Please note - Due to the holiday season, builders and developers may be slower than usual in responding to any queries Close

What Do Banks Look At When Applying For A Home Loan?

The process of buying a home can be both exciting and stressful. It can take a toll on you mentally, emotionally, and financially — so there is no doubt that you’d be looking into applying for a home loan. But there are a few factors you have to take into consideration before doing so. There are many things that banks look into when you first apply for a home loan, so here are some helpful tips on what banks are on the lookout for and other things to take into consideration when applying for a home loan.

applying for a home loan

1. Keep Track Of Your Income And Expenses
When applying for a home loan, you might need to be more conscious about where you spend your money. If your account is filled with different shopping transactions, food deliveries, unnecessary subscriptions, and miscellaneous items you’ve spent your money on, you probably need to tidy up your spending habits. Banks are able to access all this information and the chances of being approved when applying for a home loan may be slim. So be responsible and always keep an eye out!

2. Employment History
Banks usually tend to check on your employment history and prefer individuals with a regular income. If you’re in the probation period of your job, make sure you have proof of your employment history. In addition to this, if you have been moving around from job to job, you also may not be eligible. It is therefore important to ensure that you have at least 6-12 months in a job and have been receiving regular income.

3. Credit History
Having a good credit score will get you a long way with applying for a home loan. The bank has access to all this information and can check if you’ve ever missed payments or have a large debt; so staying on top of your bills is a great start in applying for a home loan!

applying for a home loan

4. Credit Card Limits And Liabilities
When applying for a home loan, always be aware of your credit card limits. Lenders will look at the maximum spending on each credit card you own and will factor this into your potential expenses. It can be a good idea to reduce any unnecessary credit card limits you have before you apply.

Banks will also want to know about any liabilities you may have – from car loans, personal loans, HECS debt and tax liabilities. Before applying for a home loan, make sure you are devoting more money to pay off any existing debts you have because a lender may be hesitant to take on a customer who is juggling multiple debts at once.

5. Changes To Your Financial Situation
It is important that you outline any significant changes you might expect to your financial situation and circumstances. These can vary from retirement, a business trip, full-time studying or any medical treatments you may be undergoing.

If you’re looking into buying a home and need advice, please do not hesitate to get in touch with our team on 1800 184 284 or book a call for free, expert advice on building the home that’s right for you.

Shantelle Santos

Shantelle is a graduate of a Bachelor of Communication (Public Relations). She loves all things social media, digital marketing, and has a keen interest in design.


iBuildNew is the market leading aggregator dedicated to residential home construction and land development. As an independent platform, iBuildNew helps Australians identify and compare new home designs, house and land packages and land estates. It’s the smart way home buyers, who are considering a new build, can find the ideal options to match their individual needs. Home building is a big decision, we make sure you get it right.

You may also like

Apr 24, 2017

Get Into Your New Home Faster With The First Home Ow...

Getting the keys to your first home is one of the most important days, and biggest achi...
Read More
Sep 10, 2019

Securing Your Dream Home: How Much Can I Really Affo...

Australians love to fear-monger about housing affordability. The key question when buyi...
Read More
Feb 21, 2017

Tips for Moving into Your New House

You have just built the new house of your dreams and your moving day is quickly approac...
Read More
Aug 03, 2017

Be Smart, Avoid Home Improvement Fails

When searching for ideas for a home renovation, you can get millions of results on the ...
Read More
Oct 25, 2016

First Home Finance Tips

Building your first home is probably the biggest decision you will ever make. The first...
Read More
Apr 04, 2018

How To Choose a Rental Management Company

Allowing someone else to manage your property is a bit of a scary thought. You want to ...
Read More
Apr 06, 2017

Good News For Housing Affordability

Everyone wants a place to call their own, somewhere they can build a foundation for the...
Read More
Aug 22, 2019

Selling Your House? Here’s What To Expect

Buying property can be stressful, but so too can selling it. From the minute our home i...
Read More
Sep 30, 2020

What Is A Mortgage Broker And Do I Need One?

A mortgage broker is an authorised financial adviser who can guide you through the fina...
Read More
May 27, 2019

Buying a House and Land Package? Here’s How To...

House and land packages are one of the most convenient and affordable ways to get a foo...
Read More
Jun 17, 2019

Renovation Ideas: To Build Up Or Out?

Space is an increasingly prized commodity in the Australian housing market. As our fami...
Read More
Feb 03, 2021

What To Consider Before Buying A Family Home

When it comes to purchasing the ideal dream home, it is more than just an investment bu...
Read More
Aug 01, 2019

Cost Saving Tips When Building A New Home

When starting your exciting journey to building a new home, constantly adhering to your...
Read More
May 15, 2019

Moving into a New House Checklist

After the big move is over and you’ve fully transferred all your belongings, there’s a ...
Read More
May 24, 2017

Change to the WA First Home Owners Grant

With a new state government in Western Australia, adjustments to many of the policies a...
Read More
Mar 27, 2018

Understanding Property Management Fees and Services

Property management fees can be difficult to comprehend at first. There are so many dif...
Read More
Apr 21, 2020

Tips On How To Finance Your New Home 

Buying a home is one of the biggest financial decisions in someone’s life. This decisio...
Read More
May 15, 2019

The Up’s and Down’s of Downsizing

Whether it be as you near retirement or as you seek a simpler, less expensive way of li...
Read More
Jul 28, 2017

First Home Buyer? Research These Crucial Decisions

Created by Step One Homes Building your first home is an exciting time. If it’s your fi...
Read More
Jun 28, 2017

About the First Home Super Saver Scheme

It seems the topic of housing affordability is still not waning, especially for first h...
Read More
May 06, 2020

Can I Still Sell My Home During the COVID-19 Pandemic?

With the current condition that the world is in, it is difficult to determine what is o...
Read More
Oct 24, 2018

Moving Interstate? Ask your removalist these 8 quest...

Piece by WridgWays.   When moving interstate you want to make sure you're fully pr...
Read More
Jul 19, 2018

How Much Of A Deposit Does A First Time Home Owner Need

If you're consider getting into the market to become a first time home owner, there are...
Read More
May 06, 2016

Building A House – How Do Construction Loans W...

If you are thinking of building a house, then you will also have to start considering y...
Read More

Get more from

Browse New Home Designs