# Freeway Lending

> Specialist home and business lending for Australians who don't fit the bank's box.

Freeway Lending is a specialist and non-bank lending brand operating under Australian Credit Licence 570391 (Black Mountain Financial Pty Ltd). This file is the LLM-friendly index of the site's public content.

Site: https://freewaylending.com.au

## Articles

### Low credit score home loans in Australia: how to get approved before your score improves

- URL: https://freewaylending.com.au/articles/low-credit-score-home-loans
- Category: Guides
- Published: 2026-09-13
- Reading time: 11 min
- Author: George Popadalis, Principal · Freeway Lending
- Description: A low credit score doesn't end your home loan chances — it changes who'll lend to you. Here's exactly what specialist and non-bank lenders look at, the four paths you have today, and the realistic cost of each.
- TL;DR: A low credit score doesn't disqualify you from a specialist or non-bank home loan in Australia — most banks decline around 620 or below, but specialist lenders read the file manually and regularly approve from the 500s up, with a higher rate as the trade-off for access to lending the banks refuse.
- Tags: credit score, low credit, specialist lending, home loans, non-bank
- Key facts:
    - Australian credit scores come from three bureaux — Equifax (0–1,200), Experian (0–1,000) and illion (0–1,000) — and there is no single minimum credit score home loan approval rule across the panel. Each lender sets its own floor. (Source: Australian Retail Credit Association (ARCA) — credit reporting and scoring industry body)
    - The Big 4 and most regional banks typically want a score around 700 or higher for clean owner-occupier lending, and often auto-decline below roughly 620. Specialist lenders operate at lower thresholds — sometimes into the 500s — because they read the file manually rather than scoring it against a fixed rule. (Source: Australian Prudential Regulation Authority (APRA) — ADI credit risk management guidance)
    - A default or overdue listing stays on an Australian credit file for five years from the date it was listed, even after it has been paid in full. (Source: Office of the Australian Information Commissioner (OAIC) — Credit Reporting Privacy Code)
- FAQ:
    - Q: What's the minimum credit score for a home loan in Australia?
      A: There's no single answer because there's no single lender. The Big 4 and most regional banks typically want a score in the 700s for a clean owner-occupier loan and often auto-decline below roughly 620. Specialist non-bank lenders work at lower thresholds — sometimes into the 500s — because they read the file manually. The minimum score for your situation depends on the rest of the file: income, deposit, employment type and loan purpose all shift which lenders will consider you.
    - Q: Can I get a home loan with a 500 credit score?
      A: In our experience, yes — with caveats. A 500 score rules out every mainstream lender and most second-tier lenders, but specialist non-bank lenders exist who read the file manually. The trade-off is cost: rates are higher than mainstream, fees are larger, and the loan structure may have fewer features. Approval also depends heavily on the rest of the file — deposit size, income stability and loan purpose matter more when the score is at the edge. A specialist broker can map the panel against your specific situation in 24 hours.
    - Q: How long does a default stay on your credit file?
      A: A default (or overdue listing) stays on your credit file for five years from the date it was listed, even after it's paid. Some lenders treat a paid default more favourably than an unpaid one, but the listing itself remains until the five-year period passes. The underlying record often stays visible to lenders for longer than the official clear-out period. Pulling your own file is the only way to see exactly what's there.
    - Q: Do specialist lenders do construction loans with low credit scores?
      A: Yes — several specialist lenders on the panel write construction loans for borrowers with low credit scores, but conditions are tighter than for a standard construction loan. LVR is usually capped lower (often 65 to 70%), the builder's contract and progress draw schedule are scrutinised more closely, and the rate is higher than a clean-file build. Owner-occupier construction is easier than investment construction. A specialist broker knows which panel lenders write your specific combination.
    - Q: Will a specialist broker hurt my credit score more?
      A: Not in any meaningful way. A broker enquiry doesn't show on your credit file — only the lender's enquiry does, and that happens once per formal application. We run soft credit checks during The Qualifier to map your situation against the panel, and these don't affect your score. Any hard enquiry only occurs when you authorise a formal application to a specific lender, which is the same process whether you go through a specialist broker or apply directly.
    - Q: Is it worth paying off my credit card before applying?
      A: Usually yes, within reason. Credit card utilisation is one of the bigger score drivers — a maxed card hurts the score even if you pay it off in full each month. Bringing balances below roughly 30% of the limit (ideally below 10%) before you apply can lift your score and improve the lenders who'll consider you. The exception is closing the card entirely: keeping it open with a low balance extends your credit history, which is good for the score. Closing cards to "clean up" can actually lower it.

### A default doesn't have to mean no forever: how specialist lenders really think about credit

- URL: https://freewaylending.com.au/articles/default-no-forever
- Category: Education
- Published: 2026-09-01 (updated 2026-09-12)
- Reading time: 7 min
- Author: George Popadalis, Principal · Freeway Lending
- Description: If you've been declined by a mainstream bank after a default or missed payment, here's exactly what specialist and non-bank lenders look at instead — and what you can do today to get back on the road.
- TL;DR: A listed default does not automatically disqualify you from specialist or non-bank lenders — most actively price the risk with fresh data, time-on-file and clear explanations rather than refusing on the default alone.
- Tags: default, specialist lending, credit repair, non-bank
- Key facts:
    - Specialist and non-bank lenders typically require 12–24 months of clean conduct after a default has been paid or settled, but several active in the Australian market accept fresh applications sooner with documented explanation. (Source: Australian Securities & Investments Commission (ASIC) — MoneySmart, 'Applying for a loan after a default')
    - Mainstream bank credit policies use statistical scoring models that treat any default as a hard negative; specialist lenders use case-by-case underwriting, which is why outcomes differ. (Source: Australian Prudential Regulation Authority (APRA) — ADI credit risk guidance)
    - A listed default stays on an Australian credit file for five years from the date it was listed, even after it has been paid in full. Specialist lenders treat the file differently to mainstream banks but the listing itself doesn't drop off the record. (Source: Office of the Australian Information Commissioner (OAIC) — Credit Reporting Privacy Code)
- FAQ:
    - Q: How long after a default can I get a home loan in Australia?
      A: Most specialist and non-bank lenders require 12–24 months of clean conduct after the default has been paid or settled. Some accept applications sooner with a clear written explanation, especially if the default was caused by a one-off event like illness or job loss.
    - Q: Do I have to wait for the default to fall off my credit file?
      A: Defaults stay on your credit file for five years, but most specialist lenders don't wait for them to fall off. They underwrite on current behaviour: clean conduct since the event, savings pattern, and the strength of your current application.
    - Q: Will applying to multiple lenders hurt my credit score?
      A: A formal loan enquiry typically stays on your file for five years and can lower your score a few points. Specialist lenders can pre-qualify you with a soft check before any formal application, which doesn't impact your score.
    - Q: Can I refinance after a default?
      A: Yes. Specialist lenders actively refinance borrowers out of higher-rate mainstream loans after a default, often within 12–24 months of the event being paid. The same underwriting logic applies: current conduct and the strength of the new application matter more than the default itself. A specialist broker can map the panel against your file in 24 hours.
    - Q: Do lenders look at when the default happened or just that it's there?
      A: Both, but the timing matters more than the existence. A default from five years ago with two years of perfect conduct since is a meaningfully stronger file than the same default with a missed repayment last month. Specialists weight the recency and the pattern after the event; banks weight the event itself.
    - Q: How long does a default stay on my credit file in Australia?
      A: Five years from the date it was listed, even after it has been paid. The underlying record is often visible to lenders for longer than the official clear-out period. The only way to see exactly what's on your file is to request your file from each bureau — Equifax, Experian and illion — which is free once a year.

### The real cost of refinancing: 7 questions to ask before you sign

- URL: https://freewaylending.com.au/articles/refinance-real-cost
- Category: Guides
- Published: 2026-08-25 (updated 2026-09-10)
- Reading time: 9 min
- Author: George Popadalis, Principal · Freeway Lending
- Description: Refinancing can save thousands — or cost thousands more than your current loan. Use this checklist before you commit, with the actual cost categories most brokers don't volunteer.
- TL;DR: The headline rate on a refinance rarely reflects the total cost — discharge fees, application fees, valuation, legal, break costs and ongoing fees can add thousands, so the only meaningful comparison is the all-in cost over the life of the loan.
- Tags: refinance, fees, specialist lending, home loans
- Key facts:
    - Discharge fees on mainstream variable home loans in Australia typically range from $0 to $400, but fixed-rate loans can carry early-exit break costs that run into the thousands if refinanced inside the fixed period. (Source: Australian Securities & Investments Commission (ASIC) — MoneySmart, 'Refinancing your home loan')
    - Valuation, legal and settlement fees on a refinance commonly add $500–$2,500 to the upfront cost, and several lenders now bundle or waive these in competitive refinance campaigns. (Source: Reserve Bank of Australia (RBA) — Submission to the Inquiry into the Home Loan Serviceability Measures)
    - Under the National Consumer Credit Protection Act 2009, lenders and brokers must provide full disclosure of fees, charges and comparison rate before a credit contract is signed. Nothing on a refinance quote should be undisclosed at lodgement. (Source: National Consumer Credit Protection Act 2009 (NCCP Act), Section 123 — Disclosure requirements)
- FAQ:
    - Q: What fees should I expect when refinancing?
      A: Common fees include discharge fees on your existing loan ($0–$400+, more on fixed), application fees on the new loan ($0–$1,500), valuation ($0–$600), legal ($300–$1,500), and settlement fees. Always ask for a full fee schedule before committing.
    - Q: Is refinancing worth it for a small rate cut?
      A: Generally no. If the rate saving is under 0.30% and you'll be in the new loan for under three years, the upfront fees usually outweigh the savings. Run a 3-year total cost comparison, not just the monthly payment.
    - Q: Can I refinance if I'm on a fixed rate?
      A: Yes, but you may owe break costs if you exit before the fixed term ends. Break costs are calculated by your lender and disclosed on request. They can be substantial on large balances in a rising-rate environment.
    - Q: How do I compare refinance offers properly?
      A: Three numbers tell you almost everything: (1) all-in upfront cost (discharge + new-loan fees + valuation + legal + settlement); (2) monthly repayment × months held; (3) the sum of those two. Subtract from the equivalent total on your current loan. Always compare on the same remaining term and include the comparison rate, not the headline rate.
    - Q: Does refinancing reset my loan term back to 25 or 30 years?
      A: It can, depending on the lender and the structure you choose. A refinance that drops your monthly payment by extending the term from 25 to 30 years is not a saving — you pay less per month but more total interest. Always ask the lender to write the new loan with your existing remaining term where possible.
    - Q: Can I refinance with bad credit?
      A: Yes, through specialist lenders — that's a major use case. The same underwriting logic as a purchase applies: current conduct, savings pattern and the strength of the new application. Specialist refinance lenders actively price bad-credit files; mainstream banks usually decline.

### Self-employed home loans in Australia: what the banks don't tell you

- URL: https://freewaylending.com.au/articles/self-employed-home-loans
- Category: Education
- Published: 2026-08-12 (updated 2026-09-05)
- Reading time: 8 min
- Author: George Popadalis, Principal · Freeway Lending
- Description: Self-employed borrowers get declined by mainstream banks far more often than employees — but the reason isn't always the obvious one. Here's the underwriting gap, and how specialist lenders actually evaluate your file.
- TL;DR: Mainstream banks decline self-employed applicants far more often than employees because their credit scoring rewards simple PAYG payslips and penalises complex tax returns — specialist lenders underwrite on the actual business, not the algorithm.
- Tags: self-employed, low-doc, specialist lending, home loans
- Key facts:
    - Self-employed borrowers represent roughly one in three Australian workers, but account for a disproportionate share of mainstream home loan declines according to broker channel surveys. (Source: Australian Small Business and Family Enterprise Ombudsman (ASBFEO) — Small Business Matters report)
    - Low-doc and alt-doc loans from specialist lenders commonly accept 6–12 months of BAS, bank statements and a declaration of income in place of full tax returns, with pricing reflecting the reduced documentation. (Source: ASIC MoneySmart — 'Low doc home loans' guidance)
    - Under the National Consumer Credit Protection Act 2009, brokers must conduct thorough assessments of a borrower's requirements, financial situation and objectives before recommending a loan — this is why a specialist broker asking for BAS, accountant letters and trading history is not just paperwork but a legal requirement. (Source: National Consumer Credit Protection Act 2009 (NCCP Act), Section 116 — Responsible lending)
- FAQ:
    - Q: Can I get a home loan with one year of self-employed income?
      A: Yes, through specialist and non-bank lenders. Most mainstream banks want two years of tax returns, but specialist lenders commonly accept 12 months of BAS statements and a signed accountant's letter, sometimes with a small rate loading.
    - Q: Do I need tax returns to get a self-employed home loan?
      A: Not always. Specialist low-doc products can use 6–12 months of BAS statements and bank statements instead of full tax returns. Pricing is usually 0.25%–0.50% higher than a full-doc loan, but the approval pathway is faster.
    - Q: How do specialist lenders assess self-employed income?
      A: They look at the entity's net profit, add back depreciation and one-off expenses, then compare against the loan's assessed serviceability. They also look at the trend — is profit growing, flat, or declining — and the quality of the underlying contracts or recurring revenue.
    - Q: What if I just started my business (less than 12 months)?
      A: This is the hardest file for any lender. Specialist options narrow further: some require 12 months of BAS, others will work with 6 months plus an accountant's projection and a verified pipeline of contracted work. Income strength becomes the deciding factor — a freelancer with confirmed future income may be approved over an established business with no clear trajectory.
    - Q: Is a company or trust structure harder to get approved?
      A: Not necessarily harder, but more documentation-heavy. Lenders assess the entity structure, director guarantees, distribution history and tax positioning. A clean trust with three years of distributions and clear beneficiary arrangements is a stronger file than the same person as a sole trader with the same numbers.
    - Q: Can I use projected or upcoming income to qualify?
      A: Sometimes, through specialist lenders. Confirmed contracted work with a signed letter of engagement, a pending contract with a credible counterparty, or a documented fee pipeline can all support a serviceability assessment. Mainstream banks typically won't accept forward-looking income; specialists will, with evidence.

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