Frequently Asked Questions
Understanding how home loans work can raise a lot of questions — especially if you’re self-employed or navigating the process for the first time.
This page provides general information only to help explain common home loan concepts and terminology. It’s designed to support understanding and preparation, not to provide personalised credit advice.
Common Questions About the Home Loan Process
What grants may be available?
Government grants and concessions can vary by state, buyer type, and eligibility criteria. Availability and conditions change over time, so it’s important to check official government sources for the most up-to-date information.
How much deposit is typically required to purchase a property?
Deposit requirements can vary depending on the lender, property type, and individual circumstances. Understanding how deposits work can help you plan and prepare, but requirements differ across situations.
What fees should I be aware of when purchasing a property?
Buying a property can involve costs beyond the purchase price, such as stamp duty, legal fees, and government charges. These costs vary by location and transaction type.
What is stamp duty and how much does it cost?
Stamp duty is a government tax applied to property purchases. The amount payable depends on the property value, location, and buyer type. Each state and territory sets its own rules.
What does pre-approval mean?
Pre-approval generally refers to an initial assessment made by a lender based on provided information. It’s usually conditional and subject to further checks before a final decision is made.
Understanding Common Home Loan Terms
What is equity?
Equity is the difference between a property’s value and the amount owed on the loan secured against it.
What is a grant?
A grant is a form of financial assistance, usually provided by government bodies, that may be available to eligible buyers under specific conditions.
What is genuine savings?
Genuine savings generally refer to funds accumulated over time through regular saving. How savings are assessed can vary depending on policies and circumstances.
What is an offset account?
An offset account is a transaction account linked to a loan, where the balance may reduce the interest calculated on the loan. Features and benefits vary.
What is a redraw facility?
A redraw facility may allow access to extra repayments made on a loan, subject to the lender’s terms and conditions.
What is Lenders Mortgage Insurance (LMI)?
LMI is a type of insurance that may be required when a deposit is below a certain threshold. It protects the lender, not the borrower.
What is the difference between a fixed and variable interest rate?
A fixed rate remains the same for a set period, while a variable rate can change over time. Each has different features and considerations.