For many Australians, using a credit card for everyday expenses is a smart way to earn rewards points, manage cash flow, and track spending. So, it’s no surprise that some homeowners wonder: “Can I pay my mortgage with a credit card?”

The short answer is — not directly. Most lenders in Australia do not accept credit card payments for mortgage repayments. But there are workarounds. In this article, we explore how it can be done, the pros and cons, and whether it's a smart financial move.

Why Don't Lenders Accept Credit Cards for Mortgage Payments?

Australian lenders typically only accept repayments through direct debit, BPAY, or bank transfers. Credit cards are not accepted primarily due to:

[if !supportLists]· [endif]Transaction fees incurred by lenders

[if !supportLists]· [endif]Risk of consumer debt stacking high-interest debt on top of secured home loans

[if !supportLists]· [endif]Compliance and regulatory concerns

3 Workarounds to Pay Your Mortgage Using a Credit Card

While lenders don’t allow it directly, some alternative methods exist — each with their own pros and cons.

1. Third-Party Bill Payment Services

Platforms like B2Bpay (Australia) or Sniip allow you to pay bills using your credit card. They act as intermediaries, accepting the card payment and forwarding funds to your lender via bank transfer or BPAY.

[if !supportLists]· [endif]✅ Pros: You can earn credit card reward points or extend cash flow.

[if !supportLists]· [endif]⚠️ Cons: Service fees usually apply (~1.5%–2.5%), and not all mortgage accounts are eligible.

2. Cash Advance or Credit Card Cheques

You could withdraw cash or use a credit card cheque to pay your mortgage. However, this method is rarely recommended.

[if !supportLists]· [endif]⚠️ Cons: High interest rates (often 20%+), no interest-free period, additional cash advance fees.

3. Balance Transfer Offers to Bank Accounts

Some credit card providers allow you to transfer a portion of your credit limit directly into a bank account, often as part of a promotional 0% balance transfer offer.

[if !supportLists]· [endif]✅ Pros: Temporary interest-free period (e.g. 12–18 months).

[if !supportLists]· [endif]⚠️ Cons: Balance must be repaid within the offer period to avoid backdated interest.

Is It a Good Idea?

✅ Potential Benefits

[if !supportLists]· [endif]Earn frequent flyer or rewards points

[if !supportLists]· [endif]Help with short-term cash flow

[if !supportLists]· [endif]Extend your interest-free period (if using specific balance transfer offers)

❌ Major Drawbacks

[if !supportLists]· [endif]High transaction or service fees

[if !supportLists]· [endif]Risk of credit card debt compounding

[if !supportLists]· [endif]No interest-free days if treated as a cash advance

[if !supportLists]· [endif]Could affect your credit score and borrowing capacity

Smarter Alternatives to Consider

Before going down the credit card route, explore more sustainable ways to manage your mortgage repayments:

[if !supportLists]· [endif]Refinance your home loan to access a lower rate

[if !supportLists]· [endif]Use an offset or redraw facility for short-term cash needs

[if !supportLists]· [endif]Speak to a broker to explore flexible repayment structures

[if !supportLists]· [endif]Review your overall debt strategy to avoid high-interest liabilities

Final Thoughts

While it is technically possible to pay your mortgage with a credit card through third-party services or indirect methods, it’s often not financially sound for most borrowers. Between the fees, interest rates, and risks to your credit health, the costs often outweigh the benefits.

If you're looking to better manage your mortgage, refinance to a better rate, or explore flexible lending options, our team at Efficient Capital is here to help. Contact us today for expert guidance tailored to your financial goals.

Need expert mortgage advice?
📞 Call us or visit efficientcapital.com.au to book a free consultation.

Can You Really Pay Your Mortgage Using a Credit Card? Here’s the Truth