How could new BNPL Regulations Affect Your ability to get a home loan?
From 10 June 2025, significant changes have come into effect for Buy Now, Pay Later (BNPL) services in Australia. Previously BNPL services were able to operate outside the National Consumer Credit Protection (NCCP) Act, but are now subject to the same regulations as credit cards and personal loans.
The changes are designed to enhance consumer protection and ensure responsible lending practices, which is a positive move. However, the changes may also impact your ability to secure a home loan which you need to be aware of.
So, what’s actually changed?
Under the new regulations, BNPL providers are now required to:
Obtain an Australian Credit Licence (ACL): This ensures they adhere to responsible lending obligations.
Conduct Credit Checks: For transactions above $2,000, providers must now conduct a credit check and assess your ability to repay, before offering you credit.
Report repayment information to Credit Bureaus: Some BNPL providers will be required to report account usage and repayment history to your credit file, which will have a direct impact on your credit score.
How Will This Affect You?
BNPL services may impact on Your Credit Score
Previously, BNPL services did not report to credit agencies and therefore couldn’t influence your credit score. Under the new regulations, your repayment history may be reported to credit bureaus, with missing or late payments having a negative impact. For more on how your credit score impacts your ability to secure a home loan here, read here.
BNPL services will have stricter approval processes
BNPL providers must now assess your financial situation before approving transactions over $2,000. So if you’re already managing multiple BNPL services or have a limited income, you may find it more challenging to access BNPL services.
Lenders have increased transparency over your complete financial situation
The inclusion of BNPL data in your credit file promotes greater transparency. Lenders will now have a clearer idea of your complete financial picture, which should lead to better informed lending decisions.
Tips to Manage Your BNPL Usage
If you currently use BNPL services, here are some tips to help you manage your accounts:
Keep Track of Your Commitments: Regularly monitor your BNPL arrangements to ensure you can meet repayment schedules.
See your BNPL account for actually what it is – credit that needs to be paid back on time: Don’t take on more BNPL agreements than you can handle, as it will make it harder to manage the repayments. Missing a payment or making it a little late, may now show up on your credit file and impact your ability to get a loan approved for a property purchase.
Regularly review your credit report: Regularly check your credit report. It’s important you understand how your BNPL usage is being reflected, but you also want to ensure the reporting is accurate.
The new BNPL regulations aim to create a fairer and more transparent lending environment. This is a positive step, especially given how easy it’s been for consumers to secure a BNPL account up until now.
Whilst the BNPL changes may present challenges for some consumers, it shouldn’t be an issue for those who are only taking on BNPL services they can cover and are managing their account responsibly by making their repayments on time.
