12 Expert Tips on How to Get Approved for a Home Loan in Canberra

Buying a home is a big step, but having the right strategy for how to get approved for a home loan is key. With Canberra’s strong economy and high demand, a solid plan can help you overcome rising prices and strict lender requirements.

Our experienced mortgage brokers at Home Loan Broker Canberra are here to help develop the right strategy for home loan approval. From selecting the best loan products to improving your loan eligibility, we guide you through every step of the way! 

Whether you're a first-home buyer or an investor, these 12 expert tips will help you boost your approval chances and secure your dream home in Canberra! Let’s dive in.

12 Tips to Get Approved for a Home Loan

Getting approved for a home loan in Canberra requires more than just a good credit score. Lenders assess your financial position, employment stability, and ability to cover both upfront costs and ongoing costs. 

By planning ahead and making smart financial decisions, you can improve your chances of formal approval. Here are 12 practical tips to help you secure a home loan with confidence.

#1  Check and Improve Your Credit Score

Your credit score is one of the biggest factors lenders assess during the loan application process. A high score can increase your loan eligibility and help secure competitive interest rates. To improve it, pay off outstanding credit card debt, make timely credit card bills, and limit new applications for credit before applying.

#2  Save for a Strong Deposit

A larger house deposit reduces lender risk and improves your approval chances. While a minimum deposit of 5% is allowed, aiming for 20% of the purchase price helps avoid Lenders Mortgage Insurance (LMI). Government incentives like stamp duty concessions and the First Home Owner Grant can assist in reaching your deposit goal.

#3  Get Pre-Approval Before House Hunting

A loan pre-approval gives you a clear price range for your property search and makes you a more attractive buyer. It signals to real estate agents and sellers that you’re financially prepared. Pre-approval letters typically last for 3-6 months and help streamline the buying process.

#4  Reduce Existing Debts and Monthly Expenses

High debt levels, including personal loans, credit card balances, and other monthly living expenses, can reduce your borrowing capacity. 

Lenders look at your debt-to-income ratio to assess whether you can manage regular home loan repayments. Paying down existing debts before applying can strengthen your loan application.

#5  Choose the Right Loan Type for Your Situation

Selecting the best loan type depends on your financial goals and lifestyle. A fixed-rate loan provides stability in monthly repayments, while a variable home loan offers flexibility with potential savings.  Interest-only loans may suit investors, while low-doc loans can help self-employed borrowers.

#6  Organise Your Loan Documents in Advance

Gathering key loan documents early prevents delays in the loan application process. Lenders typically require proof of income, bank statements, and a contract of sale if you’ve found a property.  Submitting complete paperwork can speed up formal loan approval within 1-3 business days.

#7  Factor in Upfront and Ongoing Costs

Beyond the purchase price, you’ll need to cover upfront costs like stamp duty, conveyancing costs, building inspections, and pest inspections. Ongoing costs include loan fees, regular repayments, and home maintenance. Budgeting for these expenses ensures financial security throughout your buying journey.

#8  Demonstrate Stable Employment and Career Growth

Lenders favor borrowers with a stable job and steady proof of income. If you’re planning to apply for a home loan, avoid switching jobs, reducing work hours, or changing industries. Career progression and pay increases can improve your financial position and help you qualify for a higher loan amount.

#9  Build a Solid Savings History

A strong savings record demonstrates financial responsibility and reassures lenders of your ability to make loan repayments. Aim to save consistently over 3-6 months, keeping funds in a dedicated account. A disciplined savings habit can also help cover extra costs like break costs, application fees, or unexpected home repairs.

#10  Consider Government Grants and Assistance

Canberra offers several government grants and programs to support first-home buyers and low-income borrowers. The First Home Owner Grant, duty exemptions, and transfer duty concessions can reduce upfront costs. Checking eligibility criteria for these programs can help make homeownership more affordable.

#11  Cut Back on Unnecessary Spending

Lenders assess your monthly expenses to determine whether you can handle regular repayments. Reducing non-essential spending, such as dining out or subscriptions, can improve your financial circumstance. A lower spending pattern in the months leading up to your application can positively impact your loan eligibility.

#12  Work with a Mortgage Broker for Expert Advice

An experienced mortgage broker can help compare loan options, meet lending criteria, and secure favourable terms. They can also guide you through the loan application guide, ensuring all loan offer documents and mortgage documents are in order. Brokers simplify the loan approval process, increasing your chances of unconditional approval.

By following these 12 expert tips, you’ll be in a strong position to secure a home loan and confidently enter Canberra’s property market.

Canberra Property Market in 2025: Insight for Homebuyers & Property Investors

Canberra’s property market remained strong in 2024, with the median house price reaching $1.08 million, reflecting a steady increase in demand (Domain) The unit market also performed well, with a median price of $626,000, making apartments an attractive option for buyers seeking affordability.

In 2025, Canberra’s property market is projected to grow by 3.5%, driven by population growth, low unemployment, and ongoing infrastructure projects (CoreLogic). Suburbs like Belconnen, Gungahlin, and Tuggeranong continue to attract homebuyers due to their amenities, transport links, and proximity to employment hubs.

With government support like stamp duty concessions and first-home buyer grants, Canberra remains a top choice for both homeownership and investment property purchases. Investors benefit from strong rental demand in high-growth suburbs, while first-home buyers can access competitive lending conditions. 

Mortgage brokers can help buyers navigate these opportunities by securing the right loan options and guiding them through the loan application process—making homeownership more achievable.

FAQs

How can I make sure I get approved for a loan?

To improve your chances, maintain a strong credit score, reduce credit card debt, save for a house deposit, and ensure a stable proof of income. Seeking expert advice from a mortgage broker can also help.

How long does home loan approval take in Canberra?

The loan approval process typically takes 1-3 business days for pre-approval and 3-5 business days for formal loan approval. The timeline depends on the lender, your financial details, and how quickly you submit all loan documents.

What upfront costs should I prepare for when buying a home?

Aside from your house deposit, you’ll need to cover stamp duty, building inspections, pest inspections, legal advice, and potential application fees. These upfront costs can add up, so it’s essential to budget accordingly.

Can I buy a house in Canberra with a 5% deposit?

Yes, some lenders accept a minimum deposit of 5%, but you may need to pay Lenders Mortgage Insurance (LMI). Government programs like the First Home Owner Grant can help eligible buyers reduce costs.

How much deposit do I need to buy a house in Canberra?

A 20% deposit is ideal, but some lenders allow low-deposit loans with as little as 5-10%. A larger deposit can improve your loan eligibility and help you secure favourable terms.

What salary do you need for a $500,000 mortgage?

Most lenders require a stable income to cover monthly repayments. A salary of around $90,000–$100,000, depending on your monthly living expenses and debts, is recommended.

What is the easiest home loan to get approved for?

The easiest loans to qualify for are low-deposit loans, first-home buyer loans, and government-backed options like the First Home Guarantee. Working with a mortgage broker can help you find accessible finance suited to your personal circumstances.

Final Thoughts

Buying a home in 2025 is an exciting milestone, and knowing how to get approved for a home loan can make the process smoother. With the right strategy—maintaining a strong credit score, saving a solid house deposit, and exploring loan options—you can boost your chances of approval. 

Whether you're a first-home buyer or an investor, expert guidance can make a big difference. Our mortgage brokers are here to help with tailored solutions and access to a wide range of lenders. Book a free consultation today at Home Loan Broker Canberra and take the next step toward homeownership! Call 02 6173 6397 or visit Home Loan Broker Canberra.