Faqs

Ideally, you’ll want a 20% deposit to avoid Lenders Mortgage Insurance. Some lenders may accept as little as 5% with government scheme support.

LMI is a one-off cost that protects the lender (not you) if you can’t repay the loan. It usually applies when your deposit is under 20%.

It depends. If property prices are climbing, buying sooner with a smaller deposit could actually work in your favour – especially if you’re eligible for a government scheme.

Technically, no. But we highly recommend it – it gives you a clear budget, speeds up the buying process, and shows sellers you’re serious.

Depending on where you live, you might qualify for the First Home Guarantee, FHSS Scheme, or First Home Owner Grant.

This will depend on a bunch of factors, such as – how big your deposit is, whether you’re a first home buyer, and the size of your loan.

Many investors choose interest-only loans to allow the extra cash-flow to be used toward paying off non-deductible debt (i.e. the home loan). Principal & Interest loans are also available for Investors.

Yes! You can use the equity in your home to fund the deposit (or even the full purchase) of an investment property.

Negative gearing means your investment costs are more than it earns in rental income – and you can claim that loss at tax time.

Divide the annual rental income by the property’s value and multiply by 100. This gives you a basic yield percentage.

It depends on your income, other debts, and the property’s potential. You can try out our Borrowing Power calculator (which is approximate), or if you want an accurate picture of what you can borrow, Book In Here for a chat with one of our brokers.

This will depend on a bunch of factors, such as – how big your deposit is, and the overall size of your aggregated lending.

It’s a loan that helps you pay for building a new home. The funds are released in stages as the build progresses, and once the home is finished, it rolls over into a standard home loan.

Your loan gets paid out in chunks at each major stage of the build – like when the slab’s down, frame’s up, and lock-up stage is done. You’ll only pay interest on what’s been used so far.

Nope! You can use a construction loan to build on land you already own or go for a house-and-land package. Super flexible, depending on the lender.

Yep – once your home’s finished, you can refinance to a regular home loan and potentially score a better rate or more flexible features.

Lenders wil look at your income, expenses, and overall situation – to make sure the repayments are manageable both during and after the build.

To get a better rate, access equity, reduce repayments, or roll debts into one loan with potentially lower interest.

Costs can include discharge fees, government fees, application, settlement, legal or valuation fees, and possibly LMI if your equity is under 20%.

On average, 4–6 weeks. Timing depends on your current lender, the new lender, your personal circumstances (i.e. self employed applicants tend to take longer than PAYG), valuation times etc.

A credit enquiry will show up but it usually has minimal effect unless you’re refinancing multiple times a year.

Don’t just focus on the lowest rate. Check the fees, features, and whether the lender aligns with your values – like going with an Ethical Lender or one that actually picks up the phone.

Yes! Plenty of lenders work with self-employed clients – you’ll just need solid documentation and a consistent income story.

Most lenders want 2 years, but some are okay with 18 months – or even 6 months – if you’re happy to pay a higher rate or fee.

Usually, 2 years of tax returns and financials. Some lenders are fine with just 1 year, or even just an accountant’s letter if you go for a Low-Doc loan.

Keep your financials up to date, pay down debt, and work with a broker who knows which lenders are actually self-employed friendly (hint: we do)

Yes – some lenders offer ‘low doc’ or ‘alt doc’ loans that don’t require full financials, just BAS or bank statements. These lenders are taking on more risk, so they charge higher interest rates and fees.

Yes – your SMSF can borrow through a limited recourse borrowing arrangement (LRBA), but there are strict rules and setup requirements.

That depends on your situation. Lenders look at super contributions, expected rental income, annual SMSF costs, and the new loan repayments.

Most lenders want your SMSF to have at least $200k in it to make the numbers work. (This helps cover the deposit, fees, and some buffer.)

Yes – the property must be purely for investment (no living in it, even by your cousin). Also, you can only buy a single acquirable asset – so no house-and-land packages or subdividing.

You’ll need your SMSF set up correctly, a bare trust (aka Security Custodian), a corporate trustee for both the SMSF and Bare Trust, and it’s important to get a professional to do this for you.

SMSF loans tend to have higher rates and fees than standard home loans – mostly due to the added admin and risk for the lender.

Equity is the difference between your property’s value and what’s left on your loan – it’s the portion you “own.”

It’s when you roll a few debts (like credit cards or personal loans) into your home loan. You’ll usually end up with a lower rate and one monthly repayment.

Pros: simpler payments, lower rates. You might end up with a longer loan term, pay more interest overall – and your home becomes security for that debt.

Most lenders will let you borrow up to 90% of your home’s value. LMI will apply if you’re borrowing more than 80%.

Top-ups can be quicker, especially with your current lender – but the paperwork is pretty similar to a refinance. So if you’re going to go through the process, it’s a great time to shop around for a better deal.

This will depend on a bunch of factors, such as – how big your deposit is, whether you’re a first home buyer, and the size of your aggregate lending.

Application Fee
A one-off fee some lenders charge when you apply for a home loan. It covers the cost of processing your application.

Appraisal / Valuation
An estimate of a property’s value to make sure the bank isn’t lending more than it’s worth.

Asset
Something valuable you own (like a car, savings, shares, or property) that supports your borrowing power.

Comparison Rate
Shows the true cost of a loan by combining the interest rate with most fees and charges.

Conditional Approval / Pre-Approval
The lender’s early sign-off to lend a certain amount, based on initial checks.

Construction Loan
A special loan for building a home, where funds are paid in stages as the build progresses.

Deposit
The amount you contribute upfront—usually 5% to 20% of the purchase price.

Equity
The difference between your property’s value and what you still owe on the loan.

Fixed Interest Rate
The interest rate is locked in for a set time, meaning your repayments stay the same.

Guarantor
A family member who supports your loan by offering their own property or savings as security.

Interest-Only Loan
You only pay the interest (not the loan amount) for a period—commonly used to reduce repayments.

Lenders Mortgage Insurance (LMI)
Insurance you pay if your deposit is less than 20%. It protects the lender, not you.

Loan Term
How long you’ll take to repay the loan—usually 25 or 30 years.

Offset Account
A savings or everyday account linked to your home loan. The more money you keep in it, the less interest you’re charged.

Principal
The amount you borrow, not including interest.

Redraw Facility
Lets you withdraw any extra repayments you’ve made if you need the money later.

Refinancing
Switching loans or lenders for a better deal, to access equity, or change features.

Settlement
The final stage in buying property—when the loan is activated and ownership transfers to you.

Stamp Duty
A government tax on buying property. The amount depends on your state and the price.

Variable Interest Rate
The interest rate can change with the market—your repayments may go up or down.

Capital Gains Tax (CGT)
Tax on the profit made when selling an investment property.

Depreciation
A tax deduction based on wear and tear of the building and fixtures.

Interest-Only Loan (Investment Use)
Common among investors—reduces short-term repayments while relying on property value growth.

Negative Gearing
When your rental income is less than expenses. The shortfall can reduce your taxable income.

Positive Gearing
When rent covers more than your costs. You may earn income—but you’ll also pay tax on the profit.

Rental Yield
Annual rental income as a percentage of property value—a handy performance measure.

Portfolio Lending
A way to manage multiple properties under one loan or lender.

First Home Guarantee (FHBG)
Buy your first home with as little as 5% deposit—without needing to pay LMI.

Regional First Home Buyer Guarantee
Like the FHBG but only for homes in regional areas.

First Home Owner Grant (FHOG)
A one-off payment from your state government, often for newly built homes.

Stamp Duty Concessions / Exemptions
Many first-home buyers qualify for discounted or waived stamp duty depending on state rules.

Super Saver Scheme (FHSSS)
Lets you use voluntary super contributions (up to $50k) towards your deposit.

Eligibility Criteria
Each scheme has rules around income, property value, and previous home ownership.

Alt Doc Loan
Used when traditional income proof (like payslips) isn’t available. Accepts BAS, bank statements, or tax returns.

BAS (Business Activity Statement)
Shows your business income and GST. Often used in loan assessments.

Low Doc Loan
A type of loan requiring less paperwork, but may come with tighter terms or higher rates.

LVR (Loan to Value Ratio)
The loan amount compared to the property’s value. Lower LVRs = stronger application.

Income Averaging
Lenders average 1–2 years of income to assess variable earnings.

Accountant’s Letter
Sometimes used to confirm self-employed income in the absence of other documentation.