Navigating the lending criteria of Australian banks and mortgage insurers can feel complex, but you don’t have to go it alone. This is why mortgage brokers exist. We’re here to guide you through each requirement, help you gather the right information and identify lenders who are willing to consider your individual circumstances. With the right advice, you’ll know exactly where to focus and how to make your application stand out.
Here are some quick tips on navigating home loan requirements and how a broker can simplify the process.
Individuals over 18
Companies
Trustees on behalf of a trust (e.g. “Smith & Co Pty Ltd ATF The Smith Family Trust”)
Combinations of the above
Minors (under 18)
Associations, clubs and limited liability companies
Hybrid trusts (in most cases)
Borrowers of convenience: someone added for extra serviceability or security but they must have a genuine interest in the property (e.g. joint ownership or a de facto partner)
Non-residents: temporary or permanent residents without citizenship can borrow up to 70% LVR (90% for NZ citizens living in NZ), provided they have net assets over $500,000 and, where required, FIRB approval
Trust or company loans: all directors and shareholders usually must provide personal guarantees; trustee must be named exactly
Guarantors fill in application details and may use their income to help you qualify
Income verification and standard lending rules apply
Pensioners cannot be guarantors on family pledge loans with owner-occupied security (varies by lender)
Up to 90% LVR: no genuine savings required (some lenders still ask over 80%)
95% LVR: 5% genuine savings for home loans, 10% for investment loans
Low-doc loans: 20% genuine savings
No genuine-savings products exist with flexible LVRs (select lenders only)
Genuine savings can include:
Cash in savings or term deposits held ≥ 3 months
Equity in property
Proceeds from property sale
Shares held ≥ 3 months
On-time rental history (3–12 months)
Non-genuine savings exclude proposed savings plans, FHOG, business funds, personal loans and asset sales (other than real estate).
Permanent or contract: ≥ 2 years in industry or ≥ 12 months with current employer
Casual: ≥ 12 months (some lenders accept ≥ 3 months)
Self-employed: ≥ 2 years trading; 12 months trading plus 2 years previous employment may be considered
Second job: ≥ 12 months
Acceptable income
Salary and wages (100%)
Overtime if regular and confirmed (100%)
Shift allowances if industry standard (100%)
Rental income (80%, or 50% for inner-city apartments)
Investment income and tax-deductible interest (80%)
Government pensions deemed permanent (100%)
Car allowances (100%)
Fringe benefits and stipends (up to 80–100%)
Unacceptable income
Workers compensation (apart from some exceptions)
Boarder income (unless accepted by specialist lender)
Any unlisted income sources
Net Disposable Income: surplus after tax, living expenses and commitments (minimum varies)
Debt Service Ratio: percentage of gross income used for debt (loans over 50% DSR are generally declined)
Repayments are stress-tested at the higher of the major banks’ average standard variable rate or the lender’s SVR, plus a 2.25% buffer (minimum assessment rate 7.25%)
Joint commitments and shared income with non-applicants are also fully factored into calculations.
Must be readily saleable (high-demand location, good condition)
Zoned for residential use (houses, townhouses, units, duplexes, vacant land)
Minimum living area 50 m² (40 m² in high-demand metro)
Power connected and direct vehicle access
Freehold or acceptable leaseholds (varies by state)
High-risk security such as bushfire-affected land, large acreage, flood-prone sites, serviced apartments, display homes and unique properties are assessed case by case, often at lower LVRs.
Maximum LVRs generally 95% (97% including capitalised LMI; 100% with a guarantor)
Preferred loan caps:
95% LVR: $750,000
90% LVR: $850,000
80% LVR: $1,000,000
70% LVR: $2,000,000
60% LVR: $2,500,000
Exposure limit: $2.5 million per borrower or group (higher on case by case basis)
Investment loans: up to 95% LVR; genuine savings and clear credit required; 50% rental income accepted in some cases
Debt consolidation: up to 90% LVR; max four debts; six-month clean repayment history
Home renovation or construction loans: up to 95% LVR on completion valuation; progress payments and registered valuer reports required
Interest only loans: standard up to five years; longer periods and higher LVRs assessed individually
Navigating lender policies and maximising your borrowing power can be complex. Our mortgage brokers know the ins and outs of every major bank and insurer. Contact us today to find the right lender for your situation.
