Frequently Asked Questions

Your borrowing power depends on your income, existing debts, living expenses and the lender's serviceability assessment. Most lenders apply the higher of your declared expenses or the Household Expenditure Measure (HEM), and they test repayments at your actual rate plus the APRA 3% prudential buffer. This website's borrowing power calculator gives an estimate only; a broker can review your full situation before you commit to anything.

For most standard home loans, mortgage brokers do not charge you a direct fee. They are typically paid a commission by the lender once your loan settles. For complex lending scenarios, such as some commercial or low-doc loans, a fee may apply, and that should be disclosed in writing up front. Ask your broker for a clear statement of how they are remunerated before proceeding.

Most lenders require at least 5% of the purchase price as a genuine savings deposit. If you borrow more than 80% of the property value, lenders usually require Lenders Mortgage Insurance (LMI). Government schemes such as the First Home Guarantee may allow eligible buyers to purchase with a 5% deposit and avoid LMI, subject to lender approval and property price caps.

Lenders Mortgage Insurance (LMI) is a one-off insurance premium that protects the lender if you default on a loan where you borrow more than 80% of the property value. It is usually capitalised into the loan and is not a personal protection product for the borrower. You may be able to avoid LMI by saving a 20% deposit, using a guarantor, or qualifying for the First Home Guarantee.

Mortgage brokers are generally paid by lenders through upfront and trail commissions, not by the borrower for standard home loans. Upfront commission is paid when the loan settles. Trail commission is an ongoing payment based on the remaining loan balance. Brokers are required by law to act in your best interests and to disclose how they are paid.

Lenders usually ask for proof of identity, evidence of income (payslips, tax returns or BAS statements), bank statements showing savings and expenses, and details of existing debts such as credit cards, car loans and HECS-HELP. The exact list depends on the lender and your employment type. Your broker will provide a tailored checklist before submission.

A fixed rate stays the same for a set period, usually 1 to 5 years, giving you repayment certainty. A variable rate can move with market conditions and the lender's pricing decisions, but it typically offers more flexibility such as offset accounts and extra repayments. A split loan divides your loan into fixed and variable portions. Each option suits different risk preferences and budgets.

Refinancing means replacing your existing loan with a new one, often to secure a lower interest rate, access equity, consolidate debt or change loan features. You should consider the costs of switching, including discharge fees, valuation fees and any new establishment fees, and weigh them against the potential savings. A broker can compare your current loan against the market.

The First Home Super Saver Scheme allows eligible first home buyers to make voluntary super contributions and later withdraw up to $15,000 per year, capped at $50,000 in total, plus associated earnings, to use towards a deposit. The scheme is administered by the Australian Taxation Office and has strict eligibility and withdrawal rules.

Ask which lenders they work with, how they are paid, why a particular loan is recommended, what fees apply, what features are included, and whether you are shown more than one option including the lowest-cost alternative. You should also confirm that the broker is licensed or operates as a credit representative under an Australian Credit Licence holder regulated by ASIC.

An offset account is a transaction account linked to your variable-rate home loan. The balance in the offset account is deducted from your loan balance when interest is calculated, which can reduce the amount of interest you pay. It offers flexibility because you can access the funds at any time, unlike extra repayments that may be harder to redraw.

For a straightforward PAYG borrower with clean credit and complete documentation, pre-approval commonly takes around 5 business days. Self-employed applicants or those with complex income structures may take 1 to 2 weeks because lenders require additional paperwork such as tax returns and BAS statements. Timelines vary by lender and are not guaranteed.

After formal approval, the lender issues loan documents for you to sign. Your solicitor or conveyancer arranges settlement with the lender and the vendor's representative. On settlement day, the lender provides the funds, the property title transfers to you, and you can collect the keys. Your broker should keep you informed at each step.

The comparison rate is a tool to help you compare the total cost of loans. It includes the interest rate plus most fees and charges, expressed as a single percentage. Comparison rates are based on a loan amount of $150,000 over 25 years. WARNING: This comparison rate applies only to the example given. Different amounts and terms will result in different comparison rates.

APRA prudential guidance requires lenders to assess whether you can afford repayments at an interest rate at least 3 percentage points above the actual rate you are offered. This buffer helps ensure borrowers can withstand future rate rises. It means your assessed repayment is higher than your actual starting repayment, which can reduce your maximum borrowing capacity.

Under the National Consumer Credit Protection Act 2009, a person or business can either hold an Australian Credit Licence (ACL) directly or operate as a credit representative authorised under another licensee. Both arrangements are regulated by ASIC. Before you commit to a loan, the broker must provide a Credit Quote and Credit Proposal Disclosure setting out their licence details.

Eligible first home buyers purchasing a new or existing home in NSW valued at $800,000 or less may receive a full transfer duty (stamp duty) exemption. Concessional rates apply between $800,000 and $1,000,000. For vacant land, exemptions apply up to $350,000 and concessions up to $450,000. You must live in the property for at least 12 continuous months. Eligibility is administered by Revenue NSW.

The federal First Home Guarantee, also called the Australian Government 5% Deposit Scheme, allows eligible first home buyers to purchase with a 5% deposit without paying Lenders Mortgage Insurance. From 1 October 2025 the scheme has no income caps or place limits, and the NSW capital city price cap is $1,500,000. Eligibility and property price caps are set by Housing Australia and participating lenders.

Upfront costs include the deposit, stamp duty or transfer duty unless exempt, conveyancing fees, building and pest inspection costs, loan establishment fees, and Lenders Mortgage Insurance if borrowing more than 80%. First home buyers may reduce stamp duty through the NSW First Home Buyers Assistance Scheme if the property price and occupancy rules are met.

The NSW First Home Owner (New Homes) Grant provides $10,000 for eligible buyers purchasing a new or substantially renovated home valued up to $600,000, or a house-and-land package valued up to $750,000. It does not apply to established homes. You must occupy the home within 12 months and live there for at least 12 continuous months. It is administered by Revenue NSW.

First home buyers in Blacktown may be eligible for the NSW First Home Buyers Assistance Scheme, which offers full stamp duty exemptions on homes up to $800,000 and concessional rates up to $1,000,000. They may also be eligible for the federal First Home Guarantee with a 5% deposit and no LMI, subject to the $1,500,000 NSW capital city price cap and lender approval.

Yes. Self-employed borrowers can apply with full-doc tax returns or, where trading history is limited, some lenders offer alt-doc options using BAS statements, business bank statements or accountant declarations. Interest rates and lending criteria vary between lenders. A broker can identify lenders whose policies match your income evidence.

It may be possible, depending on the cause of the issues, how recent they were and your current financial position. Some specialist or near-prime lenders consider applications from borrowers with impaired credit, though interest rates and fees may be higher. A broker can review your credit report and identify realistic options, which may include improving your credit profile first.

Yes. A construction loan is drawn down in stages as the builder completes each phase of construction, rather than paying the full amount upfront. You typically pay interest only on the amount drawn until construction is finished. Progress payment schedules, builder contracts and valuations are required. The lender may inspect the work before releasing each payment.

Investment loans are assessed on rental income, your existing debts and the lender's policy for investor lending. Interest-only repayments are more common on investment loans, and loan features such as offset accounts may be structured differently. Tax treatment also differs. Lenders may apply different interest rates and deposit requirements for investment loans compared to owner-occupier loans.