Questions about Home Loans
The Top Home Loan Questions Australians Ask Us
Buying a home is exciting, but it can also feel overwhelming—especially when it comes to understanding home loans. As a leading Australian mortgage broker, I’ve answered thousands of questions from first-time buyers and seasoned investors.
Here are the top 10 questions people ask about home loans, explained simply so you can feel confident about your next step.
1. What is a home loan?
A home loan (or mortgage) is money you borrow from a bank or lender to buy a property. You agree to pay it back over time, usually with interest. Think of it as renting money to own your home.
2. How much deposit do I need?
Most lenders want at least 20% of the property price as a deposit. If you don’t have that, you can still buy with a smaller deposit, but you might need Lenders Mortgage Insurance (LMI). There are also government schemes that help first-home buyers with smaller deposits.
3. What is Lenders Mortgage Insurance (LMI)?
LMI protects the lender if you can’t pay your loan—not you. It’s usually required when your deposit is less than 20%. The cost can be thousands of dollars, so it’s worth planning ahead.
4. What’s the difference between fixed and variable rates?
Fixed rate: Your interest rate stays the same for a set time (e.g., 2–5 years). Great for budgeting. Variable rate: Your rate can go up or down with the market. Good if you want flexibility.
5. How much can I borrow?
It depends on your income, expenses, credit history, and the lender’s rules. A good rule of thumb: lenders want your repayments to be less than 30% of your income.
Check out our Borrowing Power Here
6. What are comparison rates?
The comparison rate shows the true cost of a loan, including interest and most fees. It helps you compare loans fairly.
Check out our Comparison Rate Calculator Here
7. What fees should I expect?
Common fees include: Application fees, Valuation fees, Ongoing account fees. Always check the fine print—small fees add up!
8. How long does approval take?
Pre-approval can take a few days. Full approval usually takes 1–2 weeks, depending on your documents and the lender.
9. Can I pay off my loan early?
Yes, but check for break fees on fixed-rate loans. Extra repayments on variable loans can save you thousands in interest.
10. What help is available for first-home buyers?
Government grants and schemes like the First Home Owner Grant and Home Guarantee Scheme can make buying easier. Ask your broker about what you qualify for.
Final Thoughts
Home loans don’t have to be confusing. The right advice can save you money and stress. If you’re ready to buy or just want to explore your options, talk to a trusted mortgage broker who understands the Australian market.
Ready to take the next step?
Contact us today for expert advice and personalised home loan solutions.
