The eligibility criteria for a first home loan in Australia vary depending on the lender and the state you reside in, but there are some general requirements that you’ll need to meet.
- Have a deposit saved: The amount of your deposit will affect the size of your loan and your interest rate. A larger deposit may result in a lower interest rate and lower monthly repayments.
- Have a stable income: Lenders want to see that you have a stable income that will allow you to make your mortgage payments on time.
- Be able to afford the repayments: Lenders will want to see that you can afford the repayments on your mortgage, including principal, interest, and other fees. This means having a certain debt-to-income ratio so that you are more likely to successfully pay off your mortgage.