How to “bulletproof” your first home loan approval

Published on December 3rd, 2020
  Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
Our authors

Fact checked

At Savvy, we are committed to providing accurate information. Our content undergoes a rigorous process of fact-checking before it is published. Learn more about our editorial policy.

At Savvy, our mission is to empower you to make informed financial choices. While we maintain stringent editorial standards, this article may include mentions of products offered by our partners. Here’s how we generate income.

In this article

No one likes surprises. As would-be home owners, we definitely don’t want any surprises. But how can you avoid unpleasant surprises such as a mortgage application rejection?

The surefire way to ensure your best possible chance of getting approved for a home loan? It’s not as complicated as it seems. Here’s your guide to a “bulletproof” first home loan so you can maximise your chance of approval – and perhaps even lock in a lower interest rate!

Figure out how much you can afford

Walking into a bank or broker with pie-in-the-sky dreams about how much they’ll lend is a 100% bad idea. You should know all the answers to your lender or broker’s questions before they even ask them. These are:

  • How much of a deposit do you have?
  • How much can you comfortably afford each month in repayments?
  • How much debt are you paying off right now?

“If you don’t have all this written down in painstaking detail, hold off on your application,” says Savvy CEO Bill Tsouvalas. Tsouvalas has seen dozens of Australians make mistakes, leading to unexpected home loan complications. “A home loan is likely the biggest financial step you’ll ever take; and just like astronauts blasting off into space, you have to know that what you’ve got behind you is 100% correct!”

Get your documentation together

The amount of paperwork astounds most home loan applicants; you’ll need PAYG slips, balance sheets or P&L statements (if you’re self-employed), tax returns, income statements, credit card balances, credit history and evidence of savings or gifts from others. This helps you nail all the questions your broker will ask you, and streamline the process.

“If you are better off than you thought, your broker or lender might offer you a better deal,” says Tsouvalas. “But you should check your credit history first – this is crucial. If there are mistakes on there, it’s your responsibility to fix them. This can sometimes tip the balance in or out of your favour.”

Don’t fudge the numbers

According to a recent survey conducted by investment bank UBS, 28% of respondents said their mortgage application was not “totally factually accurate.” 5% of respondents said their application was only “partially factual and accurate.”14% said they overstated household income, 13% inflated asset holdings, and 17% fudged their debt numbers. 40% of people said they lied in some form! All your documentation has to be correct, up-to-date and above all, accurate.

Even if you’re one of the 600,000 Australians that are “at risk of credit default,” lying on an application only hurts your chances now and in the long run. Your broker or lender is someone you’re going to have a long-term relationship with.

Brokers and lenders want to lend to you – help them as much as you can, and they will help you.

Did you find this page helpful?

Thanks for your feedback!

This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.

The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.

Approval for home loans is always subject to our lender’s terms, conditions and qualification criteria. Lenders will undertake a credit check in line with responsible lending obligations to help determine whether you’re in a position to take on the loan you’re applying for.

The interest rate, comparison rate, fees and monthly repayments will depend on factors specific to your profile, such as your financial situation, as well as others, such as the loan’s size and your chosen repayment term. Costs such as broker fees, redraw fees or early repayment fees, and cost savings such as fee waivers, aren’t included in the comparison rate but may influence the cost of the loan. Different terms, fees or other loan amounts may result in a different comparison rate.

In this article

Share this article

Share on facebook
Share on twitter
Share on linkedin
Share on email
Share on pinterest

Looking for a home loan?

Compare Australia’s reputed home loan lenders with us and save.

* Terms and conditions and lending criteria apply.

Smart money saving tips

Subscribe to our newsletter.

By subscribing you agree to our privacy policy

Related articles

Easily compare home loan options today

We compare home loan options for you so you can be assured you’re seeing the most competitive interest rates available in Australia.

We'd love to chat, how can we help?

By clicking "Submit", you agree to be contacted by a Savvy Agency Owner and to receive communications from Savvy which you can unsubscribe from at any time. Read our Privacy Policy.