A variable rate home loan has an interest rate that can change over time based on market conditions and lender decisions. This means your repayments can go up or down. A fixed rate home loan locks in your interest rate for a set period (typically 1-5 years), giving you certainty over your repayments during that time. After the fixed period ends, the loan typically reverts to a variable rate.

LVR (Loan to Value Ratio) is the percentage of the property value you're borrowing. For example, if you're buying a $500,000 property with a $50,000 deposit, you're borrowing $450,000, which is a 90% LVR. Generally, the lower your LVR, the better interest rates you can access. If your LVR is above 80%, you'll typically need to pay Lenders Mortgage Insurance (LMI).

LMI is insurance that protects the lender if you default on your loan. It's typically required when you borrow more than 80% of the property value (LVR above 80%). The cost varies based on your loan amount and LVR, and can range from a few thousand to tens of thousands of dollars. LMI can be paid upfront or added to your loan amount.

An offset account is a transaction account linked to your home loan. The balance in your offset account is "offset" against your loan balance when calculating interest. For example, if you have a $400,000 loan and $20,000 in your offset account, you only pay interest on $380,000. This can save you thousands in interest and help you pay off your loan faster.

A comparison rate includes the interest rate plus most fees and charges relating to a loan, reduced to a single percentage figure. It helps you compare the true cost of different loan products. However, comparison rates are based on a standard loan amount ($150,000) and term (25 years), so your actual rate may differ based on your circumstances.

Traditionally, a 20% deposit is ideal as it helps you avoid LMI and access better interest rates. However, many lenders offer loans with deposits as low as 5-10%. First home buyers may be eligible for government schemes that allow even lower deposits. The right deposit amount depends on your financial situation and goals.

Principal & Interest (P&I) repayments include both the loan principal (the amount borrowed) and the interest charged. This gradually reduces your loan balance over time. Interest Only repayments only cover the interest charges, so your loan balance stays the same. Interest Only loans typically have a period of 1-5 years before reverting to P&I, and are often used by investors for tax benefits.

Most variable rate loans allow unlimited extra repayments without penalty. Fixed rate loans may have restrictions, typically allowing extra repayments up to a certain amount per year (e.g., $10,000-$30,000) before break fees apply. Extra repayments can significantly reduce your loan term and interest paid over the life of the loan.

Refinancing means switching your home loan to a different lender or loan product, usually to get a better interest rate, access better features, or consolidate debts. You should consider refinancing if: your current rate is significantly higher than market rates, your financial situation has improved, you want to access equity, or you need different loan features. We can help you determine if refinancing makes sense for your situation.

Pre-approval can typically be obtained within 24-48 hours with the right documentation. Full approval (conditional approval) usually takes 3-7 business days, depending on the lender and complexity of your application. Final (unconditional) approval after property valuation can take another 3-5 business days. Working with a broker can help speed up the process by ensuring your application is complete and submitted to the right lender.

Typical documents include: proof of identity (driver's license, passport), proof of income (payslips, tax returns, financial statements for self-employed), bank statements (3-6 months), details of assets and liabilities, and proof of savings/deposit. The exact requirements vary by lender and your employment type. We'll provide you with a complete checklist tailored to your situation.

Yes! Self-employed borrowers can access home loans, though the documentation requirements are typically more extensive. You'll generally need 2 years of tax returns and financial statements. Some lenders offer Low Doc loans for self-employed borrowers with simplified documentation requirements. As a broker, we have access to lenders who specialize in self-employed lending.

A construction loan is a specialist home loan designed for building a new home rather than buying an existing one. The key difference is how funds are released: a standard home loan pays out the full amount at settlement, while a construction loan releases funds progressively in stages as your build is completed — typically slab, frame, lock-up, fit-out, and completion. During construction you only pay interest on the funds drawn down (not the full loan amount), which keeps repayments lower while you're building. Once construction is complete, the loan converts to a standard principal & interest home loan. Construction loans also require a fixed-price building contract from a licensed builder, and the lender values the property on its completed value rather than the current land value. First home buyers building a new home may also be eligible for the First Home Owner Grant (up to $30,000 in QLD) — which applies to new builds only, not established homes.