Knowledge hub

Useful information about property and finance.

Government Schemes and Grants for first home buyers

There are numerous State and Federal Government schemes designed to make home ownership more achievable. These programs can help you buy or build your home sooner by reducing upfront costs, boosting your deposit, or providing financial assistance.

First Home Super Saver Scheme

The First Home Super Saver Scheme is an Australian Government initiative, administered by the Australian Taxation Office (ATO), designed to help first home buyers save for a deposit faster by using their superannuation.

5% Deposit Scheme

Imagine unlocking the door to your very own home sooner than you ever thought possible. With the Australian Government 5% Deposit Scheme you can make home ownership a reality faster.

Help to Buy Scheme

The Australian Government Help to Buy Scheme is now open for applications, giving eligible home buyers the chance to step into home ownership sooner.

First Home Owner Grant

The Victorian FHOG is a one-off payment of $10,000 designed to help first-time buyers purchase or build a new home valued up to $750,000. This grant is available for newly built homes, off-the-plan purchases, or substantially renovated properties that have never been lived in.

Buying a property? Here’s who can help

Purchasing a property often involves more than just finding the right home and arranging finance. Depending on your circumstances, you may benefit from the support of the following professionals throughout the buying process.

Conveyancer or solicitor

If you’re purchasing a property, you’ll generally require the assistance of a conveyancer or solicitor.

In many legal practices, a solicitor will have an in-house conveyancer who manages the day-to-day aspects of a property transaction. Solicitors typically become more involved if a complex legal issue arises or legal proceedings are required.

For most straightforward property purchases, which is generally the case, a conveyancer’s role is to assist with transferring ownership of the property from the vendor to the purchaser.

They prepare the documentation required for the transfer, liaise with the vendor, your lender, and other parties involved in the transaction, and coordinate settlement. They also notify the local council, water authority, and owners corporation (if applicable) of the change of ownership.

The main difference between engaging a conveyancer and a solicitor is often the cost. Solicitors generally charge higher fees due to their broader legal expertise and ability to provide legal representation if required.

If you’re unsure who to engage, feel free to contact us and we can recommend a trusted conveyancer.

Building and pest inspector

Purchasing a property is likely to be one of the largest financial commitments you’ll ever make. In our opinion, spending a little extra on a building and pest inspection before you buy can be money well spent. It could help identify costly issues and save you significant stress down the track.

One of the most common defects reported to us by clients relates to water ingress. Unfortunately, some issues can be concealed by cosmetic renovations such as fresh paint or new flooring, making them difficult to identify without a professional inspection.

A qualified building and pest inspector can help uncover potential problems before you commit to a purchase, giving you a clearer understanding of the property’s condition.

Most reputable inspectors will assess areas such as the foundations, roof cavity, and exterior of the property for signs of water damage, pest activity, structural concerns, and non-compliant building works. They typically use specialist equipment to detect moisture and dampness that may not be visible to the naked eye.

Some inspections are subject to accessibility. For example, roof cavities, subfloors, and foundations are often more accessible in freestanding homes than in apartments or townhouses, which may limit the scope of the inspection.

If you don’t know a reputable building and pest inspector, get in touch and we can recommend one.

Buyers advocate

A buyer’s advocate works exclusively for you, helping secure the right property at the best possible price while saving you time, reducing stress, and eliminating potential conflicts of interest.

Exclusive representation

Unlike traditional real estate agents who represent the seller and aim to achieve the highest sale price, a buyer’s advocate acts solely in the buyer’s best interests. They do not list properties or work for vendors, ensuring their advice, recommendations, and negotiations are fully aligned with your goals and financial objectives.

Time and stress savings

Searching for properties, attending inspections, and negotiating with agents can be both time-consuming and overwhelming. A buyer’s advocate simplifies the process by identifying suitable properties, organising inspections, assessing opportunities, and managing negotiations. This allows you to focus on making informed decisions without the burden of handling every detail yourself.

Market expertise and negotiation skills

Buyer’s advocates provide expert guidance on property values, market conditions, and long-term suitability. They are experienced negotiators who can help secure favourable prices and terms and may also provide access to off-market opportunities that are not publicly advertised. Their industry knowledge and relationships with selling agents can provide a valuable advantage in competitive markets.

Reducing risk

A buyer’s advocate can help minimise risk by conducting thorough due diligence and identifying potential issues before you commit to a purchase. They may assist with reviewing property information, assessing local market conditions, and ensuring you’re making an informed decision based on your circumstances and objectives.

Who can benefit?

Buyer’s advocates can be particularly valuable for first-home buyers, investors, busy professionals, interstate purchasers, and anyone who lacks the time, confidence, or local market knowledge to navigate the property market effectively. They can provide strategic guidance and support throughout the buying process.

In summary

A buyer’s advocate is a dedicated property professional who works exclusively for you. They provide independent advice, market expertise, and skilled negotiation support to help make the property-buying process smoother, less stressful, and potentially more cost-effective.

General home loan Q&A

Choosing the right home or investment loan

Selecting the right home loan or investment loan from the vast range of options in today’s market can feel overwhelming. With so many lenders, loan products, repayment types, and interest rate structures to consider, it’s easy to feel daunted by the process.

Beyond the loan itself, you may also need to factor in additional services such as credit cards, offset accounts, or access to a branch network.

Get it right, and life becomes easier. Get it wrong, and it could cost you thousands.

Common finance terms explained

P&I – Principal & Interest Payments
I/O – Interest Only Payments
LVR – Loan to Value Ratio
LMI – Lenders Mortgage Insurance

Understanding home loans

A home loan is a straightforward product: a credit provider lends you money over an agreed period, known as the loan term. For most home loans in Australia, the standard term is 30 years.

As the borrower, you agree to:

Repay the loan in instalments—weekly, fortnightly, or monthly.
Pay interest on the amount borrowed.

Loan Term and Repayments

The longer the loan term, the smaller your repayments, making the loan more affordable in the short term. However, keep in mind that a longer term means paying more interest overall.

How Interest Works

Interest is calculated daily on your outstanding loan balance. The more frequently you deposit money into your loan account or offset facility, the less interest you’ll pay—helping you reduce your debt faster.

Lenders mortgage insurance (LMI)

What is lenders mortgage insurance (LMI)?

Lenders are risk-averse, and one way they manage risk is by insuring loans against potential losses. This insurance is called Lenders Mortgage Insurance (LMI).

When your Loan-to-Value Ratio (LVR) exceeds 60%, most lenders take out an LMI policy at their own expense.
Once your LVR exceeds 80%, the cost of the LMI premium is passed on to you, the borrower.

Important: LMI protects the lender—not the borrower—even though you pay the premium. The higher your LVR, the higher the LMI cost.

How LMI Works

Unlike regular insurance, LMI is paid once for the life of the loan.
The premium is payable at settlement and usually capitalised onto your loan, meaning you’ll pay interest on it as well.
If you later borrow additional funds and your LVR remains above 80%, the lender will insure the new amount, and you’ll incur another LMI charge.

Key Takeaways

LMI is a one-off cost that can add thousands to your loan.
It does not protect you—it protects the lender.
Reducing your LVR below 80% can help you avoid paying LMI altogether.

Repayment options available

Home loan repayment types

When choosing a home loan, there are two main repayment options:

Option 1: Principal & Interest (P&I)

With P&I repayments, each instalment covers:

Principal – the amount reducing your loan balance.
Interest – the cost of borrowing money from the lender.

This option helps you pay down your debt over time and generally attracts a lower interest rate compared to Interest Only loans.

Option 2: Interest Only (I/O)

Interest Only repayments cover only the interest, meaning your loan balance (principal) does not reduce. This results in lower monthly repayments during the Interest Only period.

Most lenders offer an initial 5-year Interest Only term, after which repayments switch to P&I. When this happens, repayments increase because the remaining principal must be repaid over a shorter term (e.g., 25 years instead of 30).

Interest Only loans are often used by property investors or borrowers needing temporary relief on monthly commitments. However, lenders typically charge a higher interest rate for Interest Only loans, which can make them less cost-effective.

Important considerations

Interest Only loans can increase long-term costs.
Always consult your Accountant or Financial Adviser before choosing this option.
In most cases, paying down your debt sooner is advisable.

Home loan package

What is a home loan package?

Some lenders offer home loan packages that combine multiple features for one annual fee. These packages typically include:

A discounted interest rate
Access to an offset account
A debit card
The option of a credit card

For borrowers with larger loan amounts, the discounted interest rate can deliver significant savings.

Is a package right for you?

While these packages may seem attractive, they’re not always the most cost-effective option. Annual fees and potential higher interest rates on certain features can outweigh the benefits.

Before committing, it’s important to do the maths and compare the total cost over the life of the loan.

What is redraw

What is a redraw Facility?

One of the most common home loan features is redraw. A redraw facility allows you to access extra funds you’ve paid into your loan above the scheduled repayments. These additional payments create a surplus, known as redraw.

Not all loans offer a redraw facility, but those that do give you the flexibility to withdraw these surplus funds when needed.

What is loan to value ratio (LVR)

What is loan-to-value ratio (LVR)?

Loan-to-value ratio (LVR) is a key factor in the home loan assessment process. It represents the percentage of the property’s value that you’re borrowing.

Lenders require borrowers to have some financial stake in the property—they will not lend 100% of the purchase price.

Why LVR matters

The higher the LVR, the greater the risk for the lender.
Because lenders are risk-averse, they mitigate this risk by:
- Charging higher interest rates on high-LVR loans.
- Requiring Lenders Mortgage Insurance (LMI) when LVR exceeds 80%.

Reducing your LVR by saving a larger deposit can help you avoid LMI and secure a better interest rate.

What is an offset facility

What is an offset account?

An offset facility is a transaction account linked to your home or investment loan. The balance in this account offsets the amount you owe, reducing the interest charged each month.

How it works

Interest on your loan is calculated daily on the outstanding balance net of offset. The more money you keep in your offset account, the less interest you pay—allowing you to reduce your principal faster.

Features of an offset account

Works like a regular transaction account with ATM access, EFT, BPAY, and Direct Debit.
Helps you save thousands in interest and shorten your loan term.

Things to consider

Most lenders charge a fee for an offset account.
Some may apply a slightly higher interest rate on loans with offset facilities.
A cost-benefit analysis is essential to ensure this feature suits your financial goals.

Tip: Use our Home Loan Offset Calculator to see how much you could save.

Variable interest rate

Variable interest rate home loan

A variable interest rate means your rate—and therefore your repayments—will fluctuate based on market conditions.

Benefits of variable rate

Variable rate loans offer greater flexibility compared to fixed-rate loans. With a variable loan, you can:

Make extra repayments without penalty
Access redraw facilities
Link an offset account
Pay out the loan early without break costs

Things to consider

Budgeting can be harder because repayments change with interest rate movements.
Rates rise and fall with market forces, which can lead to mortgage stress if you’re over-extended.

Variable loans can be a great option for borrowers who value flexibility, but it’s important to assess your financial situation and risk tolerance.

Fixed interest rate

Fixed interest rate home loan

A fixed interest rate means your rate is locked in for an agreed period—typically 1, 2, 3, 4, or 5 years. During this time, your interest rate will not increase or decrease, giving you certainty in your monthly repayments and making financial planning easier.

At the end of the fixed term, your loan will revert to the lender’s standard variable rate unless you choose to refix or refinance.

Benefits of a fixed rate

Repayment certainty for easier budgeting
Confidence in setting financial goals

Disadvantages to consider

If interest rates drop, you won’t benefit from the reduction
Limited flexibility:
- Extra repayments are often restricted or capped (e.g., $1,000 per month or $10,000 per year)
- Redraw is usually unavailable during the fixed term
Break fees can apply if you:
- Sell your property
- Refinance to another lender
- Switch to a variable rate early

Break costs can range from $0 to tens of thousands, depending on factors like remaining term, market rates, and lender calculations.

Is a fixed rate right for you?

A fixed rate loan may not suit you if:

You plan to sell your home soon
You want flexibility for extra repayments
You prefer the freedom to switch lenders for a better deal

Why is affordability important

Understanding mortgage stress

Mortgage stress is never pleasant—and over the life of a home loan, interest rates will fluctuate while your personal circumstances may change significantly.

To protect yourself, it’s important to plan ahead.

Steps to reduce risk

Create a budget and prepare a risk strategy for life changes such as:
- Having children
- Loss of employment
- Interest rate rises

Ask yourself:

Do you have a plan if your circumstances change?
How would you manage your current and future loan repayments?
Do you know the interest rate level that would trigger financial stress for you?

Use tools like our Budget Planner and Loan Repayment Calculator to assess your situation.

Our advice

Take an in-depth look at your financial position before committing to a loan. Planning ahead can help you minimise the risk of mortgage stress and keep your home ownership journey on track.

What is a deposit bond

What are deposit bonds?

Deposit Bonds allow you to purchase a home or investment property without paying the deposit in cash up front. Instead, a deposit bond guarantee acts as a substitute for the cash deposit required when buying a residential property. You simply pay the full purchase price at settlement.

Deposit Bonds are available in short-term and long-term options to suit different settlement periods.

Short-term deposit bonds

Suitable for settlements up to 6 months
Issued subject to guidelines
Purchasers must provide evidence of sufficient funds to complete the purchase

Long-term deposit bonds

Suitable for settlements between 6 and 48 months
Typically, available to applicants who own existing property and can demonstrate the ability to complete the purchase

Cost of a deposit bond

The fee is usually around 1.2% of the 10% deposit required.

What is a bank guarantee

What is a bank guarantee?

A bank guarantee is a common form of deposit used when purchasing real estate where the land or plan of subdivision is not yet registered, or the dwelling is not yet built. It is most often used when buying property Off the Plan.

How does a bank guarantee work?

Normally, when purchasing property, you pay a 10% deposit into the real estate agent’s trust account. However, for Off the Plan purchases or unregistered land, a Bank Guarantee is often preferred.

Instead of handing over cash that sits in a trust account earning interest for someone else, you:

Deposit the funds into a secure savings account in your name, usually with a major bank.
Accrue interest on your money during the settlement period.
The title to the savings account is handed to the vendor’s solicitor as security.
At settlement, the funds are released to the vendor, and the title is returned to you.

Important: While the account is in your name, whoever holds the title controls the funds until settlement.