Home Loan FAQs: Mortgage Questions Answered

We start with a conversation about your goals and situation, then compare options from our lender panel and show you the pros and cons of a shortlist, so we decide together.

Look for someone licensed, with a broad lender panel, who is open about how they are paid. Also check reviews and ask whether they will support you after settlement.

Usually ID, proof of income, bank statements and details of your debts and expenses. We give every client a checklist, and business owners can see our self-employed home loans page.

Once we have your documents, we can usually submit your application within a day. Lender turnaround then varies: some lenders respond the same day, some take a few days and a handful take over a week, for both pre-approval and formal approval. Timing also changes with the time of year. See our pre-approval page.

Potentially. A default or missed payments narrow your options but don’t automatically rule you out. See our post The bank said no. What now? or talk to us for an honest view.

LVR (loan to value ratio) is the share of the property’s value you borrow: $560,000 on a $700,000 property is an 80% LVR. A lower LVR usually opens up more products and sharper pricing.

It is an extra margin lenders add to the interest rate when testing whether you can afford a loan. APRA has kept it at 3 percentage points, which is why borrowing power is lower than simple repayment maths suggests.

NSW buyers may use the Australian Government 5% Deposit Scheme, Help to Buy, NSW stamp duty concessions and, for new homes, the First Home Owner Grant. See First Home Loans and our First Home Guarantee guide.

The First Home Super Saver Scheme lets eligible first home buyers save a deposit inside super, with its concessional tax treatment, then apply to release it. The ATO explains the rules; speak to your accountant too.

A fixed rate is locked for a set period, usually one to five years, while a variable rate moves with the market and is usually more flexible. Many borrowers split their loan. See our fixed vs variable guide.

It combines the interest rate and most fees into one percentage. It is based on a $150,000 loan over 25 years, which gives fees more weight than on a typical home loan today, so compare total costs too. See Moneysmart on comparison rates.

A transaction account linked to your loan: with a $500,000 loan and $20,000 in offset, you pay interest on $480,000. Try our offset calculator.

Redraw lets you access extra repayments you have made. It reduces interest like an offset but isn’t a separate account, and access can have conditions. See offset vs redraw.

An offset works like an everyday account, while redraw is a reserve inside the loan, and tax treatment can differ on investment loans. Our offset vs redraw guide explains more.

Budget for stamp duty, lender fees, conveyancing, building and pest inspections and LMI if it applies. Our deposit guide covers upfront costs, and we go through them with you.

Stamp duty (transfer duty in NSW) is a state tax that depends on the price and any first home buyer concessions. Use our stamp duty calculator or see Revenue NSW.

There is no universal answer. Renting keeps you flexible, while buying builds equity and stability. We can help you weigh it up using your own numbers and goals.

Selling first gives budget certainty, while buying first means you know where you’re going. A bridging loan can help with timing. See Next Home Loans.

You can refinance with your lender or a new one, pay out the loan and start again, or with some lenders move the loan. Our Next Home Loans page explains the options.

That depends on your finances, goals and appetite for risk. Check you can comfortably service the loan, understand the tax side, and speak with a broker and your accountant or planner first.

Often, yes. Equity in your home can be used as the deposit, so you keep your savings. See our Investment Loans page.

Equity is your property’s value less what you owe. On an $800,000 home with a $400,000 loan, usable equity is typically 80% of the value ($640,000) less the loan: $240,000 for new borrowing.

Common uses include debt consolidation, home improvements, vehicles, medical costs, weddings and travel. See our Personal Loans page.

It’s a good idea, so you know where you stand, and pre-approval generally costs nothing.

A secured loan uses the car as security, which generally means a lower rate. Most car loans are secured. See our Car Loans page.

Yes. Knowing your budget and repayments before you walk in puts you in a stronger negotiating position.

Stamp duty, registration, insurance, fuel, servicing and tyres. Our car loan calculator helps with repayments.

Typically one to seven years, depending on the asset and the lender. See our Asset Finance page.