Home Loan Approval: 7 Key Things Lenders Check Before Saying Yes
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Getting home loan approval in North Brisbane isn’t just about filling out forms and hoping for the best. Lenders take a close look at several key aspects of your finances before giving the green light. Whether you're a first-time buyer or upgrading your current home, understanding what banks and lenders evaluate can save time, stress, and even help you secure a better rate.
In this guide, we’ll walk you through seven crucial things lenders check before approving your mortgage application.
Ready to improve your chances? Let’s dive into what really matters when it comes to home loan approval.
1. Credit History and Credit Score
One of the first things lenders check is your credit history. Your credit report shows how you've managed past debts, such as credit cards, personal loans, or car finance. In Australia, credit scores typically range between 0 and 1,200. A score above 700 is generally considered good.
If your score is lower, it may not mean an outright rejection, but lenders may offer a smaller loan amount or a higher interest rate.
Tips to improve your credit score:
- Pay your bills on time
- Keep credit card balances low
- Avoid applying for multiple loans within a short time
Lenders in North Brisbane are likely to use credit data from agencies like Equifax or illion. Knowing where you stand can help you prepare before applying.
2. Employment and Income Stability
Your ability to repay the loan is a top concern. That’s why lenders want to see stable employment and consistent income.
Typically, you’ll need to show:
- At least 3–6 months in your current job
- Full-time or regular part-time income
- Payslips, bank statements, and possibly your tax returns
Self-employed? You may need to provide business tax returns and BAS statements for the last two years. Lenders want proof that your income is ongoing and reliable.
3. Existing Debts and Liabilities
Your current financial obligations can make or break your home loan approval. Lenders calculate your debt-to-income ratio to assess how much additional debt you can handle.
Liabilities they’ll look at include:
- Credit cards (even unused ones with high limits)
- Car loans or leases
- Personal loans
- Buy now, pay later accounts
Reducing your existing debts, or even closing unused credit cards, can increase your borrowing power and approval odds.
4. Savings and Deposit Size
Your deposit is a clear sign of your financial discipline. Lenders generally require a minimum deposit of 5–20% of the property’s value.
Having genuine savings, money you've gradually saved over time, is viewed more favourably than lump-sum gifts or windfalls. Plus, if you can provide a larger deposit, you may avoid Lenders Mortgage Insurance (LMI) and score a lower interest rate.
Some ways to strengthen your savings:
- Set up an automatic savings plan
- Reduce discretionary spending
- Use government schemes like the First Home Super Saver Scheme
5. Living Expenses and Budget
Lenders want to see that you can comfortably afford your loan repayments while managing your day-to-day expenses.
You'll need to provide details of:
- Household bills
- Transport costs
- Groceries and lifestyle expenses
- Education and childcare costs
They use this to calculate your serviceability. Basically, can you repay the loan without financial stress? Make sure to track and categorise your spending accurately for at least three months before applying.
6. Property Value and Location
Believe it or not, lenders care just as much about the property as they do about you. The home acts as security for the loan, so if it doesn’t meet their criteria, your approval may be delayed or denied.
They'll look at:
- The property’s market value via a valuation
- Location (properties in high-growth areas are preferred)
- Zoning and land size
- Type of dwelling (some lenders are cautious with tiny apartments or rural properties)
In North Brisbane, properties in growing suburbs like Kedron, Chermside, and Everton Park tend to be more favourable for lenders.
7. Loan Type and Application Details
Lastly, lenders examine the type of loan you're applying for and the accuracy of your application.
Are you applying for:
- A fixed or variable rate?
- An interest-only or principal & interest loan?
- A standard home loan or low-doc loan?
They also cross-check your documents for consistency and completeness. Incomplete forms or errors can delay your home loan approval significantly.
Pro tip: Work with a qualified mortgage broker to get your paperwork right the first time.
Other Factors That May Influence Loan Approval
While the seven main checks are crucial, lenders may also consider:
- Number of dependants
- Marital status
- Use of government grants or schemes
- Recent changes to lending policies or interest rates
Every lender is different. That’s why working with a local expert who understands the North Brisbane market can give you an edge.
FAQs
What credit score is needed for home loan approval in Australia?
Most lenders prefer a score above 700, but some may consider applicants with lower scores depending on other factors.
How much deposit do I need for a home loan in North Brisbane?
A deposit of at least 5–20% is standard. A 20% deposit helps you avoid Lenders Mortgage Insurance.
Can I get a home loan if I’m self-employed?
Yes, but you’ll need to provide extra documents like tax returns and BAS statements to prove income stability.
How long does home loan approval take?
On average, it takes 5 to 10 business days. However, it can vary depending on the lender and the completeness of your application.
Will my credit card affect my home loan application?
Yes. Even unused cards with high limits count as liabilities, so they can reduce your borrowing capacity.
What expenses do banks check when assessing my application?
Lenders check monthly living costs like rent, bills, transport, food, and childcare to assess serviceability.
Can a mortgage broker help me get approved faster?
Absolutely. Brokers streamline the process, recommend suitable lenders, and help prepare a complete, error-free application.
Final Thoughts
Getting your home loan approval in North Brisbane doesn’t have to feel overwhelming. When you understand what lenders are looking for, from your credit score to your spending habits, you can present a stronger application.

If you're ready to buy or refinance and want expert guidance through the process, the team at Kelly Brothers Finance is here to help. As trusted North Brisbane mortgage brokers, we’ve helped hundreds of clients secure the best home loan deals tailored to their unique situations.
Visit www.kellybrothersfinance.com.au or call us on 07 3847 9450 to get started today. Let's take the stress out of the mortgage journey and bring you one step closer to your dream home.