In Australia, having late payments on your credit record, even small ones, can affect your ability to get a mortgage. In fact, many of the major banks and lenders in Australia will reject your application if you have a history of late payments, even if they are all paid off now.  

The good news is that it’s still possible to get a mortgage despite late payments, and we’ve helped thousands of our customers with this problem in the past. Below you’ll find out how late payments might be affecting your mortgage application and what can be done to help. 

What Are Late Payments? 

Late payments are any payments that you didn’t pay on or before the due date. In some cases they are payments that were accidentally missed and have since been paid off. They may even have happened years ago and you’ve forgotten all about them. 

Many people don’t realise that late payments – no matter what the reason – are likely to count against your loan application. Every time you miss the deadline of a payment it may be recorded and remain on your credit record, even after you’ve caught up.  

What’s the difference between late payments and arrears?

Late payments and arrears are two separate things. A late payment is where you have paid what you owe – but only after the due date or deadline. Essentially, it’s a payment that was missed and has been paid late. 

Arrears mean that payments have fallen behind in your payments and have not yet caught up. For example, missing the last few months on a payment that’s due on the first of each month. If this happens, you’re now considered to be in arrears. 

In most cases, late payments tend to be less serious than arrears, but both will negatively affect your credit record and can impact your mortgage application. 

Can You Get A Mortgage With Late Payments or Arrears?

Yes, absolutely. We help people do it every day. 

Some lenders have strict regulations and will decline a good applicant simply because they have late payments on their records. This can feel unfair and frustrating for applicants, as often late payments were simply the result of a mistake or oversight. 

Most of the major banks and lenders in Australia are very harsh regarding late payments and arrears but we know the lenders who are more than willing to consider a mortgage after late payments. They are reputable lenders whom we have worked with many times, so we know their processes and who to speak to. 

Going to the right lender will save you time and can help you secure the perfect home. In some instances, we’ve even been able to get loans for clients at interest rates lower than the bank they were declined from!

If you know you have late payments or have been declined for a mortgage, speak to us. We can help you fix the problem and get the loan or home you want.