How to Qualify for Your First Mortgage Loan in Australia

Buying your first home is a big step, and getting a mortgage loan is one of the most important parts of the process. If you're new to this, don’t worry — we’ll walk you through how to qualify for your first mortgage loan in Australia in simple words.

1. Understand What a Mortgage Loan Is

A mortgage loan is money you borrow from a lender (like a bank or finance company) to help you buy a home. You pay it back over time, with interest. If you don’t pay, the lender can take the property.

2. Check Your Credit Score

Your credit score shows how good you are at paying back money. A higher score makes it easier to get a first mortgage loan. In Australia, a credit score above 600 is usually considered good.

Tip: Pay your bills on time and don’t borrow too much on credit cards to keep your score healthy.

3. Save for a Deposit

Lenders want to see that you can save money. You’ll need a deposit — usually at least 5% to 20% of the property’s value. The bigger your deposit, the easier it is to get approved.

Example: For a $500,000 home, a 10% deposit is $50,000.

4. Have a Steady Income

Lenders need to know you can repay the loan. A full-time job or stable income shows that you can handle monthly payments. If you’re self-employed, you’ll need to show tax returns and financial documents.

5. Know Your Budget

Before you apply, figure out how much you can afford to borrow. This includes your income, expenses, and how much you already owe.

Use a mortgage calculator to get a rough idea of what your monthly payments will be.

6. Get Pre-Approval

Pre-approval means a lender agrees to lend you a certain amount — before you buy. It helps you know your budget and shows sellers you’re serious.

It usually lasts 3 to 6 months and doesn’t lock you in.

7. Choose the Right Lender

Not all lenders are the same. Compare interest rates, fees, and loan features. Mango Credit, for example, offers flexible mortgage options and helps first-time buyers through every step.

8. Prepare the Right Documents

When you apply, you’ll need:

• Proof of ID (passport, driver's license)

• Proof of income (pay slips, bank statements)

• Details about your expenses and debts

• Your deposit savings

Being organised speeds up the process.

9. Work with a Mortgage Broker (Optional)

If you’re not sure where to start, a mortgage broker can help you find a loan that suits you. They work with many lenders and can save you time.

Final Thoughts

Qualifying for your first mortgage loan in Australia might feel scary at first, but it’s very doable with the right steps. Focus on saving, keeping your credit healthy, and finding a lender that understands your needs — like Mango Credit.