When applying for a home loan, banks consider several key factors that influence their decision. Here’s what you need to know:

1. Credit Score: Lenders review your credit file for defaults, bankruptcies, and credit behavior. A higher score indicates reliability and boosts your application.

2. Income: Your income and its stability play a crucial role. Banks prefer regular, verifiable income like salary, while bonuses and commissions may be assessed differently.

3. Employment History: A steady employment record is favored. Job changes, probation periods, and casual or second jobs might affect your application.

4. Savings: Demonstrating a savings history shows financial discipline and reduces the amount needed to borrow.

5. Deposit: Banks assess your Loan-to-Value Ratio (LVR), favoring lower ratios for better rates. Parental guarantees can extend borrowing limits.

6. Spending Habits: Bank statements reveal your spending patterns. Consistently living within your means is crucial, despite minimum living expense standards.

7. Assets and Liabilities: Owning assets like properties or vehicles strengthens your application, while existing debts impact borrowing capacity.

8. HECS/HELP Debt: Treated differently due to its nature, HECS/HELP impacts disposable income rather than overall debt.

9. Debt to Income Ratio: This ratio measures total debt against income, influencing loan approval and amount. Lower ratios are preferable.

Seeking professional mortgage advice from lisensed mortgage broker can streamline the process, ensuring you meet lender criteria effectively.