How to Borrow AUD for a Mortgage in Australia | Step-by-Step

Understanding eligibility and lending criteria

Before applying for an Australian mortgage, it’s important to know how lenders evaluate your borrowing capacity. A clear assessment of your financial profile determines how much you can borrow and under what conditions. Key factors lenders assess:

• Income stability: Consistent and verifiable earnings strengthen your application.

• Deposit size: A larger deposit increases borrowing power and can reduce additional costs such as insurance.

• Credit history: A strong credit record shows reliability and improves access to competitive lending options.

• Debt-to-income ratio: Lower existing debt compared with your income signals lower financial risk.

Getting pre-approved confirms your budget and positions you as a serious buyer. HeyNest connects you with an independent expert who reviews your finances against multiple lenders’ criteria to help you qualify with confidence.

Simple, Smart, Chill.
That's Heynest

Skip the paperwork. Connect with your broker online in minutes.

Digital & Fast

Your Perfect Match

We link you with the expert who understands your goals.

Tailored Options

Access the best mortgage deals, hassle-free.

Comparing loan types and interest structures

Choosing the right loan structure is essential, as it shapes your repayments, total cost and financial flexibility over time. Loan products vary not only in repayment style but also in how interest rates are applied. Main mortgage options:

• Principal & Interest: Reduces your loan balance while also covering interest.

• Interest-Only: Temporarily covers only interest, without reducing the principal.

• Variable rate: Changes according to market conditions, offering flexibility.

• Fixed rate: Remains constant for an agreed period, providing repayment certainty.

Certain features, such as offset accounts, redraw facilities and flexible repayment options, can reduce your interest burden over the life of the loan. HeyNest introduces you to an expert who compares and negotiates across lenders to find the structure best suited to your goals.

Stop Stressing: Why a Broker is the 'Smart, Chill' Way

HeyNest

Traditional Bank

Access to many lenders

Compares and negotiates the best market rates for you.

Dedicated, personalized guide every step of the way.

Only offers their own limited products.

Standard, often non-negotiable in-house rates.

Standardized service; often no single dedicated contact.

The application and settlement process

Once a loan product is selected, the formal application and settlement stage begins. This phase involves detailed documentation, lender assessments and legal procedures to finalise property ownership. What this stage involves:

• Documentation submission: Proof of identity, income, deposit and liabilities.

• Property valuation: Lender assessment to ensure the property is suitable security.

• Formal approval: Confirmation that the loan is unconditionally approved.

• Settlement: Legal transfer of ownership and release of loan funds.

This stage can feel complex due to required paperwork and tight coordination. A broker connected through HeyNest manages communication, prepares documentation and guides the process from start to finish for a smooth and stress-free settlement.

Simple
Smart
Chill
Heynest

Frequently asked questions

How much can I borrow for an Australian mortgage?

This depends on your income, expenses, existing debts and the lender's specific serviceability calculators, which vary greatly.

What is Lenders Mortgage Insurance (LMI)?

LMI is a mandatory insurance that protects the lender if you default, typically required when your deposit is less than 20% of the property value.

Is it better to use a bank directly or a broker?

A broker compares multiple lenders, negotiating on your behalf, whereas a bank can only offer their own products, often providing a less impartial view.