Perhaps you’ve signed up for a property and the land registration is not for a few months. Or maybe you want to know what you can do to get yourself in the best financial position before you buy a property. Whatever your motivation, here are some tips and tricks from our broker partners.

Save as much as you can — The more you have in savings, the easier it is to get approved, and the less you will have to pay in fees like lenders’ mortgage insurance.

Earn more money — If you have a job where you can pick up extra shifts, do it. The more income you can show, the more likely you are to get approved.

Don’t apply for credit — Not only will the additional interest repayments reduce your servicing, but each credit application (even if it is just an enquiry) goes on your credit file and may reduce your credit score, potentially limiting the number of banks you can apply to.

Don’t miss payments on rent and loans — These may show up on your credit report or tenant history, reducing your likelihood of getting approval.

Don’t create adverse credit history — If you don’t pay your utility bills, a company may list a default on your credit report and you may not be able to get finance.

Reduce unnecessary expenditure — Your servicing, or amount you can borrow, is a product of your income vs your expenditure. The less you spend, the more you can borrow, and the more likely you are to be approved.

Reduce debt – Lenders look at your debt-to-income ratio when assessing your loan application. Reduce your debt by paying off credit card balances and personal loans.

Stay away from ‘Buy Now, Pay Later’ — They are still classed as debt and will reduce the amount you can borrow.

Have a squeaky clean bank statement — Avoid overdrawn fees on all of your accounts and be mindful that your statements tell a story about you. If a lender sees multiple entries for Sportsbet or payday lenders, they are going to start asking questions, which may reduce your likelihood of getting approval.

Don’t change job or employment type — Lenders look at employment history and this has a major impact on your ability to get approved. Some of the typical mistakes people make are going from full-time to casual, starting a new job for less money, and going from full-time or part-time to contract ABN work. If you need to change jobs, the best course of action is to talk to your First Home Specialist before committing to any changes.