%20(1).png)
What Lenders Really Look for in 2025 – Beyond Just Your Income
- Thomas Rochford
- Aug 14, 2025
- 2 min read
What Lenders Really Look for
"A high salary might seem like the fast track to home loan approval but income alone isn’t always enough. Lenders look at the full picture of your financial position."
If you’re planning to apply for a home loan in 2025, here’s an overview of what’s often assessed behind the scenes, plus the common areas that can slow down or derail an application.
Lenders assess more than your income
When reviewing an application, lenders don’t just ask “How much do you earn?” They often consider:
Regular expenses
Stability of income
Existing debt levels
Financial dependents
Ability to manage higher interest rates in the future
Many also apply "serviceability buffer" stress-testing your loan at a higher rate than the one offered, which can reduce borrowing power.
Common issues for high inclome borrowers
High fixed costs - Commitments like school fees, multiple carr leases, or big investment expenses can limit borrowing power.
Overestimating bonus or commission income - Some lenders only count part of the variable income, often only if it's been considered for 12-14 months.
Short time in new roles – Switching jobs before applying can affect income stability assessments.
Large unused credit limits – Even unused card limits can reduce borrowing power on paper.
Buying through a trust or company – This can require extra documentation, and lenders treat these cases differently.
General ways applicants prepare
While every situation is unique, applicants often:
Reduce or consolidate unnecessary debts
Review discretionary spending before applying
Gather documentation (payslips, rental income, tax returns)
Disclose all commitments upfront to avoid delays
Speak to a licensed mortgage broker for tailored advice
This article is for general information only and does not take into account your personal circumstances. For tailored lending advice, speak to a licensed mortgage broker.
Thinking about applying for a home loan?
Perth Mortgage Group can connect you to with the right broker for your needs at no cost to you.
