Frequently Asked
Questions
How much can I borrow for a home loan?
The difference between variable and fixed rates?
Your borrowing capacity depends on your income, expenses, existing debts, deposit size, and credit history. A lender will assess your financial situation to determine a suitable amount.
A variable rate can go up or down over time, affecting your repayments. This type of loan offers more flexibility—such as the ability to make unlimited extra repayments, redraw funds, or access offset accounts—which makes it popular with borrowers who want to pay off their loan faster or benefit from potential rate drops. Variable rates are often used when interest rates are expected to fall or when borrowers value flexibility over certainty. On the other hand, a fixed rate stays the same for a set period (usually 1 to 5 years), providing stability and protection from interest rate increases. This option is ideal for those who prefer predictable repayments, are budgeting carefully, or want to avoid the risk of rate hikes. However, fixed loans may have restrictions on extra repayments and may include break fees if you refinance or pay off the loan early. Some borrowers choose to split their loan between fixed and variable portions to enjoy the benefits of both.
How much deposit do I need?
Most lenders require at least 5–20% of the property’s value as a deposit. If your deposit is under 20%, you may need to pay Lenders Mortgage Insurance (LMI).
Can I pay my loan off early?
Yes, most variable-rate loans allow extra repayments. Fixed-rate loans may have restrictions or break fees, so it’s best to check the loan terms.
Why should I use a Mortgage Broker?
A mortgage broker offers expert guidance, compares loan options from multiple lenders, and manages the paperwork on your behalf—saving you time, stress, and often money. They tailor solutions to your needs, help secure pre-approval, and support you through every step of the process, typically at no cost to you.
What is Lenders Mortgage Insurance (LMI)
LMI protects the lender—not the borrower—if you default on your loan. It’s typically required if you borrow more than 80% of the property’s value.
What are the upfront costs when buying a home?
Besides your deposit, costs can include stamp duty, legal fees, building inspections, loan application fees, and moving costs.
What’s the difference between pre-approval and unconditional approval?
Pre-approval (also known as conditional approval) is an indication of how much you may be able to borrow, based on a preliminary assessment. Unconditional approval means the lender has fully assessed your application and formally approved your loan for a specific property.
Contact Us
To learn more about applying for a home loan, leave you details below.