⚠️ Can I Get a Car Loan If My Mortgage Is in Arrears?
Falling behind on mortgage payments can feel stressful — and if you need a new car around the same time, it’s natural to worry how lenders will view your situation.
The truth is: you can still get car finance even if your mortgage is in arrears, but lenders will assess your application more carefully.
Here’s what to expect — and how to put your best foot forward.
🏠 How Lenders View Missed Mortgage Payments
When you apply for car finance, lenders check your overall credit history and financial stability.
If your mortgage is behind, it can raise concerns — but it doesn’t automatically mean rejection.
Lenders look at:
- How far behind your repayments are (e.g., one missed payment vs several months),
- Why the arrears occurred (temporary hardship, job change, refinance delay, etc.), and
- Whether you’re now back on track or working with your bank to catch up.
If your arrears were short-term or already resolved, many lenders will still approve your car loan — especially if the rest of your application is strong.
💡 Why Home Ownership Still Works in Your Favour
Even if you’re behind, being a property owner shows you’ve built real assets and have a long-term financial track record.
Lenders consider that a positive — it means you’ve previously met high approval standards and are invested in maintaining your credit position.
Owning property often gives you access to specialist car finance options designed for applicants with imperfect repayment histories, without needing to wait years to rebuild your score.
🧾 What You’ll Need to Provide
When applying, you won’t need to show your mortgage statements upfront.
Before your car loan settles, your lender may simply verify your ownership using:
- A council rates notice, or
- A land title search confirming your name on the property.
This helps confirm your status as a home owner, even if your mortgage has temporary arrears.
🚗 Tips to Improve Your Car Finance Approval Odds
If your mortgage is behind, you can still strengthen your application by:
- Providing proof of current income stability,
- Showing recent repayments have resumed,
- Reducing credit card limits or other debts, and
- Applying through a lender that specialises in home-owner approvals (not general consumer lenders).
At Finance The Ride, we match you with lenders who understand real-life circumstances — especially those affecting Australian home owners during tough periods.
💬 Final Thoughts
A few missed mortgage payments don’t erase your home-owner status or your ability to get car finance.
As long as you can show stability moving forward, lenders are willing to look at the bigger picture — not just a single credit event.
At Finance The Ride, we work with car finance providers who understand the realities of property ownership, refinancing delays, and temporary arrears — helping you get back on the road faster.
✅ Check Your Eligibility in 20 Seconds
You can apply online — no home loan documents required upfront.
Check your eligibility here or explore your options for bad credit car finance designed for home owners catching up on repayments.
DISCLAIMER
The information provided on this website is general in nature only and has been prepared without considering your financial needs, circumstances and objectives and should NOT be construed as financial, taxation or legal advice. For more information, get in touch with our experienced partner brokers today.
