Question 1

How much can I borrow?

Accepted Answer

Your borrowing capacity depends on your income, existing debts, living expenses, dependants, loan term and the assessment rate each lender applies (often around 3% above the actual rate). The same application can produce very different limits across banks. We model your position across 70+ lenders so you see a realistic range before you fall in love with a property.

Question 2

Do I need a 20% deposit?

Accepted Answer

No. Many owner-occupiers buy with 5-10% genuine savings. Below 20% you usually pay Lenders Mortgage Insurance (LMI), unless you qualify for the Australian Government 5% Deposit Scheme or a professional waiver (doctors, lawyers, accountants and some other professions may access up to 95% with no LMI through selected lenders). We compare the true cost of a smaller deposit versus waiting to save more.

Question 3

What's the difference between pre-approval and full approval?

Accepted Answer

Pre-approval (or conditional approval) is a lender's in-principle yes based on your income, debts and credit history, before a specific property is chosen. Full approval follows once you have a contract, the lender values the property and all conditions are met. Pre-approvals typically last around 90 days; we track expiry so you are not caught out at exchange.

Question 4

How long does a home loan take to settle?

Accepted Answer

Existing-property purchases commonly settle in 30–45 days from contract, depending on finance and conveyancing clauses. Refinances often take three to five weeks end-to-end. Construction and complex purchases (trusts, SMSF, company borrowers) take longer. We give you a realistic timeline before you commit to dates in a contract.

Question 5

Fixed or variable: which is better?

Accepted Answer

Neither is universally better. Variable rates move with the market and usually offer offset, extra repayments and easier refinance. Fixed rates lock your repayment for a set term (often one to five years) but often limit extra repayments and may charge break costs if you sell or refinance early. Many clients split the loan: part fixed for certainty, part variable with offset for flexibility.

Question 6

Can my parents guarantee my loan instead of a cash deposit?

Accepted Answer

Yes. Family guarantee or guarantor structures let a parent use equity in their home to support your deposit or security, so you may avoid LMI while buying with a smaller contribution. The guarantor's liability is real and the structure must be documented properly. We explain the risks to everyone involved before proceeding.

Question 7

Principal & interest or interest-only?

Accepted Answer

Principal and interest (P&I) pays down the loan balance and is the default for most owner-occupiers. Interest-only (IO) keeps repayments lower and is common for investors managing cashflow and tax deductibility, but IO terms are limited (often five years, sometimes up to ten for investors) and lenders assess IO at higher repayments when testing future capacity. We model both against your goals.

Question 8

Can I make extra repayments?

Accepted Answer

On most variable loans yes, with no penalty. Fixed-rate loans usually allow capped extra repayments per year (often $10,000–$30,000 depending on the lender). An offset account is often the most flexible way to reduce interest while keeping cash accessible for renovations, emergencies or your next purchase.

Question 9

What is an offset account?

Accepted Answer

A transaction account linked to your home loan. The balance offsets the loan amount interest is calculated on: $50,000 in offset on a $500,000 loan means interest is charged on $450,000, while the cash stays available for day-to-day use. Multiple offsets can help separate personal and investment funds when structured correctly with your accountant. This is a general comparison only and is not tax advice. Speak with your accountant about your personal position.

Question 10

What is a loan split and should I use one?

Accepted Answer

A split divides one loan into portions, for example, part fixed and part variable, or part P&I and part IO. Splits let you balance rate certainty with flexibility and can help manage tax deductibility on investment debt. Not every lender splits cleanly; we set this up at application so you are not stuck restructuring later.

Question 11

What happens if interest rates go up?

Accepted Answer

Variable repayments rise when the cash rate or your bank's pricing moves. Fixed repayments stay the same until the fixed term ends, then usually revert to a higher variable rate unless you refinance. We stress-test your budget at higher rates during the application and revisit your structure in annual reviews.

Question 12

Which lenders do you work with?

Accepted Answer

70+ lenders including the major banks (CBA, Westpac, NAB, ANZ), regionals (Macquarie, ING, BOQ, Suncorp, Bankwest and others), and specialists for self-employed, low-doc, credit impairment and non-standard security (Pepper, La Trobe, Liberty, Resimac, Bluestone and more). We recommend based on fit, not who pays the highest commission. We operate under the Best Interests Duty.

Question 13

Will applying with you affect my credit score?

Accepted Answer

An initial conversation and indicative assessment does not lodge on your credit file. We only submit a formal credit application once you have chosen a lender and are ready to proceed, limiting unnecessary enquiries. Shopping multiple banks yourself can leave several footprints; we aim for one clean application to the right lender first time.

Question 14

Will using a broker cost me?

Accepted Answer

In many cases, our service is paid by the lender after settlement, and this is disclosed to you. We are required to act in your best interests and recommend options based on your needs, goals and circumstances, not simply who pays us. If a broker fee applies in a specific situation, we will explain it clearly before you proceed.

Question 15

Can I keep my everyday banking with a different bank to my home loan?

Accepted Answer

Yes. Your home loan can sit with one lender while your transaction account, cards and savings stay elsewhere. Package discounts sometimes require bundling; other times the best rate is with a lender you do not bank with day-to-day. We weigh total cost and convenience, not just headline rate.

Question 16

When would I use a specialist or non-bank lender?

Accepted Answer

When mainstream banks decline or price poorly for your scenario: recent self-employment, credit events, unusual income, low-doc, high LVR, or complex security. Specialist rates can be higher but unlock approval when the majors say no. We use them strategically, often as a bridge until you qualify for mainstream pricing again.

Question 17

Do I pay stamp duty as a first home buyer in QLD?

Accepted Answer

Eligible first home buyers in Queensland face different rules depending on the property. Queensland transfer duty concessions depend on whether you are buying an established home, a new home, or vacant land to build a new home. For established first homes, eligible buyers may pay no transfer duty up to $700,000, with a partial concession available for homes valued under $800,000. From 1 May 2025, eligible first home buyers purchasing a new home, a substantially renovated new home, or vacant land to build a new home may receive a full transfer duty concession that reduces transfer duty to nil, subject to eligibility rules. Estimate your duty on our QLD stamp duty calculator, then confirm with your conveyancer.

Question 18

What is the Australian Government 5% Deposit Scheme?

Accepted Answer

See our First Home Buyers section for full detail. In short: eligible first-home buyers may purchase with as little as 5% deposit and no LMI under the Australian Government 5% Deposit Scheme (formerly the Home Guarantee Scheme or First Home Guarantee). There are currently no income caps under this scheme. Regional property price caps apply. On the Gold Coast the cap is $1,000,000, and both purchase price and lender-assessed value must sit within the cap. Not every lender participates. We check eligibility, participation and timing when we structure your application.

Question 19

I'm buying an investment property: what's different?

Accepted Answer

No first-home stamp duty concessions apply. Lenders typically require a larger deposit or charge LMI at lower LVRs, shade rental income at 70–80%, and apply investor interest-rate buffers. Interest-only terms may be available but are assessed conservatively. See our investment property loans page for portfolio-specific FAQs.

Question 20

Are there grants for regional or new-build homes?

Accepted Answer

Federal and state programs change with each budget. Grants for regional buyers, new builds or off-the-plan purchases come and go. We track what is current when you apply and focus on schemes you genuinely qualify for, rather than chasing headlines. Eligibility always depends on contract dates, property type and buyer status.

Question 21

What documents will I need for a home loan?

Accepted Answer

PAYG employees: ID, two recent payslips, last financial year payment summary or year-to-date income statement, and three to six months of bank and savings statements. Self-employed: two years of personal and business tax returns plus notices of assessment, and business bank statements. Investment or trust purchases need entity documents. We send a tailored checklist after our first call.

Question 22

Do you handle the lender paperwork and follow-up?

Accepted Answer

Yes. You provide your information once; we package the application, lodge it, respond to lender queries, coordinate valuation and manage conditions through to settlement. Your conveyancer handles title transfer; we handle the finance side and keep you updated at each milestone.

Question 23

What is a valuation and what if it comes in low?

Accepted Answer

The lender orders an independent valuation to confirm the property is acceptable security at the contract price. If the valuation is below the purchase price, you may need to contribute more deposit, renegotiate with the vendor, or change lenders (valuations vary). We discuss valuation risk before you waive finance, especially in rising or thin markets.

Question 24

How far ahead should I gather documents?

Accepted Answer

Start as soon as you are seriously looking. Payslips and bank statements go stale quickly; lenders usually want the most recent 30–90 days. Self-employed and trust borrowers need longer lead time. A 15-minute call with us produces a checklist matched to your lender shortlist so you are not scrambling after you find a property.

Question 25

How much deposit do I actually need?

Accepted Answer

Some eligible first home buyers may be able to buy with a 5% deposit under the Australian Government 5% Deposit Scheme, without paying LMI. Eligible single parents or legal guardians may have access to a 2% deposit pathway under the same scheme. Deposit requirements, upfront costs, property caps, lender approval and scheme rules still apply. You will also need to budget for transfer duty where it applies, conveyancing and a cash buffer.

Question 26

What is the Australian Government 5% Deposit Scheme?

Accepted Answer

The Australian Government 5% Deposit Scheme, formerly known as the First Home Guarantee, lets eligible first-home buyers purchase with as little as 5% deposit without paying LMI. There are currently no income caps under this scheme, but buyers still need to meet the lender's borrowing, credit, savings and approval requirements. For the Gold Coast, the current property price cap is $1,000,000. Both the purchase price and the lender assessed property value need to be within the scheme cap. Eligibility and places are subject to scheme rules and lender participation.

Question 27

Do first home buyers pay stamp duty in Queensland?

Accepted Answer

Queensland transfer duty concessions depend on whether you are buying an established home, a new home, or vacant land to build a new home. For established first homes, eligible buyers may pay no transfer duty up to $700,000, with a partial concession available for homes valued under $800,000. From 1 May 2025, eligible first home buyers purchasing a new home, a substantially renovated new home, or vacant land to build a new home may receive a full transfer duty concession that reduces transfer duty to nil, subject to eligibility rules. Use our QLD stamp duty calculator for an estimate, then confirm with your conveyancer.

Question 28

What is the Queensland First Home Owner Grant?

Accepted Answer

Eligible Queensland first home buyers may qualify for the First Home Owner Grant when buying or building a new home. As at June 2026, the grant is $30,000 for eligible contracts signed between 20 November 2023 and 30 June 2026. The total value of the home, including land and contract variations, must be less than $750,000. This grant is time sensitive, so confirm the current rules before signing a contract.

Question 29

What is Help to Buy?

Accepted Answer

Help to Buy is a separate Australian Government shared equity scheme. It may help eligible buyers purchase with a minimum 2% deposit, with the Government contributing up to 30% for an existing home or up to 40% for a new home. Help to Buy has income caps, unlike the Australian Government 5% Deposit Scheme. The income caps are currently $100,000 for individual applicants and $160,000 for single parents or joint applicants. For the Gold Coast, the Help to Buy property price cap is currently $1,000,000. Confirm current availability, participating lenders and eligibility rules before relying on this scheme.

Question 30

What is Queensland Boost to Buy?

Accepted Answer

Queensland's Boost to Buy scheme is a shared equity scheme that may help eligible buyers purchase with a 2% deposit and a government equity contribution. The contribution can be up to 30% for new homes and up to 25% for existing homes, for eligible properties valued up to $1,000,000. Availability is limited and location dependent. As at June 2026, South East Queensland allocations may be exhausted, so Gold Coast buyers should check the current Queensland Treasury status before relying on this scheme.

Question 31

What is the First Home Super Saver (FHSS) scheme?

Accepted Answer

FHSS lets eligible first-home buyers make voluntary contributions into super, then withdraw those amounts (plus associated earnings) toward a home deposit, within ATO rules and caps. It can accelerate a deposit but affects your super balance and has strict timing and eligibility requirements. We often coordinate with your accountant or financial planner on FHSS alongside your loan strategy.

Question 32

Can I use gifted money for my deposit?

Accepted Answer

Most lenders accept genuine gift deposits from immediate family if the giver confirms in writing that the money is a gift, not a loan. Some lenders want the gift cleared in your account before application; others want the donor's ID and bank evidence. Non-family gifts or borrowed deposits are treated differently and can reduce lender choice.

Question 33

How long does the whole process take?

Accepted Answer

From first chat to pre-approval is typically one to two weeks once documents are in. From signed contract to settlement is usually 30–45 days, depending on your finance and conveyancing clauses. We map dates before you waive conditions so you are not caught short.

Question 34

Is it really worth refinancing right now?

Accepted Answer

Sometimes yes, sometimes no. The honest answer depends on your current rate, what you would actually be moving to, your loan size, break costs on fixed loans, and your plans for the next three to five years. We will tell you either way before you spend time on paperwork.

Question 35

When should I consider refinancing?

Accepted Answer

Common triggers: your fixed rate is expiring, your rate is no longer competitive, you want to release equity for renovation or investment, you need to consolidate debt, or your loan structure no longer fits. If you have not reviewed your loan in 12–18 months, it is worth a look. Loyalty rarely gets rewarded with the best rate.

Question 36

How much can I save by refinancing?

Accepted Answer

Savings depend on your current rate, loan size, fees and break costs. Even a 0.30% reduction on a $600,000 loan is roughly $1,800 per year in interest before tax. We compare the new rate, switching costs and break fees against the benefit. Use our refinance feasibility calculator for a starting point, then we verify against lender policy.

Question 37

Do I have to leave my current bank?

Accepted Answer

Not always. Sometimes the best play is a rate review with your existing lender. We do that work first before pushing a full switch. If another lender is clearly better, we manage the discharge and settlement timing so there is no payment gap.

Question 38

Can I refinance to release equity?

Accepted Answer

Yes, if you have sufficient equity and pass serviceability at the new loan amount. Equity release can fund renovations, a deposit on an investment property or other goals. The purpose of released funds matters for tax deductibility. Structure this with your accountant. We model LVR after release and whether your current lender is the best place to stay.

Question 39

How long does a refinance take?

Accepted Answer

Most straightforward refinances settle in three to six weeks from application. Some lenders are faster than others. We factor that in when we pick. Fixed-rate break-cost quotes, trust or company borrowers, and properties with title issues can take longer.

Question 40

How is an investment loan different from an owner-occupier loan?

Accepted Answer

Investment loans often have slightly higher rates, tighter LVR limits and more conservative serviceability tests. Rental income is included but usually shaded at 70–80%. Lenders may limit interest-only terms or count existing investment debt heavily against your next purchase. Structure on loan #1 affects whether loan #2 is possible. We plan the portfolio, not just one deal.

Question 41

How much deposit do I need for an investment property?

Accepted Answer

Most lenders want 10–20% of the purchase price, plus stamp duty, conveyancing and a cash buffer. At 20% deposit you typically avoid Lenders Mortgage Insurance (LMI). Some lenders will lend to 90% or even 95% LVR for investors with strong income and clean credit, but the rate and mortgage insurance cost need to be weighed against keeping cash free for your next purchase.

Question 42

Can I use equity from my home to buy an investment property?

Accepted Answer

Yes, if you have sufficient equity and serviceability. A top-up or separate loan against your home can fund the deposit and purchase costs on an investment property. Interest on funds used for investment purposes is generally tax-deductible. Your accountant should confirm. We separate deductible and non-deductible debt clearly at setup.

Question 43

Principal & interest or interest-only on an investment loan?

Accepted Answer

Interest-only (IO) keeps repayments lower and preserves deductible debt, common while you still have non-deductible debt on your home. Principal-and-interest (P&I) builds equity faster and often has a lower rate. IO terms are usually limited (often five years, sometimes ten). We plan what happens at rollover so you are not forced into a bad refinance.

Question 44

Why is my second investment loan harder than the first?

Accepted Answer

Your first loan was assessed largely on its own. The second is assessed against everything you already hold, and existing investment debt is often stress-tested at a rate far above what you pay. Lender sequencing, IO strategy and standalone security on loan #1 are portfolio decisions, not afterthoughts.

Question 45

Should I buy in a personal name, trust or company?

Accepted Answer

Personal name is simplest for lending: widest lender choice and often sharper rates. Family trusts and companies can suit asset protection and tax planning but come with narrower lender panels, sometimes higher rates, and lower LVR caps. We do not provide tax or legal advice; we work from your accountant's recommendation and place the loan with a lender that actually lends to that entity structure.

Question 46

Where can I read more investor FAQs?

Accepted Answer

Our investment property loans page includes in-depth FAQs on yields, trusts, SMSF, cross-collateralisation, serviceability and Gold Coast-specific lender quirks. Start at /services/investment or /investor, or book a strategy call for your scenario.

Question 47

How long do I need to be self-employed before I can borrow?

Accepted Answer

Some lenders want two years of tax returns. Others will lend with six months of trading if you have prior PAYG experience in the same field. ABN registration, GST registration and consistent bank deposits all matter. We match you to the right lender before lodging an application.

Question 48

Will I pay a higher interest rate as a self-employed borrower?

Accepted Answer

Not necessarily. Full-doc self-employed loans are usually the same pricing as any other borrower when your tax returns support the income. Low-doc and alt-doc can sit slightly higher. We show you both options and the path to full-doc pricing when your returns catch up.

Question 49

What income will lenders use from my business?

Accepted Answer

Lenders look at personal tax returns, business returns, notices of assessment, and sometimes add-backs for one-off expenses or depreciation. Trust distributions, company dividends and partnership income each have different rules. We package the story the way each lender wants to see it.

Question 50

Can I borrow if my most recent year was lower than the year before?

Accepted Answer

Often yes, but lender policy varies. Some average two years; others take the lower figure; some accept an accountant's letter if the dip was temporary. We position your application with a lender whose policy fits your trend line.

Question 51

What documents do self-employed borrowers need?

Accepted Answer

Typically two years of personal and business tax returns plus notices of assessment, business bank statements, and BAS or financials for recent trading. Company and trust borrowers need entity documents. We send a tailored checklist after our first call.

Question 52

What is a low-doc home loan?

Accepted Answer

Low-doc (or alt-doc) lending uses alternative income evidence when full tax returns do not yet tell the full story. That might be an accountant's letter, business activity statements, or bank-statement income verification. Done properly with the right lender, it is a clean path to approval rather than a last resort.

Question 53

Are low-doc rates much higher?

Accepted Answer

Sometimes, but not always. Some major and non-bank lenders may offer low-doc products close to full-doc pricing if you have ABN registration, GST registration and reasonable trading history, subject to current lender policy. We compare total cost across our panel, not just the headline rate.

Question 54

How much deposit do I need for low-doc?

Accepted Answer

Usually 20% plus costs to access the best rates. Some lenders will go to 90% LVR with low-doc, but pricing and LMI premium climb quickly above 80%. We model both paths so you see the real cost of a smaller deposit.

Question 55

Will I be locked into a low-doc loan forever?

Accepted Answer

No. Once you have lodged enough tax returns to meet full-doc rules, we can refinance you across to a sharper full-doc rate, often within 12–24 months. We plan that exit from day one.

Question 56

Who is low-doc suited to?

Accepted Answer

Self-employed borrowers with strong cashflow but incomplete tax history, recent business purchasers, and professionals transitioning from PAYG to contracting. It is not a workaround for weak serviceability. Lenders still stress-test your capacity to repay.

Question 57

What counts as a medical professional for these loans?

Accepted Answer

Each lender has a list. Typically doctors, dentists, vets and pharmacists commonly qualify with a wider group of selected lenders. Optometrists, physios and other allied health professionals qualify with a smaller group of lenders. Eligibility is subject to lender policy, profession, income, credit position, loan purpose and property type. We check exactly where you sit before recommending a lender.

Question 58

Do I need to be a specialist?

Accepted Answer

No. Many lenders extend professional packages to registrars and even some trainees, as long as registration and employment are in order. The benefit is often higher LVR without LMI and sharper pricing.

Question 59

How much can I borrow on a medico package?

Accepted Answer

Often up to $4.5m without LMI through certain lenders, and even more under specialist policies. Borrowing capacity still depends on income, debts and dependants. We model it precisely across lenders that recognise your profession.

Question 60

Can I buy an investment property on a medico loan?

Accepted Answer

Yes. Professional packages apply to owner-occupier and investment purchases, subject to lender policy. IO and P&I structures are available. We separate investment and owner-occupier debt correctly for tax purposes with your accountant.

Question 61

Do medico loans cost more than standard home loans?

Accepted Answer

Usually the opposite: professional packages often include LMI waivers at higher LVRs and discounted rates. The trade-off is lender choice is narrower. We compare the total package, not just the rate on one bank's website.

Question 62

Can I use my SMSF to buy a property I'll live in?

Accepted Answer

No. SMSF property must be purely for investment, cannot be lived in or rented by a member or related party (residential), and must meet the sole purpose test. Breaching these rules has serious tax consequences. Level Up Loans provides credit assistance only. We do not provide SMSF investment strategy, financial product advice, tax advice or legal advice. Before purchasing property through an SMSF, speak with your accountant, licensed financial adviser and solicitor.

Question 63

How much deposit does an SMSF loan need?

Accepted Answer

Typically 20–30% of the purchase price plus costs, depending on the lender and whether it is residential or commercial. Lenders also require a liquidity buffer in the fund after settlement so the fund is not stretched.

Question 64

Do I need a financial planner for SMSF property?

Accepted Answer

Yes. SMSF property is a significant decision. You should obtain advice from a licensed financial adviser, accountant and solicitor before proceeding. We arrange SMSF lending only. Level Up Loans provides credit assistance only. We do not provide SMSF investment strategy, financial product advice, tax advice or legal advice.

Straight answers to the questions we hear most.

Home Loans: frequently asked

Five minutes with a real broker beats an hour on Google.