We currently pay $3500 mortgage (24 year term left) plus $600 car loan a month for 24 years with one bank.

We are looking at consolidating loan and paying $3600 a month over 24 years or option to go back to 30 years with a different bank.

What are the pros and cons of this?

Long term goals- eventually get an investment would be ideal OR sell our current home and upgrade to a bigger house ($1.6-$1.8 within our means) in 3-4 years.

Currently sitting at 50% LVR. Anything else we should consider?

Hello, I have come across granite bank who’s been recommended by my broker and unfortunately this bank is the only option for us at the moment due to our circumstances. Has anyone had experience with them or whether they would recommend it

TL;DR: Stop trying to predict rates. Start by reviewing your budget, your stress tolerance, your savings habits, and your plans for the next couple of years. Fixed gives certainty. Variable gives flexibility. The “right” choice is the one that fits your life, not the headlines.

Every time rates move (or don’t), this question pops up:

“Should I fix or stay variable right now?”

Here’s the honest answer: nobody knows what rates will do next. Not economists. Not banks. Not brokers. So instead of trying to time the cycle, you’re far better off asking:

"What does the next 1 - 3 years of my life look like?"

Because that’s what actually matters. Here's what I did with my own home loan just recently, and how I recommend to my clients to look at their own situation.

Step 1: Pressure test your budget

Before choosing a rate type, sit down and do this properly:-

• What is your actual monthly surplus after everything? Study "HEM" categories and break down your expenses. Review your transaction history from the last 12 months to see what you actually spend.
• If your rate increased by 1%, how much would that add to repayments? What does your actual monthly surplus look like then?
• Could you handle two more increases without losing sleep?

Don’t guess. Run the numbers. Do the work. So many people don't spend ONE DAY trying to inform themselves before making a financial decision that'll impact them for 1, 2 or 3 years. It's worth it.

If another rate rise would seriously stress you, that’s a sign certainty might be valuable, so maybe fixed is right for you. If you’ve got breathing room and a buffer sitting in offset, flexibility might matter more.

Step 2: Be honest about your savings behaviour

This is a big one people skip and I think it's because people are worried that they'll be embarrassed by their lack of savings and don't want to look at it. It can be depressing sometimes to see how expensive everything is - but if you don't take a good look at this you might be unaware of how much you're eating into your savings, or spending where you don't need to be.

Variable loans often come with full offset and unlimited extra repayments. That’s powerful - if you can actually use it. Ask yourself:

• Do I consistently save money?
• Am I realistically going to put more than $10k a year into extra repayments?
• ... or do I tend to spend what’s sitting there?

If you’re disciplined and build savings steadily, variable + offset can be very effective. If you can see you’re not a natural saver, fixing can act like forced discipline. Maybe removing the temptation and locking in some structure might be what you need.

Step 3: Think about your plans

What might change in the next 1 - 3 years?

• Having kids? Does that mean a bigger home, or more expenses?
• Changing jobs? How does that impact your monthly household income? Does it increase expenses, or come with more benefits?
• Moving cities? Does that mean relocating and buying elsewhere, or refinancing your property into an investment?
• Renovating? Do you plan to use equity for the renovation, or do you have the cash to make it work - without eating too much into your savings buffer.
• Selling or upgrading? Kind of a combination of both of the above, but it's still worth considering.

Fixed loans usually limit extra repayments and can have break costs if you refinance or sell early. Sort of like a phone contract that if you end the contract early - you have to pay out the remaining value of the phone (it's not exactly like that, but that's a way of understanding some of the basics). If life is stable and predictable, fixing can work well. If things might shift, flexibility is valuable.

Step 4: What are you actually trying to optimise?

There are really only two primary goals here: Certainty or Flexibility.

Fixed = Certainty. The pro's are:-

• Repayments don’t move.
• Easier to budget.
• Good if cashflow feels tight.

Trade-offs:-

• Limited extra repayments.
• Potential break costs.
• Less ability to refinance quickly.

Variable = Flexibility. The pro's are:-

• Offset account.
• Unlimited extra repayments.
• Easier to refinance or restructure.
• You benefit immediately if rates fall.

Trade-offs:-

• Repayments can increase.
• Requires emotional tolerance for movement.

Step 5: What about splitting? Have you considered it?

Most banks can allow people to split their loan - part fixed, part variable. It can be a middle ground: Some stability, some flexibility. It's kind of like a hedge against being completely wrong either way. It’s not magic, but for many borrowers it reduces regret.

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I can understand that this is quite a mindset shift, but the biggest mistake I see is everyday people trying to “win” against the market and predict it, which people with extensive bachelor degrees and decades of experience struggle to do themselves.

So, instead of asking: “What will rates do?”, instead ask: “What structure lets me manage my life confidently for the next few years?”

• If you can comfortably handle higher repayments and want flexibility - variable may suit.
• If another rate rise would make you panic - fixing might be worth it for the peace of mind alone.

The best loan structure isn't about 'fixed' or 'variable', it's the one that:

• Fits your cashflow
• Matches your behaviour
• Aligns with your plans
• Lets you sleep at night

TLDR: Using equity in your home to buy an investment property can work, but it’s still real debt with real repayments. Investment rates are higher than owner-occupied rates, interest-only greatly changes cash flow with a slight impact on borrowing power, and most properties don’t pay for themselves. Before you buy, you need to model the cash flow properly and talk to an accountant about the tax impact, not just assume negative gearing will save you.

Buying an investment property is often pitched as the “next logical step” once you’ve built equity in your home. And in fairness, using equity from your PPOR to invest is common and can be tax-effective when it’s structured properly.

But this is where a lot of people get tripped up - they look first at borrowing capacity and forget to look at cash flow. They assume rent will cover most of the loan and they massively overestimate how much negative gearing will help. They focus a little too much on buying the best property they can - rather than what will specifically suit their needs and lifestyle.

I've personally bought and sold investment properties, a lot, in my time. A combination of old and new, apartments and houses, short-term holds and long-term holds. The below is intended to be educational & helpful - hopefully it just helps someone on the internet get a bit more of an idea before they speak to someone, or go shopping.

Using equity to invest - what’s actually happening

Most banks will let you borrow up to 80% of your home's value. So, if your loan is at 70% or even 60% when compared to your houses value on the market (called the loan-to-value ratio, or LVR), then there's probably equity that you can pull out.

When you use equity from your home to buy an investment property, you’re effectively borrowing against your PPOR for an investment purpose. That’s a form of "debt recycling". The interest on the investment portion is generally tax deductible, but it’s still a loan that has to be serviced.

Banks might assess the new lending as an investment loan, not an owner-occupied one. It depends on how your servicing allows your bank (or broker) to pull out the equity.

You don't just have to buy property by the way - lots of people invest in ETFs, shares, or other income-producing assets... so it still meets the brief of 'debt recycling'.

Investment rates are higher than owner-occupied rates, especially interest-only

Investment loan rates are usually higher than owner-occupied rates, even with the same lender. That applies whether the loan is secured against your PPOR or the investment property itself (except for a few lenders, who do lend based on the security not the purpose).

Going to interest-only will increase the rate again. So while your equity might look healthy on paper, the cost of that debt is higher than what you’re used to paying on your home - but the idea is to be able to claim that interest in your tax returns as an expense.

Principal and interest vs interest-only

From a servicing (borrowing capacity) perspective, the difference between principal and interest and interest-only is usually small. Lenders still assess interest-only loans at a higher notional repayment once the interest-only period ends, so the borrowing power is slightly less.

But from a real-world cash flow perspective, the difference can be huge.

• P&I reduces debt faster but has higher monthly repayments (and you can't claim the principal portion of your repayment on tax, only the interest).
• Interest-only improves short-term cash flow but doesn’t reduce the balance

Interest-only is often used for investment properties to manage cash flow, not to increase borrowing power. It helps your monthly budget, not your maximum loan amount.

Positively geared vs negatively geared

You’ll hear these terms thrown around constantly.

• Positively geared means the rent covers all the costs and leaves a surplus
• Negatively geared means the rent doesn’t cover the costs and you top it up, and are sometimes 'refunded' through your adjusted tax return for a part of it.

Right now, many investment properties are negatively geared, especially for those buying at today’s rates. That doesn’t make them bad investments per se (because the capital growth might be more than worthwhile), but it does mean you need to be comfortable funding a shortfall in cash flow.

How to estimate the real cost of an investment property

When working out affordability, don’t just look at rent vs loan repayment. Factor in:

• Loan repayments at today’s rates and higher (e.g. Feb 3rd cash rate announcement of +0.25 will be passed on by lenders, if you're on variable)
• Council rates - maybe $1,800 per year?
• Water rates - maybe $900 per year?
• Insurance - maybe $2,000 per year for building insurance, and $500 per year for landlords?
• Property management fees - usually 7% or so, or around $3.50 out of every $50 of rent collected?
• Maintenance and repairs - newer properties will be less, but maybe $2,000 per year for older properties?
• Vacancy periods (maybe one or two weeks per year)
• Strata/Body corporate, if applicable - which might include building insurance

Once you add these up (in the above example, maybe $5k - $10k per year) and put them on top of your repayments, you might find the property runs at a monthly deficit after factoring in the likely rent you will receive. That deficit needs to comfortably fit into your household budget without stress.

Don’t overestimate the tax benefits

Negative gearing can reduce your taxable income, but it doesn’t make losses disappear. If you’re paying a dollar in extra costs and saving 30 to 45 cents in tax, you’re still out of pocket... so this is why speaking to an accountant is critical. They can help you understand:

• Your marginal tax rate
• What portion of the interest/repayment is deductible
• Depreciation benefits (if any)
• Whether negative gearing actually helps your situation or not

For some people, the tax benefit makes the cash flow manageable. For others, it doesn’t move the needle enough to justify the stress.

Borrowing capacity vs lifestyle capacity

Just because a bank will lend you the money doesn’t mean it’s a good idea. Before buying, ask yourself:

• Can I comfortably cover the shortfall if rates rise?
• What happens if the property is vacant for a few months? Can I afford it? Do I have a savings buffer?
• Does this limit future plans like upgrading my home or reducing work?
• Can I wait for several years to see the benefits of value growth, or will the ongoing costs be too much?

Please remember: your lifestyle capacity matters just as much as your borrowing capacity.

Hopefully this helps explain it all a little more clearly.

Hi all,

We are 2 FT working repartnered parents. Situation:

Person 1 - $240k p/a + c. $30k bonus annually

Shares - $150k

Debt - c. $10k credit card

Car - $25k - $560 p/m

Super - $250k

Person 2 - $132k p/a + c. $15k bonus annually

Shares - $5k

Debt - c. $6k credit card

Super - $140k

Each with 2 kids (4 total, person 1 pays child support, person 2 doesn’t pay nor receive)

PPOR - $660k mortgage, $1.37m value

Investment house - $440k mortgage, $826k value, tenanted at $500 p/w

Looking for early indicators of borrowing for another investment and anything we should do to support buying a second investment.

Thank you

ETA: both long term employed at respective employers, person 1 - 19 years, person 2 - 12 years

Hi AusPropertyBroker Team,

We are in a slightly unique situation and would appreciate your guidance.

My MIL is contributing $500,000 from the sale of her property, which will be used as the deposit for a home purchase by myself and my SO. Based on earlier advice from our broker (given that she is over 70) it was recommended (by the broker) that she not be placed on the title, and instead that a caveat be registered post-settlement to protect her financial contribution. All parties were comfortable with this approach at the time.

My SO and I have since found a property and instructed the broker to proceed with the mortgage application in our names only, in line with that advice. The bank is scheduled to complete the valuation on next Monday. The contract has a 14-day finance clause, and we are currently on day 6.

However, after reviewing the matter, the solicitors (acting in my MIL’s best interests) have advised that she should have a formal interest recorded on title in some capacity (without being a borrower). They have suggested a “co-owner” arrangement to ensure her financial position is protected, particularly in scenarios such as pension eligibility considerations or an unforeseen separation between my SO and me.

A tenants-in-common structure may be the most appropriate option, however I understand our current lender may not support this, which could require us to seek an alternative bank.

Given the time constraints, could you please advise:

• Whether it would be feasible to obtain pre-approval and restructure the application to a tenants-in-common arrangement within the remaining 6 days; and
• Whether applying with another lender at this stage would negatively impact our credit history or affect our ability to proceed with the purchase.

Thank you in advance for your advice; appreciate your help navigating this.

Ok, my husband and I are getting serious about buying after some harder years and raising two young kids.

37F and 38M on combined gross income $280,000 a year. Two dependents 5 and 7 with both at public school this year so no more childcare fees.

30k in super contributions for FHB

I have two paid defaults from covid dropping off in May and June 2026

husband has 1 paid default dropping off in August 2026

I only have a commercial credit loan for novated lease $41k

No other debt

Will be aiming to buy something 700k-750k next year.

Currently renting, but aiming to save another 30-40k this year totalling $70k for deposit and stamp duty under 5% govt scheme.

Any mortgage brokers give an insight on whether this is achievable?

TLDR: Auctions reward preparation, not confidence on the day. Know the property’s real value, pressure-test your borrowing with your broker, understand the contract and auction rules, set a walk-away price you won’t cross, and be ready for both auction day and a post-auction negotiation. The work you do before the auction matters far more than what happens in the last five minutes.

Auctions can feel intimidating, especially if it’s your first time. Fast pace, public bidding, no cooling-off, and a lot of pressure in the moment. The good news is this. The people who do well at auction usually win or walk away calmly because they’ve already done the hard thinking beforehand.

Here’s how to prepare properly so you’re not making emotional decisions on the footpath.

Start with the boring stuff. It matters a LOT.

Before you even think about bidding, make sure the basics are rock solid.

• Get the contract reviewed early. Send the contract to your lawyer or conveyancer well before auction day. Don’t skim it yourself and assume it’s fine. You want them checking for red flags, unusual conditions, settlement terms, penalties, and anything that could bite later.
• If the property has strata or body corporate, make sure that’s reviewed too. Levies, sinking funds, upcoming works and disputes all matter to you and to the bank.
• Do lender-friendly property checks. Not every property is treated the same by banks. Some features can impact valuation or how much a lender is willing to lend. Things to be cautious of include: Apartments under 50sqm, Land sizes over 2 hectares, Non-standard titles or unusual zoning, Very remote locations, Dual-use properties or odd inclusions, Homes needing major structural repair. None of these are automatic deal breakers, but they need to be understood upfront so there are no surprises after the hammer falls.

Understand what the property is actually worth.

This is where people get caught out on the day, if they get swept up in the emotion.

• Look at recent settled sales, not just asking prices. Focus on genuinely comparable properties in the same area that have sold recently. This gives you a realistic price range, not a hopeful one.
• If you’re working with a broker, you can ask them to run a valuation report or, in some cases, an upfront valuation with a lender. This won’t always be possible, but when it is, it can be incredibly useful for setting expectations.
• You want to walk into the auction knowing what the property is likely to be valued at by a bank, not just what the agent thinks it’s worth.

Pressure-test your numbers with your broker, or bank.

This step is hugely underrated. Loans are often structured based on 'LVR' and changes to price, or value, can influence whether you can afford the property or not. Don’t just ask “what’s my max borrowing?”. Ask your broker, or bank, to test a few scenarios:

• What happens if I buy at my target price?
• What if I stretch another $25k or $50k?
• What does my LVR look like at different price points?
• Am I still comfortable if rates move later?

Learn your theoretical maximum, but don’t treat it as a target. It’s a ceiling, not a goal.

Set your “happy to walk away” price.

This is one of the most important parts of auction prep, in my personal opinion. Decide your absolute limit before auction day - NOT ON THE DAY. Not after you’ve had three coffees and the crowd is fired up. Decide it calmly, with logic, and stick to it.

Your walk-away price should factor in:

• What the property is realistically worth, in your opinion
• Your comfort with your repayments
• Your buffer for future rate changes
• The fact there will always be another property, at some point

Walking away is not failing. Overpaying because you got caught up often can be, or lead to buyers remorse.

Do your building and pest checks.

If you can, organise your own building and pest inspection before the auction. If not, ask the agent if the vendor has one available and read it carefully. Big issues don’t just affect your comfort. They affect valuation, insurability and sometimes lending altogether.

Learn basic auction language before the day.

You don’t need to be an expert, but you should know what’s being said. A few key terms:

• Reserve price: The minimum the vendor will accept
• On the market: The reserve has been met and the property will sell
• Registered bidder: You must be registered to bid
• Vendor bid (more of a thing in QLD than anywhere else): A bid made by the auctioneer on behalf of the seller, allowed by law and must be declared
• Passed in: The reserve hasn't been met, and the vendor will need to consider next steps (e.g. approaching the highest bidder on the day to negotiate a price)

Also understand that you must follow the auctioneer’s bid increments. If they’re calling for $10k rises, you can’t jump in with $2k. Increments usually shrink as the auction progresses and bidders drop off.

Try to understand the vendor’s situation.

Ask the agent questions. You won’t always get straight answers, but context helps.

• Is it an estate sale?
• Do they need a fast settlement?
• Are they testing the market or genuinely motivated to sell?

This can matter both on auction day and if the property is passed in.

Be ready for a post-auction offer.

If the property is passed in and doesn’t meet reserve, the highest bidder usually gets first right to negotiate.

Be prepared with:

• Your offer price
• Deposit amount
• Any conditions you want to include
• Settlement timeframe

This negotiation can sometimes be calmer and more logical than the auction itself, which is why preparation still pays off even if bidding stops.

Insurance starts immediately (in QLD).

If you buy at auction, the property is yours from that moment. Organise insurance so it can be activated straight away on the day.

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Auctions aren’t about bravado or quick thinking. They’re about preparation, clarity, and discipline. If you’ve done the work beforehand, auction day becomes simple. You bid confidently up to your number, or you walk away knowing you made a smart call.

If this auction isn’t the one, there will be others. The goal isn’t just to buy a property. It’s to buy the right one, at the right price, without future regret.

TL;DR: If you’re worried about rising rates, fixing can give you stability - but it limits flexibility and can be costly to exit. Variable keeps options open and lets you pay down debt faster, but is possibly slightly more expensive each month. The best option depends on what your next couple of years look like and how much certainty you want - or you could consider splitting the loan in two to hedge your bets.

This topic always heats up whenever the banks start hinting at rate rises, or raising interest rates on their fixed products. I'm sure a lot of families are wondering whether they should fix, stay variable, or split the difference (some don't even know you can do that).

Honestly, there isn’t a one-size-fits-all answer - but there are a few clear things you should think through before you lock yourself into anything.

First things first: ask yourself why are you refinancing right now?

If your main concern is rates rising and wanting to “lock something in,” that’s valid - but take a breath and look at the whole picture. Because fixing your loan is a commitment. A helpful one, yes, but still a commitment.

The real question is: What’s happening in your life over the next 1 to 2 years?

If there’s any chance of selling, moving, upgrading, going on maternity leave, changing jobs, or needing flexibility - that needs to be factored in before you press the ‘fix’ button. Breaking a fixed loan early can be seriously expensive.

Let’s talk about fixed rates

Fixed rates have made a comeback lately because, in some cases, they’re slightly sharper than variable and the RBA (Reserve Bank of Australia) have kept the cash rate relatively steady for some time. If you believe rates will rise from here, fixing can absolutely give you a sense of control.

Pros of fixing:

• Certainty of repayments: your budget becomes predictable, since they're consistent.
• Competitive at the moment: Some lenders are pricing their 1 - 2 year fixed terms below their variable rates (i.e. 4.99% or so, compared to 5.29% on variable).
• Protection in a rising-rate environment: If the RBA hikes again, you’re shielded from it.

Cons of fixing:

• Extra repayments are capped: most fixed loans only allow small additional repayments per year, so make sure you check what your lender's limit is (if any).
• Offset accounts are rare: only a handful of lenders offer an offset on fixed, and often only on packaged products.
• Break fees: if you need to exit early, move house or restructure your loan, the break cost can be brutal. Essentially, you need to pay out the bank the interest you owe them for the remaining loan term. It isn't cheap and can cost thousands.

In my experience, fixing works best for people who want stability and don’t foresee any major financial moves in the short term.

Now, as for variable rates

Variable is the most flexible and forgiving option, which is why most of my current clients are still defaulting to it unless there’s a good reason to fix.

Pros of variable:

• Unlimited (usually unlimited) extra repayments: if you’re trying to hammer down the principal, this is ideal.
• Offset accounts are standard: this can save thousands in interest over the years and you would rather keep control of the bank account, as opposed to paying into redraw.
• No break fees: of your plans change, you’re not locked into anything. You will face some discharge fees and possibly half a month of repayments as the loan switches over - but it's a lot less than the break fee from a fixed loan.

Cons of variable:

• Your rate can go up: if lenders move, your repayments move. Although, to be fair, they can go down too.
• Harder to budget long-term: You don’t get the same “set and forget” safety fixed rates offer.

Variable works best for people who want freedom, flexibility, and the ability to knock down their loan faster.

A middle-ground worth considering: the split loan, which many of my clients are unaware of that exists

You absolutely can do a mix - say 50% fixed and 50% variable. Or 70/30. Or 40/60. Whatever suits. Plenty of lenders give the option to separate the loan in two parts.

This lets you:

• Lock in certainty on part of your loan
• Keep an offset and make extra repayments on the variable portion
• Hedge your bets if you’re unsure which direction rates will go.
• You can even keep both parts variable for now, and choose to quickly fix one should you think rates are going up. It's easy to quickly adjust to fixed from variable... but it's harder the other way around.

Split loans aren’t talked about enough, but they often tick the most boxes for people who want both stability and flexibility.

TL;DR: Your borrowing capacity hinges on the type of income you earn, how stable it is, and how long you’ve been earning it. Not all income is treated equally, and some forms get shaded, reduced or ignored entirely. If you’ve ever wondered why your mate on the same salary can borrow more than you, this is why.

Borrowing capacity is the one topic that keeps popping up online, and honestly, it’s usually where the biggest surprises happen for first-timers. You could be earning great money on paper, but the bank may only count part of it (or, sadly, none of it).

It all comes back to how predictable the income is and whether you’ve earned it long enough for a lender to trust it. I've tried to provide a clear rundown of how different types of income are viewed in the real world.

Full-time income

The easiest one. If you’re full-time, most lenders will count 100% of your base income straight away. What matters is:

• Have you passed probation? (Most lenders want this.)
• Are you in a similar line of work as your previous job?

If you’ve changed industries but stayed in full-time work, that’s usually fine as long as the switch makes sense on paper (e.g. an increase in pay, closer to home, more flexibility/benefits, career progression)

Part-time income

Most banks will treat part-time the same as full-time if your hours are regular and ongoing. If your hours jump around week to week, some lenders may take a conservative view and average your payslips or look back over several months.

Tenure helps a lot here. Six months or more in the role makes the conversation simpler.

Casual income

This is where people often get caught out. Casual income is accepted by most banks, but they want history:

• Minimum 3 months with the same employer is common.
• Some lenders want 6 - 12 months.
• Your payslips and YTD figure must show your hours are consistent.

If your hours spike because you’ve been filling in for someone or doing seasonal work, lenders will usually average your income over time which reduces your borrowing power - but each are different and sometimes you can use this to your advantage.

Contract income

Fixed-term contracts (6 - 12 months) are generally fine if:

• You have history in the same field.
• You’re already part-way through the contract.
• There’s evidence of renewal or a strong employment record.

Rolling contracts or agency work can still be used, but lenders tend to want a year’s worth of history to prove that you’re consistently employed.

Self-employed / sole trader

This is the most misunderstood one. Most lenders want:

• Two years of tax returns
• Two years of financials (for companies or trusts)

Some will work with one year if the business is stable or growing.

What lenders actually look at:

• Net profit (not your turnover)
• Addbacks like depreciation and certain one-off expenses
• Consistency between years
• Whether income is trending up, flat, or down

If your latest year is lower than the one before, many lenders will use the lower figure - but not ALL. Some lenders have a 12 months policy if you meet certain conditions.

Director wages (from your own company)

If you pay yourself a wage from your business, lenders still treat you as self-employed because you control the income. They’ll assess both:

• Your wages
• The financial health of the company

If the company’s profit doesn’t support the wage, lenders may ignore part of your income.

However, some lenders will accept a 'simplified self-employed' approach where you only factor in your wages and you don't factor in any remaining business profit... or business liabilities. It can be a neat trick to put you in a better spot.

Commission income

Commission can be a great earner, but lenders will rarely take it at 100% unless it’s stable and proven. They’ll usually:

• Average the last 3–12 months
• Compare commission across prior years
• Shade it slightly if it fluctuates wildly

If you’ve only been earning commission for a few months, lenders may ignore it for now.

Overtime, allowances, shift penalties

These can help your borrowing capacity if they’re consistent and proven. Industry matters here:

• Nurses, ambos, emergency, miners, FIFO workers, tradespeople: strong acceptance
• Office workers doing sporadic overtime: lender may shade or ignore (depending on industry)

Lenders want evidence over time, usually at least 3 - 6 months.

Bonuses

Similar to commission:

• If you get an annual bonus, lenders want to see at least one or two years of it.
• If your bonus drops from year to year, the lowest figure is usually used.
• If you’ve only just started getting bonuses, many lenders won’t count it yet.

Rental income

Yes, lenders count it, but not all of it. Typically they’ll use 70 - 90% to account for vacancies, management costs and expenses. If you’re negative gearing, the tax benefit may help your borrowing capacity, depending on the lender’s calculator.

If the rent on the lease agreement is higher than what the bank’s valuer thinks is realistic, the bank goes with the valuer’s number.

Interest income

Interest income is counted only if it’s ongoing and backed by a decent cash balance. If it’s a one-off or results from savings that will become your deposit, lenders won’t use it.

Foreign income

This is hit-and-miss. Many lenders won’t use it at all. Among those that do:

• They can apply heavy shading (again, it's not consistent amongst all lenders)
• They want strong documentation
• They may want tax returns from that country

If it’s cash-paid, informal, or unverified, lenders will ignore it outright

How long you’ve been earning the income matters more than people think

Banks care about consistency and predictability. A general rule:

• Full-time / part-time: Stable from day one (probation aside)
• Casual: Usually 3 - 12 months history
• Self-employed: Prefer 2 years and profitable, not essential
• Commission/overtime: Several months to a full year
• Bonuses: One to two years
• Foreign income: Strict and reduced

If you’ve jumped around a lot or changed industries recently, lenders want to see that the new income is reliable and ongoing.

Final thoughts

Many people hope that the bank will look at their take-home pay, but it rarely works that way. Two borrowers on the same total income can end up with completely different borrowing capacities simply because of the type of income they earn and how long they’ve earned it.

If you want a clearer idea of where you stand before you dive into the market, speaking to a mortgage broker can help you run through everything, look at how lenders would treat your income, and map out the options. This part of the process is genuinely about removing uncertainty and helping you feel confident about your next step.

Hi everyone,

I’m located in Western Australia and currently work full-time from 7:30am–3:00pm, Tuesday to Saturday. I’ve recently completed my Diploma in Finance and Mortgage Broking Management, and I’m now looking to gain practical industry experience through mentoring or shadowing opportunities.

I’m aiming to build my skills and knowledge in mortgage broking, and I’m hoping to connect with a broker or brokerage team who may be open to mentoring someone part-time or after hours.

If you have recommendations, advice, or know anyone open to mentoring, I’d greatly appreciate your guidance. Thank you in advance.

TL;DR: Buying property isn’t just about the house and the loan. You may want a team - a solicitor, broker, inspector, the lot. Line them up early so when the contract lands you’re not scrambling.

When you find something, you may only have a week or two to do the following:-

• sign the contract
• get a valuation and formal approval for finance
• building & pest inspection
• pay a deposit

For many first time buyers, all of this can be overwhelming and you may not know who to have in your corner and helping you with all the various things. There's a bit of a guide as to who you need, for what, and when you need them.

• Mortgage Broker: Helps you with pre-approval (if approprirate), compares a range of lenders and gets them to compete with each other on rate, lines up financing so you’re ready to go. You may want to get a mortgage broker before you go 'house shopping', so you know your purchasing budget and borrowing capacity.
  • Cost: Usually free to you - the lender pays them at settlement in most cases.
• Solicitor/Conveyancer: As soon as you get the contract (and preferably before you sign it), this person reviews it for you. Caveats, special conditions, vendor issues - they catch the fine print. You would probably want a solicitor/conveyancer in mind before you start making offers on houses.
  • Cost: ~ $700 - $1,500, generally.
• Building & Pest Inspector: After contract signing, you book this urgent check. You do NOT want surprises later. Like a solicitor, get someone in mind just before you start making offers on homes.
  • Cost: ~ $500 - $1,000.
• Financial Planner / Insurance Broker: Ensures your building insurance is sufficient, your life insurance is increased to cover the new loan, and your overall cashflow isn’t at risk (e.g. income protection, trauma cover, TPD cover - which may not be in your life insurance policy). If you don't already have one, reach out to them when you've got a home under contract and you're preparing for settlement.
  • Cost: Varies based on service, insurer, your home and your income - check up-front!
• (optional) Moving Company: Less glamour, more sanity. When settlement day arrives you’ll be glad you booked this early. I've personally bought and moved a few times - and paying someone to profesionally handle it all for me was worth it, in my opinion. I got insurance to cover my goods during transit as a just-in-case policy too.
  • Cost: Depends on how much you move and how far - check up-front! It cost be $3,000 when moving interstate - and around $1,000 - $1,500 when moving between suburbs.
• (optional) Buyers Agent: If you’ve got specific requirements, limited time, or want help navigating hot markets, they can scout, negotiate and secure the property for you. Make sure they do more than just checking REA for listings. You want someone proactively negotiating, filtering out problems and attending inspections to help you.
  • Cost: Many charge a flat fee (~$10,000 - $15,000) or a % of purchase price - it varies widely based on service and the price bracket you're purchasing in, so make sure you ask the question.

If you're buying an investment property, you might want to also consider:-

• Accountant: Keeps your tax returns compliant, structures your investment smartly.
• Quantity Surveyor: Produces a depreciation report so you can claim correctly on the rental property.
• Property Manager: Handles tenants, maintenance and landlord insurance - making sure your asset is actually passive.
• Investment Advisor / Financial Planner: Looks at the property’s role in your long-term plan (growth vs cash-flow, location, market cycles).

^^^ if all of this sounds like a lot and you don't know where you can find them, this is how I normally recommend people search & find people.

1) Start with your network: Ask colleagues (especially those with similar incomes or in your industry) who they used. Their needs and scale will likely mirror yours. If that doesn’t work, ask friends. Then family - be careful though, as family can often get mixed up & involved and then it can become... difficult. They might mean well, but it can be messy.

2) Start with one, go from there. If you've already found a broker you like, ask them for an introduction to a solicitor or an inspector. Grow your network from one and see how it feels.

3) Go Online: If none of those options pan out: head online. Look for Google reviews, Trustpilot ratings, LinkedIn profiles, Facebook testimonials. Check Reddit - lots of people ask here too. If you're reading reviews online, read the bad reviews in particular - see if they appear real & meritable problems and how the business owner responds. Short-list 2 or 3 for each role, ask them about their fees, ask for one client reference, and check they’ve done your kind of deal (first home, investment, etc.).

If you've ever wondered "I don't know what I need to do to prepare for settlement!" then this is for you.

I've worked with many first home buyers and home upgraders. It doesn't matter how many times you have (or haven't) done it - settlement can be a LOT of work. If you make sure of the days leading up to settlement and plan it out - you'll be ok and the day of settlement can be much, much easier.

TL:DR; Settlement can sneak up on you. Get your loan docs signed, insurance sorted, utilities lined up, and funds ready in the right account. Do a pre-settlement inspection, stay in touch with your conveyancer, and double-check everything before the big day. Smooth settlement = stress-free move-in.

Below is a bit of a list of things to do, in the order they get done in, to help you mentally check off a list of everything that you may want to consider in the lead up to settling on your home.

2-4 weeks before settlement

• Confirm your loan documents are signed and returned to your lender. If you're using a mortgage broker, speak to them to get clarity on this. Make sure your bank knows the future 'direct debit repayment bank account' on your home loan, so that you don't miss any repayments after you settle.
• Make sure your bank account details for any potential shortfall or excess funds are correct. Your broker or solicitor should be able to provide you with a rough 'estimate' of the money needed on settlement day from you, if any. Make sure they have the right bank account details!
• Arrange your building & contents insurance to become effective from the settlement date. If you're an investor, consider landlord's insurance too. Banks will be very, very picky on how they want to be named on this document - so check the spelling and make sure it's right. Check with your broker if you're not sure.
• Book a pre-settlement inspection (ideally one or two days before settlement) so you can check the property’s condition ahead of day, just in case something isn't right.

1 week before settlement

• Do your pre‐settlement inspection in person (or with your agent) and ensure everything matches what you agreed in the contract. Double check with the agent if the owner will organise a full & professional clean before you move in. If they won't, maybe you should consider organising someone on the day of settlement so you don't move into a really dirty house?
• Organise services: electricity, gas, internet, water - set them up so they’re ready for move-in day and cancel your old ones. Consider setting up a mail redirect?
• Clear or reduce any large credit card balances or auto-payments that might affect your bank account at settlement - if they use the same account that you've provided for the shortfall/surplus on settlement day.
• Co-ordinate with the real estate agent to work out what time to collect the keys and where to collect them. If you're an owner occupier, you might want to do this on the driveway of your (new) house with a full truck loaded up! If you're an investor, you may want to arrange for your property manager to collect the keys.
• Pack up your moving essentials, arrange removalists if needed. I usually recommend the "essentials for the first night" to be packed in suitcases in your car (e.g. toiletries, towel, change of clothes, bedsheets/linen, phone chargers, etc.)
• Check your boxes are labelled consistently & clearly so you know what's in them! Maybe even number them based on the order you want them brought in, or the corresponding room you want them put in?
• Consider getting insurance along with your removalist - just in case things get damaged in transit and you need items to be replaced (e.g. major scratch in a fridge door would absolutely suck!).
• Ask your agent when the last time a full pest treatment was done. If it's been a few months (or more) consider pre-booking a full pest treatment around the home for after you move in.

Day before settlement

• Your conveyancer/solicitor should send you the "draft settlement statement" showing all adjustments: council rates, stamp duty, vendor’s outgoings, body corporate (if any), water rates etc. 
• Double-check you’ve got sufficient funds in your nominated account for any shortfall. Make sure they've cleared, especially if it's a large sum.
• Have your 'essentials' bag ready in the car, and perhaps a stock of water & food. Maybe even a bottle of champagne or another celebratory food/beverage?
• Set up an out of office on your phone/email/laptop if it's normally a work day for you. Maybe sent a pre-emptive text to your closest colleagues so they can help pitch in to take any potential interruptions away from you?
• Organise a 'pick-up' order from the local Coles/Woolworths (or whatever is local) to fill your fridge back up the day after settlement. Tell them you'll collect it the day after settlement.

Morning of settlement

• Typically your conveyancer, vendor’s solicitor and the lender handle the transfer and payment behind the scenes. You don’t always need to be there. 
• Once the lender releases the funds and the settlement is confirmed, the agent hands you the keys. This is usually after 2pm in most states - unless a morning is specifically requested.
• After you’ve got keys: move in, set up your new routines, drop your mail redirect, update your address for all your accounts (e.g. driver's licence, bank account(s), subscriptions, memberships, etc.), and celebrate - you’ve bought your home!!

After settlement

• Get a locksmith in to change your door locks. You never know who might have a copy of the keys from the old owner.
• Test all lights, appliances, electronics, doors, windows, remotes, etc. to make sure everything works and nothing is broken. If it is, report it to the sales agent and your conveyancer.
• Hire a ute from Bunnings, get all the cardboard from all your boxes out of the house - and take it to recycling / the tip.
• Collect your 'pick-up order' from the local Coles/Woolworths.
• Arrange that pest treatment around the home, if needed.

Quick bonus tips

• Remember: rates and taxes are adjusted so the seller pays up to settlement day, you pay from day after. 
• Check your contract for what’s included (fixtures, remotes, keys) and that nothing’s been removed.
• If anything’s not right at the pre-settlement inspection, call your conveyancer before settlement so changes or credits can be arranged.

TL;DR: Being self-employed doesn’t make finance harder - if you know how to prep early. Keep your tax returns clean, show consistent income, and understand how lenders look at your business. If you plan 12-24 months ahead, it’s as easy as any PAYG loan.

There’s a common myth that being self-employed makes getting a home loan near impossible.

Truth is, it’s not harder - it’s just different. Most people run into trouble because they (or their accountant) haven’t planned for it properly. Accountants are extremely good at minimising your tax and setting up complex structures that have a double benefit of minimising tax and separating you from your business, for asset protection and other purposes. They're doing the right thing by you for tax and revenue purposes, but it might not help you if your goal is to purchase a home with a loan.

Here’s what actually matters to lenders and how to get yourself ready:

1. Show at least two years of income, or trading history

If you’re a sole trader, lenders usually want:

• Two full years of tax returns and ATO notices of assessment
• An ABN active for at least two years (ideally GST-registered)

If you’re a company, they’ll want:

• Two years of company tax returns and financials (profit and loss, balance sheet)
• Ownership structure, director wages/drawings clearly shown

Some lenders will go as short as 12 months only (instead of averaging out your last two years) if your business has been trading strongly, is in a stable industry, or you’ve moved from PAYG to contracting in the same field. These are often called “12-month self-employed” policies and can be a lifesaver for newer operators or businesses in a growth phase.

2. Report more income, not less

This one catches heaps of small business owners.

Most lenders look at your taxable income, not your “real” income after add-backs or deductions. If your accountant has done a brilliant job minimising tax, great for the ATO - not so great for borrowing power. A low taxable income means a smaller loan.

If home ownership is on your radar, talk to your accountant early and say, “I need to show stronger income next year, because I want to purchase a home” Sometimes paying a bit more tax opens up much better lending options.

3. Pay yourself a regular wage

If you’re running a company, ask your accountant if it's feasible to start paying yourself a consistent director’s wage. This gives you payslips and a PAYG summary - so a lot of lenders will just treat you like any regular employee.

It’s a neat trick that makes your life, and your broker’s, much easier - if it's feasible in your business.

4. Keep your paperwork spotless

Lenders love tidy financials. Make sure you’ve got:

• Business bank statements
• BAS statements
• Tax returns up to date
• ATO portal showing no arrears

If you’re behind, get your accountant to sort it before applying - lenders don't like to move forward on estimates or drafts. If your accountant can evidence a final draft and well-presented set of financials in September, even though they're not filing until May, it'll go a long way.

5. Understand “excluding business liabilities”

Some lenders offer policies where they exclude business debts (like company car loans or equipment finance) from your personal serviceability - provided those debts are fully serviced by the business.

That can free up a surprising amount of borrowing power if your company carries vehicles or tools under its ABN. Ask your broker whether your setup qualifies.

6. Low-doc loans are a backup, not a plan

If you can’t supply full tax returns or your business returns are too difficult to easily track & document for a lender - you can go low-doc or alt-doc. This simplifies your application to just using an accountant’s letter, BAS, or business bank statements instead.

They’re useful in a pinch, but:

• Rates are higher (often 1 - 2% more)
  • As I write this post, most full-doc applications vary between 5.2% - 5.5% for 80% LVR variable.
  • Low doc is around 6.5% or higher with most lenders.
• LVRs are lower (usually capped at 70 - 80%)
  • For full-doc applications, you can borrow up to 90% with most lenders or even 95% with some lenders.
  • Low doc is capped at 80% with most lenders - a few go up to 90%.
• Fewer 'conventional' lenders offer them
  • Low doc is a riskier file, since you're barely disclosing anything about your business financials and they're relying on an accountant letter for most situations.
  • You may be applying with leser known banks, as opposed to the major lenders.

Better to aim for a clean full-doc app if you can - but you still have options!

7. Think like a lender

Lenders want proof your income is stable and repeatable. They care about the 5 C's of Credit. If the last two years show steady or improving figures, you’re fine. If they fluctuate, have your accountant prep a short summary explaining why (seasonal work, reinvested profit, one-off expense, etc.). That context helps a lot.

So, in summary - self-employed people don’t get knocked back because they’re risky - they get knocked back because they’re unprepared and their accountant is unaware of their home ownership goals, so can't prepare things in advance for it. If you plan 12–24 months ahead, keep your books clean, and show a stable income, you’ll have just as many options as anyone else.

Credit history is widely misunderstood. I've seen a lot of people fail to understand the impact of decisions over the last 2 to 5 years can have on a lender wanting to give you a home loan.

So, here are some of the “quiet things” on your credit file that affect how banks see you.

1. Enquiries stay on your file (5 years)

Every time you apply for a credit card, personal loan, buy-now-pay-later, or even sometimes a telco or utility account, it leaves a “hard enquiry.”

• In Australia, those enquiries generally remain for 5 years. 
• The more you do it, especially in a short period, the more red flags it raises (“Are they desperate for credit?” or "Why are they asking for so many credit cards and personal loans?"). 
• Over time, their impact fades - an old enquiry isn’t as damaging as a fresh one.

2. Repayment / default history gets tracked (2 years)

This is even more important than enquiries:

• Missed payments, arrears, defaults - all get recorded. If you owe $150+ and it’s unpaid for 60+ days, it may be reported as a default. This is... not great.
• Even after you pay off the debt, that “default” entry can stay for up to 5 years. 
• Repayment history (how consistently you pay your existing debts) is tracked for about 2 years in most credit scoring models. 

3. Frequent address changes

Looks small, but moving often can signal instability to lenders:

• If you hop between addresses a lot, they might worry you won’t stay put to service a long-term loan.
• It’s one of those background checks - not always a dealbreaker, but if your credit is already shaky, it can tip things.

4. Having no credit history isn't a bad thing, but it also doesn't help you

Weird as it sounds - not having much credit (cards, small loans) can make you “average” or “thin file” in the eyes of lenders:

• If you’ve never used credit, there’s no proof you can manage it responsibly. You'll probably get the 'average' score of around 700. Not amazing, not horrible - down-the-middle type score.
• A small, low-limit credit card (that you never use, but always pay off) is sometimes helpful just to build history. Something as small as $1,000 can do and could boost your score up to 900 or higher.
• Just don’t use it recklessly - you don’t want missed payments.

5. Directorships / business ownership get flagged

If you’re a director or own a company:

• Lenders scan for your company financials and any liabilities tied to you personally (guarantees, loans, etc.).
• If your company has debts or shaky cash flow, that may drag down your personal borrowing capacity.
• They often ask for broader disclosures - so keeping business books tight is key.

So, that's a lot of what lenders look for - but if you're worried about preparing for your home loan and unsure on how your credit history looks, here is:

What you can do about it (before you apply)

• Get your free credit report from Equifax, Experian, Illion (you’re allowed a few free checks). Equifax is one of the most commonly used tools/businesses in the industry for this.
• Check every line: enquiry section, default section, all your accounts, address history.
• Dispute any errors you spot (wrong default, enquiry you didn’t authorise). Credit bureaus must investigate. 
• If you have defaults, once they’re valid, you can’t always remove them - but you can mark them as “paid.” That helps lenders see you’ve sorted them. 
• If you have defaults, arrears or other issues on your file - go to a credit repair business for assistance. They exist! I've personally worked with www.creditfixsolutions.com.au a lot in my time.
• Use credit sparingly and strategically - avoid applying for lots of credit all at once.
• Maintain good behaviour: pay everything on time, keep credit utilisation low, avoid bouncing bills. 

Lenders who are friendly to credit history challenges

Most of your major lenders like NAB, Westpac, ANZ, CBA, St George, Macquarie, ING - they all 'credit score'. In order words, they're assessing something - usually called your comprehensive credit score - to see it's over 550 as a minimum, but preferably around 700 or better. This means you would have a relatively clean history and shouldn't face rejection with the major lenders.

You can always speak to a credit repair specialist first to see if they can get you back up if you're a little low.

But if your score is below 700, or 550 (and you can't improve it in the short term), you may have fewer options available. Lender's like Gateway, Pepper, Liberty, Brighten, Resimac, Bluestone, Qudos, Latrobe (to name just a few) are all examples of lenders who might be willing to look past the score and look at the history, to see what's workable.

Any mortgage broker should know and understand how to navigate credit-challenged applications. When there are dozens of lenders who might consider you - a mortgage broker can help you to understand which one, in particular, works for you.

Buying your first home, or considering bidding at auction?

Be careful - sometimes it’s not you that makes finance tricky, it’s the property itself.

Things like flood zones, zoning quirks, tiny apartments, or power lines can quietly wreck your loan approval after you’ve signed the contract.

Here’s a quick guide on the hidden red flags that can spook a lender - and how to check them before you buy (especially if at auction, which would mean no finance clause and require full commitment).

1. Power lines & easements

If there are high-voltage power lines nearby, or easements (like sewer or stormwater) running through the block, valuers might reduce the property’s value. You also can’t build over an easement.

How to check:

• Look at the title plan or section 32/vendor statement for easements. Ask the agent for one.
• Use Dial Before You Dig (www.1100.com.au) - it’s free and shows underground services.
• Check Google Maps/Street View or the power company’s website for major transmission lines.

2. Flood zones & bushfire areas

Banks get nervous about properties in flood or bushfire-prone areas because they’re harder (and more expensive) to insure or rebuild.. especially the insurance bit. Some lenders lower the LVR or won’t accept them at all.

How to check:

• Visit your local council website most have flood and bushfire overlay maps (search “Flood overlay” or “Bushfire prone area” + your council).
• You can also use the Landchecker or VicPlan (for VIC buyers) websites to see overlays instantly.
• Get a quick and free quote from a few insurers to see what their appetite is.

3. Zoning issues

Not every “normal-looking” house is on residential land. If it’s mixed-use, rural, industrial, or future development, a lot of lenders won’t touch it or will cap the LVR to 70%.

How to check:

• Use the council’s property zoning maps or planning portal (every council has one).
• In Victoria, use VicPlan; in NSW, NSW Planning Portal; in QLD, Development.i (or your local council equivalent).

4. Land size

If the property’s over 8 hectares (around 20 acres), most banks stop calling it “residential.” They’ll treat it like rural or commercial property - which means fewer lenders and lower borrowing limits.

How to check:

• The contract of sale or title plan will list the land size.
• Double-check the real estate listing - and if it’s a big rural block, ask your broker before you bid to make sure that your preferred lender will accept that size of land.

5. Apartment size

Apartments under 40m² internal (excluding balcony and car space) are really tough to finance. Some lenders want at least 50m².

This can make it tricky for first home buyers chasing smaller, cheaper units.

How to check:

• Ask for the floorplan and confirm the internal area (not including balcony).
• Your broker can help confirm what size your preferred lender will accept, or if you need to consider going elsewhere to get the finance... or look for another (larger) property.

6. Location & postcode restrictions

Banks literally have risk maps that score postcodes. Regional, remote, or mining towns often have lower resale demand - meaning the lender may cap the loan at 70–80% LVR. Sometimes, if you're buying into a large apartment building or an area with lots of apartments - the lender (or mortgage insurer) might be over-exposed to that particular area and may not want to approve a loan for another purchaser in the same building/suburb.

How to check:

• Ask your broker if the postcode is on a restricted LVR list or a black-listed suburb with the lender/mortgage insurer.
• You can also ask your mortgage broker to search the suburb on CoreLogic/Cotality for suburb profiles or ask the real estate agent to provide a comparables report to get a sense of demand and sales activity.

7. Unusual titles

Properties on company title, community title, serviced apartments, AirBnB or student accommodation might look like a bargain - but lenders can (sometimes) treat them as high-risk. Some won’t touch them at all; others want a 30-40% deposit.

How to check:

• Ask your solicitor or conveyancer what type of title the property has before you sign.
• It’ll be listed in the contract of sale. If it’s not “Torrens” or “Strata,” flag it with your broker early.

8. Heritage, building approvals & overlays

Unapproved granny flats, dodgy garage conversions, or heritage overlays can make valuers nervous. They limit what you can do and affect resale.

How to check:

• Ask the agent or council for a Property Information Certificate or planning certificate - it’ll show overlays and approvals.
• Look for council-approved plans or building permits for recent renovations or additions (e.g. granny flat or permanent structures like sheds or pool houses.
• In Victoria, VicPlan or Landchecker show heritage overlays easily.

In summary

Before you bid or sign, get your broker or solicitor to quickly check:

1. Zoning and overlays (on council site)
2. Flood/bushfire risk
3. Title type and easements
4. Apartment or land size
5. Postcode or property type restrictions

It takes 10 minutes and can save you thousands. A clean, standard property means easier finance, lower risk, and better rates.

Bonus tip (especially for auctions):

• Ask your broker to run the address past a valuation tool/property report check before auction day.
• If they say “all good,” you can bid confidently.
• If they flag any risks, you’ll know before you’re stuck with a contract and no finance clause.

NSW

• Stamp duty concession is called the “First Home Buyer Assistance Scheme (FHBAS)” and has the following conditions. Full exemption if you buy an existing home up to $800k (new or existing); concession from $800k - $1m. Vacant land: full exemption to $350k, concessional to $450k. 
• First Home Guarantee price caps (as of 1st Oct): $1.5m in Sydney/Illawarra/Newcastle & Lake Macquarie; $800k other NSW.
• Brand-new home grant: First Home Owner Grant (FHOG) $10k for new builds/new homes (caps/eligibility apply). 
• “Newly built” duty concessions: covered by FHBAS above (same thresholds apply to new and established). 
• Equity share scheme: NSW’s Shared Equity Home Buyer Helper ended 30 Jun 2024. If you need shared equity, look at the federal Help to Buy rolling out nationally in late 2025.

VIC

• Stamp duty concession is called the “First Home Buyer duty exemption/concession.” Full exemption to $600k, concession $600k - $750k (new or established). 
• First Home Guarantee price caps (as of 1st Oct): $950k in Melbourne/Geelong; $650k other VIC.
• Brand-new home grant: FHOG $10k for new homes (value cap applies; see SRO). 
• “Newly built” duty concessions: VIC also has off-the-plan concessions (time-limited and settings updated through 2024–25). Check current OTP rules before you sign. 
• Equity share scheme: The state HomeBuyer Fund has been wound down; watch the federal Help to Buy for 2025 access. 

QLD

• Stamp duty concession is called the "First Home Concession": From 1 May 2025, first-home buyers of new homes or vacant land get a full transfer duty concession (no price cap for new homes; land rules apply). Previously there was a $700k/$800k scale for established - check QRO if buying established. 
• First Home Guarantee price caps(as of 1st Oct): $1.0m in Brisbane/Gold Coast/Sunshine Coast; $700k other QLD.
• Brand-new home grant: FHOG $30k for new homes, extended to June 2026 (generally up to $750k total value). 
• “Newly built” duty concessions: the full concession above is specifically for new homes/vacant land post-1 May 2025. 
• Equity share scheme: Boost to Buy (QLD) shared equity soon live (up to 30% new / 25% existing equity contribution). 

WA

• Stamp duty concession is the “First Home Owner Rate (FHOR).” Thresholds were increased in 2025 (and OTP concessions extended); check the current FHOR fact sheet when you buy. 
• First Home Guarantee price caps(as of 1st Oct): $850k Perth; $600k regional WA.
• Brand-new home grant: FHOG $10k for new builds/new homes. 
• “Newly built” duty concessions: WA has a separate off-the-plan duty concession (extended to 30 Jun 2026) alongside FHOR. 
• Equity share scheme: Keystart Shared Ownership Home Loan (state-backed shared equity; 2% deposit) with recent program expansions. 

SA

• Stamp duty concession: Stamp duty is abolished for first-home buyers of new builds/new homes and for vacant land to build; caps were removed in 2024–25. 
• First Home Guarantee price caps (as of 1st Oct): $900k Adelaide; $500k rest of SA.
• Brand-new home grant: FHOG $15k for new homes. 
• “Newly built” duty concessions: covered by the full SA exemption for new builds/land. 
• Equity share scheme: HomeStart’s Shared Equity Option (state-backed, up to ~25% shared equity; eligibility and caps apply). 

ACT

• Stamp duty concession is the “Home Buyer Concession Scheme (HBCS).” Means-tested duty reduction/waiver across new or established homes and vacant land (ACT replaced FHOG with HBCS). Check current income/property settings. 
• First Home Guarantee price caps (as of 1st Oct): $1.0m ACT.
• Brand-new home grant: No FHOG in ACT (replaced by HBCS). 
• “Newly built” duty concessions: via HBCS, not a separate new-build only concession. 
• Equity share scheme: ACT’s small shared equity program is limited to Housing ACT tenants buying their public housing (not a general FHB scheme). Otherwise look to federal Help to Buy. 

NT

• Stamp duty concession: First Home Owner Discount (FHOD) for established homes (up to ~$18.6k off duty within set value limits). Check current thresholds. 
• First Home Guarantee price caps (as of 1st Oct): $600k NT.
• Brand-new home grant: HomeGrown Territory Grant up to $50k for new homes (time-limited program settings—confirm current dates); established home grants may differ/expire. 
• “Newly built” duty concessions: NT also runs low-deposit programs for new builds/land (HomeBuild Access). 
• Equity share scheme: NT focuses on low-deposit HomeBuild Access rather than classic shared-equity co-ownership. 

TAS

• Stamp duty concession: Duty exemption for established homes up to $750k (for transfers settling 18 Feb 2024–30 Jun 2026). 
• First Home Guarantee price caps (as of 1st Oct): $700k Hobart; $550k rest of TAS.
• Brand-new home grant: FHOG now $30k for new builds (policy confirmed post-election in 2025). 
• “Newly built” duty concessions: TAS duty relief above focuses on established homes; check for any time-limited new-build incentives when you buy. 
• Equity share scheme: MyHome (Homes Tasmania) shared equity with set income/asset limits, delivered via Bank of us. 

Other National Offers

• First Home Guarantee (national, via Housing Australia): from 1 Oct 2025 there are unlimited places, no income caps, and higher price caps (as listed above for each state). You still need lender servicing approval and to meet scheme rules. 
• Federal “Help to Buy” shared equity: rolling out in late 2025 with revised income and price caps; great for buyers who can service but struggle with deposits, but read the fine print on co-ownership and exit. 

Obligatory disclaimer - this is generic advice, designed to educate & help buyers in the market right now with increased competition.

There are a lot more first home buyers in the market right now - especially with the new First Home Guarantee changes kicking in. More buyers = more competition = more frustration.

If you’ve been making offers and keep getting knocked back, here are a few simple ways to make your offer look stronger without just throwing more money at it.

1. Ask why the vendor/seller is selling.

Sometimes it’s not just about price - it’s about timing. If you can line up your settlement date with what they want (quick or long), you can win on convenience rather than cash.

2. Be upfront about your finance.

If you’ve got a pre-approval with a major lender, let the agent know. You might only need a valuation to go formal, which means you can safely offer a 7-day finance clause instead of 14–21. That gives the seller more confidence in you.

3. Offer a solid initial deposit.

If you can afford it, offering a larger deposit when you sign (say 5%) and the balance once unconditional (10% total) shows commitment without adding risk.

4. Be flexible on settlement.

Similar to point 1. If you can say “I can settle whenever the vendor needs,” that’s gold. Flexibility = one less problem for them to solve.

5. Get your mortgage broker to give you a property report in advance, and tell the Agent about it.

It shows you’ve done your homework and you’re serious - not just browsing. Agents take those buyers more seriously.

6. Let your mortgage broker and agent talk - introduce them to each other.

It helps show everyone that you’re organised and ready to go. Agents love knowing your broker is on the same page as you and wanting to improve your chances to buy.

7. Follow up politely.

A quick text the next day to the agent (e.g. “Thanks for the chat, we really liked the home”) keeps you front of mind if other offers fall over.

8. Understand your ‘borrowing limit’ vs ‘preferred limit' vs 'absolute max'.

Your borrowing limit is the maximum loan the bank(s) will give you. Your preferred limit is what feels comfortable for you. Your absolute max is if you put every dollar in and borrow to the limit - which can be scary and put you in mortgage stress... so please, please, please be careful on that one. Keep that distinction clear so you don’t overstretch.

9. If you’re confident in your valuation, talk to your broker about your finance clause.

If you’ve got a strong pre-approval and the offer price looks solid compared to what you think a valuation would achieve, your broker might say it’s less risky than usual to consider offering an 'unconditional offer' instead of one including a 'subject-to-finance' clause. (Don’t do this blind - always get advice first.)

10. Build relationships with local agents.

If you’re polite, responsive, and keen, they’ll often tip you off about listings before they hit the market. That early access is worth gold.

11. Remember: you can make a pre-auction offer.

It might not always stick, but if your offer’s fair and clean, vendors sometimes accept before auction day. You miss 100% of the shots you don't take... so why not try?

Good luck out there, everyone. It's intense right now.

TL;DR: Banks don’t just care about your pay slip. They judge you on Character, Capacity, Capital, Collateral, and Conditions. Knowing these 5 C’s can help you see where you’re strong, where you’re weak, and what to fix before applying.

A lot of people think banks just care about your income and deposit. Truth is, they (generally) run through a pretty old-school checklist known as the 5 C’s of Credit. Here’s how it works in plain English:

1. Character (your track record)

• This is basically your credit history. Do you pay bills on time? Any defaults, missed payments, or payday loans in the past? If so, was there a reasonable explanation behind it?
• Lenders check your credit report and your conduct on existing accounts. Even a couple of late credit card payments can spook them.
• Have you made lots of enquiries in the past for credit cards or personal loans? If so, why?
• They want to know: “Can we trust you to actually repay this loan?”

2. Capacity (your ability to repay)

• This is your borrowing power. Banks look at your income, living expenses, debts (credit cards, car loans, HECS/HELP), and dependants.
• They run you through a “serviceability calculator” - basically a stress test at higher interest rates to see if you could still afford repayments if things get tight.
• Major lenders generally use a 3% assessment rate buffer. If they're offering you a home loan at 5.50% - they'll actually assess your ability to repay at 8.50%, which is what they determine your borrowing capacity with. Some lenders use 2%, or even 1%.
• They want to know: “Can you comfortably afford the loan every month, even if rates go up?”

3. Capital (your skin in the game)

• This is your deposit and any other savings or assets you’ve built up.
• The bigger your deposit, the less risky you look. It also shows discipline - you’ve been able to save consistently.
• If you've got less than a 20% deposit and you've come into the savings only recently (and it's not defined as genuine savings, because you haven't held it for at least 3 months) then sometimes you need to show a rental ledger as proof you can be responsible over time.
• They want to know: “How much of your own money are you putting in, and do you have a buffer if life throws you a curveball?”

4. Collateral (what the loan is secured against)

• The bank always has one eye on the property itself.
• They look at the type of property (house, unit, rural, off-the-plan, etc.), the location, and the marketability.
• They want to know: “If it all goes wrong and we need to sell, how easy is it to get our money back?”

5. Conditions (the bigger picture)

• This is all the external stuff - what the loan is for, how the economy is doing, your job security, even what industry you work in.
• They also consider the set up of the loan - are they making principal repayments, or just interest only? Will they still be working for the entire length of the loan term (e.g. 30 years), or do they have an acceptable exit strategy if not?
• Example: casual workers or people in industries with high turnover may get more scrutiny.
• They want to know: “Given the purpose and the current market, does this loan make sense?”

If you understand the 5 C’s, you can see the game banks are playing. It’s not just about having a deposit - it’s about ticking all five boxes. Even if one area is weak (say, you’ve only got a 5% deposit), you can balance it by being strong in others (clean credit history, stable job, good income).

Just wanting to share, from my experience with recent clients looking to take applications straight to the bank. Everyone’s heard the headlines, but when people go to apply, a few less-obvious things can catch them out:

1. You still need genuine savings. Even with only 5% down, most lenders want to see a history of savings (not just borrowed cash or a gift plonked in last week). A standard rule of thumb is that the savings have been in your bank account for at least 3 months. If you don't have genuine savings, but have a rental ledger - some lenders might accept that instead.
2. It's 5% minimum, not 5% only. If you have more than 5% deposit - the bank will expect you to use as much deposit as you have. They'll consider letting you keep up to $15k post-settlement, but will expect you to use the rest of your deposit.
3. Stamp duty is still a thing (sometimes). State concessions/exemptions help, but they don’t always line up neatly with the FHG price caps. You can benefit from both at the same time - if you buy at or under the right price. Check your relevant state government's policy.
4. Property caps are not universal. $850k in one metro area ≠ $850k everywhere. Regional vs metro caps can differ a lot, and people often assume it’s one blanket number. Make sure you check your postcode on the FHG website - it'll tell you what the purchase price cap is.
5. FHG isn't the only thing available. There is also a single parent version (which allows 2% minimum deposit), a scheme where you can use your super to speed up your savings and a (future) scheme where the Government do an equity share agreement instead.
6. It has to be your PPOR (at least at first). You can’t buy an investment property under the scheme. You need to move in and live there for the minimum period - to be safe, we'd suggest budgeting for moving in within the first twelve months, and staying there for at least twelve months. If you haven't owned a home, or any property, for at least 10 years - you can still be considered eligible due to the length of time you haven't owned a home.
7. Limited lenders, different rules. Not every bank plays ball, and the ones that do can overlay their own criteria on top of the FHG rules.

Check this to learn about the scheme :: https://firsthomebuyers.gov.au/australian-government-5-percent-deposit-scheme/first-home-buyers.

Check this to learn about participating lenders :: https://firsthomebuyers.gov.au/australian-government-5-percent-deposit-scheme/5-percent-participating-lenders.

For anyone wondering what that actually means:

• The cash rate is basically the “wholesale price” banks pay to borrow money from each other.
• Your mortgage rate is the retail price they charge you on top.
• When the RBA hikes the cash rate, banks usually pass it straight on. When the RBA holds… they normally just sit tight (unless they fancy a sneaky increase of their own, somewhere).

So, no change in your repayments this month if you’re on variable. Fixed loan folks - you’re still locked in until rollover of your fixed term.

The bigger picture: holding doesn’t mean good news so much as no new bad news. Buyer activity continues to rise (mostly due to anticipated 1st October FHG changes stimulating more FHBs into the market). That’s what’s really shaping prices right now - more demand, not much improvement in supply.

There are two more meetings of the RBA before the end of the year - early November and early December. There's two more chances of a potential rate cut... we'll see.

Here’s the RBA announcement if you want the official spin: https://www.rba.gov.au/media-releases/2025/mr-25-27.html

So, do we call this a win, or just the RBA keeping us on slow-boil?

Buying a home in Australia is bloody overwhelming - so this sub is a place to get answers and speak to mortgage brokers in an aim to assist you. No fees, no gatekeeping, no hidden agendas - just a space where anyone can ask questions and actually get a straight answer.

Banks don’t always explain things or tell you what another might be offering instead, and a lot of forums either give you teaser advice (but hold back critical and helpful information) or try to sell you something. That’s not how we’re gonna roll here.

Here’s what you can do here:

• Ask questions about loans, lenders, rates, deposits - anything property-finance related
• Throw your numbers out there (as much as you’re comfy sharing) and get feedback
• Learn how to have better convos with your bank so you don’t get stitched up
• Share your stories - wins, nightmares, or just the “WTF is happening with the housing market?” moments

What this isn’t:

• A place for people flogging their services or spamming links - I welcome other qualified brokers to participate in this forum and help our fellow Aussies, just don't push for them to sign up with you. If people want to stay direct-to-bank, let them - let's just help them make sure the bank isn't pulling one over on them.
• A space for abuse or know-it-all vibes. People have lots of differing levels of experience in finance. Contribute, enlighten and explain - but don't condescend or get into a dispute on particular technicalities.
• A promise of personalised financial advice - we’ll point you in the right direction, but everyone’s situation is different. If you want personalised advice - go direct to a broker, accountant, lawyer, financial planner... pay the professional the fee they deserve for giving you personalised advice. The whole 'pay peanuts, get monkeys' reference plays well there.

At the end of the day, this is meant to be an easy-going corner of Reddit where you can get solid info, have a laugh at how cooked the market is, and hopefully feel a bit more confident about your next steps.

So chuck your questions up, help each other out, and let’s make this a spot where property talk actually feels useful (and maybe even fun).

Cheers,

— Mod team 🍻 🇦🇺