Million Dollar Loan? Here's How to Secure It Fast

In today's competitive housing market, securing a million-dollar loan might seem daunting. Whether you're aiming to purchase your dream home or invest in property, understanding the intricacies of obtaining such a significant loan amount is crucial. With the right knowledge and guidance, you can navigate this complex process with confidence.

Understanding Million Dollar Loans

A million-dollar loan is essentially a substantial borrowing amount that typically comes with stricter lending criteria compared to smaller loans. Lenders are more cautious with higher amounts due to the increased risk involved. However, with the right financial profile and preparation, securing a million-dollar loan is entirely feasible. Here’s what you need to know to get started.

Current Market Rates and Requirements

As of 2026, the interest rates for home loans in Australia generally range from 6.49% to 12%. The rates you qualify for depend on factors such as your credit score, the type of loan, and the lender's specific criteria. When considering a million-dollar loan, lenders will scrutinise your financial health more closely.

Eligibility criteria for a million-dollar loan typically include a strong credit score (generally 700 or above), a stable and high income, and a low debt-to-income ratio. Lenders will also require a significant deposit, often at least 20% of the property value, meaning you would need at least $200,000 upfront for a million-dollar home.

Steps to Secure a Million Dollar Loan

Here is a step-by-step guide to help you secure a million-dollar loan:

1. Assess Your Financial Situation: Evaluate your current income, debts, and credit score. Use this information to determine if you're financially prepared to handle a large loan.
2. Save for a Deposit: Aim to save at least 20% of the property's value. This not only improves your chances of approval but can also help you secure a better interest rate.
3. Improve Your Credit Score: Pay off existing debts and ensure all bills are paid on time to boost your creditworthiness.
4. Consult with a Mortgage Broker: A broker can offer insights into different lenders' requirements and help you access the best deals from a panel of 83+ lenders, like at Esteb and Co.
5. Get Pre-Approval: This step gives you a clear indication of how much you can borrow and strengthens your position when negotiating with sellers.
6. Choose the Right Loan Product: Consider fixed, variable, or split loan options based on your financial goals and risk tolerance.
7. Submit Your Application: Ensure all documentation is accurate and complete to avoid delays in the approval process.

Tips and Considerations

Here are some expert tips to consider when applying for a million-dollar loan:

• Budget for Additional Costs: Remember to account for stamp duty, legal fees, and potential renovations, which can add significantly to your expenses.
• Consider Interest Rate Fluctuations: With variable rates, be prepared for potential increases that could affect your repayments.
• Think Long-Term: Ensure your income and employment are stable enough to support long-term repayments.
• Seek Professional Advice: Consulting with professionals, such as financial advisors and mortgage brokers, can provide valuable insights and help you make informed decisions.

Frequently Asked Questions

1. What credit score is needed for a million-dollar loan? Generally, a credit score of 700 or above is ideal for securing a million-dollar loan.
2. How much deposit do I need? Most lenders require at least a 20% deposit, equating to $200,000 for a million-dollar property.
3. Can I get a million-dollar loan with a variable income? Yes, but it may require providing additional documentation to prove income stability.
4. Are there any government schemes to assist? Depending on your situation, you may qualify for schemes like the First Home Owner Grant, but these generally do not apply to million-dollar properties.
5. How long does it take to get approved? The approval process can take anywhere from a few weeks to over a month, depending on the lender and complexity of your application.
6. Can a mortgage broker help with a million-dollar loan? Yes, brokers like Esteb and Co can offer access to a wide range of lenders and help you find the best loan product for your needs.
7. What if I'm self-employed? Self-employed applicants may face additional scrutiny but can still qualify with the right documentation and financial stability.