A guide to applying for your first home

Buying a home is right up there with life’s biggest adventures—somewhere between running a marathon and assembling IKEA furniture without any leftover screws. But before you fall in love with spending your weekends at open homes and imagining where your dog’s bed will go, it pays to get your financial ducks in a row if you want that dream mortgage on your terms. As mortgage brokers, we’ve watched those who are well-prepared breeze through approvals while the rest wrestle with paperwork and stress. Want to avoid unnecessary drama? Here’s your game plan before house hunting gets real.

1. Check and Improve Your Credit Score
Your credit score is basically your financial report card—and just like in school, the higher the grade, the more doors swing open. Lenders look at your score to judge whether you’re a money maestro or someone who can’t resist a shiny credit offer. A strong score can land you sweeter deals and keep your interest rate from climbing higher than your houseplants.

Action steps:
- Peek at your credit score (bonus points for using a trusted credit bureau).
- Challenge any mistakes—don’t let a typo mess with your mortgage dreams.
- Whittle down your debt, especially the high-interest villains (we’re looking at you, credit cards).
- Avoid collecting new credit cards right before you apply—lenders aren’t fans of sudden plot twists.

2. Reduce Your Debt-to-Income Ratio
Lenders size you up by checking your debt-to-income (DTI) ratio, which is financial-speak for “Can you actually afford this, or will you be eating instant noodles for the next 30 years?” The lower your DTI, the more impressive you look—think of it as your financial selfie, but with fewer filters.

Action Steps:
- Grab a calculator and figure out your DTI (total monthly debt payments divided by your gross monthly income—no algebra degree required).
- Shoot for a DTI under 36%. Some lenders might stretch higher, but lower keeps you in everyone’s good books.
- Pay down any lingering loans and tackle those credit cards—your future self (and lender) will thank you.

3. Save hard for your deposit , legal fees and Government costs
A healthy deposit does wonders for your mortgage—shrinking your loan, keeping monthly repayments in the ‘comfortable shoes’ zone, and maybe even helping you dodge that pesky lenders mortgage insurance (LMI)—the clingy sidekick no one asked for. Meanwhile, let’s not forget Government and legal costs, which will need to be met before settlement of your new home.

Action Steps:
- Start a savings account that’s strictly for your deposit—guard it like the office biscuit tin.
- Scope out mortgage deals that might let you slim down the deposit (they do exist, like unicorns with fine print).
- Don’t get so starry-eyed by the house price that you forget about stamp duty, legal fees and insurance—add these to your budget shopping list.

5. Get Pre-Approved for a Mortgage
Getting pre-approved for a mortgage is your golden ticket—it tells sellers, “Yes, I really can afford this place, and I’m not just here for free canapés at open homes.” It also saves you from dreaming big only to discover your ‘castle’ is more of a ‘cozy cottage’ budget.

Action Steps:
- Team up with a trusty mortgage broker for a treasure hunt through lender land.
- Get your paperwork sorted: income proof, tax returns, bank statements—the lot. Consider it your financial passport.
- Use that pre-approval letter to shop smart, not wild. It’s the perfect way to set your sights on a home that won’t leave your wallet gasping for air.

6. Avoid Major Financial Changes
While you’re in the mortgage home stretch, lenders watch your finances like a hawk eyeing the last sausage roll at a party. Any big money moves could trip the alarm—and your hopes of moving in.

Action Steps:
- Resist the urge to splurge: hold off on that new car or fancy furniture until after you’ve got the keys.
- Keep new debts at bay—lenders can sniff out a fresh credit line faster than you can say “retail therapy.”
- Keep things boring and steady until settlement day. Your future home (and your mortgage broker) will thank you for it!

Keep in mind
Lenders love to see borrowers with a steady job and regular payslips almost as much as you love public holidays—they want to know your income isn’t about to pull a disappearing act. Self-employed? Get ready to flash some extra paperwork; nothing says “trust me” like a small forest’s worth of statements and tax returns.

Action Steps:
- Stick with your job for at least two years before applying—now’s not the time for a dramatic career plot twist.
- Resist the urge to job-hop, especially mid-mortgage process. Lenders love consistency almost as much as you love Fridays.

Get Ready to Secure Your Mortgage!
Getting your finances in shape is the secret sauce to impressing lenders—think of it as spring-cleaning your wallet before the big move. Buff up that credit score, show debt the door, build a savings nest egg, and keep your income as steady as your morning coffee habit, and you’ll have lenders fighting to give you the keys.

If you want the home buying journey to feel more like a stroll and less like a reality show disaster, let’s chat. As mortgage brokers, we’ll help you dodge landmines, translate finance jargon, and unearth loan options that won’t leave you eating noodles in your new lounge room. Ready to turn “one day” into “moving day”? Reach out and let’s get started!

If you are ready to start your home lending journey, get in touch.