What credit score do I need for a home loan?
The exact credit score you need for a home loan can differ depending on how your credit scoring agency calculates your number. Overall, however, if your credit rating is out of 1,200 then it is generally determined any score above 853 is excellent, while 661 and above is good. If you are scored out of 1,000 then a score of 690 and up is excellent, with above 540 being good.
With this general score in mind, how well lenders will respond to your score can be broken down into groups. These groups can also provide insight into whether or not you will be paying high interest rates, or if your lender may take some time to decide if you are capable of making home loan repayments.
Since Australian agencies generally do not make their credit rating criteria public, it can be hard to determine whether you have a high enough credit score to be eligible for a home loan. Especially since most lenders only use credit scores as one factor in determining whether or not you should be allowed a home loan.
In the situation where your credit score is determined out of 1,200, however, you can consider this rating overview to get an idea of if you have a good credit score. Click on the plus ⊕ icon on the graphic below to find out more.
