Banks are tightening their lending criteria, which means it has become more important than ever to understand how to boost your chances of getting your home loan approved.
As your mortgage broker it is our job to monitor the changing environment and understand how this impacts our clients, which is why we have compiled these useful strategies to give you the best chance of securing a home loan.

1. Check your credit is squeaky clean

Your credit file contains information about your repayment history across a full range of accounts, from credit cards and loans to mobile phones and utilities.
Always check your credit file in advance of a home loan application to see how you look on paper and to take steps to fix up discrepancies or pay off debts.

2. Fill out the application form correctly

It may seem obvious but plenty of application forms are incorrectly or inadequately completed, leading to rejection or processing delays. Not declaring all your debts, for example, may lead to home loan rejection because lenders will find out anyway and penalise you for withholding information. It’s important to give exact and honest answers all the way through the application form, including your address history and spending habits.

3. Demonstrate a reliable income

You need to be able to demonstrate that you can comfortably service the debt and continue to do so in event of an interest rate rise. This means holding off on any career changes because lenders want to see you have a reliable and consistent income via documentation like payslips, group certificates and tax returns. You will also be asked for proof of genuine savings, which often takes the form of bank statements showing regular contributions over a period of several months.

4. Hold off on multiple applications

Submitting applications for several different lenders at once will show on your credit report and is frowned upon by potential lenders. Do your research and decide on which lender you are going to go with before you submit a home loan application.

5. Save a larger deposit

The larger your deposit, the more likely you are to be approved. Although the terms and conditions of each home loan are different, most lenders prefer you not to borrow more than 80% of the value of a property (80% LVR). A larger deposit will also help you avoid paying lenders mortgage insurance (LMI).

Contact us for more details about how your home loan application can be tailored to the criteria of individual lenders. Call us on 1300 652 842.