You’ve saved hard, cut back on weekends out, and built up a decent deposit. Surely that’s enough to get a home loan approval? Not quite. While your deposit is important, lenders look at a whole picture of your finances before giving you the green light.
The good news? Once you know what they’re looking for, you can prepare with confidence and avoid surprises along the way.
Lenders want to see that your income is regular and reliable.
1. Income stability
- PAYG employees: They’ll check payslips and employment history.
- Self-employed: Expect to show tax returns or financials for at least two years.
If you’ve recently changed jobs or work casually, it doesn’t mean you’re out of the running, but it does mean careful presentation of your income matters.
2. Living expenses and cash flow
Your everyday spending habits are just as important as your earnings. Lenders review your bank statements to see how you manage money:
- Do your expenses line up with what you’ve declared?
- Are there discretionary costs that could raise questions?
- Do you have a healthy buffer left over each month?
Showing you live within your means helps prove you can comfortably handle repayments.
3. Existing debts and credit history
From credit cards to car loans, lenders weigh up what you already owe. Even unused credit card limits can reduce your borrowing power.
They’ll also check your credit report for:
- Repayment history
- Defaults or late payments
- Frequency of credit enquiries
A clean, well-managed credit history reassures lenders you’re a low-risk borrower.
4. Loan-to-value ratio (LVR)
Your deposit determines how much of the property value you need to borrow. A lower LVR (say 80% or less) usually means fewer restrictions and potentially lower costs. Higher LVRs may be possible, but they often come with extra conditions.
This is where schemes like the Home Guarantee Scheme or family support can make a big difference - helping you get in sooner without needing a 20% deposit.
5. Genuine savings and buffers
Lenders like to see you’ve built your deposit through consistent savings, not just a one-off gift or windfall. This shows financial discipline.
They’ll also check if you have any extra funds set aside as a safety net.
6. The property itself
Yes, the home matters too. Lenders want to make sure the property is suitable security for the loan. They’ll consider:
- Location and type (some are stricter with apartments or rural properties)
- Valuation (does it stack up to the purchase price?)
- Market demand (is it easy to resell if needed?)
Why personalised guidance matters
Every lender has different rules. Some are flexible with self-employed income, others aren’t. Some are generous with borrowing capacity; others take a conservative view.
That’s why working with an experienced broker makes all the difference. At Mortgage Achievers, we cut through the noise, compare over 40 lenders, and match you with the one that suits your goals and financial story.
✅ Key takeaways
- A deposit is only one part of the puzzle.
- Lenders look at income, expenses, debts, credit history, LVR, savings, and the property itself.
- Each lender has its own rules, so choice and strategy are key.
Feeling unsure about what a lender might say about your application?
👉 Book a free strategy session with Mortgage Achievers today. We’ll review your situation, highlight your options, and give you a clear, confident way forward.
The right preparation today means fewer surprises tomorrow and more confidence when making one of the biggest financial decisions of your life. At Mortgage Achievers, we make home loans streamlined and personal.