Home loan questions, answered

Many lenders look for a 20% deposit to avoid lenders mortgage insurance (LMI), but it isn't the only way in. Under the federal First Home Guarantee, eligible first home buyers can buy with as little as a 5% deposit and no LMI. The property price cap is $900,000 in Adelaide and $500,000 in the rest of South Australia.

Some lenders also accept a 5–10% deposit with LMI, or a family guarantee. We'll show you which route costs least for your situation.

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No. In South Australia the First Home Owner Grant of up to $15,000 is for buying or building a new home, buying off the plan, or buying a substantially renovated home. Established homes don't qualify.

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Yes. With a family guarantee, a parent uses some of the equity in their own home as extra security for your loan. That can mean buying with little or no deposit and, with many lenders, avoiding LMI.

It's a big decision for them too, so we explain how it works and the risks to everyone involved before anything is signed.

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No. 20% is the amount that avoids lenders mortgage insurance with most lenders, but it isn't a requirement. Eligible buyers can buy with 5% under the First Home Guarantee, 2% under Help to Buy or the Family Home Guarantee, or sometimes with no deposit using a family guarantor.

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No. Stamp duty and other buying costs are paid on top of your deposit, so you need to budget for both. In SA, eligible first home buyers pay no stamp duty on a new home or vacant land.

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Many lenders accept gifted money, usually with a signed letter confirming it's a gift that doesn't need to be repaid. Some lenders also want to see savings of your own, so check before you rely on a gift.

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With a family guarantee, some lenders will lend up to the full price. Without one, 2% under Help to Buy or the Family Home Guarantee is the lowest for eligible buyers, and 5% under the First Home Guarantee for eligible first home buyers.

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Yes. Since 1 October 2025 the First Home Guarantee has had no income caps and no limit on places. Price caps apply: $900,000 in Adelaide and $500,000 in the rest of SA.

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Yes. It can be used for a new or established home, as long as you'll live in it and the price is under the cap. In SA, stamp duty relief for first home buyers only applies to new homes and vacant land, so an established home costs more upfront.

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Not strictly. You can also apply if you haven't owned or had an interest in property in Australia, including land, in the past 10 years.

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No. The First Home Guarantee is only for a home you'll live in. For an investment purchase with a small deposit, you'd usually need a loan with lenders mortgage insurance.

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Usually a parent. Some lenders also accept other close family, such as grandparents or siblings. Your guarantor will normally need enough equity in their own property to cover the guaranteed amount. Each lender has its own rules, so we'll find one that suits your family.

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With some lenders, yes. A family guarantee can cover the full 20%, and some lenders will lend up to 100% of the price, subject to eligibility. You'll usually still need money for stamp duty and other costs, and you must be able to afford the repayments on your own income.

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Not while you keep up your repayments. Your guarantor doesn't hand over any money. Part of the equity in their property is used as extra security. If you can't make your repayments, they may have to pay up to the guaranteed amount, and the property they offered as security could be at risk.

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Once your loan is below 80% of your home's value, through repayments, extra payments or growth in value, you can usually apply to have the guarantee removed. The lender will normally need a new valuation. We keep track of your loan and let you know when it's worth applying.

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It can. Lenders may take the guarantee into account if your guarantor applies for credit themselves, even if you're keeping up your repayments. That's one more reason to keep the guarantee as small as possible and release it as soon as you can.

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Some lenders accept guarantors who are retired, as long as they have enough equity in their property. Each lender's rules are different, so we'll check before you apply.

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No, for contracts signed from 13 February 2025. If you or your partner own, or have ever owned, residential property in Australia, you can't get the SA First Home Owner Grant or first home buyer stamp duty relief, even if you never lived in it.

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Only if it's been more than 10 years. The scheme is for first home buyers and people who haven't owned or had an interest in property in Australia in the past 10 years.

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It can be, but the numbers have changed. New builds can still be negatively geared. For established properties bought after 12 May 2026, from 1 July 2027 rental losses can only be offset against residential property income and gains. Talk to your accountant before you decide.

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Yes, it can become your home later. You won't be able to claim first home buyer benefits for it, and the tax treatment changes, so get advice first. Your lender may also need to switch the loan to an owner-occupier loan.

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Many simple calculators use today's interest rate and your declared expenses. Lenders add a buffer of at least 3% to the rate, compare your expenses with a benchmark and count credit card limits in full, which all lower the figure.

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Usually, yes. Lenders count the full limit as if it were used, so closing a card or lowering the limit reduces the monthly commitment they assess. On a $10,000 limit it can make a difference of tens of thousands of dollars.

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Most likely. The cash rate has risen from 3.60% to 4.60% this year. When lenders pass rises on, the rate your loan is tested at goes up too, which lowers what the same income can support.

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Applying for credit is recorded on your credit report. One or two applications are normal, but lots of applications in a short time can make lenders cautious. That's one reason to choose the right lender before you apply.

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Usually, yes. Lenders review recent statements to confirm your income, savings and spending, and to check for things like overdrawn accounts or missed payments.

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Sometimes. Some lenders will consider it depending on the amount, how long ago it happened and whether it's been paid. Specialist lenders may help too, though rates can be higher. It's worth getting advice before you apply anywhere.

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Yes. Lenders assess the card limit, not the balance, as if it were fully used. Lowering limits or closing cards you don't need can increase what you can borrow.

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Each lender sets its own policy on income, expenses, debts and property, on top of APRA's basic rules. A decline from one lender doesn't mean every lender will say no, but it's worth finding out why before you apply again.

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Banks and other deposit-taking lenders must test at least 3 percentage points above the loan rate under APRA's rules, though they can make some exceptions, including for some refinances. Non-bank lenders set their own test, but must still lend responsibly.

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Most do, but usually not in full. APRA's guidance is a discount of at least 20% for less certain income like bonuses and overtime, and lenders differ on how much history they need. Recent payslips and an employer letter help.

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Usually, yes. Most lenders accept a rental appraisal from a real estate agent and count part of the expected rent, often around 80%.

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Yes. Lenders count your compulsory repayment, which comes out of your pay and reduces the income available for a home loan. Since July 2025 repayments only apply to income above the threshold ($69,528 in 2026–27), so the effect is smaller than it used to be.

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Mainly your repayments. The balance matters most if it's small enough to be paid off soon, because some lenders may then ignore the repayments altogether.

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No. APRA confirmed that from 30 September 2025, HELP debt is excluded from the debt-to-income measure banks report.

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Sometimes. It can increase your borrowing power, but it uses savings you might need for your deposit and costs, and HECS-HELP doesn't charge interest. Compare both options before you decide.

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Many lenders like to see two years of tax returns. Some will consider one year, and a few will look at a shorter trading history if you've worked in the same industry before. We'll match you with a lender whose rules fit where your business is at.

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Often, yes. Some lenders offer low-doc (alternative documentation) loans that use your BAS, business bank statements or a letter from your accountant to show your income. Lenders still have to check that the loan is affordable for you, so you'll need some evidence of income.

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They can be. Some come with a higher interest rate or fees, or need a larger deposit. Once your tax returns are lodged, it's often worth reviewing the loan to see whether you can move to a standard loan with a lower rate. We'll remind you when the time is right.

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It can. Lenders look at income from a sole trader, partnership, company or trust differently, and some will count profit kept in a company or trust that others ignore. We'll explain how your structure is likely to be assessed before you apply.

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Yes. Being self-employed doesn't rule you out of the First Home Guarantee, though you'll still need to meet the scheme's eligibility rules and the lender's own criteria. See our first home buyer guide for how it works.

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At least once a year, and whenever your fixed rate is ending, your circumstances change or interest rates move. Lenders often keep their sharpest rates for new customers, so a loan that hasn't been reviewed for a while can drift above what's available.

That's why we offer a free annual loan health check to our clients.

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Usually a few weeks from application to settlement. The biggest variable is how quickly your current lender processes the discharge. We handle the forms and keep both lenders moving for you.

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Yes, but if you leave before the fixed term ends you may have to pay a break fee, and it can be significant. Ask your lender for a break cost quote, or we can help you get one. We'll also check whether it's cheaper to wait until the fixed term ends.

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Each loan application adds an enquiry to your credit file, and lots of applications in a short time can count against you. That's one advantage of using a broker: we compare lenders first, then apply with the one that suits you.

Our Free Rate Check doesn't involve a credit check.

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Sometimes. A cashback can be outweighed by a higher interest rate within a year or two, so we compare the total cost over the time you're likely to keep the loan, not just the cash upfront.

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No one can say for sure. In September 2026 the RBA said it would increase the cash rate further if needed to bring inflation back to target. It's best to choose a loan your budget can handle whichever way rates move.

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A fee you may pay if you sell, refinance or pay off a fixed loan early. It's usually higher when rates have fallen since you fixed. Ask your lender how it's calculated before you commit.

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Often only up to a limit each year, and some fixed loans don't allow them at all. Variable loans usually allow unlimited extra repayments.

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Your loan usually rolls onto the lender's variable revert rate, which may not be the best rate available. Review your loan a couple of months before the fixed term ends, so you can compare options.

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It can be. Fixing part of your loan gives you some certainty, while the variable part keeps features like an offset account and extra repayments. Compare the total cost, as each part can have different rates and fees.

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As at October 2026, most offers are between $2,000 and $4,000, usually depending on the loan size. Most require a loan of at least $250,000 and a loan-to-value ratio of 80% or less.

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Usually 60 to 90 days after settlement, once your new loan is set up. Check the lender's terms, as some take longer.

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Yes. Many lenders claw back some or all of it if you refinance away within a set period, often 12 to 24 months. Some reduce the amount gradually over that time.

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Usually not, if you keep the loan for more than a couple of years. Even a small rate difference can outweigh a $3,000 cashback within two or three years. The best deal is a competitive rate with a cashback on top.

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If the loan is for an investment property, a cashback may affect the interest you can claim. Ask your accountant how it applies to you.

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Often, yes. Most lenders will let you borrow up to 80% of your home's value, less what you still owe, without lenders mortgage insurance. For example, if your home is worth $700,000 and you owe $400,000, 80% of the value is $560,000, which leaves up to $160,000 of usable equity. You still need to show you can afford the repayments on both loans.

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To avoid lenders mortgage insurance you'll usually need 20% of the price, plus money for stamp duty and other costs. You can borrow more than 80% with mortgage insurance, though some lenders set tighter limits for investors. Government schemes like the First Home Guarantee are only for homes you'll live in, so they don't apply to investment purchases.

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It depends on when you bought and what you buy. Investment properties held before 7:30pm AEST on 12 May 2026 keep the existing rules, and new builds can still be negatively geared. For established homes bought after that time, from 1 July 2027 rental losses can only be offset against income and gains from residential property, not your wages. Unused losses can be carried forward. Your accountant can tell you how this applies to you.

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It depends on your plans. Interest-only keeps repayments lower for a set period, but the rate is often higher and your repayments rise when that period ends. Principal and interest costs more each month but reduces what you owe. We'll show you the numbers for both, and your accountant can advise on the tax side.

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Yes. Lenders count the expected rent as income, usually based on a rental appraisal from a property manager or the current lease. Most only count part of it, to allow for vacancies and running costs, and how much varies between lenders. That's one reason the lender you choose can change how much you can borrow.

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Not for residential property, in most cases. Since 10 August 2026, self-managed super funds generally can't take out new loans to buy residential property. Existing loans can continue, and some commercial property is treated differently. Speak to your financial adviser or accountant before using your super to invest.

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To avoid lenders mortgage insurance you'll usually need 20% of the total cost of the land and the build, plus money for other costs. You can borrow more with mortgage insurance. Eligible first home buyers may be able to build with a 5% deposit under the First Home Guarantee. If you already own the land, the equity in it can count towards your deposit.

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Yes, but only on the money that's been paid to your builder so far. Repayments start small and grow as each stage is paid. Most construction loans are interest-only during the build, then switch to principal and interest once the home is finished.

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Variations and extras aren't automatically covered by your loan. The lender may need to approve an increase, and often the extra cost has to come from your own savings. That's why we recommend a fixed-price contract and a buffer for the unexpected.

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Yes. The First Home Guarantee can be used for land with a separate contract to build, or for a house and land package. Specific timeframes apply to signing contracts, so talk to us before you sign. Our first home buyer guide explains the other SA schemes too.

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Yes. You can take out a loan for the land first and a construction loan when you're ready to build. Some lenders set a time limit for starting the build, so let us know your plans early and we'll pick a lender that fits.

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Some lenders offer owner-builder loans, but there are fewer of them and they usually need a bigger deposit and detailed plans and quotes. You also can't take out building indemnity insurance as an owner builder. Talk to us before you commit so we can check what's possible.

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$26,830 for an established home under RevenueSA's general rates. An eligible first home buyer buying a new home, off-the-plan home or vacant land pays $0.

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Not on a new home, off-the-plan home, house and land package or vacant land, for contracts signed on or after 6 June 2024. There's no price cap. First home buyers do pay full stamp duty on an established home.

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Usually not. Most loans are based on the property price, so stamp duty comes from your savings. Some arrangements, such as a family guarantee, may allow a lender to cover buying costs too. It depends on the lender.

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Yes. Investors pay stamp duty at the general rates. First home buyer relief only applies to a home you'll live in.

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Of the suburbs with at least 60 house sales in the past year, Smithfield Plains had the lowest median in the June quarter 2026 at $650,000, followed by Davoren Park at $656,000. Both are in the City of Playford.

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In South Australia, first home buyers pay no stamp duty on a new home and may get a $15,000 grant. On an established home there's no relief, so stamp duty on a $750,000 house is about $35,000. A new home isn't always better value, so compare the full cost.

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The metro median rose from $865,000 in the June quarter 2025 to $975,000 in the June quarter 2026, according to the Valuer-General. Growth slowed in the June quarter 2026, and quarterly figures can swing, so look at the trend over several quarters.

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Yes, but your choice is limited. In the June quarter 2026, 12 of 373 metro suburbs had a median house price of $700,000 or less, nearly all in the City of Playford and the Town of Gawler. In more suburbs in the north and outer south, $700,000 can buy a below-median house.

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With the First Home Guarantee, $35,000 (5%) and no lenders mortgage insurance. Without it, you'd usually need $140,000 (20%) to avoid mortgage insurance. On an established home you'll also need $32,330 for stamp duty, plus legal and other costs.

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With a 5% deposit, a $665,000 loan at 6.5% over 30 years is about $4,203 a month in principal and interest. Lenders will check you could manage about $5,592 a month, at a rate 3% higher.

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$32,330 on an established home at South Australia's general rates. Eligible first home buyers pay no stamp duty on a new home or vacant land to build on.

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Yes, in Adelaide. The price cap is $900,000 in Adelaide and $500,000 in the rest of South Australia, so check which applies to where you're buying.

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In the year to the June quarter 2026, the typical northern suburb's median house price rose about 15%, similar to Adelaide overall. Growth across metro Adelaide slowed in the June quarter, when the metro median rose from $970,000 to $975,000.

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Over the year to June 2026, Paralowie had the most house sales in the north (251), followed by Munno Para West (232), Andrews Farm (221) and Parafield Gardens (219).

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Most suburbs in Playford and Gawler had a median house price under $900,000 in the June quarter 2026, as did about two-thirds of Salisbury's suburbs. In Tea Tree Gully, only five did. Our Adelaide suburbs for first home buyers article lists them.

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The lender bases your loan on the lower of the price and its valuation, so you'd need to cover the gap from your own money or renegotiate. Making your offer subject to finance gives you time to find out before you're locked in.

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In South Australia, eligible first home buyers pay no stamp duty on a new home and may get a $15,000 First Home Owner Grant. Loans to buy or build a new home are also exempt from APRA's limit on high debt-to-income lending.

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In most cases there's no cost to you. We're paid a commission by the lender when your loan settles. If a fee ever applies, we'll tell you in writing before we go ahead.

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We compare home loans from a panel of 40+ lenders, work out which ones suit your situation, and handle the application from the first chat to settlement. Instead of applying to banks one by one, you deal with one person who does the legwork for you.

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Michael Barton is an Authorised Credit Representative (CRN 497244) of LMG Pty Ltd, Australian Credit Licence 390222. Our credit guide has the full details.

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Our office is at Suite 35, 168 Melbourne Street, North Adelaide. We help clients across Adelaide and South Australia.

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Nothing formal. A rough idea of your income, savings and debts is plenty to get started. If you'd like to get ahead, our booking page has a short checklist.

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Often, yes. Every lender has its own rules, and a decline from one doesn't mean a no from all of them. We'll look at why it happened and which lenders are a better fit.

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Yes. There's no cost and no obligation. It's a chance to talk about your plans and for us to explain your options. In most cases our service is free for the whole loan, as we're paid by the lender when it settles.

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No. We can meet in person at our North Adelaide office, or by phone or video if that suits you better. Just let us know your preference when you book.

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Yes. We help clients across Adelaide and South Australia, and phone and video meetings make it easy wherever you are.

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We're sorry to hear something hasn't gone right. Please tell us so we can try to fix it. Our complaints page explains how to raise a complaint and what happens next.

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