New data from Loan Market Group has revealed a promising trend for aspiring property buyers: home loan approvals are on the rise. National figures show a 15% increase year-on-year during the March quarter, with significant growth in NSW, Queensland, South Australia, and Western Australia. For owner-occupiers and investors alike, the window of opportunity is opening — especially in regions offering lifestyle and affordability.

But while the market may be moving, not every buyer is getting their loan approved. In Victoria, for instance, loan approvals have barely budged at 3%, and in parts of Melbourne, investor activity has dropped by a staggering 43%.

So, what separates successful borrowers from the rest?

As experienced property finance brokers, we’re seeing the patterns firsthand. Whether you’re buying your first home, refinancing, or expanding your investment portfolio, here are our top tips to boost your chances of loan approval — no matter where you’re based.

Before browsing listings, know your numbers. Lenders assess borrowing capacity based on income, living expenses, existing debts, and loan-to-value ratio (LVR). A good broker can help you map this out clearly and ensure you’re not aiming above your reach.

Tip: Use our borrowing capacity calculator to get a realistic view of what you can afford.

Lenders are looking for consistency and reliability. To strengthen your application:

• Maintain stable employment (at least 6 months in your current role)
  
• Limit discretionary spending
  
• Pay off credit cards or reduce available limits
  
• Avoid BNPL services like Afterpay in the lead-up to applying

Tip: Your bank statements tell a story — make sure it’s one that lenders will like.

The latest data shows a fragmented market, where approvals vary drastically by postcode. An experienced broker understands how different lenders assess risk in specific regions and can match you with a lender aligned to your goals.

Example: Approvals are booming in Brisbane and the Sunshine Coast — but patchy in Melbourne’s western suburbs. A broker can help you shift your strategy, location, or lender accordingly.

While many buyers lean on equity, we’re seeing stronger approval rates for those using cash deposits — especially for positively geared investments. Saving a larger deposit also helps reduce your LVR and avoid LMI (Lenders Mortgage Insurance).

Tip: Consider a family guarantee or split-deposit approach if cash is tight.

In a rising market, being ready to act gives you an edge. A loan pre-approval lets sellers know you’re serious and helps you shop within your means. It’s not a guarantee, but it does show the bank’s initial confidence in your application.

Tip: Pre-approvals usually last 3–6 months, so time your search accordingly.

We’re in a period where confidence is returning, and more Australians are taking the leap — especially in regions that were once overlooked. But with every opportunity comes a challenge, and getting approved in 2025 still requires the right advice, preparation, and strategy.

At Lagos Financial, we help clients navigate the fine print, avoid the common traps, and secure the finance they need to move forward.

? Want to know how your finances stack up in today’s market?
Book a complimentary assessment and let’s map out your next move.

Related Reading

• Navigating the Loan Approval Process: Guide to Financing Success — Further guidance on navigating the home loan process
• Mortgage broker insider tips: 7 things the banks won’t tell you — Further guidance on navigating the home loan process
• Home Loan Options — Compare home loan products and find the right fit for you
• Home Loan Preparation Guide — Step-by-step guide to getting your finances ready for a home loan

Need expert guidance? Book a complimentary assessment with Lagos Financial.