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

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.