Buying your first home is likely the biggest financial decision you've made so far, and the loan process can feel opaque if you've never been through it. Here's a practical rundown of what to sort out before you apply, what lenders actually look at, and where a broker fits into the picture.

Get Your Finances in Order Before You Apply

Lenders want to see a consistent financial picture in the months leading up to your application. That means keeping your bank statements clean, regular savings, no unexplained large withdrawals, and existing debts under control. Buy-now-pay-later accounts and unused credit cards can also affect how much a lender is willing to lend, even if you're not actively using them.

Start reviewing your position at least three to six months before you plan to apply. That gives you time to pay down debts, close unused credit facilities, and build a savings pattern the lender can see clearly.

Lenders look at patterns, not just balances. A steady savings habit over several months carries more weight than a lump sum that appeared overnight.

What Lenders Actually Look At

Beyond your income, lenders assess your existing debts, your spending habits, your employment stability, and your deposit source. Genuine savings, money you've saved yourself over time, as opposed to a one-off gift, is generally viewed more favourably, though policies vary between lenders.

Your credit file also plays a role. Before applying, it's worth checking your own credit report for errors, since these are more common than people expect and can be corrected before they affect your application.

Government Support You May Be Eligible For

Depending on your circumstances, first home buyers in Australia may be eligible for government support schemes designed to help with deposit requirements, subject to meeting the relevant eligibility criteria, income thresholds, and property price limits, which can change and vary by state.

These schemes aren't automatic and eligibility depends on your individual situation, a broker can check what you may qualify for and walk you through the application requirements.

Common Mistakes First Home Buyers Make

The most common mistake is house hunting before getting any indication of borrowing position, it leads to falling for a property outside your budget. Applying for new credit (car loans, credit cards) shortly before a home loan application is another frequent trip-up, since it changes how a lender assesses your capacity.

Underestimating the extra costs of buying, stamp duty, legal fees, building and pest inspections, moving costs, is another common gap. Building these into your budget early avoids surprises later in the process.

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