Thinking of getting a novated lease and wondering how it might impact your chances of getting a home loan? You’re not alone. Whether you're house-hunting now or planning ahead, it's smart to know how salary packaging a car could influence your financial profile.
Let’s break it down — credit score, borrowing power, superannuation, and whether a novated lease is worth it for you.
Does a Novated Lease Affect Your Borrowing Capacity?
Yes — a novated lease may affect how much a bank is willing to lend you.
Because a novated lease is a financial commitment paid through your salary, lenders will factor the lease payments into your expenses. This could reduce your borrowing capacity, just like any other regular outgoing (think personal loans or credit cards).
But here’s the flip side: novated leasing could actually improve your cash flow. Since some costs are taken out before tax and bundled into one predictable payment, your take-home pay may go further.
Tip: If you’re applying for a home loan, your lender will ask for your payslips. These will reflect your salary after lease deductions, so it’s important to understand how that affects your overall income assessment.
Does It Affect Your Credit Score?
Yes — a novated lease can impact your credit score.
While the lease agreement is between your employer and the finance provider, you’re still the one applying for the finance, and the credit assessment is based on your individual profile. That means your novated lease will show up on your credit file as a financial enquiry, just like a personal loan or car loan.
Lenders assess this when considering you for a home loan, and it may influence your borrowing capacity. The good news? With reputable providers like Fleetcare, repayments are automated and bundled into your salary deductions — helping you stay on track and avoid late payments that could hurt your credit score.
In short: yes, it’s on your credit file, and yes, it’s factored in. But if you manage repayments responsibly, the impact should be minimal.
Does a Novated Lease Affect Your Superannuation?
Only slightly — and only for the part of your salary used for lease payments.
Because part of your novated lease deductions come out before tax, your employer’s super contributions (which are usually 12% of your ordinary time earnings as of 1 July 2025) may be calculated on the reduced taxable salary.
For most people, the difference is small. And depending on how long you hold the lease, the tax savings often outweigh any minor super reduction.
Do You Need Good Credit for a Novated Lease?
Yes — you’ll still need to meet credit criteria to get approved.
Even though the lease is technically paid by your employer whilst you are employed with the lease, payments come from your salary. The finance provider will assess your credit history as should you leave employment, you must be able to repay the lease factoring all of your other financial commitments.
So… Is It Worth It?
Absolutely — for many Australians, a novated lease could be a smart, tax-effective way to get a car and streamline running costs. While it may have a small impact on borrowing capacity, it’s usually manageable — especially when you factor in the savings and budgeting benefits.
If you're planning a home loan soon, it's worth talking to your financial advisor and crunching the numbers. But in most cases, a novated lease and a home loan can go hand in hand — you just need the right guidance.
Less tax, more predictability — and your dream car in the driveway. That’s a win.
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