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Boosting your chances of a home loan approval

Saved a deposit for a property? Before applying for a home loan make sure your paperwork is organised and ensure your finances have a clean bill of health.


Saved a deposit for a property? Before applying for a home loan make sure your paperwork is organised and ensure your finances have a clean bill of health.

To assess your borrow power, lenders will require information about your financial history and current financial position. Documents required include evidence of consistent employment with documentation detailing your income, living expenses, assets and liabilities, such as credit card debt and other loans.

  • Healthy credit file? If you have blemishes in your credit history (such as unpaid bills and rejected loan applications), do your best to resolve them with the relevant credit provider before you apply for a home loan.
  • Clean bank statements? Evidence should be provided to support your loan application if there are unusual withdrawals or transfers, such as the transfer of large sums of money to/from your account/s.
  • Reduce existing debt: Try to reduce your level of debt, such as car and other personal loans, credit and store cards, HECS and so on. Did you know that a $10,000 credit card debt can lower your borrowing capacity on a home loan by around $40,000?
  • Consistent employment and evidence of savings: Lenders want to see a consistent employment record and evidence of genuine savings for a period of three months, and in some cases up to six months. Some lenders take into consideration regular rental repayments as evidence of savings. However, every lender's requirements are different, so a qualified mortgage broker can provide you with the timeliest information.

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