Joseph Daud | Source | CEO at It's Simple Finance

Having recently been on a COVID hardship payment doesn’t mean that you’ll be rejected for your loan application. However, lenders will be more careful about approving your loan. There are a few simple things you can do to improve the chances of a successful application.

If you’re considering applying for a home loan somewhere down the track it’s important to be aware of your credit history. Be careful with your credit card debts, personal loans or after pay accounts. Keeping your record squeaky clean now will pay off when you're applying for a home loan in the future.

If you work with a mortgage broker they will be able to calculate which properties you are eligible to apply for. This will save you the complicated process of figuring it out yourself. Or the disappointment of being rejected for applying for a home loan with an LVR that you can’t meet.

Some banks will calculate 48 weeks of a casual income per year as an average method of hours worked, whilst other banks will base it on the full 52 weeks. If you're a casual employee, it's always best to speak to multiple lenders to find a solution for you.

Each lender has its own risk profile in regards to; employment type, LVR acceptable, income assessment and buffering rate for interest rates.

Mortgages are one of the biggest things we will ever deal with in our lives. Unfortunately, no one ever teaches us what a good mortgage is. At It’s Simple we constantly give out vital advice and information because we want the world to make educated financial decisions.