Buy now pay later (BNPL): Helpful for Christmas but will it hurt your home loan chances?
You’ve wrapped up the holidays, the decorations may or may not be packed away, and it’s now time to look towards kicking off 2026. If you used services like Afterpay, Zip or other Buy Now Pay Later (BNPL) services to to help spread out the cost of Christmas, you’re not alone.
BNPL can be a handy way to manage purchases but if you’re planning to buy a home, it’s worth knowing how it might influence your borrowing power. Most people don’t realise: even small BNPL purchases can quietly impact your chances of a successful loan application.
Since 10 June 2025, BNPL has been officially treated as a form of credit in Australia. That means every account, and every missed or late payment, can now show up on your credit file and affect your borrowing power. Equifax
📌 Spoiler alert: It’s not all doom and gloom! At the end of this article, we’ll link you to a practical guide with steps to manage BNPL debt and put you in a stronger position for your home loan journey.
🎄 How Christmas spending can snowball
At the checkout, BNPL often feels harmless – a few gifts here, some festive groceries there, maybe a last minute gift for yourself. But lenders don’t just see what you have spent, they see the credit account behind it.
Every BNPL account is now considered a liability. Even if your repayments are up to date, lenders may treat the full limit or outstanding amount as debt. Moneysmart
If your BNPL provider is a licensed credit provider and participates in Comprehensive Credit Reporting (CCR), your repayment history may be reported to credit bureaus. On time payments may positively impact your credit score, while missed repayments may negatively affect it. Experian
Late repayments to some services such as Zip can appear on your credit report, affecting your ability to borrow money. ABC News
🛠 The January reality check
January is a natural time to reset. And if home ownership is on your 2026 radar, now is the perfect moment to assess any short-term credit usage over the holidays.
Multiple BNPL accounts, even with small balances, can suggest a reliance on short-term debt – not ideal when you’re applying for a long-term loan. UNSW Law Journal
📌 Case Study: One BNPL Plan, Real Consequences
Sophia didn’t realise how much her BNPL spending had grown, and when repayments piled up she had to borrow money from her partner just to stay current. Her story shows how BNPL can quietly become a financial burden if left unchecked and why lenders now pay closer attention to it. ABC News
The good news: you can manage it
If you used BNPL over Christmas, you’re not doomed. The key is transparency and action:
- Reduce active BNPL services – fewer accounts signal stronger control.
- Always pay on time – missed repayments hurt more than most people expect.
- Avoid opening new BNPL accounts if a mortgage is on your horizon.
And if it’s all feeling like a bit much? Start with our Debt Reset Guide. It’s designed to help you clear the clutter and get on track without shame or overwhelm.
Your broker can help
At Rayne Finance, we’re here to support your whole journey, not just the loan application process. We help you review your current credit situation, including BNPL, understand what lenders see, and build a plan that reflects your real life and long term goals.
Personalised, nonjudgmental advice is part of what we do and it can make all the difference before you apply.
🎯 Your 2026 goals deserve a clear path
BNPL isn’t the enemy. But when it comes to your mortgage, every account and payment matters. A few small choices in January can shape your options moving forward. If you’re unsure where to begin, our Debt Reset Guide is a great place to start. It walks you through practical steps to tidy up your finances without shame or overwhelm. Or, if you’d prefer personalised support, you can book a free chat with Rebecca for advice that fits your situation.
Licensing statement: Rayne Finance ABN [70 605 100 838] is authorised under LMG Broker Services Pty Ltd Australian Credit Licence 517192. Disclaimer: (1) As with any financial scenario there are risks involved. This information provides an overview or summary only and it should not be considered a comprehensive analysis. You should, before acting in reliance upon this information, seek independent professional lending or taxation advice as appropriate and specific to your objectives, financial circumstances or needs. This publication is provided on the terms and understanding that: (2) LMG Broker Services Pty Ltd, Rayne Finance (Seed Lending Pty Ltd) and the authors, consultants and editors are not responsible for the results of any actions taken on the basis of information in this publication, nor for any error in or omission from this publication. (3) LMG Broker Services Pty Ltd, Rayne Finance (Seed Lending Pty Ltd) and the authors, consultants and editors, expressly disclaim all and any liability and responsibility to the maximum extent permitted by the law to any person, whether a purchaser or reader of this publication or not, in respect of anything, and of the consequences of anything, done or omitted to be done by any such person in reliance, whether wholly or partially, upon the whole or any part of the contents of this publication.
Explore other FAQs and Facts
Is the property downturn already over?
Australia’s property market rebounded swiftly in early 2025, reversing December’s brief price decline. Growing expectations of interest rate cuts have boosted confidence, while constrained housing supply continues to drive long-term price growth. With construction delays and undersupply persisting, the market’s dynamics are shifting toward sustained appreciation, rather than traditional boom-and-bust cycles.
Rates are on the move.
Are you getting the best deal on your mortgage?
The Reserve Bank of Australia’s recent cash rate cut presents an opportunity for homeowners to reassess their mortgage. With rates heading downward, it’s the perfect time to refinance, consolidate debt, or increase repayments to pay off your loan sooner. Take control of your financial future and explore your options now.
How to buy a property when you’re self-employed
Securing a home loan when you’re self-employed can be challenging, as lenders often view your income as less predictable and your financial position more complex. Strengthening your finances with stability and transparency can improve your chances. This article shares practical tips to help you secure better loan options, lower rates, and more lender interest.
The pros and cons of paying for LMI
(lenders mortgage insurance)
Lenders mortgage insurance (LMI) often gets a bad rap, but it can open doors for borrowers with smaller deposits. While LMI adds costs, it enables buyers to enter the property market sooner, potentially avoiding years of savings and rising property prices. Understanding LMI’s role is key to making informed decisions.
How to prepare for buying an investment property
Thinking about buying an investment property in 2025? The key to success starts with making yourself as creditworthy as possible. From increasing savings to understanding loan options and deposit requirements, there’s a lot to consider. Here’s how to set yourself up for a strong start.
2025 Money Moves:
Tips for Homeowners, Buyers, and Business Owners
The new year presents an ideal opportunity to reassess your finances. Whether you’re planning to buy property, managing a home loan, or running a business, there are key actions you can take to improve your financial situation. From enhancing your credit score to exploring refinancing options, small changes can make a big impact.
How the property market looks as we head into 2025
Australia’s property market is shifting, with a clear divide between strong and weak performers. While Brisbane, Perth, and Adelaide see robust growth, Sydney, Melbourne, Canberra, and Hobart face slower gains. As interest rate cuts loom in 2025, understanding regional trends will be essential for buyers and investors alike.
December cash rate on hold: 6 reasons to be optimistic about 2025
The Reserve Bank of Australia has kept the cash rate on hold once again, maintaining its cautious stance. While hopes for a rate cut remain unfulfilled, there are six reasons to stay optimistic, even as inflationary pressures and low productivity continue to shape the RBA’s approach to economic stability.
Australian properties see record profits in 2024
The 2023-24 financial year marked a milestone for Australian property sellers, with 96% of houses sold nationwide yielding a median profit of $326,000. This trend reflects the long-term value growth of homes, with capital cities and regional areas both benefiting from a robust market and rising property prices.
The pros and cons of rentvesting
With housing prices up 37.8% since 2020, many Australians face tough choices between renting in desirable suburbs or buying further from city centres. Rentvesting offers a middle ground—renting where you want to live while investing in an affordable property. This approach can build wealth but requires careful financial planning.