Whether you’re applying for your first home loan, upgrading to a larger home, or transitioning your mortgage after a property sale, the process can feel overwhelming. But it doesn’t need to be.
These seven essential tips will guide you through what to prepare, what to consider, and what to avoid, no matter your experience level.
“Securing a loan pre-approval is an extremely important tool to have in your arsenal when you’re looking to buy. It signals intent, readiness, and lender backing. It confirms your borrowing capacity, strengthens your negotiating position, and ensures you’re protected when strategic buying opportunities arise. Especially in a competitive market, it acts as a financial mandate to transact with confidence.” Ben Hawley – Director, Azura Financial
1. Understanding your borrowing capacity
Your borrowing capacity is the foundation of your mortgage strategy. It determines what price range you should target, and it can vary significantly between lenders.
What to do:
- Contact a broker to assess your borrowing capacity
- Gather your income, expenses, debts, and asset details
- Speak to a broker to assess how different lenders may view your application
Some banks require more documentation for casual or variable income. Government schemes like the First Home Guarantee may also affect your borrowing capacity.
If you’re upgrading, refinancing, or buying while selling, your equity position and existing debts need to be carefully reviewed to ensure your new loan aligns with settlement dates.
2. Get Pre-Approval Before Making an Offer
Pre-approval gives you clarity and leverage when negotiating on a property. It confirms that a lender is willing to lend you a certain amount based on your current financials.
What to do:
- Provide complete and accurate documentation (ID, payslips, statements)
- Avoid changing jobs or applying for other credit while it’s active
- Know that most pre-approvals expire after 90 to 120 days
First home buyer?
Pre-approval is essential to shop confidently and ensure you are eligible for government support schemes.
Upgrading or downsizing?
If you are buying before selling, your broker should explore longer settlement periods, bridging finance or short term funding solutions to manage the timing.
“Getting pre-approval early gives you the power to act quickly when the right property comes up. It also protects you from making emotional decisions that don’t stack up financially.” Tom Hawley – Director, Azura Financial
3. Choose the right loan structure
Interest rates matter, but loan structure often matters more. A loan should support your financial goals, not just look good on paper.
What to do:
- Compare fixed, variable, and split loans
- Consider whether an offset account or redraw facility suits your needs
- Review interest-only options for investment strategies
First home buyer?
Offset accounts can help you save interest while keeping access to your cash.
Investor or upgrader?
If you are keeping your current home as an investment, structure your new loan for future tax effectiveness.
4. Budget for all upfront costs
Beyond your deposit, there are several other costs to factor into your buying or refinancing plan.
Common costs include:
- Stamp duty (varies by state)
- Lenders Mortgage Insurance (LMI) if borrowing over 80%
- Conveyancing, building and pest inspections
- Bank and loan setup fees
First home buyer?
You may be eligible for stamp duty exemptions or LMI waivers under government programs.
Transitioning loan?
You may need a deposit bond if you are purchasing before your sale has settled.
5. Align lending with your financial structure
Your income type, business structure, or trust setup can directly impact which lenders are available to you and on what terms.
What to do:
- If self-employed, prepare BAS, profit and loss statements, or accountant letters
- If borrowing through a trust or SMSF, ensure all documents are current
- Involve your accountant in structuring discussions early
Self-employed?
Low documentation loans using alternative income verification are often available.
High income or complex structure?
Loans can be tailored through SMSFs or trusts, especially for property investors and professionals.
6. Compare more than just your bank
Most borrowers start by asking their current bank for a loan. But loyalty doesn’t always pay off.
What to do:
- Compare at least three lenders, preferably through a broker with access to 60+ lenders like Azura Financial
- Consider non-bank options that offer faster approval or more flexibility
- Understand that every lender has unique credit policies
First home buyer or casual income?
Some lenders will include overtime or bonus income, while others exclude it.
Investor or upgrader?
Look for lenders who offer better interest-only pricing or recognise rental income fully.
7. Choose the right broker
A good broker helps you get a loan. A great broker helps you make smart financial decisions for years to come.
What to look for:
- Full service support from initial planning to settlement
- Deep understanding of structures like trusts, SMSFs, or business income
- Clear communication and proactive updates
At Azura Financial, we:
- Guide first home buyers through every step of the process
- Secure tailored low documentation solutions for business owners
- Help high net worth clients structure complex lending through SMSFs and trusts
- Manage upgrade timelines, bridging finance, and deposit bond requirements
“We see ourselves as long term partners, not just brokers. Whether it’s your first property or your fifteenth, we help you make the best lending decisions for your future.” Tom Hawley – Director, Azura Financial
Final Word
Whether you’re applying for your first loan or refinancing after a property sale, the right mortgage strategy can save you time, money, and stress. Getting expert advice and choosing a structure that supports your goals is the key to long term success.
Azura Financial delivers premium service, tailored solutions, and trusted advice across all borrower types. We’ll manage the process from day one, so you can focus on what matters most.
Ready to speak to a lending expert?
Contact our team today to book a strategy call and explore your best options.
