How to Apply for a Mortgage: A Step-by-Step Guide

In Brisbane, Queensland, the property market is seeing steady growth, with median house prices reaching $787,000 and units around $520,000 in 2025. For homebuyers and property investors, navigating this landscape effectively hinges on one key step: knowing how to apply for a mortgage.

A solid mortgage can be the difference between landing your dream home or missing out altogether.

If you’re planning to buy a home or invest in Brisbane’s dynamic market, this guide is here to help. This article will cover the mortgage application process, from preparation to approval, along with tips to strengthen your borrowing capacity. 

Let’s jump right in. 

Need help applying for your mortgage? Chat with Kelly Brothers Finance, trusted Brisbane mortgage brokers ready to make the process simple and stress-free. Visit kellybrothersfinance.com.au or call (07) 3847 9450 today.

Steps to Apply for a Mortgage

Let’s break down how to apply for a mortgage. Each stage matters, so knowing what to expect can make the whole process smoother and less stressful.

1. Check and Improve Your Credit Score

Your credit score is your lender’s first impression of you. Lenders want to see a solid credit report, ideally over 600 for most loan options. A healthy score tells them you’re likely to make your regular repayments on time. If you’ve got credit card debts or personal loans, paying them down can make a big difference in your mortgage approval.

Tip: Order your free credit report through Equifax or My Credit File and check for errors that could affect your score.

2. Save for a House Deposit

Saving for a house deposit is crucial. In Queensland, lenders generally expect a 20% deposit (plus extra for fees like stamp duty). Lower deposits may require Lenders Mortgage Insurance (LMI), which adds to your monthly repayments. The bigger your deposit, the better your loan interest rate and borrowing power.

Tip: Set up an offset account to help build genuine savings and boost your borrowing capacity. This can reduce the interest paid over time and help you reach your savings goal faster.

3. Understand Your Borrowing Power

Use a mortgage calculator to see how much you can afford based on your income and debts. It’s an easy way to estimate your maximum loan amount and monthly repayments. Knowing your borrowing power helps you avoid disappointment later.

Remember, banks look at your monthly repayments to ensure you’re not overstretched and can comfortably manage the loan over time.

Tip: Check your borrowing power here with   free online calculators from Kelly Brothers Finance.

4. Explore Loan Types and Options

There are plenty of loan options, like variable-rate loans, fixed-rate loans, construction loans, or investment property loans. Each loan type has its own features, so it’s worth understanding how they align with your financial goals. 

Also, check out government grants (like Queensland’s First Home Owner Grant) if you’re eligible. A broker can help you compare these options and choose the right loan for your individual circumstances.

Tip: Keep an eye on loan interest rates and features like extra repayments and offset arrangements to save money over time.

5. Work with a Mortgage Broker

A good mortgage broker with local expertise, such as the team at Kelly Brothers Finance, can help you find the right loan product that fits your financial circumstances. They’ll explain eligibility criteria, loan features, and walk you through the process step by step. 

Brokers can also negotiate better rates or find loan options you may not have considered. Plus, they take the stress out of navigating the loan application maze, giving you peace of mind.

Tip: Book time with a broker early on to identify any roadblocks and tailor your loan options.

6. Consider Lenders Mortgage Insurance (LMI)

If your deposit is under 20%, most lenders will require Lenders Mortgage Insurance (LMI). LMI protects the lender (not you) if you default on the loan, giving them a safety net. It’s a one-off premium that’s added to your loan balance or paid upfront.

While it can help you buy with a smaller deposit, it does increase the total cost of your mortgage.

Tip: If possible, aim for a 20% deposit to avoid this extra cost. It can also strengthen your borrowing power and make your mortgage more manageable in the long run.

If you’re a homebuyer or property investor, get the right loan option and expert support from trusted Brisbane mortgage brokers at Kelly Brothers Finance. Call (07) 3847 9450 or visit kellybrothersfinance.com.au to get started.

7. Get Pre-Approval (Conditional Approval)

Pre-approval means your lender has done a preliminary check of your loan application. It’s based on your credit history, income, and savings to give you an idea of how much you can borrow. Pre-approval usually lasts 3-6 months and makes house hunting easier because you’ll know your budget. It also shows sellers you’re serious and ready to make an offer.

Tip: Always ask your lender what documents they need upfront to avoid delays later. Checking your pre-approval expiry date helps you plan your house-hunting period more effectively.

8. Gather Your Documents

You’ll need to provide documents like payslips, months of bank statements, tax return, and proof of savings. For business owners, lenders will also want to see financial statements, profit and loss summaries, and sometimes BAS statements. 

Having these ready speeds up the process and shows you’re a well-prepared borrower. This paperwork tells the lender everything they need to know about your financial health and ability to repay the loan.

Tip: Double-check all your documents to make sure they’re up to date and complete. Keeping digital copies handy can help you share them quickly with your broker or lender.

9. Submit Your Mortgage Application

Time to formally apply with your chosen lender. Submit your loan application form along with your financial details and credit check results. Pay any application fee, if required, and make sure you’ve ticked off every document in the checklist. 

This step is where all your preparation pays off, so stay organised and responsive to any requests for extra information.

Tip: Keep a copy of your entire application for your own records. Make sure your contact details are up to date so the lender can reach you quickly if needed.

10. Assessment and Final Approval

The lender’s credit team will review everything, credit history, documents, and financial commitments. This process ensures you meet their lending criteria and can handle the loan repayments over time. 

Once they’re satisfied, they’ll issue you an unconditional approval letter, which is your final green light. This step can take anywhere from one to three weeks, depending on how quickly you provide all the necessary paperwork.

Tip: Stay in touch with your lender during this period and respond promptly to any queries. This keeps the process moving smoothly and reduces the risk of delays.

11. Finalise the Loan and Settlement

After final approval, you’ll sign the loan contract and prepare for settlement. Your solicitor or conveyancer will handle the legal side, including transferring property ownership and ensuring all documents are in order. 

At the time of settlement, the lender releases loan funds to the seller and you officially become the property owner. This is the final stage of the buying process, where all your hard work comes together.

Tip:  Review the loan contract carefully with your solicitor or broker before signing. They can help you understand the fees and loan features to avoid any surprises later.

Applying for a mortgage? Let Brisbane mortgage brokers at Kelly Brothers Finance guide you through the process, find the best rates, and take the hassle out of home loans. Visitkellybrothersfinance.com.au or call (07) 3847 9450 today.

Frequently Asked Questions (FAQs)

What are the steps for a mortgage?

The loan application process starts with checking your credit score, saving for the minimum deposit, and gathering proof of income and loan documents. From there, you’ll submit your loan application, work with loan experts to choose your repayment type and loan term, and finalise the settlement of your residential property.

What does a person need to qualify for a mortgage?

You’ll need a stable income, a good credit history with no borrower defaults, and to meet the minimum loan size and lending criteria set by the loan lenders. Using a power calculator can also help you understand your borrowing capacity and how much you can afford for mortgage repayments.

What salary do you need for a $500,000 mortgage?

The required salary depends on the purchase price and repayment type, but generally, you’d need regular income of at least $85,000 to $100,000 annually for loan approvals on a principal loan of $500,000. Expert mortgage brokers can provide professional advice and compare eligible home loans from a wide range of lenders.

How much deposit do you need for a $300,000 house in Australia?

The minimum deposit is typically 20% of the purchase price, so for a $300,000 house, you’d need $60,000 as a deposit to avoid LMI. If you can’t meet the minimum deposit, you may face additional repayments in the form of Lenders Mortgage Insurance.

What are the fees involved when applying for a mortgage?

You may encounter an application fee, legal advice fees, government fees like stamp duty, and a comparison rate to help you assess true loan costs. For investment home loans or residential loans, the loan process can also include charges like valuation fees and additional repayments for flexibility over the loan term.

Final Thoughts

Applying for a mortgage in 2025 might feel like a big step, but the right support can make it so much smoother, especially in today’s competitive market. 

At Kelly Brothers Finance, we’re based in North Brisbane, serving the wider Brisbane community with trusted home loan and mortgage broker services. We’ll sort through a wide range of loan options, keep your paperwork on track, and make sure you’re in the best spot to move forward. 

If you’re ready to take the next step with your mortgage, call us at (07) 3847 9450 or visitkellybrothersfinance.com.au for a free consultation today!