If you can get yourself as home loan ready as possible (possibly around six months prior to you needing a home loan) then when the time finally comes, you will be in a much stronger position and your loan could go through much quicker.

So what can I do to get myself home loan ready?

When applying for a home loan, you'll need to pass some affordability checks to see if your finances are in order. This ultimately helps the lender to decide if you're trustworthy enough to lend money to.

The lender will look at your income vs your expenditure, so it’s important that you can show you can keep your finances in order.


If you have any outstanding loans, try to pay these off before you apply for your home loan, and avoid taking out any more loans in the meantime.

Keep on top of payments

Pay all your bills on time. This can be anything from a phone bill, to general household utility bills. This will prove you're reliable and financially independent.


It's advisable to remain in the same employment for at least six months. This will show that you have a regular, stable income coming in every month, and there is less chance of your employment being terminated on the spot, like it would if you were still on a probation period. 

Regular saving

If regular savings can be traced on your bank statements, this can be good for a number of reasons. Not only can it show where the money for your down payment has come from, but it can also prove to your lender that if you're able to save $500 a month, for instance, then this is money that can then go towards paying off a home loan. 

Consider your credit rating

Using a credit card responsibly can help improve your credit score, showing that you're able to look after your own finances and pay off any outstanding debts within a certain timeframe. Just make sure you register the card to the address you're living at.

The main thing is to prove that your spending patterns are in line with how you see yourself when you have a home loan. If there are any cutbacks you can make, now is the time to make them. Perhaps if you have a gym membership that you don’t use regularly, or you have TV subscription that you probably don’t need, then it would be a good idea to cancel them for now, just to save you that extra bit of money. After all, every penny counts!

Speak to a broker today about how to improve your affordability.