What Lenders Generally Look For (of which can determine whether you are eligible for a home loan):

Genuine savings - First home owners  

  • Do you have at least 3% of the property purchase amount in savings, accummulated over the last 3 months?
  • Can you show bank statements showing savings history?
  • Can you obtain a reference from an Estate Agent regarding you paying rent (amount and on time)
  • Are you eligible for any First Home Owners Grants (FHOG)?

Credit history / Money Management 

  • Do you have any paid or unpaid defaults or judgements on your credit history within the past 7 years?
  • Do you have any arrears on your current loans or credit cards?
  • Do you have any savings?

Loan amount compared to Property Purchase Price (LVR) 

  • What percentage of the property value is the loan amount?

Lender Mortgage Insurance (LMI)

  • Is the loan over 80% of property value?
  • Can the LMI be added on top of the loan amount (up to 97%) or is it included in the total loan amount (up to 95%)?


  • Can you afford the loan according to the Lender's individual loan servicing calculators?
  • Is there anything in the foreseeable future that may reduce your ability to pay a loan without hardship?
  • Level of income

Work History

  • Are you employed?
  • Length of time in current job
  • How often you change jobs

Equity in property 

  • Do you own any other real estate?
  • Are there any loans against it/then?
  • How high is your current loan in relation to the value of your home/property?