Applying for a home loan in NSW has become more competitive in 2025, with lenders tightening criteria and focusing closely on borrowers’ financial stability. Whether you’re a first-time buyer, refinancing, or investing, preparing your application properly can make the difference between approval and rejection.

This step-by-step guide will walk you through how to prepare your NSW home loan application in 2025, covering the documents you need, how to prove income and assets, and the strategies to boost your chances of approval.

Step 1: Gather the Right Documents

Before you even start filling out an application, lenders will expect you to provide key documents:

• Proof of identity – Driver’s licence, passport, or Medicare card.
• Proof of income – Recent payslips, PAYG summaries, or tax returns if self-employed.
• Bank statements – Usually three months, showing salary deposits and spending habits.
• Liabilities – Credit card statements, personal loans, car finance details.
• Savings history – Evidence of consistent saving and deposit funds.

💡 Tip: In 2025, most lenders prefer digital statements, so make sure you can access everything online.

Step 2: Demonstrate Stable Income & Assets

Your income and assets show lenders that you can comfortably service a loan. Here’s what they look for:

• Employment stability – At least 6–12 months in your current role, or longer in the same industry.
• Self-employed borrowers – At least one full year of business financials, sometimes two depending on the lender.
• Assets – Savings, superannuation, and any existing property equity.

💡 Tip: If you’re applying jointly (as a couple or family), lenders will assess both applicants’ incomes and liabilities together.

Step 3: Strengthen Your Credit Profile

Your credit score in 2025 remains one of the biggest deciding factors. To improve your profile:

• Pay off or reduce credit cards and personal loans.
• Avoid late payments on bills and utilities.
• Don’t apply for multiple loans or credit cards before your home loan.

Step 4: Show Genuine Savings

Most lenders require a minimum 5–10% deposit in genuine savings – money you’ve built over time, not just a one-off gift.

💡 Tip: Even if you receive help from family, show that you’ve managed some of the deposit yourself to improve your credibility.

Step 5: Work With a Mortgage Broker

Each bank has different rules and policies in 2025. Working with a mortgage broker ensures your application is matched with the right lender. A broker can:

• Compare multiple lenders’ policies.
• Present your application in the strongest way possible.
• Negotiate sharper rates and loan features on your behalf.

Final Thoughts

Preparing your NSW home loan application in 2025 is all about planning ahead, organising documents, and presenting yourself as a strong borrower. By focusing on income stability, savings, and credit health, you’ll give yourself the best chance of approval.

At Truth Group, I help clients every day with mortgage planning, investment strategy, and building property portfolios. From organising paperwork to choosing the right lender, you don’t have to do it alone.

👉 If this is something you’d like help with, let me know or reach out today.