A well-prepared mortgage application increases approval likelihood and can secure better terms. These five steps help position applicants for success.
1. Review Your Credit Report
Obtain your credit report from Centrix or Equifax before applying. Check for errors, outdated information, or unexpected entries. Correcting issues takes time, so early review is essential.
2. Stabilize Your Banking
Banks examine three months of transaction history. Establish consistent patterns: regular income deposits, manageable spending, and no overdrafts. Avoid large unexplained transactions close to application time.
3. Reduce Existing Debt
Pay down credit cards and personal loans where possible. Even unused credit limits affect borrowing capacity. Consider closing accounts you don't need.
4. Document Your Income
Gather recent payslips, employment contracts, and tax returns. Self-employed applicants need financial statements and possibly accountant letters. Complete documentation prevents delays.
5. Calculate Your Deposit Position
Know exactly what funds you have available and their sources. Banks require evidence of genuine savings-typically funds held for three months or more. Document any gifted deposits with formal letters.
Working With a Broker
A mortgage broker can review your situation and identify potential issues before formal application. This preliminary assessment helps address weaknesses and present the strongest possible case to lenders.
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