1. How does my credit score impact my borrowing power?

Your credit score gives lenders an idea of how reliably you manage debt. A strong score can boost your chances of loan approval and might even secure you a better interest rate. It’s a good idea to check your credit score annually through services like Equifax, Finder, or GetCreditScore. Keeping your credit score healthy by managing debts responsibly can open doors to more favourable loan options.​

2. What is stamp duty, and how is it paid?

Stamp duty, sometimes called transfer duty, is a tax imposed by states and territories when you buy property. The amount varies depending on the property’s location. Your solicitor or conveyancer will typically handle this payment for you. To get an estimate of the stamp duty you might owe, you can use this stamp duty calculator. Additionally, some states offer waivers or discounts, especially for first-home buyers. It’s worth exploring these to see if you qualify.​

3. My lender says I need building insurance. How much should I insure my property for?

Lenders usually require that any structures on your property are insured to protect against unforeseen events. For strata-titled properties, this insurance is often included in your strata fees—your strata manager can provide the specifics. For standalone properties, you’ll need to ensure the coverage amount is sufficient to rebuild the structure if necessary. Tools like this building insurance calculator can help you estimate an appropriate coverage amount.​

4. Property prices are soaring. How can I afford to live in my preferred area?

It’s a common challenge: the neighbourhood you love might be out of your purchasing budget. One strategy to consider is “rentvesting”—renting in your desired location while investing in property in a more affordable area. This approach allows you to enjoy living where you want while building equity in an investment property. If you’re curious about how rentvesting might work for you, we’re here to discuss it further.

5. I have a 5% deposit saved, but the seller requires a 10% deposit at contract exchange. What can I do?

Negotiating a 5% deposit with the seller is one option. If that’s not feasible, a deposit bond can bridge the gap. A deposit bond acts as a guarantee for the seller, ensuring they’ll receive the full deposit amount at settlement. It’s a useful tool for buyers who have a smaller cash deposit ready. For more details on how deposit bonds work, feel free to reach out to us.

6. How much can I borrow?

Determining your borrowing capacity depends on various factors, including your income, savings, existing debts, and even the type and location of the property you’re interested in. To give you an accurate assessment, we’d need to understand your full financial picture. Let’s schedule a time to chat so we can provide personalised advice tailored to your situation.​

7. What does ‘rate lock’ mean?

If you’re considering a fixed-rate loan, some lenders offer a “rate lock” feature. This allows you to secure the current interest rate at the time of your application, protecting you from potential rate increases before your loan settles. Fees for this service vary among lenders. In a fluctuating rate environment, rate lock can provide peace of mind. We’re happy to discuss whether this option aligns with your financial goals.

8. How long is a pre-approval valid?

Most lenders’ pre-approvals are valid for about 90 days, though this can vary. It’s essential to be aware of this timeframe as you search for properties. If your pre-approval expires, we can assist you in renewing it to ensure you’re always ready to make an offer when you find the right property.​

9. What is Lenders Mortgage Insurance (LMI)?

LMI is insurance that protects the lender if a borrower defaults on their loan. It’s typically required when your deposit is less than 20% of the property’s value. While it adds to the cost of your loan, LMI enables you to purchase a property sooner without waiting to save a larger deposit. In certain situations, such as being a first-home buyer or belonging to specific professions, LMI might be waived. We can explore whether you qualify for any exemptions.​

10. Do I need a solicitor or conveyancer when buying a property?

Yes, engaging a solicitor or conveyancer is a crucial step in the property buying process. They handle tasks like reviewing the Contract of Sale, conducting title searches, and managing the settlement process. Their expertise ensures that all legal aspects of your purchase are in order, giving you peace of mind as you move forward.

11. How much deposit do I need to buy a home?

The ideal deposit is usually 20% of the property price, but many lenders accept less. Some options allow you to borrow with as little as 5% deposit, though you may need to pay Lenders Mortgage Insurance (LMI). We can help you explore low-deposit options that suit your situation.

12. Can I still get a loan if I’m self-employed?

Yes, absolutely. While the process is a little different, many lenders offer self-employed loan options. You may need to provide additional documentation like tax returns or business financials. We can guide you through what’s needed and which lenders are most flexible.

13. What’s the difference between fixed and variable rates?

A fixed-rate loan locks in your interest rate for a set period, offering stability in repayments. A variable rate can go up or down, giving you flexibility and access to features like offset accounts. We’ll help you weigh up what’s best for your goals.

14. How do I get pre-approved for a loan?

Pre-approval is an indication of how much a lender may let you borrow. It’s a great first step before house hunting. We’ll help you prepare the paperwork, lodge the application, and get pre-approval sorted. Usually within a few days.

15. Can I use a guarantor to buy a home?

Yes! If a family member is willing to go guarantor on your loan, you may be able to buy with a smaller deposit or avoid LMI. We’ll walk you through how it works, what to consider, and which lenders offer guarantor loan options.

16. What other costs should I budget for when buying a home?

It’s not just about the deposit. You’ll also need to budget for stamp duty, legal fees, inspections, loan setup fees, and possibly LMI. We’ll give you a full breakdown so you know exactly what to expect—and help you plan accordingly.