Realistic qualifying criteria

Lenders have their own qualifying criteria they use to determine whether or not to approve a borrower for a mortgage. While some lenders have stricter standards than others, in general, the following guidelines are followed.

Qualifying Criteria Required by Lenders

• Lenders prefer borrowers between 18 and 65 years of age.
• Lenders prefer permanent residents, but exceptions may be made, especially if you are a non resident married to an Australian citizen.
• Your status. That is, are you borrowing as an individual, company, or trustee of a trust? Individuals have an easier time borrowing for home loans than a company or trust.
• Lenders want you to have a stable income. If you are a PAYG employee, it’s easy for you to prove your income, and more lenders will be willing to approve your application.
• Lenders will also assess your income, credit score, expenses, assets, liabilities, and the amount of your deposit to determine your eligibility. They will want a secure, steady income, a good credit score, few expenses, a lot of assets, limited liabilities, and generally speaking a 20% deposit.
• Lastly, they will assess your risk by factoring in the amount you are borrowing, the location of the property, and the reason you are buying the property.

Applying for a home loan is challenging, especially with lenders having different criteria for their borrowers. As times change and more people become self employed with non traditional income sources, some of these qualifying criteria become unrealistic. Mortgage brokers & Mortgage Street use realistic qualifying criteria to make it easier to secure a home loan in these changing times. We also assess your situation as a whole to get a clear picture of your financial status to help you find a mortgage that works for you.