February 5, 2026
First Home Loan Checklist in 2025 – Everything you need to get approved
Applying for a home loan can be intimidating, particularly if you’ve never done it before, but having the appropriate paperwork on hand facilitates and expedites the process. With a little preparation, you’ll be one step closer to that dream home. Let’s go over the specific requirements for your first home loan.
Important Takeaways
- When it comes to loan approval, your income, savings, and credit score are very important.
- Lenders prefer applicants with a clean credit history, steady income, and good debt management.
- Documents, deposits, and debt management are all important aspects of preparation.
- You can reduce stress, save money, and save time by working with mortgage brokers at Kian Mortgage Solutions.
Checklist for Your First Home Loan: Everything You Need
Lenders examine more than just your documentation when you apply for a home loan; they also determine whether you are financially capable of handling the responsibility. One question is central to all applications: Is the borrower able to make regular
loan repayments?
Lenders must verify your identity, income, assets, liabilities, and the value of property you are purchasing in order to respond to this question. You can expedite your approval by preparing these documents in advance.
Proof of Identity
This is a legal requirement. Lenders must verify your identity to comply with anti-money laundering (AML) laws and ensure you are who you say you are.
- Primary Photo ID: An Australian Passport or Driver’s Licence.
- Secondary ID: A birth certificate, Medicare card, or Australian citizenship certificate.
- Proof of Address: A recent utility bill or council rates notice (less than 3 months old).
Proof of Income
Your income is the biggest factor in determining how much you can borrow. Lenders want to see that your earnings are stable and regular.
- For Salaried Employees:
- Last 2–3 payslips (within 60 days).
- Most recent PAYG Payment Summary.
- Bank statements from the last 3–6 months showing salary credits.
- A letter from your employer with your role, income, and start date.
- For Self-Employed:
- Your personal and business tax returns from the last two years, along with ATO Notices.
- Bank statements from the last 3 months for both business and personal accounts showing regular income.
Proof of Financial Position (Assets & Liabilities)
Your net financial position helps lenders assess if you can handle a mortgage on top of existing commitments.
- Assets: Statements for savings accounts, term deposits, shares, or other investments you own.
- Liabilities: Statements for any existing credit cards, car loans, or personal loans.
- Living Expenses: A detailed breakdown of your monthly costs (e.g., groceries, utilities, insurance, transport).
Property Details & Other Documents
Once you’ve found a property, the lender will require supporting documents to confirm the property’s value, legality, and readiness for settlement.
- A signed copy of the Contract of Sale from your real estate agent.
- Deposit Evidence, such as a receipt showing the deposit you’ve already paid for the property.
- For new builds, you’ll need a Construction Contract and council-approved plans.
Buying your first home is exciting—but it can also be overwhelming. This simple 2025 checklist will help you stay on track, avoid delays, and apply with confidence.
Steps you should take to get your very first home loan
- Proof of stable income: Lenders look for steady income, preferably from full-time or long-term employment. If you’re self-employed, be prepared with tax returns from the last two years.
- Sufficient deposit (5–20%): While banks often require a minimum 5% deposit, you can also choose to pay 20% deposit if you want to avoid Lenders’ Mortgage Insurance (LMI).
- Good credit history: Your credit file gives lenders a snapshot of your financial history. Discuss with your broker upfront of any issues, such as missed bills or defaults so that broker can understand it better and help you prepare a strong application.
- Minimize unnecessary debt: Debts like personal loans and credit cards can reduce your borrowing capacity. Try to close unused accounts and pay off any balances before applying.
- Bank statements: Lenders review your statements for the past 3–6 months. Prepare them in advance, and discuss with your broker any transactions such as frequent cash withdrawals, bounced payments, or gambling transactions, as these can hurt your application.
- Budgeting and savings habits: Show consistent savings patterns to prove financial discipline.
- Identify government grants: In many states, you could be eligible for the First Home Owner Grant (FHOG), stamp duty concessions, or the Home Guarantee Scheme. Discuss with your broker and understand if you are eligible.
- Loan pre-approval: Getting pre-approved gives you a clear understanding of how much the bank is willing to lend you and helps you place an offer with high confidence when you find your dream home.
- Compare lenders: Your broker can help you find the right fit without the stress by comparing different product features, interest rates and fees.
- Get professional advice: Work with a mortgage broker to structure your application and increase your chances of getting approved.
Why Do Lenders Reject Home Loans?
Understanding lender concerns helps you avoid red flags.
- Low credit score
- Unstable income or job history
- Too much existing debt
- Incomplete documentation
- Unrealistic loan amount
Tip: Address these problems beforehand or consult with a broker for personalized recommendations.
Most Common Questions: Our Top 10 Picks
Q. How much deposit do I need for my first home?
A. Typically, 5–20% of the property value. Some lenders offer loans with less, but it may require LMI.
Q. What is LMI (Lenders Mortgage Insurance)?
A. It protects the lender if you default and usually applies if your deposit is under 20%.
Q. Can I use the First Home Owner Grant (FHOG)?
A. Yes, if you’re eligible. It varies by state and is available for first home buyers .
Q. Do I need pre-approval before house hunting?
A. Highly recommended as it shows that you are serious and defines your price range.
Q. Can I buy a home with a low credit score?
A. It’s possible, but options could be limited. A broker can help you find suitable lenders.
Q. How long does the home loan approval take?
A. With complete documents, pre-approval takes 3–7 days depending upon the lender’s SLA. Final approval may take upto 2–3 weeks.
Q. What documents do I need?
A. ID, payslips, tax returns, bank statements, proof of deposit, and expense breakdown.
Q. Should I use a fixed or variable rate loan?
A. Depends on your situation. While a fixed rate offers certainty of repayments, a variable rate provides more flexibility.
Q. What are stamp duty concessions for first-home buyers?
A. Many states offer full or partial waivers. Check with your broker as they would be able to guide you.
Q. How can a mortgage broker help me?
A. They understand your requirements, compare different products and help you structure the right loan for you. They also handle all the paperwork at no cost to you.
How Kian Mortgage Solutions Supports First Home Buyers
Securing your first home loan is about more than checking boxes – it’s about standing on your strongest financial ground. With Kian Mortgage Solutions, we make the process easy and stress-free through personalized advice, access to 40+ lenders, guidance through government schemes, and expert negotiation on your behalf—so you can purchase with confidence and clarity from step one.
Share :
