To be eligible for a home loan in Australia you need to be over 18, an Australian citizen or permanent resident (or a temporary resident with a lender that accepts your visa), with a deposit, an income a lender can verify, a credit file without recent serious marks, and living costs that leave enough surplus to cover the repayments at a buffered rate.

That is the whole list. The detail is in how each lender reads those five things, and that is where most applications are won or lost. This guide sets out the eligibility rules, the requirements lenders apply, the documents to have ready, the schemes that change the numbers for first home buyers, and the questions people ask most.

Who is eligible for a home loan in Australia?

Age and residency. Applicants must be 18 or older. Citizens and permanent residents have access to every lender. Temporary residents can borrow with some lenders, usually with a larger deposit, a visa with time left to run and Foreign Investment Review Board approval for the purchase. New Zealand citizens are generally treated like permanent residents.

Income a lender can verify. Salaried applicants need recent payslips and a tax summary. Self-employed applicants need one or two years of financials depending on the lender. Casual, contract, overtime and bonus income all count, at a discount or in full depending on the lender and the history behind it. The employment and income guide covers each type.

A credit file the lender can live with. A paid default, a few enquiries or a short credit history are not automatic declines. Unpaid defaults, recent bankruptcies and a pattern of missed repayments narrow the lender list sharply. The credit score guide explains how lenders read the file.

Enough surplus. Lenders test whether your income, after tax, living costs and existing debts, can cover the repayment at the actual rate plus a three percentage point buffer. This test, not the deposit, is usually what decides how much you can borrow. The borrowing power calculator runs it.

What are the key home loan requirements?

Deposit. Five per cent of the price is the practical minimum, and at that level most buyers either use the 5% Deposit Scheme, a guarantor or pay lenders mortgage insurance. Twenty per cent avoids LMI without help. Lenders also want to see where the deposit came from: genuine savings held for three months, a gift with a letter, or rent paid on time with some lenders. The genuine savings guide sets out what counts.

Income and employment. Most lenders want you past probation, or in the same industry for two years, with payslips and bank statements that agree with each other. Self-employed borrowers need lodged tax returns for full doc loans, or business activity statements and an accountant’s letter for low doc loans. The self-employed lending guide explains the difference and the rate cost.

Credit score and history. There is no single qualifying score. Lenders read the file as a whole: enquiries, repayment history, defaults and their age, and existing limits. Unused credit card limits are counted as if fully drawn, which surprises many first-time applicants.

Living expenses and debt-to-income ratio. Lenders apply a benchmark for living costs scaled to income and household size, and compare it with your statements. Total debt above about six times income attracts extra scrutiny at most lenders, and some decline above a fixed ratio regardless of surplus. Car loans, HECS, child support and buy-now-pay-later accounts all count.

Which documents do you need for a mortgage application?

  • Identity: passport or driver licence, plus a Medicare card or similar for the 100-point check.
  • Income: two or three recent payslips, last year’s income statement from the ATO, and an employment letter for new or casual roles. Self-employed: two years of tax returns and financials, or BAS and an accountant’s letter for low doc.
  • Bank statements: three months for the accounts your pay lands in and your deposit sits in. Lenders read them for undeclared debts, gambling and regular transfers.
  • Assets and liabilities: every loan, card limit, HECS balance and asset, declared in full. Omissions are found in the credit check and cost credibility.
  • Deposit evidence: savings history, a gift letter and transfer trail, a First Home Super Saver release determination, or a guarantor’s property details.
  • The property: the contract of sale once you have one, and the strata report for an apartment.

The home loan documents checklist lists the lot, and the pre-approval checklist puts them in order.

Which schemes could change your eligibility?

5% Deposit Scheme. For eligible first home buyers, the government guarantees the gap between a 5 per cent deposit and 20 per cent, so no LMI is payable. There are no income caps or place limits, and the Sydney price cap is $1.5 million. The scheme checker confirms the cap for a suburb.

NSW transfer duty relief. An eligible first home buyer pays no duty up to $800,000 and a reduced amount up to $1 million, provided they move in within twelve months and stay for twelve. The stamp duty calculator gives the figure at any price.

First Home Owner Grant. $10,000 towards a newly built home within the price caps, on top of the duty exemption. The grant guide has the conditions.

Professional LMI waivers. Doctors, dentists, lawyers, accountants and several other professions can borrow to 90 or 95 per cent of the price without LMI at many lenders. The waived LMI guide lists who qualifies.

Low doc loans. Self-employed borrowers without lodged returns can qualify on BAS, bank statements or an accountant’s declaration, at a higher rate and a larger deposit. The low doc guide explains the trade.

What makes approval easier?

  • Pre-approval before you offer. A full assessment by a credit assessor, not an instant online estimate, so the hard questions are answered before a contract is on the table.
  • Documents complete on day one. Most delays are files waiting on the applicant, not the lender.
  • The right lender for the file. A casual nurse, a company director and a first home buyer with a gifted deposit are each approved quickly at some lenders and declined at others on the same documents.
  • No changes mid-application. New credit, a job change or large unexplained transfers restart the questions.
  • A broker who lodges every week. Charles Touma compares more than 70 lenders and knows which ones are fast and generous this month. There is no broker fee on most loans; the lender pays a commission, disclosed in writing. The guide to choosing a mortgage broker covers what to ask before you pick one.

Home loan eligibility: common questions

How do I check my home loan eligibility?

Run your income, debts and deposit through the borrowing power calculator for the figure, then have a broker check the lender policy that applies to your income type and property. A full pre-approval is the only certain answer.

What credit score do I need for a home loan?

There is no fixed score. Lenders read the whole file. A clean repayment history with a modest score passes; a high score with a recent default may not. The credit score guide explains what moves the decision.

How much deposit do I need?

Five per cent of the price is the practical minimum, with the 5% Deposit Scheme, a guarantor or LMI covering the gap to 20 per cent. Budget a further $3,000 to $5,000 for legal, inspection and registration costs, plus stamp duty where it applies.

Can I get a home loan if I am self-employed?

Yes. Two years of financials opens every lender; one year with an ABN registered longer opens many. Low doc loans use BAS or an accountant’s letter instead of returns. The self-employed lending guide covers the options.

Can I buy a house on a temporary visa?

Yes, with some lenders, usually with a 20 per cent or larger deposit, a visa with time remaining and FIRB approval for the purchase. Permanent residents and citizens have the full lender panel.

What is LMI and can I avoid it?

Lenders mortgage insurance protects the lender when the deposit is under 20 per cent, and the borrower pays the premium. It is avoided with a 20 per cent deposit, a guarantor, the 5% Deposit Scheme for eligible first home buyers, or a professional waiver. The LMI guide explains it.

What is the difference between conditional and unconditional approval?

Conditional approval, or pre-approval, is a lender’s assessment of you before a property is chosen. Unconditional approval follows the valuation of the property you buy and is the approval you can settle on. The pre-approval guide covers what each one promises.

General information only, not credit advice. Lender policies and scheme rules change; eligibility is confirmed in an assessment against the rules current at the time.

Sources: Housing Australia, 5% Deposit Scheme; Revenue NSW, First Home Buyers Assistance Scheme; Revenue NSW, First Home Owner (New Homes) Grant, checked 17 October 2026.

General information only, not credit, legal or tax advice. Your situation is assessed properly before any recommendation. Government scheme details change; figures are current at the time of writing.