Can a hardship flag stop a home loan?

A hardship marker does not, by itself, mean you missed an agreed repayment. Credit reporting bodies cannot use the marker to calculate your credit score. A lender can still consider the arrangement when assessing a new loan, even though your report does not say why you needed help.

Keep the arrangement letter with your credit report. Together, they explain what the marker means and which payments you were required to make.

Speak to your current lender early. If payments are falling behind, its hardship team is the first call to make. A refinance may help later, but a new lender still needs to see that you can afford the repayments. For free, independent financial counselling, call the National Debt Helpline on 1800 007 007.

• What payment is due during the arrangement, and on which dates?
• Does interest continue, and how will any unpaid amounts be dealt with?
• What will the repayment and remaining loan term be afterwards?
• Is the change temporary or permanent, and how will it appear on the credit report?

Ask for the agreed terms in writing. A payment pause can give you some breathing room now, but leave you with a larger balance or higher repayments afterwards. If you can't see how you'll manage that later payment, tell the hardship team before the arrangement ends.

The mortgage default guide explains what to do if you're behind on repayments. Here, I explain what the hardship arrangement means for your credit report and your next application.

Get the dates and outcome in writing. I want to see when normal payments restarted, or whether you paid off and closed the account. Then I'll check for any missed payments or defaults alongside the hardship marker.

A hardship marker can be easy to miss because it sits beside the payment record. You can be up to date under the agreed arrangement and still have a marker. A default is a separate listing, and hardship does not mean you were bankrupt.

An A marks each repayment covered by a temporary arrangement, such as reduced or paused payments. A V marks the start of a permanent change to your repayments. These markers record the arrangement; they do not mean you broke it.

Get your Equifax and Experian reports, including the one the lender used. They may show different information or update at different times, as Kate found. A score on an app won't show you everything I need to check.

See our credit-report guide for the other fields lenders can see.

Each A drops off a year after the affected repayment, so the last one can remain until a year after the final repayment under the arrangement. A V drops off a year after the arrangement starts. A lender may also want evidence that you can meet the repayments now, even before the marker leaves your report.

The OAIC hardship-report guide explains the A and V markers. Keep both the report and the lender's arrangement letter when checking the dates.

The same hardship history can lead to different answers. I check whether the arrangement is current, what you must repay now and how you have managed those payments. Then I compare the lenders that may accept that history.

Lender rules checked 8 October 2026 against Bluestone's online credit policy (updated 10 November 2025) and Macquarie's credit guidelines (version 14.1, updated 10 September 2026).

Our Macquarie guide explains its home loans. Before applying, I check its current requirements against your arrangement and repayment history.

If you compare a refinance, use the same remaining term for both loans. Include switching costs and check the balance you would still owe at the end of the comparison. A smaller monthly payment alone does not show that switching saves money.

If you're thinking about rolling debts into your home loan, read debt consolidation home loans first.

Ask the provider or credit reporting body to check it. Corrections are free. Send the statements and letters that show what's wrong. If you can't resolve it with them, AFCA or the OAIC may be able to help, depending on the complaint.

A hardship indicator may be the obvious issue, but it is not always the only reason an application stops. I also check current card limits, buy now pay later accounts, recent enquiries, living expenses, employment changes and the property.

I check these together so you do not fix the hardship issue and then get stopped by something else. A large card limit or income the lender cannot fully count can still reduce what you can borrow.

Keep it short. State when the temporary problem started, what arrangement was agreed, when it ended and what the account has done since. Attach the completion or closure evidence. If the problem was reduced income, explain the current income details without turning the letter into a long personal history.

Our explanation-letter examples can help with the layout. If it followed a relationship breakdown, our separation and credit-file guide explains why joint loans need separate attention.

Check that the dates in your explanation match the letters and statements. A simple timeline is easier to follow than an account with gaps or conflicting dates.

Client examples are based on real situations. Names and identifying details have been changed.