With tighter lending conditions and rising living costs, buying your first home in 2025 is a challenge — but not impossible. The key is preparation.
At SW Global Finance, we often see first home buyers miss out on great opportunities simply because they were not ready when it mattered most. If you are planning to apply for a home loan, here are four essential steps you should take before you speak to a bank or broker.
1. Check and Clean Up Your Credit Profile
Your credit report is one of the first things a lender will review.
Before applying for a loan, make sure your credit file:
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Has no recent defaults or late payments
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Shows a stable repayment history
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Has low existing credit limits (especially on credit cards or Buy Now Pay Later services)
You can request a free credit report once a year via Equifax or Experian.
2. Save a Genuine Deposit
Most lenders require at least 5% of the property value in genuine savings, held for at least 3 months. Genuine savings refer to money you have consistently saved over time — not just gifts or one-off transfers.
A stronger deposit (e.g. 10–20%) can also help you:
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Avoid Lender’s Mortgage Insurance (LMI)
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Access better interest rates
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Increase your borrowing capacity
3. Reduce Unsecured Debt
Outstanding personal loans, Afterpay balances, or high-limit credit cards will reduce how much you can borrow — even if they are unused.
We recommend:
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Paying down existing personal or car loans
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Reducing credit card limits
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Closing unused accounts
Lenders assess your capacity to manage future repayments, not just your current income.
4. Track Your Spending and Budget Surplus
In 2025, lenders are looking closely at your living expenses. You will be required to demonstrate a consistent surplus in your monthly cash flow.
Start by:
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Tracking your expenses for at least 3 months
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Identifying discretionary spending you can reduce
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Building a buffer to show financial discipline
Be Ready When the Market is Right
In a competitive property market, being finance-ready gives you a real advantage. Whether you are looking to buy in the next 3 months or simply preparing for the future, now is the time to get your finances in order.
SW Global Finance can help you:
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Review your financial position
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Develop a savings and credit strategy
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Understand lender requirements
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Navigate the home loan application process with confidence
Ready to Take the Next Step?
If you’re planning to buy your first home, getting loan-ready is not just smart — it’s essential.
At SW Global Finance, we offer free pre-assessments to help you understand your borrowing power, improve your loan eligibility, and avoid costly mistakes.
Call/WhatsApp: +84 96 275 92 07
Email: support@sw-globalfinance.com.au
Let’s build a smart finance plan — and get you closer to owning your first home.