Securing a home loan with a less-than-perfect credit history in Victoria is possible, though it typically involves navigating more stringent lending criteria and potentially higher interest rates. As of December 2025, lenders assess risk carefully, and a poor credit rating signals increased risk.
When selling property currently in Melbourne, particularly in the Eastern Suburbs, we observe that buyer finance is a common condition of sale. While a buyer’s credit history doesn’t directly impact a seller, it can influence the length of the sales process. A buyer with pre-approved finance, even with some credit blemishes, will generally proceed more smoothly than one requiring a new loan application. In 2026, we anticipate continued scrutiny from lenders, meaning buyers may need larger deposits or guarantor support. The typical campaign duration for a property in areas like Balwyn or Doncaster is 4-6 weeks, followed by a 30-60 day settlement period. Sellers should be aware that a buyer’s financing falling through is a risk, and a robust sales strategy, including a well-presented property (styling costs typically $2,000-$8,000) and effective marketing ($3,000-$8,000), can attract a wider pool of financially secure buyers. Fletchers’ multi-lingual agents are also adept at navigating the diverse buyer landscape in Melbourne.
Ultimately, while a buyer’s credit situation isn’t within a seller’s control, understanding the current lending environment and preparing a desirable property are key to a successful sale in the Melbourne market.