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Wondering if you can get a home loan with a bad credit score?
We’re here to help.

Real life happens and sometimes unexpected financial hurdles come our way. From a change in circumstances through to financial hardship, it can sometimes be tough to get your finances back on track. This can be made trickier when banks make finance harder to come by after a default or blip on your credit history.

We don’t think that should hold you back from your financial goals, which is why we offer home loan options for real people, and evaluate each application based off the person behind the numbers. We’ll take a holistic view of your current financial situation and look beyond your credit history to find a way forward.

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It’s these sorts of real life surprises that can cause blips in our ability to pay our bills, and the result can be a problem in our credit history.

Many people with bad credit can be reluctant to apply for a home loan and get misinformed and told they won’t be able to get a loan. This may not be the case. There is a plan b. At Pepper Money we have a range of home loans specifically designed for people who have these sorts of problems. So, if you’re having trouble because of your credit history talk to us at Pepper Money, we’ll do our best to help find a way forward.

Everyone's story is unique. We might be able to help if you:

  • Have past defaults (paid or unpaid)
  • Are in a debt agreement (Part IX or X)

  • Are a discharged bankrupt. Watch the real life story »
  • Have had mortgage arrears

  • Have made late credit or mortgage repayments

  • Have been refused credit from your bank or another lender

Ready to take the next step?

Enquire now

What could a Pepper Money home loan look like?

Estimate your home loan repayments with our calculator below, and then just answer a few more questions to find out how much you could borrow and your indicative interest rate.

digits only, min-5000

digits only, min-1 year, max-30 years

digits with two decimals only

With a repayment frequency of:

Please select frequency

Important Information

This repayment calculator gives you an estimate of what your home loan repayments could be, based on information you have provided in the calculator. The calculator does not take into account loan establishment or application fees, nor government statutory or lender fees.  It is to be used as a guide only and does not constitute a quote, pre-qualification, approval for credit or an offer for credit and you should not enter commitments based on it.

Discover how our real-life home loan options could help you

Discover how a Pepper Money home loan could help you


Our flexible approach to home loans factor in the ups and downs of real life. Whether you're looking for the certainty of repayments with a fixed rate loan or want to enjoy more flexibility with a variable rate loan, we have options to consider. 

We can help

Ready to apply or want to discuss your home loan needs? 

Get a quick borrowing estimate
Enquire today and talk to a Lending Specialist

Make an enquiry today and a Lending Specialist will contact you as soon as possible.

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Speak to a Home Lending Specialist

Speak to a Home Lending Specialist on 137 377. They're here to help. 

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Popular home loan questions…

Here are some FAQs about applying for a Pepper Money home loan with bad credit.

You will need to have documents supporting your current financial position such as recent bank statements, payslips or other proof of income, personal identification and a snapshot of your current asset and liability position.

For PAYG applicants we require two current payslips plus one of the following:

  • Most recent group certificate
  • Most recent tax return / taxation notice
  • Current letter of employment
  • Bank statements – to confirm last 3 months salary credits

For Self-Employed applications we need your last two years Tax Returns, two years Tax Assessment Notice and & last 1 month’s business bank statements. If you are self-employed and unable to provide this documents, you may still qualify for an alternative documentation (alt doc) loan. For more details click here

On some of our loans, we offer finance up to 95% of the purchase price, meaning you can start to look at buying a house once you've saved at least 5% of the purchase price. The deposit amount may also depend on the property and area you’re looking at purchasing.

Remember, there can be extra costs involved when buying a house. You’ll need to cover government and legal fees, which can’t be added to your home loan balance.

The interest rate offered, and fees and charges will depend on our assessment of a number of factors at the time of application including:

  • The size of your deposit
  • Nature of the security property
  • Loan to value ratio (LVR)
  • Your income
  • Credit history
  • Any assets you own
  • Any liabilities or credit obligations
  • Chosen repayment type – paying off interest-only, or principal and interest
  • The purpose of the loan – if it’s for an owner-occupier or investment property

The risk loading will apply for the loan term.

To get an indicative interest rate speak you can start by using our online borrowing power calculator, or speak to one of our Lending Specialists on 137 377

Certain Pepper Money fees can be added to your loan balance, while others will need to be paid upfront – including establishment or application fees, and risk or mortgage insurance fees. Other smaller fees (like fees for an offset sub-account) will be added to your loan each month.  

You can view a summary of our home loan fees here  

You’ll also need to pay solicitor fees along with local and state government taxes and levies. These can’t be added to your loan balance and are usually paid upon settlement. 

Your Pepper Money Home Loan Journey can take up to six weeks – this is the typical timeframe for a home purchase, however the process may be quicker if all the necessary documentation is provided sooner. 

Delays in decisions are often caused by incorrect or missing documentation. 

To learn more about Pepper Money Home Loan application process, click here or for more information speak to a Lending Specialists on 137 377.

Our home loan borrowing capacity calculator asks a few personal and financial questions to calculate an estimate of how much you may be able to borrow with Pepper Money. After finding out how much you could potentially borrow, you can then either speak to a lending specialist about your situation, or continue on to get an indicative interest rate online.

See how much I can borrow

While a high credit score might help you get a rock-bottom interest rate, it may still be possible to apply for a home loan with a less-than-perfect credit score. While some banks often prefer to lend to those with a perfect credit history and high credit score, at Pepper Money, we take a real life approach to lending and look beyond just your credit score to see what we can do to help. .

Talk to a lending specialist about your situation. We’re here to help.

Some of the big banks may turn applicants away if they have a less-than-perfect credit score. Alternative lenders, such as Pepper Money, look beyond a credit score to understand a customer’s full financial situation before making a decision. This is achieved by taking a more holistic approach than traditional lenders - speaking with customers to understand how any credit problems occurred and considering each borrower’s individual needs and circumstances.

If you’d like to learn more about our home loan options for bad credit, then speak with one of our friendly lending specialists on 137 377. Alternatively, enquire online to request a call back and we'll be in touch.

We’re one of Australia's leading non-bank lenders!

We were established in 2000 to help Australians achieve their financial dreams through providing flexible financial solutions that factor in the ups and downs of real life. Since then, we’ve become one of the largest, award-winning non-bank lenders in Australia and New Zealand.

To see the full home loan FAQs, click here


Important Information

Information provided is factual information only,and is not intended to imply any recommendation about any financial product(s) or constitute tax advice. If you require financial or tax advice you should consult a licenced financial or ta adviser. All applications are subject to credit assessment, loan eligibility criteria and lending limits. Terms, conditions, fees and charges apply. The actual interest rate will depend on the borrower’s circumstances and the information verified during the loan application assessment.

Help at hand

Here are some handy tips and guides to help you get started with a home loan for bad credit.

For more of your questions answered visit our Help Centre.

Contact Pepper Money if you are experiencing financial difficulty

Important Information

Note - All applications are subject to Pepper's normal credit assessment and loan suitability criteria. Terms, conditions, fees and charges apply.