5 Common Loan Application Mistakes to Avoid
Protect Your Approval Chances and Borrow Smarter
Applying for a home loan or investment loan is a major financial decision — and small missteps can lead to big delays, rejections, or missed opportunities.
To help you prepare confidently, here are five of the most common loan application mistakes — and how to avoid them.
❌ 1. Applying Without Checking Your Credit Report
Many borrowers apply for a loan without knowing what’s on their credit report — only to discover issues like unpaid debts, errors, or too many credit enquiries that impact their approval chances.
✅ What to do instead:
Always check your credit score before applying. You can get a free copy from Equifax, Experian, or illion. Dispute any errors and pay off overdue accounts where possible.
❌ 2. Overestimating Borrowing Power
Just because you earn a solid income doesn’t mean you can borrow as much as you think. Lenders look at your living expenses, debts, dependents, and liabilities — not just your salary.
✅ What to do instead:
Get a borrowing power assessment from a broker before you go property shopping. It helps you avoid disappointment and narrows your target range.
❌ 3. Making Major Financial Changes Mid-Application
Changing jobs, applying for new credit cards, or spending your savings right before or during the application process can signal instability to lenders — and cause your loan to be declined.
✅ What to do instead:
Hold off on big life or financial changes until your loan is approved and settled. Keep your financial profile stable during this time.
❌ 4. Inaccurate or Incomplete Documentation
Submitting the wrong documents — or missing key paperwork — can slow down your application or lead to automatic rejection. Lenders need to verify your income, assets, and liabilities.
✅ What to do instead:
Work with a mortgage broker who gives you a complete checklist and reviews your documents before submitting anything to a lender.
❌ 5. Applying with the Wrong Lender
Not all lenders suit all borrowers. If you’re self-employed, have a low deposit, or want to buy through a trust or SMSF, some lenders may not accept your application at all.
✅ What to do instead:
Use a broker (like us!) who understands your situation and matches you with the right lender from the start — saving you time, stress, and credit score damage.
🎯 Final Thoughts
Avoiding these common mistakes can make the difference between loan approval and rejection — or between a high rate and a competitive one.
At Kangaroo Finance & Mortgage, we help you avoid missteps and put your best foot forward from day one. Whether you’re a first-home buyer, investor, or business owner — we’re here to guide you every step of the way.
📞 Need expert help with your application?
Book a free consultation today and let’s make sure your next loan is approved — and structured for success.
