Home loan articles for Australian borrowers
Every BorrowWise article is published here, newest first. Each one explains a single decision in depth, with worked examples, a list of sources and links to the calculators that apply. Choose a topic to narrow the list, or go straight to the guide for that topic.
All articles
39 articles, newest first
First Home Buyers · Home Loans · Refinance
How Much Can I Borrow for a Home Loan in Australia? BorrowWise
Borrowing power in Australia depends on income, expenses, debts, credit cards and the APRA 3% serviceability buffer. Lenders differ widely. Use the free calculator for an estimate, then compare real options with a broker assessment—not a loan offer.
· 6 minute readRead the article
Home Loans · Refinance
Bridging loans: buying before you sell
A bridging loan funds a new purchase before the existing home is sold. Interest is usually capitalised onto a peak debt, and the size of the end debt depends entirely on what the old home sells for.
· 10 minute readRead the article
First Home Buyers · Investment Property
Buying off the plan: finance, sunset clauses and valuation risk
An off the plan contract commits a buyer today to settle a property that does not yet exist. The principal risks are a valuation shortfall at settlement, a finance market that has moved, and the sunset clause.
· 10 minute readRead the article
Home Loans · First Home Buyers
Construction loans and progress payments explained
A construction loan is drawn in stages as building work is completed, with interest charged only on the amount drawn. The structure reduces interest but adds valuation, contract and builder risk.
· 10 minute readRead the article
Home Loans
Credit scores, credit reports and home loan applications
Lenders read a credit report, not just a score. Repayment history stays two years, defaults five and enquiries five, and the rules a credit provider must follow before listing a default are strict.
· 9 minute readRead the article
Home Loans · Interest Rates
Debt to income ratios and the APRA lending limit
Since 1 February 2026 Australian banks may write no more than 20 per cent of new mortgage lending at six times income or more. The limit applies to portfolios, not to individual applications.
· 9 minute readRead the article
Government Grants · First Home Buyers
The Australian Government 5% Deposit Scheme explained
The scheme formerly known as the Home Guarantee Scheme allows eligible buyers to purchase with a 5 per cent deposit and no lenders mortgage insurance. Since October 2025 there are no income caps and no limit on places.
· 9 minute readRead the article
First Home Buyers · Home Loans
Guarantor home loans and family security guarantees
A security guarantee allows a parent to use equity in their own home so a buyer can borrow without mortgage insurance. The guarantor accepts a real and enforceable liability in return.
· 10 minute readRead the article
Home Loans · Interest Rates
How much can I borrow for a home loan in Australia
Borrowing power is the result of a formula: assessable income, less benchmarked living expenses and existing commitments, tested at an interest rate around three percentage points above the rate actually on offer.
· 11 minute readRead the article
Refinance · Home Loans
How to refinance a home loan, step by step
Refinancing moves a loan to a new lender or a new product. The process takes several weeks, costs a few hundred dollars in fees, and the decision turns on more than the advertised interest rate.
· 9 minute readRead the article
Investment Property
Investment property tax deductions and depreciation
Rental property deductions fall into three groups: claimed immediately, spread over several years, or spread over decades. Getting the classification right matters more than finding additional claims.
· 9 minute readRead the article
Home Loans · Investment Property
Joint tenants and tenants in common: how to hold title
How two or more people hold title determines what happens on death, whether shares can be unequal, and how rental income is divided. The loan liability, by contrast, is usually the same either way.
· 10 minute readRead the article
Home Loans · First Home Buyers
Lenders Mortgage Insurance: what it costs and who it protects
Lenders mortgage insurance protects the lender, not the borrower, and is charged to the borrower when the deposit is below 20 per cent. The premium rises steeply as the deposit falls.
· 10 minute readRead the article
Home Loans · Refinance
Loan to value ratio: how LVR shapes a home loan
The loan to value ratio determines whether mortgage insurance is payable, which interest rate a borrower is offered and which lender policies apply. It is measured against the lower of price and valuation.
· 9 minute readRead the article
Home Loans
Financial hardship assistance for mortgage holders
A borrower who cannot meet mortgage repayments has a statutory right to ask the lender to vary the contract. The lender must respond within 21 days, and requesting help leaves a lighter mark than a default.
· 10 minute readRead the article
Home Loans · Refinance
How lenders value property for a home loan
A lender lends against its own valuation, not the price paid. Understanding how valuers work, and what to do when a figure comes in low, can be the difference between settling and not settling.
· 9 minute readRead the article
Investment Property · First Home Buyers
Rentvesting: renting where you live and owning elsewhere
Rentvesting means renting in one location while owning an investment property in another. It can bring forward ownership, but it forfeits the main residence exemption and most first home buyer assistance.
· 10 minute readRead the article
Home Loans
Home loans for self-employed borrowers
Self-employed borrowers are assessed on taxable income rather than turnover. Understanding add-backs, income averaging and documentation requirements often matters more to the outcome than the performance of the business itself.
· 10 minute readRead the article
First Home Buyers · Home Loans
From contract to keys: how property settlement works
Between signing a contract and receiving the keys, a conveyancer, a lender and a settlement platform complete a sequence of steps. Knowing the order shows where a purchase can be delayed and who is responsible.
· 9 minute readRead the article
First Home Buyers · Government Grants
Stamp duty on property purchases in Australia
Transfer duty is usually the largest single cost of buying a home after the deposit. It is set by each state and territory, calculated on a sliding scale, and reduced or removed for many first home buyers.
· 10 minute readRead the article
First Home Buyers · Home Loans
The upfront costs of buying a home in Australia
Beyond the deposit, buying a home requires cash for transfer duty, conveyancing, inspections, loan fees, insurance and settlement adjustments. On a typical purchase these commonly total four to six per cent of the price.
· 10 minute readRead the article
First Home Buyers
Auction and private treaty sales: a guide for first home buyers
A guide for first home buyers to the two main ways property is sold in Australia, explaining cooling-off rights in each state and territory, finance clauses, inspections, deposits on the day and passed-in properties.
· 8 minute readRead the article
Government Grants
Combining the First Home Owner Grant, guarantees and duty concessions
Most first home buyers can use more than one form of assistance on the same purchase. This guide explains the four kinds of help, their different eligibility tests, the order to check them and an illustrative example.
· 8 minute readRead the article
Interest Rates
Comparison rates: purpose and limitations
A comparison rate folds most fees into a single percentage so that loans can be compared on cost. This guide explains the legal basis, the $150,000 over 25 years assumption, what is left out, and better ways to compare.
· 8 minute readRead the article
Refinance
The cost of remaining with an existing lender
Lenders generally reserve their sharpest pricing for new customers, so an older variable loan can drift above the market. This guide explains the evidence, how to request a rate review and when refinancing is the stronger option.
· 8 minute readRead the article
Government Grants
The First Home Super Saver Scheme: a step-by-step guide
The First Home Super Saver Scheme lets first home buyers release voluntary super contributions towards a deposit. This guide covers eligibility, limits, tax on release, the required order of steps, contract timing and common mistakes.
· 8 minute readRead the article
Refinance
How break costs on fixed rate loans are calculated
A break cost compensates a lender for the interest rate loss it suffers when a fixed rate loan is repaid early. This guide explains the general calculation, what makes the figure large or nil, and how to obtain a quote.
· 8 minute readRead the article
Government Grants
Help to Buy: how shared equity affects purchase costs
Help to Buy is the Australian Government's shared equity scheme. This guide explains the government's share, the effect on deposit, LMI and repayments, the obligations while in the scheme, buying back the share and selling.
· 7 minute readRead the article
First Home Buyers
Home loan deposit requirements in Australia
A plain-English guide to home loan deposits in Australia, covering 5, 10 and 20 per cent deposits, LVR, lenders mortgage insurance, genuine savings, gifts, guarantors, the 5% Deposit Scheme and other upfront costs.
· 8 minute readRead the article
Home Loans
Assessing the value of home loan features
Home loan features such as offset accounts, redraw and portability can save money or add cost. This guide explains each feature and sets out a break-even method for deciding whether a package fee is justified.
· 8 minute readRead the article
First Home Buyers
Home loan pre-approval: the complete process
A step-by-step guide to home loan pre-approval in Australia, covering what it does and does not guarantee, the documents lenders ask for, how long it lasts, credit file effects, auctions and common reasons approvals fail.
· 8 minute readRead the article
Investment Property
Interest-only and principal and interest repayments for investors
Interest-only repayments lower an investor's monthly outlay for a few years but leave the debt untouched, usually cost more in total and end with a repayment step-up. This guide explains the mechanics with a worked example.
· 8 minute readRead the article
Investment Property
Negative gearing: worked examples before and after tax
How a rental loss is calculated, what it is worth at different marginal tax rates in 2026-27, how the rules change from 1 July 2027, and why a tax saving never turns a loss into a profit.
· 8 minute readRead the article
Home Loans
Offset accounts and redraw facilities compared
Offset accounts and redraw facilities both reduce the interest charged on a home loan, but they differ in access, cost, lender control and tax treatment if the home later becomes an investment property.
· 8 minute readRead the article
Interest Rates
How Reserve Bank cash rate decisions affect loan repayments
A plain-English explanation of what the cash rate is, how the Reserve Bank decides it, how lenders pass changes on to variable rates, and what a 0.25 percentage point move means for repayments.
· 8 minute readRead the article
Refinance
Refinance cashback offers: benefits and limitations
A refinance cashback is a one-off payment from a new lender. It can cover switching costs, but it is frequently outweighed by a modest rate difference within two or three years. This guide explains how to compare the two.
· 8 minute readRead the article
Home Loans
Split loans: combining fixed and variable rates
A split loan divides one home loan into a fixed portion and a variable portion. This guide explains how the proportions, features and break costs work, with an illustrative example of repayments when rates rise and fall.
· 8 minute readRead the article
Investment Property
Using home equity while managing leverage
Home equity can fund the deposit and costs of an investment purchase, but it is borrowed money secured against the family home. This guide covers usable equity, loan structures, serviceability, deductibility, leverage risk and buffers.
· 8 minute readRead the article
Interest Rates
Why fixed rates change ahead of the cash rate
Fixed home loan rates are priced from swap rates and bond yields, which reflect where markets expect the cash rate to go. This guide explains the mechanism, what an inverted fixed and variable relationship signals, and its limits.
· 8 minute readRead the article
Guides by topic
Each topic has a guide page that explains the subject from the beginning and lists the articles filed under it.
- First Home Buyers guideEach stage of a first purchase, from saving a deposit to settlement.13 articles
- Home Loans guideLoan types, features and how to select an appropriate loan structure.19 articles
- Interest Rates guideHow Australian home loan interest rates are set and what influences them.5 articles
- Refinance guideWhen refinancing is worthwhile and what it costs to switch.8 articles
- Investment Property guideRental yields, gearing and finance structures for property investors.7 articles
- Government Grants guideFirst home owner grants, guarantees and duty concessions by state.5 articles
Calculators, suburb guides and other pages
- Mortgage CalculatorsFifteen free calculators based on Australian lending practice.
- Suburb GuidesHousing stock, buyer profile and lending considerations by suburb.
- CompareFixed and variable rates, offset and redraw, and broker and bank compared.
- BanksProfiles of major banks, challenger banks and non-bank lenders.
- Property MarketThe forces and indicators that drive Australian property prices.
- FAQsAnswers to the questions Australian borrowers ask most often.
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