Here’s how to get a Home Loan in Australia

Applying for your first home loan is a little uneasy and often time consuming. If you know what the lenders will look for in your loan application, you can take some hassles out of the process and make it convenient.

The Five C’s of Credit
To assess your capability to repay home loans in Australia, lenders use the five C’s of credit -

• Credibility 
• Credit History
• Capital for Deposit
• Capacity to Pay Back
• Collateral as a Security

The Five Tips to get that Approval

1. Submit only the Authentic and Verifiable Information - The paperwork is important, thus, get all the letters and statements that shows your income, savings, and all the different sources of earnings or anything that is specifically required by the lender you wish to apply.  
2. Check your Credit History - Ensure that your credit standing is all good and if you aren’t sure then ask your mortgage broker to get a copy of your credit report. Flags or black marks on it may prevent from getting the final approval on your loan application. 
3. Improve or Fix Your Credit Ratings - Being a first time homebuyer, it is important that you have a clean credit history before you apply for a loan. If your credit ratings are compromised then seek help from a professional credit repair expert who can help you in fixing the issues as well as to improve the score. 
4. No Extravagant Purchases and No Frequent Job Changes -Take control of your buying habit before you buy a home. Making expensive purchases will hinder the borrowing power. Also, do not frequently change jobs within 6 to 8 months of applying for a home loan. 
5. Seek Pre-approval and then Start your Property Search - Instead of selecting a property that exceeds the amount you can borrow, the wiser option is to first seek a pre-approval on the amount and the home loan interest rates Australia and then search for a home to buy as per the affordability.