over a set period. For young Australians, obtaining a loan can open doors to numerous opportunities, from purchasing a vehicle to starting a small business or buying a home. However, lenders often have specific criteria, especially when it comes to age and financial stability, which can affect your eligibility.

Loan Options and Requirements

In 2026, the lending landscape for young Australians has evolved, with more products tailored to meet the needs of younger borrowers. Here's a closer look at the options and requirements for obtaining a loan at 17, 20, and 22.

Car Loans at 17: While legally you cannot sign a loan contract until you are 18, many lenders offer the option of a co-signed loan. This means a parent or guardian agrees to take on the responsibility of the loan alongside you. Interest rates are generally competitive, especially if the co-signer has a good credit history.

Personal Loans at 20: By 20, you may be eligible for a personal loan on your own, provided you have a steady income and a reasonable credit score. Personal loans can be used for various purposes, from funding education to covering unexpected expenses.

Home Loans at 22: At 22, you may be considering entering the property market. With Australia’s current interest rates ranging from 5.5% to 6.8% for first-time buyers, this can be an opportune time. Lenders will typically assess your income, employment stability, and savings for a deposit.

Steps to Secure a Loan

Navigating the loan application process can be overwhelming, but with the right steps, you can increase your chances of approval:

1. Assess Your Financial Situation: Before applying, take a close look at your income, expenses, and existing debts. Use this information to determine how much you can afford to borrow and repay.
2. Check Your Credit Score: A good credit score can significantly impact your loan eligibility and interest rates. Obtain a free credit report from a national credit reporting body to understand where you stand.
3. Explore Loan Products: With Esteb and Co's panel of 83+ lenders, you have access to a wide variety of loan products. Compare these options to find the best fit for your needs.
4. Prepare Necessary Documentation: Gather all required documents such as identification, proof of income, and any relevant financial statements.
5. Apply for Pre-Approval: This step can give you a clearer picture of your borrowing capacity and help streamline the actual loan application process.
6. Submit a Formal Application: Once you have chosen a lender, submit your application along with all necessary documentation.
7. Review and Sign Loan Contract: If approved, carefully review the loan contract's terms and conditions before signing.

Expert Tips and Considerations

Securing a loan as a young adult involves careful planning and consideration. Here are some expert tips to guide you:

• Build a Solid Savings History: Demonstrating a consistent savings pattern can boost your credibility with lenders.
• Consider a Guarantor: If your credit history is limited, a guarantor can enhance your application's strength by providing additional security to the lender.
• Start Small: Begin with smaller loans to build your credit history before moving on to larger commitments like home loans.
• Stay Informed: Keep up with the latest market trends and rate changes to make the most informed decisions about your financial future.
• Seek Professional Advice: Consulting with a mortgage broker, like those at Esteb and Co, can provide personalised insights and access to a broader range of loan options.

Frequently Asked Questions

1. Can I get a loan at 17 in Australia?
   While you cannot legally sign a loan contract at 17, you may be eligible for a co-signed loan with a parent or guardian.
2. What are the typical interest rates for personal loans at 20?
   Personal loan rates for 20-year-olds can vary, typically ranging from 8% to 12% depending on creditworthiness and lender.
3. How can I improve my chances of getting a home loan at 22?
   Building a solid credit history, maintaining a stable income, and having a substantial savings deposit can improve your home loan application.
4. Is a guarantor necessary for young borrowers?
   While not always necessary, a guarantor can significantly strengthen your loan application, especially if you lack a credit history.
5. How does Esteb and Co assist young borrowers?
   Esteb and Co provide access to a diverse panel of 83+ lenders, offering tailored advice and options to suit young borrowers' unique needs.
6. What documents do I need to apply for a loan?
   Common documents include identification, proof of income, and financial statements. Requirements may vary by lender and loan type.