Home Loan Eligibility and Requirements - 2025 Guide

Who Is Eligible for a Home Loan in Australia?

When you apply for a home loan, lenders consider more than whether you can afford the repayments. They also want to ensure you meet their basic eligibility requirements. These criteria vary slightly between lenders, but there are some common factors across the board.

Here’s what determines your eligibility for a home loan in Australia in 2025:

Age and Residency Requirements

To be eligible for a home loan in Australia, you must:

• Be at least 18 years old
• Be an Australian citizen, permanent resident, or, in some cases, a temporary visa holder

Temporary residents (like those on 457, 482, or student visas) may still qualify. Still, your borrowing options will be more limited and may require a larger deposit or a co-borrower with permanent residency.

Income Stability and Financial Health

Lenders assess how likely you are to meet your monthly repayments. You’ll generally need:

• A steady income (from employment, business, or investments)
• A reasonable debt-to-income ratio
• A history of good financial behaviour (e.g. paying bills on time)

Whether you’re a full-time employee, a freelancer, or self-employed, you can still qualify, as long as you can prove your income over time.

First Home Buyers

If you’re a first-time buyer, good news: there are several government schemes available to support your entry into the property market, including:

• First Home Guarantee (FHBG) – Buy with as little as 5% deposit without paying Lenders Mortgage Insurance (LMI)
• First Home Super Saver Scheme
• Stamp duty concessions (varies by state)

Stryve Advantage: We help first-home buyers access government incentives and match you with lenders that support low-deposit options.

Credit History and Financial Conduct

Your credit score plays a significant role in your eligibility. Lenders use this to understand how well you’ve managed debt in the past. A higher score opens up more options, while a lower one may limit your choices.

Even if you have a few blemishes on your credit file, don’t panic; many lenders offer flexible lending solutions, and Stryve can help you navigate them.

If your credit score isn’t ideal, you may still qualify for a loan through home loans for bad credit, especially if you have stable income or a larger deposit.

Key Home Loan Requirements in Australia

Meeting home loan eligibility is the first step, but to get approved, you must also satisfy specific lender requirements that determine how much you can borrow and at what rate. These are based on your financial situation, savings, liabilities, and risk profile.

Breakdown of What Lenders Consider When You Apply

Here’s what most Australian lenders are looking for:

Minimum Deposit

The size of your deposit plays a major role in your loan approval and interest rate:

• 5% deposit is the bare minimum most lenders require.
• A 20% deposit helps you avoid Lenders Mortgage Insurance (LMI) — a fee charged if your Loan-to-Value Ratio (LVR) exceeds 80%.
• Some loans have government guarantees as low as 2–5%, especially for first‑home buyers under the First Home Guarantee scheme.

Income and Employment Verification

Lenders want a stable and verifiable income stream to ensure you can comfortably make repayments.

Accepted sources of income include:

• Full‑time or part‑time wages (with 3–6 months of payslips)
• Contractor or casual work (6–12 months history preferred)
• Self‑employed income (usually requires 1–2 years of tax returns or BAS)
• Rental income or investment earnings

In these cases, lenders may ask for an employment contract, past PAYG summaries, or 12 months of income statements for approval.

Credit Score and History

Your credit score and overall credit history give lenders insight into how responsibly you’ve managed money in the past.

• A score above 650 is generally favourable.
• Late payments, defaults, or excessive unsecured debt (e.g., credit cards, personal loans) can affect your borrowing power.
• You can check your score for free through platforms like Equifax or Experian.

At Stryve, we perform soft checks and can work with lenders who accept applicants with non‑ideal credit files.

Living Expenses and Debt-to-Income Ratio

Your living expenses and other financial commitments directly affect how much you can borrow.

Lenders will assess:

• Your monthly expenses (food, utilities, transport, childcare, etc.)
• Existing debts (car loans, HECS, credit cards, even if unused)
• Total debt‑to‑income ratio (ideally below 6)

Australian lenders typically apply a 3% serviceability buffer, meaning they’ll test if you can afford repayments even if interest rates rise.

Example: If your loan rate is 6%, the bank will check if you can afford it at 9%.

Required Documents for a Mortgage Application

Once you meet the home loan eligibility and lending requirements, the next step is gathering the right documents. Lenders require detailed financial and personal information to verify your identity, income, and loan repayment capacity.

Having your paperwork ready can speed up the approval process and show lenders that you’re a serious, low-risk applicant.

1. Proof of Identity

To meet anti-money laundering laws and verify your identity, you’ll need to provide:

• A current Australian driver’s licence
• A valid passport
• Medicare card (optional but helpful)
• Birth certificate or citizenship certificate (for some applicants)

You’ll usually need 100 points of ID. We can help you ensure the right combination is submitted.

2. Proof of Income

The documents you need depend on your employment type:

Lenders want to see consistency, even high income won’t help if it fluctuates wildly or isn’t well documented.

3. Bank Statements

Most lenders require at least 3 months of bank statements, but self-employed borrowers or low-doc applicants may need to provide up to 6 months, and they will check:

• Every day spending accounts
• Savings and term deposits
• Credit card and loan accounts

They’re looking for:

• Responsible spending habits
• Evidence of regular income
• Consistent savings
• No overdrafts or dishonours

With Stryve, you can securely upload or link your accounts directly, without printing or scanning.

4. Asset and Liability Declarations

To assess your net worth and repayment ability, you’ll need to disclose:

• Other property or investments you own
• Superannuation (for some lenders)
• Outstanding debts (credit cards, personal loans, car finance)
• Buy now, pay later accounts (e.g., Afterpay)

Lenders assess the available credit limits as part of your financial obligations, even if you’re not using these accounts.

5. Proof of Deposit

Lenders will require proof that you’ve saved the deposit and it’s accessible. You’ll need:

• Bank statements showing genuine savings over time (usually 3–6 months)
• Gift letter (if receiving financial help from family)
• Sale contract (if the deposit comes from selling another property)

Valuation reports or mortgage statements may be required if you’re using equity from another home.

Special Loan Programs You Might Qualify For

Not every borrower fits into the “standard” lending box, and that’s okay. Several government-supported and lender-specific programs are designed to help people who may not meet the typical criteria. Whether you’re a first-home buyer, self-employed, or short on a deposit, a solution is likely available.

At Stryve Finance, we know how to navigate these options to find the right loan for your unique situation.

First Home Guarantee Scheme (FHBG)

Perfect for first-home buyers who don’t have a 20% deposit.

What it offers:

• Buy with as little as 5% deposit
• No Lenders Mortgage Insurance (LMI)
• Backed by the Australian Government via Housing Australia

Eligibility:

• Must be a first-time buyer
• Individual income under $125,000 or $200,000 for couples
• Must live in the property

We help eligible clients apply and secure pre-approval with FHBG-backed lenders. For a complete step-by-step guide, read our Insight article on First Home Buyer Loans.

Learn more about the First Home Guarantee (FHBG) on the official Housing Australia website.

Low-Doc and Self-Employed Loans

If you’re self-employed or a contractor, you may not have traditional payslips, but that doesn’t mean you can’t get a loan.

What lenders usually accept:

• BAS statements
• Business bank statements
• Accountant’s declaration
• Tax returns (1–2 years preferred)

Some lenders offer low-doc loans requiring less documentation but may come with higher interest rates or stricter conditions.

Stryve works with lenders specialising in self-employed clients, even those with inconsistent incomes or newer businesses.

Think you don’t qualify? Think again.

At Stryve Finance, we specialise in non-standard applications and help hundreds of Aussies secure home loans each year, even when banks say “no.”

How Stryve Finance Makes It Easier

At Stryve Finance, we believe getting a home loan shouldn’t feel like jumping through hoops. Whether you’re a first-home buyer, self-employed, have a complex financial situation, or just want a better deal, we’re here to make the process simple, fast, and stress-free.

Here’s how we take the complexity out of securing a home loan:

Instant Pre-Assessment (Without Affecting Your Credit Score)

Not sure if you’ll qualify? No worries. Our quick pre-assessment tool gives you a personalised snapshot of your borrowing power without impacting your credit report.

Find out where you stand in minutes — obligation-free.

Compare 50+ Lenders to Find Your Best Match

We’re not tied to any one bank. We work with a wide panel of trusted lenders, including:

• Major banks
• Credit unions
• Non-bank and specialist lenders

This gives you access to better rates, greater flexibility, and solutions tailored to your needs, even if your profile is unusual.

Personalised Loan Strategy and Guidance

Our mortgage experts don’t just lodge your application. We guide you from pre-approval to settlement, with:

• Tailored loan product recommendations
• Help resolving credit issues or structuring debt
• Guidance on deposit strategy or using equity
• Application packaging that maximises approval success

You’ll be supported by a dedicated broker accredited by the Australian Credit Licence (ACL), guiding you personally from pre-approval to settlement.

Stress-Free Digital Process

Busy? We get it. Our process is 100% online, with:

• Secure document uploads
• Digital signatures
• Real-time updates
• Ongoing communication via phone, email, or chat

We work around your schedule, not the bank’s.

Real Stories. Real Results.

“Stryve helped us get our first home with just a 5% deposit and no LMI. Other banks said no, they found a solution in 2 days!” - Sarah & Tim, Melbourne

“Being self-employed made getting a loan tough. Stryve knew which lender would actually understand my business income.” - Jackson, Brisbane

Ready to stop Googling and start getting approved?
Let Stryve Finance help you navigate the process and secure a loan that works for your goals, not just the lender’s.

Already have a home loan? You might qualify for a better deal. Refinance your current mortgage and potentially save thousands in interest.

Stryve Finance is an accredited mortgage brokerage operating under Australian Credit Licence 384704, ensuring all advice and services meet strict regulatory standards.

Frequently Asked Questions (FAQ)

When it comes to home loan eligibility and requirements in Australia, we hear many of the same questions, and we’re here to answer them. These FAQs are designed to give you quick clarity and boost your confidence in taking the next step.

How do I check my home loan eligibility?

You can use an online borrowing calculator for a rough estimate, but the most accurate way is to get a pre-assessment from a broker like Stryve Finance. We’ll assess your income, credit score, deposit, and expenses to match you with real lenders, not just generic estimates.

You can use a borrowing power calculator for a rough estimate, but the most accurate way is to get a pre-assessment from a broker.

What credit score do I need to qualify for a mortgage?

Most lenders prefer a score above 650. However, some specialist lenders will still consider your application if your score is lower, especially if you can show consistent income and have a reasonable deposit.

We work with lenders who understand that real life happens, and bad credit doesn’t always mean a hard “no.”

How much deposit do I need for a home loan?

• 5% is the minimum with LMI or government support (e.g. First Home Guarantee).
• 20% or more helps you avoid LMI and get better interest rates.
• Guarantor loans may allow you to borrow up to 100% of the property value.

Can I get a home loan if I’m self-employed?

Yes, but you’ll need different documentation, such as:

• Tax returns
• BAS statements
• Business bank statements

Some lenders offer low-doc loans if you don’t meet traditional income verification requirements.

Can I buy a house if I’m on a temporary visa?

It’s possible. Some lenders offer mortgages to temporary residents, including those on 457 or 482 visas, especially if you have:

• A strong employment history in Australia
• A larger deposit (e.g. 20%+)
• A co-borrower who is a citizen or permanent resident

What is LMI, and can I avoid it?

Lenders Mortgage Insurance (LMI) is a fee charged when your deposit is less than 20%. It protects the lender, not you. You can avoid it by:

• Saving a 20% deposit
• Applying for the First Home Guarantee
• Using a guarantor

What’s the difference between conditional approval and full approval?

• Conditional approval (pre-approval): Based on your current financial info, subject to conditions like property valuation.
• Full approval: Final green light from the lender after reviewing the property and completing all checks.

We handle both stages and keep you updated at every step.