What Not to Do When Applying for a Home Loan in Victoria
- Samantha Keramidas
- Apr 4
- 3 min read
Applying for a home loan is one of the biggest financial commitments you'll make, and avoiding common mistakes can save you time, money, and stress. To help you navigate the process, Mortgage Broker Steve Keramidas shares key insights into what NOT to do when applying for a home loan in Victoria.
1. Don’t Apply for New Credit Before Your Loan is Approved
Many borrowers make the mistake of taking out a new credit card, car loan, or personal loan while waiting for their home loan approval. Lenders assess your credit history and debt-to-income ratio, and any new debt can reduce your borrowing capacity or even result in a loan rejection.
2. Avoid Making Large Unexplained Transactions
Lenders closely examine your bank statements to assess your financial behaviour. Large, unexplained deposits or withdrawals can raise red flags. Always keep a clear record of any significant financial movements, and if you receive a gift from family, ensure it's properly documented.
3. Don’t Miss Payments on Existing Loans or Bills
Your credit history plays a crucial role in your loan approval. Missed payments on credit cards, personal loans, or even utility bills can lower your credit score and make you appear risky to lenders. Ensure all payments are made on time in the months leading up to your home loan application.
4. Avoid Changing Jobs or Reducing Your Income
Lenders prefer borrowers with stable employment and consistent income. Switching jobs, moving to casual or part-time work, or taking an extended leave of absence can negatively impact your application. If you're considering a career change, it’s best to wait until after your loan has settled.
5. Don’t Underestimate the Importance of a Mortgage Broker
A professional mortgage broker like Steve Keramidas can help you navigate the complexities of the home loan process, ensuring you get the best deal possible. Many borrowers make the mistake of applying for a loan without professional guidance, which can lead to higher interest rates, hidden fees, or even rejection.
6. Avoid Overstating or Misrepresenting Your Financial Situation
Providing inaccurate or misleading information on your loan application can lead to delays, rejection, or even legal consequences. Be honest about your income, expenses, and financial commitments to ensure a smooth approval process.
7. Don’t Assume You Qualify for a Loan Without Checking Your Credit First
Before applying, it’s wise to check your credit score and review your credit report for any errors or negative listings. If you spot any issues, work on resolving them before submitting your home loan application.
Final Thoughts
Applying for a home loan can be overwhelming, but avoiding these common mistakes will improve your chances of approval. If you’re in Victoria and need expert advice, Mortgage Broker Steve Keramidas can guide you through the process and help you secure the best loan for your needs.
For personalised mortgage advice, reach out to Steve Keramidas and make your home-buying journey a stress-free experience!
Disclaimer: This article provides general information only and may not reflect the publisher’s opinion. None of the authors, the publisher or their employees are liable for any inaccuracies, errors or omissions in the publication or any change to information in the publication. This publication or any part of it may be reproduced only with the publisher’s prior permission. It was prepared without taking into account your objectives, financial situation or needs. Please consult your financial adviser, broker or accountant before acting on information in this publication.