Frequently Asked Questions

While 20% is traditional, many first home buyers can secure loans with as little as 5% deposit using Lenders Mortgage Insurance (LMI). Government schemes like the First Home Guarantee allow eligible buyers to purchase with just 5% deposit without paying LMI.

The First Home Owner Grant is a one-off payment to assist first home buyers. In NSW, you can receive up to $10,000 for new homes valued up to $600,000. Eligibility requirements include being an Australian citizen or permanent resident and not having previously owned property in Australia.

The First Home Guarantee (formerly First Home Loan Deposit Scheme) allows eligible first home buyers to purchase a home with as little as 5% deposit without paying LMI. The government guarantees up to 15% of the property value. As of 2026, the price cap for NSW is $900,000 for capital cities and regional centers.

Yes! HECS/HELP debt does affect your borrowing capacity as lenders factor in the repayments. However, it doesn't disqualify you from getting a home loan. We can help structure your application to maximize your borrowing power while accounting for your student debt.

Pre-approval typically takes 3-5 business days. Full approval after you've found a property usually takes 1-2 weeks, depending on the lender and property valuation. We can fast-track urgent applications within 24-48 hours for pre-approval.

Additional costs include stamp duty (or transfer duty), conveyancing fees ($1,500-$3,000), building and pest inspections ($500-$800), loan establishment fees, and moving costs. First home buyers may be eligible for stamp duty exemptions or concessions.

Consider refinancing when: your fixed rate is ending, interest rates have dropped significantly, your home equity has increased, you want to access equity for renovations, or your current loan no longer suits your needs. We recommend reviewing your loan every 2-3 years.

Refinancing costs typically include discharge fees from your current lender ($150-$400), government fees for new mortgage registration ($150-$300), and potentially break costs if leaving a fixed rate early. Many lenders offer cashback deals ($2,000-$4,000) that can offset these costs.

Savings depend on your loan amount and the rate difference. For example, on a $600,000 loan, a 0.5% rate reduction could save you around $180/month or $65,000 over the loan term. Use our calculators to estimate your potential savings.

Refinancing involves a credit check, which may cause a small, temporary dip in your credit score. However, responsible loan management after refinancing typically improves your score over time. Multiple applications to different lenders can have a larger impact.

Yes, though options may be limited. Some specialist lenders work with borrowers who have had credit issues. We can help identify suitable lenders and advise on steps to improve your credit before applying.

Break costs apply when you exit a fixed-rate loan early. They're calculated based on the difference between your fixed rate and current wholesale rates, multiplied by your loan balance and remaining fixed term. Break costs can range from a few hundred to tens of thousands of dollars.

Most lenders require at least 10% deposit for investment properties, though 20% or more will help you avoid LMI and access better rates. Your existing home equity can often be used as the deposit for an investment property.

Negative gearing occurs when your rental income is less than your property expenses (including loan interest). The tax loss can be offset against your other income, reducing your tax liability. It's a strategy to build wealth over the long term while receiving tax benefits.

Interest-only loans keep repayments lower, maximizing tax deductions and cash flow. However, you're not building equity. Principal & interest builds equity faster but has higher repayments. Many investors start with interest-only and switch to P&I later.

Yes! If you have sufficient equity in your home (typically 20%+ after the loan), you can access it to fund an investment property deposit. This is often done through a line of credit or by refinancing your existing loan.

Most lenders will count 70-80% of rental income towards your borrowing capacity (to account for vacancies and expenses). Some lenders use actual rental income while others use market rental appraisals. We know which lenders have the most favorable policies.

You can claim deductions for loan interest, property management fees, repairs, depreciation, and other expenses. Capital gains tax applies when you sell, though the 50% CGT discount may apply if held for 12+ months. We recommend consulting a tax accountant for personalized advice.

An SMSF (Self-Managed Super Fund) property loan allows your superannuation fund to borrow money to purchase property. The property is held in a bare trust, and the SMSF receives rental income while paying off the loan with super contributions and rent.

Typically, you need: minimum SMSF balance of $200,000+, 20-30% deposit from super funds, the property must be an investment (not for personal use), and your SMSF must have a valid trust deed allowing property investment. Lender requirements vary.

Yes, your SMSF can purchase residential investment property, but it cannot be lived in by you, your family, or any fund members until you retire and the property is transferred out of the fund. Commercial property has more flexible rules.

Rental income is taxed at 15% (compared to your marginal rate). Capital gains held over 12 months receive a 1/3 discount (effective 10% rate). In pension phase, income and capital gains can be tax-free.

The lender's recourse is limited to the property held in the bare trust. They cannot access other SMSF assets. However, defaulting would result in the property being sold and potential losses to your super. Proper planning and cash buffers are essential.

Minor repairs and maintenance are allowed. However, significant renovations that change the property's character are restricted while there's an outstanding loan. Once the loan is paid off, more substantial improvements are permitted.