Afterpay Users Advised to Close Accounts to Secure Mortgages

The surge in BNPL usage during the COVID-19 pandemic, driven by flexible, interest-free payment options, has led to increased competition in the financial services sector. Traditional banks perceive BNPL services as potential risks, prompting them to position conventional credit products more favorably.

Despite BNPL users demonstrating credit scores and repayment records comparable to those of credit card holders, a perception persists that BNPL users are riskier. This has led to instances where individuals are advised to discontinue BNPL services to improve their mortgage eligibility.

In response to these developments, new regulations effective from June 10, 2025, mandate credit checks for BNPL users, aiming to enhance credit transparency and consumer protection.

For consumers, this situation underscores the importance of understanding how different financial products can impact creditworthiness and loan eligibility. It's crucial to consider the broader implications of using BNPL services, especially when planning significant financial commitments like purchasing a home.

At Internet Loans Australia, we are committed to providing our clients with comprehensive information to navigate the evolving financial landscape effectively. We encourage you to reach out for personalized advice tailored to your financial goals.