Got a Paid Default? Here’s the Truth About Getting a Home Loan

Don’t Let People Talk You Out of Your Home Loan Goals

If you’ve got a paid default on your credit report, you’ve probably heard something like this:

“Don’t bother trying to get a home loan — you’ve got a default. No bank will touch you.”

Here’s the truth — that’s not entirely true.

Yes, the big 4 banks might not be as flexible. But that doesn’t mean you’re out of the running. There are lenders out there who will consider your full story — not just a number on a credit file.

The Truth About Paid Defaults and Home Loan Options

If you have:

• A paid default
• Good income
• A solid deposit
• And a clear explanation for what went wrong

You may still qualify with a number of specialist or non-bank lenders who take a more flexible, human approach to credit.

The key is understanding how to position your application the right way.

Why You Shouldn’t Be Discouraged

A credit default doesn’t automatically shut the door on your home ownership goals — especially if it’s paid and in the past.

Lenders who specialise in credit-impaired borrowers know that life happens. Medical emergencies, divorce, temporary job losses — they don’t define your long-term financial ability. You just need to be upfront, honest, and prepared.

Tips to Strengthen Your Application

If you’re in this situation, here’s how to improve your chances:

✔️ Provide a clear explanation.
Whether it was due to illness, separation, or loss of work — explain what happened and how you’ve moved forward.

✔️ Make sure the default is paid in full.
Include proof of payment — this is essential.

✔️ Keep your recent credit clean.
No late repayments, no new issues. This shows lenders the default was a one-off.

✔️ Provide a Credit Impairment Summary.
This document helps lenders assess your situation in context — and it can make a big difference.

✔️ Emphasise your strengths.
Show your strong income, deposit, existing assets, and long-term stability.

The Bottom Line: The Truth is You Still Have Options

Don’t let people who don’t know the full picture stop you from trying.

So if home ownership is something you still want to achieve — there’s a path forward. It might not be through a big bank, but there are lenders out there who will listen.

Need Help Putting Together a Strategy?

At Truth Group, I specialise in helping clients who’ve been knocked back or told they don’t qualify. Whether it’s your first home, an investment, or refinancing — I’ll work with you to build a real plan that gets you closer to approval.

📩 Reach out for a no-pressure chat and let’s look at your options together.