A variable rate home loan means the interest rate can change over time based on market conditions.
A fixed-rate home loan locks in your interest rate for a set period, typically 1–5 years.
A split loan allows you to divide your mortgage into both fixed and variable portions.
With an interest-only loan, you only pay the interest for a set period (typically 1–5 years), after which principal and interest payments commence.
Low-doc loans are designed for self-employed individuals who may not have traditional proof of income like payslips.
A construction loan is designed for borrowers building a new home. It provides funds in stages as the construction progresses.
A good credit score increases your chances of approval and securing a competitive interest rate. Lenders typically prefer a credit score of 600 or higher.
Lenders assess your income to ensure you can meet loan repayments. Full-time employees, part-time workers, and self-employed individuals must provide income proof through payslips, tax returns, or bank statements.
Most lenders require a minimum 5–20% deposit. A Loan-to-Value Ratio (LVR) above 80% may require Lenders Mortgage Insurance (LMI).
Lenders examine your existing debts, including credit cards and personal loans, to assess repayment capacity.
• Full-time/Permanent employees – Easier approval due to stable income. • Casual/Contract workers – Require a strong employment history. • Self-employed – Must provide additional financial documents.
Many lenders require evidence of genuine savings, typically at least 5% of the property value, held for at least three months.
Applicants must be over 18 years old and either an Australian citizen or permanent resident. Temporary visa holders may face additional restrictions.
Step 1
Determine Your BudgetUse a home loan calculator to estimate how much you can borrow and your monthly repayments.
Step 2
Get Pre-ApprovalA home loan pre-approval gives you a clear idea of your borrowing capacity before house hunting. It typically lasts 3–6 months.
Step 3
Gather Required DocumentsLenders require:
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✅ Identification (passport, driver’s license)
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✅ Income proof (payslips, tax returns)
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✅ Bank statements (savings and liabilities)
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✅ Credit report
Step 4
Compare Lenders and Loan ProductsChoose a loan product that best suits your financial situation.
Step 5
Submit Your Loan ApplicationOnce you choose a lender, your application will be formally submitted for approval.
Step 6
Loan Assessment and ApprovalThe lender will assess your application, verify documents, and conduct a property valuation.
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✅ Conditional Approval – The lender agrees to lend subject to conditions.
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✅ Unconditional Approval – Full approval is granted.
Step 7
Loan Offer and SettlementOnce approved, you will receive a loan contract to review and sign. The lender then settles the loan, and funds are released to purchase the property.
