From saving deposits to alternative lenders: Here are 8 tips for getting your next loan approved.

Thanks to our brand partner, Liberty

So, you've made a plan and set a goal, now all you need is to get that loan. When you’ve had your sights set on something for a really long time, it can be daunting to think about your finances – after all, things like buying your first home, finally getting that new car, or achieving the dream of starting your own business are big goals to go after. 

But getting a loan isn’t as daunting as it might seem. In fact, it’s probably simpler than you think. All it might take is a few simple tweaks and you could be well on your way to your financial goals.

Well, now is the time to get prepared to see that big green tick of acceptance, because I have done the legwork for you and found 8 tips that will help you get a loan approved. 

Do your research. 

Just like no two coins are the same, neither are lenders – so do your research to make sure you are applying for a loan with a lender that is suitable for you. 

There are plenty of resources to help you figure out what you need and what loans you should apply for. I also recommend talking to a mortgage broker or lender; they can help you find the right loan option or features for your circumstances. 

Look outside the one-size-fits-all approach.

It’s easy to go with the standard approach to getting a loan. But the stock standard is exactly that – standard. And that doesn’t suit everyone. 

Sometimes what you need is a lender that takes a different approach – someone who can think outside the box to get you closer to your goals. Someone like Liberty.

Liberty’s mission is to provide free-thinking finance solutions to help people from all walks of life to achieve their dreams. Unlike traditional lenders, Liberty recognises that a checkbox approach isn’t feasible in the modern world.


Rather than just looking at the typical things to assess suitability, they look at the bigger picture. If you’re a boss with your own business or own a funky side hustle, you’re assessed as such. Maybe you have a small deposit or have had a few financial hiccups – don’t be discouraged. Liberty may just be able to help you.

Whether you’re after a house, car, business, commercial or SMSF loan, Liberty will treat you as a whole person, not just as a number.

Understand your credit history.

When I was 25, I got my first credit card and exceeded the credit limit so fast that I needed my dad to bail me out. Now, this isn’t my proudest moment. But it’s definitely been my most valuable, as this is how I learnt about credit scores. And it’s important that you understand yours.

Lenders often want to know that you’re in good financial shape before you borrow money. One way they check this is your credit history and your credit score, which is a simplified number representing your financial past. In Australia, credit scores range from 0 – 1,200 and the higher your credit score is, the more likely it is to have your loan approved.

There’s a lot of easy-to-use services online that can tell you your credit history and score. And you’re entitled to check it for free every three months.

Keep in mind there’s a number of things that can impact your credit score, from late payments to your employment history and even upgrading your phone.


But if your score is looking a little lacklustre, don’t worry. There are plenty of ways to improve it, including paying your bills on time, growing your savings and regularly paying down other debts. 

And remember – every application for credit goes on your credit report. So, it’s important to only apply with lenders who you feel are compatible with your needs and mission. 

Getting your money in order. 

Who doesn’t love a good shopping spree? Or a cheeky dinner and drinks in town? It’s the little things in life, right? But when you’re in the market for a loan, maxing out the credit card can really work against you.

While you can still enjoy the odd after-work cocktail, keep in mind that lenders love to see consistent spending and consistent savings. So, if you’re thinking about booking a holiday to Europe, it might be best to wait on it.

Just like lenders love good spending habits, they love seeing debt being paid off. Any existing debt you have could impact your chances to get approved. Yes, even your cheeky Buy Now, Pay Later online order. So, try to pay it down the first chance you get.

Save for a deposit.

Let’s face it – saving can sound much easier than it actually is. But if you can start saving even a small amount on a regular basis, it can really help your application and your credit score.

A deposit shows that you’re capable of putting money aside for something that matters. Not to mention, the bigger your deposit, the less you’ll have to repay. Your deposit means you won’t need to borrow the whole loan amount, only the gap of the total amount you need. Less borrowing equals your loan being paid off quicker.


Generally, the accepted deposit amount is 20 per cent of the total loan amount. But let’s face it – that’s a lot of money to save. However, there are lenders who can help you reach your goals even if you have a small deposit.

Consider a guarantor.

Sometimes we need a bit of help to reach our goals. This is where a guarantor comes in. 

A guarantor is someone who co-signs your loan guaranteeing that they will cover the loan repayments if you run into trouble. If you need more borrowing power or have a small deposit or just need a little help getting over the line, a guarantor could be the solution.

While asking a loved one to help buy a home or start a business can be daunting, it can help bring your dreams to fruition much faster.

Do your tax returns. 

It can be easy to put off doing your tax when you’re self-employed. But having them ready can help get you over the lending line.

When you apply for a loan as a freelancer or self-employed person, you’ll need to prove your income and employment stability. This can be pretty hard without the tax returns to back it up. Getting on top of these before you apply can help you see that big tick of approval sooner.

If tax time makes you want to cry, there are other options for people who don’t work the usual 9-5. A number of lenders offer low-doc loans, specifically catered to self-employed individuals and freelancers. So if you’re in that boat, it’s worth exploring your options.


Check your borrowing power. 

Knowledge is power – especially when it comes to borrowing power. If you’re unsure of what borrowing power is, it’s how much money a lender is willing to let you borrow based on your current situation. So, understanding yours is important.

Borrowing power is based on a bunch of different factors, which differ from lender to lender. A strong credit history, savings and stable income certainly help though.

The way to check your borrowing power is fairly simple. For example, for a mortgage, you look at your income and subtract all your expenses. Yes, all of them. Even that sneaky 2am cheeseburger. Once all expenditure has been deducted, you add in the loan repayment. This calculation helps lenders decide how much they can lend you and gauge your ability to pay it off. 

If you’re ready to start exploring, Liberty has flexible solutions available. Speak with a Liberty adviser today – they have access to a range of lenders and can help you get to yes sooner.

Approved applicants only. Lending criteria apply. Liberty Financial Pty Ltd ACN 077 248 983 and Secure Funding Pty Ltd ABN 25 081 982 872 Australian Credit Licence 388133, together trading as Liberty Financial.

Feature Image: Getty.

At Liberty we recognise that not everyone is the same. Our history has been built on providing out-of-the-box solutions to help more customers from all walks of life get financial. If you need a free-thinking solution you’ve come to the right place!