Buying a home is one of the biggest financial commitments you’ll ever make. Whether you’re purchasing your first home, upgrading to a larger property or investing in real estate, obtaining a home loan involves much more than simply asking the bank for money.

Lenders want to see that you’re financially responsible, have stable income and can comfortably afford your repayments. That’s where working with your accountant can provide a significant advantage.

In this guide, we’ll walk you through the home loan process, highlight some common mistakes that can delay or even prevent approval and explain how your accountant can help put you in the strongest possible position.

Step 1: Understand Your Financial Position

Before approaching a lender, it’s important to understand exactly where you stand financially.

This includes:

Your income and employment history
Existing debts (credit cards, personal loans, car finance, HECS-HELP debt)
Living expenses
Savings and available deposit
Credit history
Assets and liabilities

Lenders use this information to determine your borrowing capacity and whether you’re likely to meet future repayments.

A good starting point is using the Australian Government’s Moneysmart borrowing calculators and budgeting tools.

Useful resources

These resources explain borrowing capacity, budgeting and the costs involved in purchasing a property.

Step 2: Save an Appropriate Deposit

While many lenders allow smaller deposits, a deposit of around 20% of the property’s purchase price generally allows borrowers to avoid Lenders Mortgage Insurance (LMI).

Remember that you’ll also need funds for:

Stamp duty (where applicable)
Conveyancing fees
Building and pest inspections
Loan establishment costs
Moving expenses

Depending on your circumstances, you may be eligible for government assistance such as:

First Home Guarantee
First Home Super Saver Scheme
State or Territory First Home Owner Grants
Stamp duty concessions

Eligibility varies depending on your situation and where you live. Consult with your accountant as navigating government assistance can be complicated.

Step 3: Review Your Credit Position

One of the most overlooked parts of preparing for a home loan is checking your credit profile.

Common issues include:

Missed loan repayments
Defaults
Excessive credit enquiries
Large unused credit card limits
Buy Now Pay Later (BNPL) accounts

Even if you never use a credit card, the available limit can reduce how much you’re able to borrow.

Your accountant can often identify issues well before they become problems during the loan assessment.

Step 4: Obtain Loan Pre-Approval

Pre-approval provides an indication of how much a lender is prepared to lend.

Although it’s not a guarantee of final approval, it allows you to:

Shop with confidence
Negotiate with sellers
Understand your price range
Identify any documentation still required

Most lenders will request documents such as:

Recent payslips
Tax returns (particularly for self-employed borrowers)
Bank statements
Identification
Evidence of savings
Existing loan information

Step 5: Choose the Right Home Loan

The interest rate is important—but it isn’t everything.

You should also consider:

Fixed or variable interest rates
Offset accounts
Redraw facilities
Loan fees
Extra repayment flexibility
Loan features that suit your financial goals

The Australian Securities and Investments Commission (ASIC) recommends comparing the total cost of a loan rather than focusing solely on the advertised interest rate. Keep in mind that a home loan is a long term commitment. You need to think about today but also next year and even the next decade.

Step 6: Make an Offer and Finalise Finance

Once your offer on a property is accepted, your lender completes the formal loan assessment.

This usually involves:

Property valuation
Verification of your financial information
Final credit assessment
Issuing loan documents

Your conveyancer or solicitor then manages the legal aspects leading up to settlement.

Step 7: Settlement

Settlement is when ownership of the property transfers to you and your mortgage officially begins.

After settlement you’ll need to:

Commence loan repayments
Arrange home and contents insurance
Review your household budget
Consider strategies such as offset accounts or additional repayments to reduce long-term interest

Common Home Loan Mistakes

Many borrowers unknowingly reduce their chances of approval.

Some of the most common mistakes include:

Applying too early

If you’ve recently changed jobs, become self-employed or taken on new debt, it may be worthwhile waiting until your financial position is more stable.

Making large purchases beforehand

Buying a new vehicle or furniture on finance shortly before applying can significantly reduce borrowing capacity.

Not declaring all debts

Lenders perform extensive checks. Failing to disclose liabilities can delay or jeopardise your application.

Poor record keeping

This is particularly common among self-employed individuals and business owners.

Incomplete financial statements or outstanding tax returns often delay approval.

Ignoring living expenses

Banks now closely examine actual spending patterns rather than relying solely on benchmark figures.

Large discretionary spending can reduce borrowing capacity.

Why Your Accountant Can Make a Difference

Many people think accountants only become involved after tax time.

In reality, accountants often play an important role in preparing clients for finance applications.

An accountant can help by:

Preparing accurate financial records

Lenders want confidence that your financial information is complete and reliable.

For business owners and self-employed applicants, professionally prepared financial statements can simplify the assessment process.

Ensuring tax returns are up to date

Outstanding tax returns are one of the most common causes of delays for self-employed borrowers.

Keeping your tax affairs current allows lenders to assess your application more quickly.

Improving borrowing capacity

An accountant can identify opportunities to strengthen your financial position before you apply.

This might include:

Reducing unnecessary debt
Improving cash flow
Reviewing business structures
Explaining unusual financial transactions
Identifying deductible expenses without compromising lending outcomes

Assisting self-employed borrowers

Self-employed applicants generally face more detailed assessment requirements.

Your accountant can prepare:

Financial statements
Tax returns
Business Activity Statements (BAS)
Income explanations
Accountant’s letters where required

This helps present your business income clearly and accurately.

Working alongside your mortgage broker

Many successful home loan applications involve close collaboration between:

Your accountant
Your mortgage broker
Your solicitor or conveyancer

Having experienced professionals working together often results in a smoother application process and fewer unexpected issues.

Useful Australian Government Resources

If you’re planning to purchase a home, these official resources are an excellent place to start:

These guides explain deposits, borrowing capacity, government assistance, loan features and the overall purchasing process.

Final Thoughts

Obtaining a home loan isn’t just about finding a lender—it’s about presenting your finances in the best possible light.

Whether you’re a first-home buyer, upgrading your family home or investing in property, careful preparation can improve your borrowing options and reduce unnecessary stress.

Working with your accountant before you apply allows you to identify potential issues early, ensure your financial records are accurate, and approach lenders with confidence.

Perhaps most importantly of all, an accountant can help you navigate and understand the complicated process of securing a home loan. They can help you to make informed decisions and understand potential risks and benefits.

We can help you understand your financial position, prepare the documentation lenders expect, and work alongside your mortgage broker to help make your home ownership goals a reality.

Getting a Home Loan: How Your Accountant Can Help You Get Approved