Banks assess home loan applications using consistent criteria, and understanding what lenders look for helps you strengthen your application and know what to expect. This video covers what banks evaluate when you apply for a home loan.

What do banks look for in a home loan application?

• Income and employment stability (and how temporary work affects applications)

• Existing debts and liabilities (credit cards, personal loans, car loans)

• Your saving history and deposit size

• The property valuation and loan-to-value ratio

• Credit history and your demonstrated repayment capacity

• Serviceability: whether you can afford repayments if interest rates rise

Understanding the lender's perspective helps you prepare a stronger application. If you've been rejected before or have concerns about your application, addressing these areas first makes a difference. Getting pre-approved also gives you clarity before you start house hunting.

Speak with our mortgage brokers about strengthening your home loan application.