General information only. This article explains how buy now pay later is regulated and how it can show up in a loan application. It is not financial advice. Correct as at November 2026.
Buy now pay later home loan, the short answer: using BNPL does not stop you getting a home loan, but it can count against you.
Since 10 June 2025, BNPL has been regulated credit, so applying for it can leave a credit enquiry, and lenders may consider your BNPL debts when they assess what you can afford.
How much it matters depends on how many BNPL accounts you have, how much you owe, and whether you have ever missed a payment.
ASIC says that from 10 June 2025, anyone providing BNPL credit must hold an Australian credit licence. BNPL contracts are now regulated under the National Credit Code.
BNPL contracts that meet the low cost credit definition can use modified responsible lending obligations. Those that do not are regulated like other credit contracts. CreditSmart notes providers must also join the Australian Financial Complaints Authority (AFCA).
It can. CreditSmart explains that when a BNPL provider checks whether credit is affordable, it reviews your credit report, which leaves a record called a credit enquiry.
What else appears depends on the provider:
CreditSmart says lenders may consider your BNPL credit when assessing whether you can afford other loans, including home loans. Each lender sets its own policy.
In any buy now pay later home loan application, lenders commonly review recent bank statements, where regular BNPL repayments are easy to see. They may count the commitment as a debt or as part of your living expenses.
Not exactly. BNPL providers now hold credit licences and run credit checks, but CreditSmart notes these checks are less rigorous than those for credit cards or home loans.
For a buy now pay later home loan assessment, the practical point is the same: it is credit, and lenders may count it. Treat each BNPL account the way you would treat a small credit card.
Usually not on its own. A small balance that you pay on time is unlikely to decide your application. The risk grows when there are several accounts, rising balances or missed payments.
Before an Afterpay and home loan application, look at your last three months of statements the way a lender would. If BNPL repayments are frequent, it may raise questions about your spending.
Work through this buy now pay later home loan checklist two to three months before you apply:
Two applicants earn the same income and have the same deposit. The first used one BNPL account, always paid on time and closed it two months before applying. The second has four BNPL accounts, $3,200 owing and one missed payment.
The first application is likely to be straightforward. The second may face more questions about spending and credit conduct, and could be assessed with less borrowing power, depending on lender policy.
It is best not to. A pre-approval is not a final approval, and lenders may check your credit and finances again before formal approval or settlement.
Opening new BNPL accounts for furniture or appliances before settlement adds new credit at the worst time. Wait until after your buy now pay later home loan settles before taking on new commitments.
Do not ignore it. Contact the provider, pay what you owe if you can, and ask for help if you are struggling. CreditSmart says BNPL providers are required to assist customers in financial difficulty.
If a missed payment or default is already on your file, speak with a broker before applying. Our guide to a home loan with bad credit in Perth explains the options.
You can request your credit report free from the credit reporting bodies. Check for BNPL credit enquiries, open BNPL accounts and any repayment history listed.
If something is wrong, such as an account you never opened, contact the credit reporting body and the provider to have it corrected before you apply for a home loan.
These habits can weaken an otherwise strong application:
Lenders compare the living expenses you declare with what your bank statements show. Frequent BNPL repayments for everyday items can make your spending look higher, or less consistent, than you expect.
For a smoother buy now pay later home loan application, keep a few months of steady, predictable spending, and be ready to explain any large BNPL purchases.
It can, because lenders may treat your BNPL commitments as debts or expenses when they test serviceability. Closing unused accounts and clearing balances can help.
Our guide to increasing your borrowing capacity in Perth covers other steps, from credit card limits to timing your application.
We review your buy now pay later home loan position the way a lender would, including BNPL and other credit, before anything is submitted. Then we match you with lenders whose policy suits your situation.
If you are buying your first home, our first home buyer mortgage broker in Perth service can guide you, and a home loan pre-approval in Perth shows your real budget early.
Yes. From 10 June 2025, BNPL providers must hold an Australian credit licence, and BNPL contracts are regulated under the National Credit Code.
Lenders may ask about all your credit, and they may consider BNPL debts when assessing affordability. Disclose every account, as lenders can see credit enquiries and bank statement repayments.
A BNPL credit check leaves a credit enquiry on your report. One enquiry won’t automatically lower your score, but applying for many BNPL services can.
Not yet. CreditSmart says reporting varies by provider, although most other credit providers already report repayment history.
Closing accounts you do not use, and clearing balances, can simplify your application. A broker can tell you how your chosen lender treats BNPL.
Yes, BNPL remains available, but every account is credit. Keeping balances low and paying on time protects your credit history for future refinancing or investment loans.
It can. Frequent missed payments could appear on your credit report, and a default may be reported if you fall far behind. Speak with a broker before applying.
Related Resources from Strawberry Finance:
The information in this article is general in nature and does not take into account your objectives, financial situation or needs. It is not financial advice. Lender policies on buy now pay later differ and may change. Sahil Saini is an authorised Credit Representative (no: 526177) of ratesonline.com.au Pty Ltd (ACN 122 052 582), Australian Credit Licence 384404. Lending is subject to lender credit criteria, terms, conditions and fees. Correct as at November 2026.
