Buying a home in Queensland has become more competitive, especially with rising property values and higher interest rates putting pressure on budgets. Areas like Logan are attracting a lot of first-time buyers thanks to more affordable prices and solid growth potential. 

But before you even think about making an offer, it’s essential to understand how to apply for a mortgage, because this part of the process can make or break your homebuying plans. 

Whether you're buying in Logan or anywhere in QLD, knowing what lenders need and how the process works can save you time, stress, and money. This is especially true for first-time buyers, who often don’t realise how detailed the mortgage steps really are.

Here’s a clear, no-nonsense breakdown of the 7 real steps you need to follow when applying for a mortgage. 

Buying your first home in Logan? Cube Loans helps you prepare, apply, and get approved with confidence. Let our experienced Logan mortgage brokers handle the hard parts for you. Call us today at 1800 774 756 to get started. 

Step 1: Review Your Finances and Credit Score

Before anything else, you need to know where you stand financially. This gives you a clear picture of your financial health and helps you avoid surprises during the mortgage application process. 

Lenders will look closely at your:

• Income
  
  
• Expenses
  
  
• Existing debts
  
  
• Savings
  
  
• Credit score and credit history
  
  

They’ll want to see that you have a reliable financial situation and a clean repayment record. This helps them assess your borrowing capacity and decide whether you're a risky borrower.

How to Check Your Credit Score in Australia

You can check your credit score for free through major Australian credit bureaus like:

• Equifax
  
  
• Experian
  
  
• illion

In Australia, credit scores range from 0 to 1,200 depending on the bureau. Generally, a score above 700 is considered good and gives you a stronger chance of approval with better interest rates. If your score is lower, it doesn’t mean you’ll be rejected, but lenders may ask for more documentation or apply stricter terms.

Step 2: Calculate Your Borrowing Power

Your borrowing power is the estimated amount a lender may allow you to borrow based on your financial situation. It’s one of the first things you should calculate because it sets a realistic budget for your property search. 

Knowing your borrowing power, especially as a first homebuyer, helps you avoid overcommitting and keeps your home loan application aligned with what you can actually afford.

Factors That Affect Your Borrowing Power

Every lender looks at a few key details before deciding how much they’re willing to lend. Understanding these factors gives you more control and lets you plan ahead.

Here’s what can impact your borrowing power:

• Income: The more stable and higher your income, the more you may be able to borrow.
  
  
• Living expenses: Lenders assess your day-to-day spending to check your leftover capacity for repayments.
  
  
• Existing debts: Credit cards, car loans, or personal loans can reduce how much you can borrow.
  
  
• Deposit amount: A larger deposit shows financial discipline and reduces lender risk.
  
  
• Loan type: Interest-only loans or variable rate loans may change how your repayments are calculated.
  
  
• Number of dependants: More dependants often means higher household costs, reducing borrowing power.
  
  
• Employment type: Full-time, permanent jobs are preferred over casual or contract roles.
  
  
• Credit score: A strong credit history gives lenders more confidence in your ability to repay.

Step 3: Gather the Required Documents

Get organised early. Having your paperwork ready makes your home loan application much smoother. It also shows lenders that you’re serious and financially prepared, which can speed up the approval process.

You’ll Need:

• Proof of income – recent payslips, tax returns, employment contract
  
  
• Bank statements – usually 3–6 months’ worth
  
  
• Savings history – shows you’ve built a house deposit
  
  
• Proof of identification – driver's licence, passport, birth certificate, citizenship certificate, proof of age card, or pension card
  
  
• Other documents – council rates notices (if you already own property), rental statements, home insurance details (for some lenders)

Checklists vary, but most lenders and brokers will expect these minimums. Some allow for online applications, but either way, have the originals and digital copies ready.

Buying in Logan and not sure what lenders want? Cube Loans helps you prepare your documents and apply without the guesswork. Speak to local Logan mortgage brokers who specialise in helping first-home buyers succeed. Book a free chat with us by calling 1800 774 756 today. 

Step 4: Get Pre-Approval from a Lender

This is your conditional approval (also called approval in principle). Pre-approval is an early indication that you meet the basic requirements for a home loan. It’s a statement from the lender indicating that they’re likely to approve you for a certain amount if your situation remains unchanged.

Factors of pre-approval: 

• Valid for 3 to 6 months
  
  
• Not a guarantee – just a strong indication
  
  
• Let’s you make serious offers on properties
  
  
• Required by many real estate agents
  
  

Step 5: Find a Property and Submit Full Loan Application

Found a place? Great. Make an offer subject to finance; this gives you a legal way to back out if your loan is declined. Once the seller accepts, your lender kicks off the full application process, which involves reassessing your financial situation in detail.

They’ll also arrange a formal valuation of the property to ensure it matches the price you've agreed to pay.

Full assessment includes:

• Reviewing all your loan documents again
  
  
• Ordering a property valuation to check the market value
  
  
• Confirming the contract terms and settlement date

This is where your bank statements, tax returns, proof of employment, and credit score all get another deep dive.

Step 6: Receive Formal (Unconditional) Approval

This is the big one: unconditional approval means your lender has signed off on the loan. They’re happy with you, your documents, and the property value. At this stage, there are no more conditions to meet. Your home loan is officially approved, and you're ready to move toward settlement.

What will happen:

• You’ll sign the official mortgage contracts
  
  
• The loan application fee, if any, is finalised
  
  
• Your solicitor or conveyancer is notified

You’re now locked in. From here, it’s all about preparing for settlement day.

Step 7: Loan Settlement and Funds Released

On settlement day, your lender transfers the funds to the seller’s account. You become the legal owner of the residential property, and your home loan repayments begin shortly after. Your solicitor or conveyancer will also register the property in your name and confirm that the final transfer of ownership is complete.

What will happen:

• The lender liaises with your solicitor/conveyancer
  
  
• The title is transferred
  
  
• Stamp duty is paid (unless waived under a Home Guarantee Scheme or first-home buyer concession)
  
  
• Home insurance is usually required by this point

This step officially completes the mortgage or home loan financing journey.

How Mortgage Brokers Can Help

A mortgage broker can make the home loan process simpler and easier to manage. For first-time buyers, their guidance can save you time, money, and avoid costly mistakes. Here’s what brokers can do for you:

• Compare lenders to find a loan that suits your financial situation
  
  
• Explain loan options like fixed vs variable rates, offset accounts, and interest-only loans
  
  
• Help with paperwork and ensure your documents meet lender requirements
  
  
• Guide you through pre-approval and what to expect next
  
  
• Assist with government schemes like the First Home Guarantee or stamp duty concessions
  
  
• Negotiate with lenders on your behalf if needed
  
  
• Keep you on track from initial assessment through to settlement

If you're applying for a home loan, especially in Logan, Cube Loans is here to help. Our experienced Logan mortgage brokers are first-home buyer specialists. Call us at 1800 774 756 to get started.

FAQs

How much income do I need for an $800,000 mortgage in Australia?

As a rough guide, you’d typically need a household income of around $130,000 to $160,000 per year to qualify for an $800,000 mortgage, depending on your other expenses, debts, and the loan term.

Do I need a 20% deposit?

Not always. Many lenders accept deposits as low as 5–10%, but anything under 20% usually requires Lenders Mortgage Insurance (LMI), which adds to the cost of your loan.

What fees should I expect when applying for a mortgage?

Common fees include a loan application fee, valuation fee, legal fees, stamp duty, conveyancing fees, and pest/building inspection costs. Some lenders may waive or reduce certain fees for first-home buyers.

What is the minimum salary to apply for a mortgage?

There’s no fixed minimum salary, but most lenders want to see that you can comfortably meet repayments. A steady income of around $50,000 per year (or higher with dependants or debts) is often the minimum benchmark.

Is $40,000 enough for a house deposit?

It can be, especially for properties priced under $500,000 and if you're eligible for first-home buyer grants. But you’ll likely need to pay LMI and other upfront costs as well.

What is the minimum deposit to buy a house in QLD?

Most lenders require at least 5% of the property value as a deposit, but keep in mind you'll also need funds for stamp duty, legal fees, and other upfront costs.

What's the easiest way to get approved for a mortgage?

Have a strong credit history, a steady income, minimal debts, and all your documents ready. Working with a mortgage broker can also make the process easier, especially for first-time buyers.

What are the different types of home loans available for first-time buyers?

Common options include variable rate, fixed rate, split loans, interest-only loans, and owner-occupier home loans. Some lenders also offer offset accounts and access to government-backed programs like the Home Guarantee Scheme.

Final Thoughts

Applying for a mortgage can seem overwhelming, but breaking it down into clear steps makes the process more manageable, especially for first-time buyers in Queensland.

Understanding your borrowing capacity, preparing the right documents, and knowing what to expect at each stage gives you a real advantage when applying for a loan.  And if you're buying a house in Logan, where demand is growing and competition is tight, getting your mortgage sorted early is even more important.

Need expert help? Cube Loans can guide you through the entire mortgage process, from pre-approval to settlement. Book a free consultation with our brokers today by calling 1800 774 756.