What Do Lenders Want to See?
When applying for a home loan, it’s easy to think lenders are only focused on one thing — how much you earn.
In reality, lenders look at a combination of factors to decide whether to approve a loan and how much they’re comfortable lending.
Understanding what lenders want to see can help you prepare earlier, reduce surprises, and improve your chances of a smooth approval.
Stable and Reliable Income
Lenders want confidence that you can repay the loan over the long term.
This means they look for stable, ongoing income rather than short-term spikes. Employment history, consistency, and the type of income you earn all matter.
That doesn’t mean you need to be in the same job forever — it just means lenders want to see reliability.
Manageable Living Expenses
It’s not just about what you earn — it’s also about what you spend.
Lenders review living expenses to understand whether repayments are realistic once everyday costs are factored in.
Clear, reasonable spending patterns show that you can manage your finances sustainably.
Controlled Existing Debts
Existing debts reduce borrowing capacity.
Lenders assess credit cards, personal loans, car loans, and buy now pay later facilities — even if they’re not heavily used.
Lower balances and fewer open facilities generally strengthen an application.
A Track Record of Saving
Lenders like to see evidence that you can save consistently.
Regular savings show financial discipline and an ability to manage surplus funds — which supports your ability to handle loan repayments.
This is especially important for first home buyers.
A Suitable Deposit Position
The size of your deposit affects loan structure, interest rates, and whether lenders mortgage insurance (LMI) applies.
While different lenders have different thresholds, a clear and genuine savings position is always viewed positively.
Lenders also want clarity around where the deposit funds come from.
A Clean or Explained Credit History
Lenders review your credit history to assess how you’ve managed credit in the past.
Missed payments, defaults, or excessive enquiries can raise questions — but they don’t always mean a “no”.
What matters most is transparency and context.
Consistency Rather Than Perfection
Lenders are not looking for perfect borrowers.
They are looking for consistency — consistent income, consistent savings, and consistent financial behaviour.
Small imperfections are often manageable when the overall picture is sound.
A Clear Purpose for the Loan
Lenders want to understand what the loan is for.
Whether it’s buying a first home, upgrading, refinancing, or investing, clarity around purpose helps lenders assess suitability and risk.
Clear intentions support clearer outcomes.
Documentation That Supports the Story
Payslips, bank statements, loan statements, and ID all help lenders verify the information provided.
Clear, consistent documentation reduces delays and questions during assessment.
Preparation here makes a big difference.
Why Preparation Matters More Than Timing
Many borrowers focus on timing the market or rushing to apply.
In reality, preparation often has a bigger impact on outcomes than speed.
Small improvements made early can strengthen your position significantly.
How Chase Helps You Present Strongly to Lenders
Chase Douglas has extensive experience helping clients understand what lenders are looking for — and how to prepare accordingly.
Rather than guessing, Chase helps you present a clear, accurate picture that aligns with lender expectations.
The focus is on preparation, clarity, and setting you up for long-term success.
Want to Know How Lenders See You?
If you’re unsure how your situation looks from a lender’s perspective, an early conversation can provide clarity.
👉 Book a catch-up with Chase Douglas to understand what lenders want to see and how you can prepare with confidence.
Strong applications start with understanding the lender’s perspective.
