How do you know if you’re eligible for a home loan

If you’re considering buying your first property and have ever gone through the home buying process before, you might find yourself wondering ‘How do I know if I’m eligible for a home loan?’. The truth is, there is no guaranteed answer, as every bank or lender have their own requirements and you need to shop around to find the right options for you. But there are a few basic requirements you can meet that would indicate you might be ready to apply for a loan.


Although this one might not be a concern to many first home buyers, the minimum age to apply for a home loan is 18. But if you are under 18 and already looking into it then you go, Glen Coco! (You may be a little young to get that one… google it).

Resident Status

You will need to be an Australian or New Zealand resident to be able to get a home loan in Australia. In the case of a couple applying for a home loan, in most cases only one of you need to be a resident.


In order to apply for a loan, you should first have stable employment. This means that you are a permanent employee of a company, and have been working in this field for more than 12 months (some banks require 2 years). You don’t necessarily need to have been in the same position or company for that 12 months, as long as you have worked consistently in the industry for that long (again, this varies per lender). Casual or random work won’t look favourable to the bank either so keep this in mind.


In order to get approved for a loan, you need to be earning enough money to service the loan. The amount you earn will determine how much you can borrow, so if you are eligible to get a loan big enough to buy something in your chosen area will really depend on how much the property is and how much you earn. As a ballpark figure, for a $300,000 loan, you need to be earning around $50,000 a year (this is a very vague estimation, the actual borrowing power will depend on the lender and your specific circumstances).


To be approved for a loan you will need at least 5% of the amount you want to spend on a property, in your savings. Some lenders will require up to 20%, but 5% is the minimum amount required by others. For example, if you are hoping to buy a place for $350,000 you would need $17,500 saved. (Don’t have enough? See down the bottom how we can help you get around this).

Credit Rating

A credit rating of 622 or above is a good starting point to be considered for a home loan, however, if anything above 510 is still doable depending on the lender and the reasons why your score is low. You can check your score yourself online here.


In order to be eligible for a home loan you will need to adhere to a minimum amount of debt. Sometimes you can still get approved even if you do have debt, but this will depend on the amount you want to borrow, how much you earn, how big your debt is and your lender. Don’t discount debts like Afterpay, they are still considered a debt in the eyes of the bank.

If you meet all of these requirements, you are likely eligible for a home loan*

  • Over 18
  • Australia citizen or resident
  • Full-time employment
  • Earning over $50,000 per year
  • Over $17,500 in savings (This can be much less if you go through us!)
  • Credit score above 622
  • No or low debt

*These are rough numbers and will change dependant on your circumstances, and the lender’s requirements.

If you meet all of the requirements and want to buy a home through First Home Hero in QLD and get $30,000 towards a deposit, apply in 60-seconds using our application form.