Buying a home is a huge milestone — but for many Australians, getting approved for a home loan can feel confusing and stressful. Whether you’re a first home buyer, upsizing your family home, or refinancing, understanding how the approval process works can make the journey smoother and far less overwhelming.

At HR Mortgage & Finance, we believe every Australian deserves clear, practical advice — and a team that genuinely cares about your goals. In this guide, we break down how to get approved for a home loan in Australia, step by step.

Why Does Home Loan Approval Matter?

Before we dive in, it’s worth understanding why lenders care so much about your application. Banks and lenders want to know you can repay what you borrow — comfortably, without putting you under financial strain. So, they assess your income, debts, expenses, and credit history to make sure you’re a safe borrower.

Knowing what lenders look for helps you prepare better, avoid surprises, and get closer to your new home with confidence.

1. Start by Checking Your Credit Score

Your credit score is one of the first things lenders review. It tells them how you’ve handled credit in the past — whether you pay bills on time, how much debt you already have, and if there are any defaults.

A good credit score can help you get approved faster and secure a better interest rate. A poor score might mean your options are more limited — but don’t panic. There are steps you can take to improve it.

How to check it:
You can get a free copy of your credit report from providers like Equifax or illion. Check for mistakes — sometimes old debts or errors appear that can be fixed quickly.

How to improve it:

• Pay bills on time
• Reduce outstanding debts
• Avoid applying for lots of new credit at once
• If needed, talk to our team about credit repair services

2. Save a Healthy Deposit

Generally, the bigger your deposit, the easier it is to get approved. Most Australian lenders like to see at least 20% of the property’s value as your deposit — this helps you avoid paying Lenders Mortgage Insurance (LMI).

Some lenders will accept as little as 5%, especially if you qualify for government schemes like the First Home Guarantee — but remember, a bigger deposit often means better rates and lower repayments.

How to boost your deposit:
Set up a separate savings account just for your deposit, automate your savings, and stick to a clear budget. Small sacrifices now can mean big wins later.

3. Get Your Paperwork Ready Early

Being organised makes a huge difference. When lenders assess your application, they’ll ask for proof of income, expenses, and debts. Having everything ready can speed up approval and show the bank you’re prepared.

Key documents include:

• Recent payslips or proof of income
• Tax returns (if self-employed)
• Bank statements
• Details of existing loans or credit cards
• ID documents

If you’re unsure what you’ll need, our brokers will provide a clear checklist and help you gather it all.

4. Know Your Borrowing Power

Before you start house-hunting, it’s smart to understand what you can realistically borrow. This stops you wasting time looking at properties outside your budget and avoids disappointment down the track.

Use our calculators:
Try our Home Loan Calculator to estimate your borrowing limit and possible repayments. It’s quick and gives you a clear starting point. Check it here.

5. Reduce Existing Debts Where Possible

Lenders consider your current debts when deciding how much you can afford to repay. Big credit card balances, personal loans, or car loans can limit your borrowing capacity.

If possible, pay down debts or close unused credit cards before applying. This shows the lender you’re financially responsible — and may increase how much you can borrow.

6. Avoid Major Changes to Your Finances

When you’re planning to apply for a home loan, try not to make big changes like switching jobs, taking out new loans, or spending large sums of money. Stability is key — lenders prefer to see a steady income and predictable expenses.

7. Consider Using a Mortgage Broker

Getting a home loan approved can be complicated, especially with so many lenders and different rules. That’s where an experienced broker can make a huge difference.

At HR Mortgage & Finance, our brokers:

• Compare loans from over 50 Australian lenders
• Structure your application to highlight your strengths
• Help you understand your options
• Handle paperwork and negotiations
• Guide you through approval, right through to settlement

8. Explore Government Support Options

If you’re a first home buyer, you might be eligible for government schemes like:

• The First Home Guarantee, which lets you buy with as little as a 5% deposit
• The First Home Owner Grant (FHOG) in some states
• Stamp duty concessions for first home buyers

Our team can check your eligibility and help you apply for any grants or guarantees you qualify for.

How We Can Help You Get Approved

Our mission at HR Mortgage & Finance is simple: to take the stress out of securing your home loan and help you move forward with confidence. From your first phone call to getting the keys to your new home, we’re with you every step of the way.

Ready to Buy Your Dream Home?

If you’re ready to take the next step, let’s chat. We’ll help you understand your options, get your application right the first time, and guide you through the whole process.

Contact us today:
Phone: +61 430 199 695
Email: info@hrmortgagefinance.com.au
Website: www.hrmortgagefinance.com.au

Final Thoughts

Getting approved for a home loan in Australia doesn’t have to be a headache. With the right preparation, clear advice, and an experienced team on your side, you can make your home ownership dream a reality — sooner and with less stress.

If you have any questions, we’re here to help. Just reach out — let’s make it happen together.