The Canberra Times

Ways to improve your chances of getting a home loan

Ways to improve your chances of getting a home loan
Ways to improve your chances of getting a home loan

This is sponsored content for Clarity Financial Mortgage Brokers.

For most Australians, getting approved for a home loan is a challenging process since it requires strict credit conditions that need to be fulfilled.

There are a variety of factors that will probably determine your eligibility for a home loan, including the atmosphere of caution you'll feel from the lenders.

If you're an Aussie who wants to have a home loan, here are a few ways to improve your chances.

1. Show your ability to repay your loan

One of the best ways to convince lenders to approve your home loan is to show them your ability to repay it.

You can do that by allowing them to check your financial commitments, including your current living expenses.

If they see that you can perfectly manage your expenses, or put some money in savings, you may have a higher possibility of getting your loan approved.

As long as you can prove your capacity to repay your loan on time, you're good to go.

2. Check and improve your credit score

Before you apply for a loan, it's essential that you review your credit score, so you'll know your current standing.

By doing it, you'll figure out your chances of getting accepted or rejected.

If you're not good at analyzing your credit scores, ask help from a financial advisor, or a debt advisor, for financial advice.

These professionals will be able to tell you what you should do with your credit score to get approved for a home loan.

However, if your advisor tells you that your credit score needs an overhaul, the next big thing to do is to improve it.

Doing so can give you a higher chance of acceptance.

To start working on your credit score, pay off as many debts as you can.

Once all of them are cleared, that's a good sign of improvement for your credit score standing.

Moreover, it's also imperative to see if your credit report has errors and discrepancies.

Besides, mistakes may happen, and without your intention, it may unnecessarily harm your score.

Lastly, you can also reach out to your creditors to minimise your worries.

3. Figure out what kind of home loan you want

In Australia, home loans come in different shapes and sizes. Hence, it's best that you know what kind of home loan you want to apply.

The type of loan you want can also become a factor for lenders on whether they approve or reject your application.

For example, if you're uncertain if you can prove your ability to meet loan repayments, then don't go for a home loan in which you can see a potential increase in interest.

4. Find a broker

Now that you've decided on the type of home loan you'll want to get, the next step is to find the best deals that can help you save money in the long run.

Get started by applying through a broker to increase your chances of getting an approval.

Using a broker's knowledge and expertise, you'll be able to find a home loan that's more likely to accept your application.

If you're looking for an expert mortgage broking service in Australia, professionals, like the Clarity Home Loans, are there to help you with your home loan application.

5. Show that you have a good savings history

Being able to handle your expenses while saving money can boost your chances of getting accepted for a home loan.

If you have a savings history, you'll be able to show your lender that you've set aside some money to be used for paying your debts.

Also, your savings serve as proof of your ability to fulfill your loan repayments.

However, establishing a good savings history isn't really a walk in the park.

If you want the approval of your lender, putting up a more substantial bank deposit of savings can be a great idea.

That way, they'll know you're capable of meeting the standard savings requirements of several banks.

Ways to improve your chances of getting a home loan
Ways to improve your chances of getting a home loan

6. Refrain from having unnecessary financial commitments

Too many personal debts and financial commitments can affect your home loan application.

If you've applied for several mortgages, your lender may conduct inquiries on your credit report.

Unfortunately, too many investigations can be harmful to your credit profile.

In addition, transactions using store cards, credit cards, and other loans signify that you have less cash to pay your new loan.

Thus, if you want a positive response for your loan application, cut down on unnecessary financial commitments as early as possible.

7. Have a stable employment

Again, getting accepted for a home loan isn't an easy thing.

You have to show your lender that you're credible enough to fulfill your loan repayments.

One way to do it is to have a stable source of income. Make sure you have a permanent job within a few months leading up to the application.

This way, you'll not have a hard time getting approval.

8. Don't submit applications to many lenders

Typically, comparing lenders can be crucial to your home loan application.

However, applying with too many lenders can be detrimental because it may appear all at the same time on your credit report.

To avoid complications, be sure you've done your research first before you can finally submit an application to your chosen lender.

9. Prepare necessary documents

Before you begin your application, it's essential to prepare all your necessary documents.

These may include different forms of identification, history of earnings, proof of current address, and proof of employment.

By going there prepared, you can ensure that the process will run smoothly without any issues, getting you closer to having your own home.


Getting accepted for a home loan in Australia can be a daunting experience, especially if you have to work on different factors.

From finding a mortgage lender to preparing all the paperwork, there are many things to take into consideration.

If followed though, these nine tips will increase your chance of being approved.

This is sponsored content for Clarity Financial Mortgage Brokers.