Applying for a mortgage application is a major milestone—but it can also feel overwhelming. Whether you’re a first-time buyer or refinancing your current loan, understanding what lenders actually assess can make the difference between approval and disappointment. At Glass Financial, we believe in transparency in lending, so here’s exactly what you need to know—and what you can do to boost your chances of getting approved faster.
How the Mortgage Application and Approval Process Works
When you submit a home loan application, lenders go through a checklist of risk indicators to determine if you’re a suitable borrower. This process usually involves:
- Verifying your identity and employment
- Checking your credit history
- Assessing your income and expenses
- Calculating your borrowing capacity
- Reviewing the property you want to buy
Each lender has slightly different policies, but the core criteria remain the same. Learn more about the official mortgage application process in Australia. Understanding how they evaluate these areas helps you present a stronger application from the start.
What Lenders Really Looking at Your Mortgage Application
Credit Score & History
A clean credit report is key. Most lenders want to see a score of 600 or above, though some products allow more flexibility. Missed payments, defaults, or frequent credit inquiries can hurt your chances.
Stable Income & Employment
Full-time or long-term part-time employment is generally preferred. If you’re self-employed, lenders will want to see at least 1–2 years of financials (but don’t worry—Glass Financial specialises in self-employed borrowers too).
Living Expenses & Debts
Lenders compare your income to your current debts and living costs to determine “serviceability.” If your expenses are too high relative to your income, they may suggest a smaller loan amount—or decline the application entirely.
Genuine Savings
Most lenders want to see evidence of disciplined saving. Typically, they look for at least 5% of the property value saved over 3–6 months.
Strengthen Your Application with These Tips
Want to fast-track your approval? Here’s what you can do:
- Check your credit report before applying. Fix any errors early.
- Avoid large new debts like car loans or Afterpay accounts.
- Keep spending stable in the months leading up to your application.
- Have your documents ready: payslips, bank statements, ID, and tax returns if needed.
- Work with a broker who can match you with the right lender for your situation.
First-Time Buyer? Here’s What You Should Know
Many first-time buyers don’t realise that even small mistakes—like applying for credit during the process or switching jobs—can delay or derail approval. Consider getting pre-approved so you know what you can afford before you start house hunting.
Also, ask about low-deposit options and government incentives like the First Home Guarantee. At Glass Financial, we can help you navigate these opportunities without the stress.
Broker or Bank: What’s Better for Approval?
Going directly to a bank limits you to their products and policies. But working with a broker—especially one that takes a personalised approach like Glass Financial—opens the door to dozens of lenders and hundreds of loan options.
We don’t just plug your info into a system. We assess your situation personally, recommend the best-fit products, and guide you through every step.
Final Thoughts
Lenders want to say “yes”—but only when your application shows you’re financially ready. Understanding what they look for and how to present your best self is key. Whether you’re a seasoned investor or first-time buyer, the right guidance can make all the difference.
Need Help Navigating the Home Loan Maze?
At Glass Financial, we make financing clear, personal, and fast. No bots. No generic advice. Just real humans, helping you get the loan you deserve.
Start your home loan journey with Glass Financial today
Or give us a call for a free consultation—because your financial future deserves transparency.
