Stanford Financial, Author at Stanford Financial

Key Highlights

Queensland first home buyers purchasing a new home can access a $30,000 First Home Owner Grant for contracts signed before 30 June 2026. After that date the grant reverts to $15,000
From 1 May 2025, first home buyers in Queensland pay zero stamp duty on new homes and vacant land with no price cap. On established homes, full concessions apply under $700,000 and partial concessions up to $800,000
The federal First Home Guarantee allows eligible buyers to purchase with a 5% deposit and no Lenders Mortgage Insurance, with property price caps of $1,000,000 in South East Queensland and $700,000 in regional QLD
The Boost to Buy shared equity scheme offers the Queensland Government contributing up to 30% of a new home purchase price or 25% for an existing home, with buyers needing only a 2% deposit on properties up to $1,000,000
Income caps for Boost to Buy are among the most generous in Australia: singles up to $150,000 per year and couples or singles with dependants up to $225,000 per year
Multiple schemes can be stacked. A first home buyer purchasing a new home in Queensland can potentially combine the FHOG, stamp duty exemption, and First Home Guarantee, resulting in tens of thousands of dollars in savings and a dramatically lower entry deposit
Common eligibility traps include having previously owned residential property in Australia in any capacity, receiving a prior FHOG in any state, and owning investment property even if you never lived in it
A mortgage broker can confirm your eligibility across all schemes simultaneously, identify any traps specific to your circumstances, and coordinate the application process with your lender and conveyancer

Queensland has one of the most generous first home buyer assistance landscapes in Australia. The combination of a $30,000 state grant, zero stamp duty on new homes, a federal deposit guarantee scheme, and a new shared equity program means the total assistance available to an eligible first home buyer right now can run to well over $100,000 in equivalent value depending on what you are buying and where.

The challenge is that each scheme has different eligibility requirements, property type restrictions, income caps, and application processes. Not every buyer qualifies for every scheme, and applying for one can affect eligibility for another if the process is not managed correctly.

This guide covers every scheme available to Queensland first home buyers as at March 2026, what you actually need to qualify, and how to stack the schemes that apply to your situation.

Stanford Financial specialises in helping first home buyers navigate QLD’s scheme landscape. We confirm your eligibility, identify which schemes you can stack, and coordinate the application with your lender and conveyancer.

Book a free assessment

All Available Schemes at a Glance

Scheme	Maximum Benefit	Min Deposit	Key Condition
QLD First Home Owner Grant	$30,000 cash (to June 2026)	N/A	New homes only, under $750,000
Stamp Duty Exemption (new)	Full exemption (no cap)	N/A	New homes and vacant land from May 2025
Stamp Duty Concession (established)	Up to $17,350	N/A	Established homes under $800,000
First Home Guarantee	No LMI on 5% deposit	5%	New or established, price caps apply
Regional First Home Buyer Guarantee	No LMI on 5% deposit	5%	Outside major cities only
Family Home Guarantee	No LMI on 2% deposit	2%	Eligible single parents only
Boost to Buy (QLD)	Up to 30% govt equity contribution	2%	Income caps, properties up to $1M

The Queensland First Home Owner Grant (FHOG)

The Queensland First Home Owner Grant is a cash payment from the Queensland Government to eligible first home buyers. As at March 2026, the grant is $30,000 for contracts signed before 30 June 2026. After that date it reverts to $15,000. The grant is paid at settlement by your lender on your behalf through the Queensland Revenue Office.

Who qualifies for the FHOG?

To be eligible for the Queensland FHOG, all of the following must apply:

At least one applicant must be an Australian citizen or permanent resident
At least one applicant must be aged 18 or over
Neither you nor your spouse or de facto partner has previously owned residential property in Australia that you lived in
Neither you nor your spouse or de facto partner has previously received a First Home Owner Grant in any Australian state or territory
The property must be a new home that has never been previously occupied or sold as a place of residence
The total value of the property (including land and contract variations) must be under $750,000
You must move in within 12 months of settlement or construction completion and live there as your principal place of residence for at least 6 continuous months

New homes only

The FHOG applies exclusively to new homes. This includes:

House and land packages where the land is purchased and the home is built by a registered builder
Off-the-plan apartment or unit purchases where the contract is signed before completion
Owner-built homes
Homes that have been substantially renovated and are being sold as new

Established properties, that is homes that have previously been occupied or sold as a residence, do not qualify for the FHOG. First home buyers purchasing established homes can still access stamp duty concessions, but not the grant itself.

The grant is not paid upfront as a deposit. It is paid at settlement, which means you still need genuine savings available on the day of contract. Some lenders will take the incoming grant into account when assessing your overall position, but they cannot use it as your actual deposit.

Stamp Duty Concessions for First Home Buyers

Queensland significantly improved its stamp duty concessions for first home buyers from 1 May 2025. The changes depend on whether you are buying a new or established home.

New homes and vacant land

First home buyers purchasing a new home or vacant land in Queensland pay zero stamp duty as of 1 May 2025. There is no property price cap on this exemption. Whether you are buying a $400,000 townhouse or a $900,000 new build, the stamp duty bill is nil.

This is a significant change from the previous concession structure, which had both a price cap and a sliding scale. The full exemption with no cap is one of the most generous stamp duty policies for new home buyers in Australia.

Established homes

For first home buyers purchasing established residential properties:

Properties under $700,000: full stamp duty concession applies. The saving is approximately $17,350 compared to a standard purchaser at that price point
Properties between $700,000 and $800,000: a partial concession applies on a sliding scale. You pay some stamp duty but less than the standard rate
Properties $800,000 and above: no concession applies and standard stamp duty rates are payable

Use our Queensland stamp duty calculator to see exactly how much you will pay (or save) at any purchase price.

The First Home Guarantee

The First Home Guarantee is a federal government scheme administered by Housing Australia. It allows eligible first home buyers to purchase with a 5% deposit without paying Lenders Mortgage Insurance. The government guarantees the remaining 15% of the standard 20% threshold, meaning the lender treats the loan as if an 80% LVR deposit was provided.

Use our First Home Guarantee price cap calculator to check whether your target suburb qualifies before you sign a contract.

The scheme was significantly expanded from 1 October 2025:

No income caps: the previous thresholds of $125,000 for individuals and $200,000 for couples were removed entirely
No cap on places: the scheme now has unlimited places rather than the previous annual allocation
New and established homes are both eligible

Property price caps in Queensland

Brisbane, Gold Coast, and Sunshine Coast: up to $1,000,000
Rest of Queensland: up to $700,000

How LMI savings add up

LMI on a $700,000 purchase with a 5% deposit would typically cost between $20,000 and $28,000 depending on the lender. The First Home Guarantee eliminates this cost entirely for eligible buyers. On a $1,000,000 purchase in Brisbane, the LMI saving can exceed $40,000.

Use our LMI calculator to see your exact LMI saving at any purchase price and deposit size.

The First Home Guarantee must be applied for through an approved lender. Not all lenders are approved and your broker will know which ones are participating. You cannot apply directly through Housing Australia.

The Regional First Home Buyer Guarantee

The Regional First Home Buyer Guarantee operates on the same terms as the First Home Guarantee (5% deposit, no LMI) but is specifically for buyers purchasing outside major cities. In Queensland, this means areas outside Brisbane, the Gold Coast, and the Sunshine Coast.

The property price cap for the Regional Guarantee in Queensland is $700,000. The same removal of income caps and unlimited places that applies to the standard First Home Guarantee also applies here.

For buyers in Ipswich, Springfield, Toowoomba, Cairns, Townsville, and other regional Queensland centres, this scheme can be combined with the FHOG and stamp duty exemption to create a compelling entry into the market.

The Family Home Guarantee

The Family Home Guarantee is designed specifically for eligible single parents or single legal guardians of at least one dependent child. It allows purchase with as little as a 2% deposit, with the government guaranteeing up to 18% of the standard 20% threshold. No LMI is payable.

Eligibility requires:

You are a single parent or single legal guardian of at least one dependent
You do not currently own property (you can be a previous owner and still qualify under certain conditions unlike the standard First Home Guarantee)
The property is purchased as your principal place of residence

The Family Home Guarantee is not limited to first home buyers. Previous homeowners who no longer own property may also qualify, which makes it particularly useful for people who owned property during a relationship and are now purchasing independently after separation.

Property price caps are the same as the First Home Guarantee: $1,000,000 in Brisbane, Gold Coast, and Sunshine Coast, and $700,000 in the rest of Queensland.

The Boost to Buy Scheme (QLD)

Boost to Buy is a Queensland Government shared equity scheme launched in December 2025. It is designed to help first home buyers who have a small deposit but sufficient income to service a home loan bridge the gap between what they can borrow and the price of a home.

How it works

The Queensland Government contributes equity to your home purchase in exchange for an ongoing equity stake in the property:

New homes: government contributes up to 30% of the purchase price
Existing homes: government contributes up to 25% of the purchase price
You need a minimum 2% deposit on properties up to $1,000,000

The government does not charge interest on its equity contribution. When you sell the property or pay off your loan, you repay the government’s share based on the current value of the property at that time, not the original purchase price. This means if the property increases in value, you repay more. If it decreases, you repay less.

Eligibility

Must be a first home buyer purchasing in Queensland
Single purchasers: income up to $150,000 per year
Couples or singles with dependants: income up to $225,000 per year
Property value must not exceed $1,000,000
Must occupy the property as your principal place of residence
Applications are processed through approved lenders on a first come first served basis

Important considerations

Boost to Buy is a shared equity scheme, which means the government has a financial stake in your home for as long as you participate. If your income grows significantly above the threshold for two consecutive years, you may be required to repay part of the government’s equity. If you sell, the government receives its proportional share of the sale proceeds based on current market value. Seek independent financial advice before applying.

As of March 2026, the initial South East Queensland allocation of 500 places has been exhausted. A limited number of regional Queensland places remain available through Unity Bank. Additional places for both South East Queensland and regional Queensland are scheduled for release in early 2026. The scheme is administered through approved lenders only and cannot be applied for directly through the Queensland Government.

How to Stack Multiple Schemes

The most powerful outcome for eligible Queensland first home buyers comes from combining multiple schemes simultaneously. Here is a worked example showing what is achievable for a buyer purchasing a new home in South East Queensland in 2025 to 2026.

Scenario: First home buyer purchasing a new house and land package for $700,000 in Springfield Central

Item	Without schemes	With schemes stacked
Purchase price	$700,000	$700,000
Standard 20% deposit required	$140,000	N/A
Deposit required with First Home Guarantee	N/A	$35,000 (5%)
Stamp duty payable	$21,850	$0 (new home exemption from May 2025)
LMI payable	$21,000 to $28,000	$0 (waived via First Home Guarantee)
Queensland First Home Owner Grant	N/A	-$30,000 (applied at settlement)
Net cash required above 5% deposit	$42,850 to $49,850	~$5,000 to $8,000 (purchase costs only)

In this scenario, the buyer enters a $700,000 property with approximately $40,000 to $50,000 less upfront cash than they would need without any schemes. The $30,000 grant offsets most of the 5% deposit, meaning the true out of pocket cash needed is essentially the conveyancing, inspection, and loan establishment costs.

Note: The FHOG is paid at settlement, not upfront. You still need genuine savings of at least the 5% deposit ($35,000 in this example) available at the time of purchase. The grant reduces your loan balance at settlement rather than replacing your deposit. Speak to a Stanford Financial broker about how to sequence your funds correctly.

How to Apply

First Home Owner Grant

The FHOG is applied for through your approved lender rather than directly through the Queensland Revenue Office in most cases. Your lender or broker will lodge the application on your behalf as part of the settlement process. Your conveyancer will also be involved in coordinating the payment. You do not need to contact QRO directly unless your application is not being processed through an approved lender.

Stamp duty concessions

Stamp duty exemptions and concessions for first home buyers in Queensland are applied automatically during the transfer duty assessment at settlement. Your conveyancer handles this as part of the settlement process. You declare your eligibility in the transfer duty return, which your conveyancer prepares.

First Home Guarantee and related federal schemes

Federal guarantee schemes must be applied for through an approved lender. Your broker can identify which approved lenders are participating, submit your application, and confirm your allocation before you sign a contract. You cannot apply directly through Housing Australia as a buyer.

Boost to Buy

Boost to Buy applications are lodged through Unity Bank, which is currently the only approved lender for the scheme. If you are eligible, Unity Bank submits the Boost to Buy application on your behalf as part of the home loan application process. Check Unity Bank’s website for current availability, as places are released in batches.

Common Eligibility Traps

These are the scenarios that most commonly cause first home buyers to discover they are ineligible for one or more schemes after they assumed they qualified.

Previously owned investment property

For the Queensland FHOG, having previously owned an investment property that you never lived in does not automatically disqualify you from the grant. The critical test is whether you owned a property that you or your spouse occupied as a residence. If you owned a rental property but never lived in it, you may still qualify for the FHOG.

However, for the federal First Home Guarantee, the rules are stricter. You must never have previously owned or had an interest in property that was your principal place of residence in Australia. Previous investment property ownership that you did not occupy is not a disqualifier for the guarantee.

If you or your partner have any previous property ownership history in any capacity, seek advice before signing a contract. The eligibility rules differ between the state FHOG and the federal guarantee schemes, and getting them wrong can result in grant repayments and penalties.

Receiving a previous FHOG in another state

If you have previously received a First Home Owner Grant in any Australian state or territory under any version of the scheme, you are not eligible to receive it again in Queensland. This applies even if the property you received it for was in a different state.

Inherited property

If you have received an inheritance that included a residential property, your eligibility for the FHOG depends on whether you became a registered proprietor of that property. Receiving a beneficial interest through a deceased estate without being registered on title may not disqualify you, but this area is complex and requires legal advice specific to your situation.

Relationship breakdown and property division

If you previously owned property jointly with a former partner and the property was transferred to your partner as part of a property settlement, you may still be eligible for certain schemes. The Family Home Guarantee in particular has specific provisions for previous homeowners who no longer own property. This is worth exploring if your circumstances include a separation.

Residency requirement for the FHOG

You must move into the property within 12 months of settlement or construction completion and live there as your principal place of residence for at least 6 continuous months. If you purchase a new home intending to rent it out initially and move in later, you may not meet this requirement and could be required to repay the grant.

Frequently Asked Questions

Can I get the $30,000 FHOG if I buy an established home?

No. The Queensland First Home Owner Grant applies only to new homes that have never been occupied or sold as a place of residence. If you are buying an established property, you can still access stamp duty concessions on properties under $800,000 and may qualify for the First Home Guarantee, but the $30,000 cash grant is not available.

Can I use the First Home Guarantee and the FHOG together?

Yes. The First Home Guarantee and the Queensland FHOG can be used together on a new home purchase that meets both sets of eligibility criteria. The guarantee removes the LMI requirement on your 5% deposit loan, while the FHOG provides a cash payment at settlement that reduces your loan balance. Both can also be combined with the stamp duty exemption on new homes.

Can I stack Boost to Buy with the First Home Guarantee?

No. Boost to Buy and the First Home Guarantee are separate deposit assistance mechanisms that address the same part of the transaction and cannot be used simultaneously. You choose one or the other. Boost to Buy is generally the stronger option if you have very limited savings, given the government contributes up to 30% of the purchase price. The First Home Guarantee is simpler and leaves you with 100% ownership of your property from day one.

Does the FHOG count as my deposit?

No. The FHOG is paid at settlement, after you have already provided your deposit at contract exchange. It reduces your loan balance at settlement rather than serving as the deposit itself. You need genuine savings of at least your lender’s minimum deposit available when you sign the contract. Some lenders will factor the incoming grant into their assessment of your overall financial position, but it cannot replace the actual deposit funds.

What happens to my Boost to Buy equity if my property value increases?

When you sell your property or pay off your loan, you repay the Queensland Government’s equity share based on the current market value of the property at that time, not the original purchase price. If the property has increased in value, the government’s share is worth more and you repay more. If the property has decreased in value, you repay less. You can also buy back the government’s equity at any time by increasing your loan, subject to lender approval and your income not exceeding the threshold triggers.

Speak to a Stanford Financial Broker to Confirm Your Eligibility

The Queensland first home buyer assistance landscape has never been more generous, but navigating it correctly requires more than a quick online check. Eligibility rules differ between schemes, application processes vary, timing matters, and combining the wrong schemes can actually reduce your overall benefit.

Stanford Financial specialises in first home buyer lending across Queensland. Our brokers confirm your eligibility across all available schemes simultaneously, identify which combinations apply to your situation, and coordinate the application process with your lender and conveyancer so nothing falls through the cracks.

Free, no-obligation assessment with no impact on your credit file until you proceed
Access to over 50 lenders including all First Home Guarantee and Boost to Buy approved participants
Offices in Springfield Central, servicing Brisbane, Ipswich, the Gold Coast, and Australia wide

Call 0483 980 002 or book your free assessment online. We typically respond within one business day.

Reviewed and Verified

All content published on this website has been reviewed and verified by Steven Beach, Lending Director at Stanford Financial. With over 20 years of experience in finance and lending, Steve ensures that every article, guide, and resource accurately reflects current lending practices, lender policies, and the real-world outcomes he sees working with Australian borrowers every day. His hands-on experience across home loans, investment lending, and specialist finance means the information you read here is grounded in genuine industry expertise – not just theory.

Key Highlights

A mortgage broker compares home loans across 50 or more lenders simultaneously. A bank can only show you its own products
Since 2021, mortgage brokers in Australia have been legally required to act in your best interests under the Best Interests Duty. This is a binding legal obligation, not a marketing claim
For most borrowers, using a mortgage broker costs nothing. The broker is paid a commission by the lender at settlement
Brokers handle the research, paperwork, lender negotiation, and application management. You submit documents once, not multiple times to multiple banks
Brokers are particularly valuable in non-standard situations: self-employed income, bad credit history, low deposit, defence lending, or complex investment structures
Going direct to your bank can make sense if you have a strong existing relationship, a simple application, and have already verified their rate is competitive
An annual rate review from your broker keeps your loan competitive over time, not just at the point of settlement
Stanford Financial has settled over $500 million in loans across 50 plus lenders and holds national MFAA awards for diversified brokerage and newcomer of the year

Every year, hundreds of thousands of Australians face the same question when taking out a home loan: do I go directly to my bank, or do I use a mortgage broker?

For most of Australian banking history, the default answer was the bank. You had a relationship with them, you knew their branch, and the process felt straightforward. But the lending landscape has changed significantly over the past decade. There are now hundreds of home loan products across dozens of lenders, government schemes have become more complex, and a legal framework requiring brokers to act in your best interests has fundamentally changed the value proposition.

This guide sets out the genuine differences between the two approaches so you can make an informed decision, not a default one.

Stanford Financial has access to over 50 lenders and has settled more than $500 million in home loans. Book a free, no-obligation assessment

What Does a Mortgage Broker Actually Do?

A mortgage broker is a licensed credit professional who acts as an intermediary between you and lenders. Rather than representing a single bank, a broker works across a panel of lenders and is required to recommend the product that best suits your individual circumstances.

In practical terms, a broker:

Assesses your financial position: income, expenses, debts, deposit, credit history, and employment structure
Identifies which lenders are most likely to approve your application at the best available rate
Compares loan products across their full lender panel, including rates, fees, features, and serviceability criteria
Prepares and submits the application on your behalf, managing the documentation process
Liaises with the lender throughout assessment and coordinates settlement
Provides ongoing support after settlement, including annual rate reviews and future lending needs

Brokers are licensed under the National Consumer Credit Protection Act, are required to hold Australian Credit Licences (or be authorised representatives of ACL holders), and must comply with the responsible lending obligations that apply to all credit providers.

Access to 50 Plus Lenders vs One Bank’s Product Shelf

This is the most straightforward argument for using a broker and it is worth stating plainly: when you walk into a bank branch, you will be shown that bank’s products. The loan officer is an employee of the bank. Their job is to convert you into a customer of that bank, using that bank’s rates and products.

A mortgage broker with a panel of 50 or more lenders can compare:

The major banks (CBA, Westpac, ANZ, NAB)
Challenger banks and customer-owned institutions (ING, Macquarie, Bank of Queensland, Heritage)
Specialist lenders for non-standard situations (Pepper Money, La Trobe Financial, Liberty Financial)
Defence-specific lenders (Defence Bank, Australian Military Bank)
Boutique lenders with niche product strengths not available through retail branches

The rate difference between the most and least competitive lenders on a given application can be significant. On a $600,000 loan with 25 years remaining, a 0.5% rate difference equates to approximately $160,000 in total interest over the life of the loan. The broker’s job is to find the best available position for your specific profile, not the best available product for an average customer.

Use our refinance savings calculator to see exactly what a rate difference means in dollars for your loan balance.

Best Interests Duty: Why Brokers Are Legally Required to Act in Your Favour

Since 1 January 2021, mortgage brokers in Australia have been subject to the Best Interests Duty under the National Consumer Credit Protection Act. This is not a code of conduct or an industry aspiration. It is a binding legal obligation.

Under Best Interests Duty, a broker must:

Act in the best interests of the consumer when providing credit assistance
Prioritise the interests of the consumer when there is a conflict of interest between the consumer’s interests and the broker’s own interests
Not recommend a product that is not in the consumer’s best interests, even if it pays a higher commission

This obligation was introduced following the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, which identified cases of poor consumer outcomes in the mortgage industry. The Best Interests Duty was specifically designed to address them.

Bank employees do not operate under the same Best Interests Duty. They have an obligation to act responsibly in providing credit, but they do not have a legal obligation to recommend a competitor’s product if it would better suit your circumstances.

Best Interests Duty does not mean brokers are infallible. It means that when recommending a loan, the broker’s recommendation must be defensible as being in your best interests based on your disclosed financial situation. If you believe a recommendation was not in your best interests, you have grounds to make a complaint through AFCA.

It Is Free for Most Borrowers

For the majority of home loan borrowers, using a mortgage broker costs nothing directly. Brokers are paid by the lender, not by you.

The two components of broker remuneration are:

Upfront commission: paid by the lender at settlement, typically between 0.55% and 0.70% of the loan amount. On a $600,000 loan, this is approximately $3,300 to $4,200
Trail commission: paid monthly by the lender for the life of the loan, typically around 0.15% to 0.20% per annum of the outstanding balance. This incentivises brokers to maintain the relationship and keep your loan competitive over time

Brokers are required to disclose their commission to you before you proceed. This transparency is mandated under the National Consumer Credit Protection Act.

It is worth noting that the commission structure creates a theoretical conflict of interest: a broker recommending a larger loan or a lender paying higher commission could earn more. This is precisely why Best Interests Duty exists, and why ASIC actively monitors broker conduct against commission patterns.

Brokers Do the Heavy Lifting

Applying for a home loan involves assembling a significant amount of documentation, understanding each lender’s specific serviceability criteria, presenting your application in a way that maximises approval prospects, and managing the process through to settlement. Most borrowers underestimate the time and complexity involved until they attempt it themselves.

When you use a broker, you typically:

Submit your documents once, to the broker, rather than separately to each lender you approach
Avoid multiple credit enquiries on your credit file. Each direct application to a lender creates a credit enquiry. A broker identifies the right lender first and submits one application
Have the application prepared to the lender’s specific requirements, reducing the risk of delays or declines due to presentation issues
Receive proactive updates from the broker throughout the assessment process rather than chasing the lender yourself
Have settlement coordinated between the lender, your conveyancer, and any other parties without managing those relationships yourself

For buyers who are time-poor, unfamiliar with lending criteria, or dealing with a complex financial situation, the administrative value of a broker is often as significant as the rate outcome.

Specialist Knowledge for Non-Standard Situations

Where a broker’s value is most pronounced is in applications that fall outside the standard employed-borrower profile that the major banks’ automated systems are optimised for.

Situation	Why it benefits from a broker
Self-employed	Income is assessed differently by different lenders. Some use the last two years of tax returns, others accept one year, and some specialist lenders use bank statements. A broker identifies the lender whose criteria best fits your income structure
Bad credit or defaults	Some lenders will not consider any application with a default on file. Others have specific policies for types, ages, and sizes of adverse credit. A broker knows which lenders offer the best outcome for your specific credit profile without triggering multiple declines
Low deposit	LMI premiums vary significantly between lenders. Some lenders have LMI waivers for specific professions. The First Home Guarantee must be applied through approved lenders. A broker navigates these options simultaneously
Defence personnel	DHOAS subsidy calculations, Defence Bank products, and ADF employment structures require specific knowledge. A broker with defence expertise can identify the right product and maximise entitlements
Investment lending	Lenders assess investment properties differently for serviceability. Some cap the number of investment properties, others have specific LVR restrictions. Portfolio investors need a broker who understands how lenders stack up
Construction loans	Progress payment structures, builder contract requirements, and valuation processes differ between lenders. An experienced broker reduces the risk of delays during the build

Stanford Financial specialises in a number of these scenarios. See our specialist lending pages for more detail on how we help defence personnel, self-employed borrowers, doctors, nurses, paramedics, and pharmacists.

Ongoing Support After Settlement

The relationship with a good mortgage broker does not end at settlement. The lending market changes constantly: interest rates move, lenders release new products, your own financial circumstances evolve, and what was the right loan at settlement may not be the right loan three years later.

A broker who earns trail commission has a financial incentive to maintain the relationship and keep your loan competitive. In practice, this means:

Annual rate reviews to check whether your current rate is still competitive against the market
Proactive contact when your fixed rate period is due to end, before you roll onto a potentially higher variable rate
Refinancing assistance when a better option becomes available, handled by someone who already knows your full financial picture
Access to the same broker for future lending needs: investment properties, renovation loans, vehicle finance

This ongoing relationship is structurally difficult for a bank branch to replicate. Bank staff change. Relationship managers move on. The broker has continuity of knowledge about your situation that compounds in value over time.

When Going Direct to a Bank Might Make Sense

An honest guide needs to acknowledge that a broker is not always the optimal choice. Going direct to a bank may make sense in the following circumstances:

You already have a strong relationship with your bank: some banks offer retention pricing or loyalty rates to long-standing customers with multiple products. If your bank proactively offers a competitive rate that you can verify against the market, going direct avoids the process of switching.
Your application is genuinely straightforward: if you are an employed PAYG borrower with a 20% deposit, clean credit, and a standard property purchase, you are exactly the profile the major banks’ systems are designed for. The differential benefit of a broker is lower, though comparing multiple lenders still has value.
You have done the comparison yourself: if you have independently verified that your bank’s product is competitive across rate, features, and total cost, and you are comfortable with their application process, going direct is a legitimate choice.
You want a specific product only available through one lender: some lenders offer products exclusively through their own channels that are not available to brokers.

The most important thing is not which channel you use, but that you make an informed comparison before committing. A broker provides that comparison as part of their service. If you go direct to a bank, run your own comparison first using an independent comparison tool or a broker assessment so you can evaluate the bank’s offer against the market.

Stanford Financial’s Approach

Stanford Financial is a Springfield Central-based mortgage brokerage with access to over 50 lenders and more than $500 million in settled loans. We hold national MFAA awards for diversified brokerage excellence and newcomer of the year.

Our Lending Director, Steven Beach, reviews every application personally. We work with first home buyers, investors, refinancers, self-employed borrowers, and defence personnel across Queensland and Australia wide.

What differentiates our approach:

We do not recommend the easiest loan to write. We recommend the right loan for your situation
We are transparent about commission. Every client receives a Credit Proposal Disclosure before proceeding
We stay engaged after settlement. Annual rate reviews are part of our standard service, not an upsell
We have deep specialist lending expertise, particularly in defence home loans and DHOAS entitlements
We are available in person at our Springfield Central office, by phone, or via video call

Frequently Asked Questions

Does using a mortgage broker affect my credit score?

A broker typically submits one application to the lender most likely to approve at the best rate. One credit enquiry appears on your file. If you applied directly to five banks yourself, five enquiries would appear. Multiple credit enquiries in a short period can reduce your score, so using a broker can actually protect your credit file compared to self-managing multiple applications.

Is a mortgage broker the same as a lender?

No. A broker is an intermediary. They do not lend you money. The lender (bank, credit union, or specialist lender) provides the actual loan. The broker finds the right lender and manages the application process on your behalf.

Can a broker get me a better rate than going direct to a bank?

Often, yes. Brokers submit volume to lenders and in many cases have access to rates that are not publicly advertised. They can also negotiate on your behalf using competitive offers from other lenders as leverage. The best available rate for your profile is not always the lowest advertised rate online.

What happens if I am not happy with my broker’s recommendation?

You are never obligated to proceed with a broker’s recommendation. Ask the broker to explain their reasoning in full, including why other options were not recommended. If you believe the recommendation was not in your best interests, you can make a complaint to AFCA (the Australian Financial Complaints Authority) at no cost.

How do I know if my broker is comparing all available options?

Ask your broker how many lenders are on their panel and request a written comparison of at least three to five options with the reasoning for the recommendation. A good broker will welcome this question. You can also check the broker’s Credit Licence number on ASIC’s Connect register.

Book a Free Consultation with Stanford Financial

If you are trying to decide between a broker and going direct to your bank, the most productive starting point is a free assessment with a broker. You will walk away knowing what rate you qualify for, which lenders are most competitive for your profile, and what the process looks like. There is no obligation to proceed and no impact on your credit file.

Stanford Financial offers free, no-obligation consultations in person at our Springfield Central office, by phone, or via video call. We work with borrowers across Queensland and Australia wide.

Call 0483 980 002 or book your free assessment online. We typically respond within one business day.

Reviewed and Verified

Key Highlights

If you have not reviewed your home loan in the last two years, you are likely paying more than you need to
Refinancing means replacing your existing home loan with a new lender or product. The new loan pays out the old one at settlement
A 0.5% rate reduction on a $600,000 loan with 25 years remaining saves approximately $160,000 in total interest
The break even point is typically just 2 to 5 months for variable rate borrowers switching lenders, after accounting for discharge and setup fees
Fixed rate borrowers should always request an exact break cost figure from their lender before proceeding. This can be tens of thousands of dollars if rates have fallen since you fixed
Most cashback offers from lenders ($2,000 to $4,000) cover switching costs entirely, making the break even point immediate for many borrowers
A mortgage broker compares 50-plus lenders simultaneously, submits one application, and handles the full process from assessment to settlement at no cost to the borrower
Refinancing typically takes 2 to 4 weeks from approval to settlement and is materially simpler than buying a property
A free home loan health check with Stanford Financial takes 15 minutes and tells you whether your current loan is competitive and what switching could be worth in real dollars

If you haven’t looked at your home loan in the last two years, there is a reasonable chance you are paying more than you need to. Banks rely on the fact that most borrowers rarely look at their loan once they have it. The rate you signed up for is almost never the best rate available to you today.

Refinancing is the process of switching your home loan to a new lender or product. It can reduce your interest rate, lower your monthly repayments, give you access to features your current loan lacks, or unlock equity you have built up in your property. Done well, it can save tens of thousands of dollars over the remaining loan term. Done poorly, or at the wrong time, the switching costs can outweigh the benefit.

This guide walks you through the full refinancing process step by step: what to check, what to compare, how to calculate whether it’s worth it, and what to expect from application through to settlement. We also cover the mistakes that trip people up, particularly around fixed rate break costs.

Stanford Financial specialises in refinancing. Our brokers compare your current loan against 50+ lenders at no cost, negotiate on your behalf, and handle the paperwork from application to settlement. Book a free home loan health check

When Refinancing Makes Sense (and When It Doesn’t)

Refinancing is worth serious consideration in most of the following situations:

Your loan is more than two years old and you have not negotiated a rate reduction in that period
Your current rate is more than 0.5% above the most competitive variable rates available for your LVR and loan size
Your financial situation has improved since you took out the loan (higher income, reduced debt, or more equity) and you may qualify for a sharper rate
You want features your current loan lacks: an offset account, unlimited extra repayments, or a redraw facility
You want to access equity for renovations, an investment purchase, or another purpose
You want to consolidate expensive personal debt into your home loan to reduce your total repayment burden

When refinancing may not be worth it

You are in the final years of your loan. The remaining interest is relatively small and the benefit of a rate reduction is limited
You are locked into a fixed rate with significant break costs. Always get the exact figure from your lender before proceeding
Your property value has fallen and your LVR has risen above 80%. LMI could apply on the new loan, adding a cost that may eliminate the saving. Use our LMI calculator to check
Your income or employment has changed materially and you may not qualify for the same loan terms

The biggest risk in refinancing is acting on a vibe rather than on numbers. Before you do anything, use our refinance savings calculator to see your monthly saving, annual saving, and break even point. If the numbers work, refinancing is one of the best financial actions available to a homeowner.

What Is Refinancing?

Refinancing means replacing your existing home loan with a new one, either with a different lender or as a different product with your existing lender. The new loan pays out the old one at settlement. From that point, you make repayments to the new lender at the new rate and terms.

There are two main types of refinance:

Rate and term refinance: you switch to a lower rate or different loan structure (fixed vs variable, offset account, etc.) without changing the loan amount. This is the most common type.
Cash out refinance (equity release): you borrow more than the outstanding balance and receive the difference in cash. This requires sufficient equity and the new, higher loan amount must be serviceable at current lending criteria.

Top Reasons Australians Refinance

Reason	What it means in practice
Get a lower rate	Save $200 to $600 per month on a $600k loan depending on the rate difference
Access equity	Fund renovations, an investment property deposit, or a major purchase using equity you have built up
Better loan features	Add an offset account, unlock unlimited extra repayments, or remove LMI fees built into the rate
Debt consolidation	Roll expensive personal loans or credit cards into the home loan at a lower rate
Shorter loan term	Maintain the same repayment on a lower rate to pay the loan off years earlier
Change rate type	Switch from variable to fixed for certainty, or exit a fixed period once it ends
Remove a party	After relationship breakdown or change in circumstances, remove one borrower from the loan

Step 1 Review Your Current Loan

Before comparing anything else, you need to know exactly what you are starting from. Pull out your most recent loan statement and note the following:

Current interest rate: is it the advertised rate, a discounted rate, or a loyalty rate you negotiated? Is it fixed or variable?
Outstanding balance: this determines your LVR and what rate you are likely to qualify for with a new lender
Remaining term: how many years are left? This affects how much total interest you will save from a rate reduction
Monthly fee: some loans charge an ongoing monthly or annual fee. Factor this into your comparison
Discharge fee: your lender will charge a fee to formally close the loan, typically $150 to $500
Fixed rate period: if you are in a fixed period, note when it ends. Exiting before the end date can trigger break costs (see the break cost section below)

Tip: Many borrowers have not spoken to their current lender in years. Before applying anywhere else, call your lender and ask for a rate review. Sometimes a five-minute call mentioning that you are considering refinancing is enough to get a retention rate that is competitive. If it is, great. If it isn’t, you have a confirmed number to compare against.

Step 2 Know Your Equity Position

Your equity is the difference between your property’s current market value and your outstanding loan balance. Equity determines your Loan to Value Ratio (LVR), which is the single most important factor in what rate you will be offered by a new lender.

LVR = Outstanding Loan Balance ÷ Current Property Value

As a general guide:

LVR under 60%: best rates available. Very strong negotiating position
LVR 60 to 80%: competitive rates, no LMI. The standard tier for most refinancers
LVR 80 to 90%: rates are higher and LMI may apply on the new loan
LVR above 90%: refinancing becomes difficult and LMI costs could eliminate the saving

To estimate your current property value, use recent comparable sales in your suburb or a tool like CoreLogic’s free estimator. For a formal valuation, most lenders will arrange this as part of the refinancing process at no cost to you.

Accessing equity

If your LVR is below 80%, you have accessible equity. You can borrow against it without LMI and use the funds for any legitimate purpose, commonly renovations, an investment property deposit, or debt consolidation. The new loan amount is your outstanding balance plus the equity you want to access, which must keep the combined LVR at or below 80% (or above 80% if you are willing to pay LMI on the difference).

Example: Property worth $850,000. Outstanding loan: $450,000. LVR: 53%. Accessible equity to 80% LVR: $850,000 × 80% − $450,000 = $230,000. You could refinance to a new loan of up to $680,000 and receive $230,000 in cash at settlement, with no LMI payable.

Step 3 Compare Your Options

This is where most people go wrong: comparing only on interest rate. A lower headline rate is important, but it is not the whole picture. Here is what to evaluate:

Interest rate type

Variable Rate	Fixed Rate
Rate moves with RBA and lender decisions	Rate is locked for 1 to 5 years
Unlimited extra repayments (most lenders)	Extra repayments often capped at $10,000/yr
Full offset account access	Offset account usually not available
No break costs to exit	Break costs can be large if exiting early
Less certainty in repayment amount	Certainty of repayment for fixed period

Many borrowers opt for a split loan: part fixed for certainty, part variable for flexibility, extra repayments, and offset access. The split can be any proportion and is a practical way to hedge.

Loan features

Offset account: a transaction account linked to the loan that reduces the balance interest is charged on. See our offset account calculator to model the saving for your balance
Redraw facility: access extra repayments you have already made, useful but less flexible than an offset
Extra repayments: can you make unlimited extra repayments without penalty? This is critical if you intend to pay down faster
Portability: can the loan move with you if you sell and buy another property? Useful if you are likely to move

The full cost comparison

Compare loans on their comparison rate, which incorporates the interest rate plus most fees into a single annual percentage. A loan with a lower interest rate but a high annual fee can end up more expensive in total. Always check:

Upfront establishment fee (often $0, but some lenders charge $300 to $600)
Ongoing monthly or annual fee
Redraw or offset account fees
Discharge fee payable when you eventually close the loan

A broker with access to 50+ lenders can run a genuine full comparison of each loan on total cost, not just the headline rate. This is time-consuming to do yourself accurately, and banks have no incentive to show you their competitors’ products.

Step 4 Calculate Your Break Even Point

Switching lenders costs money upfront. The break even point is the number of months until your accumulated monthly savings equal the total switching cost. After that point, every month is pure saving.

The formula is straightforward:

Break even months = Total switching cost ÷ Monthly saving

For example:

Current rate: 7.00% on $600,000 outstanding with 25 years remaining
New rate: 6.20%
Monthly saving: approximately $298
Discharge fee: $350, new loan setup: $500, total switching cost: $850
Break even: $850 ÷ $298 = 2.9 months

After 2.9 months, you are ahead. Total interest saved over the remaining 25 years is approximately $89,000, even after switching costs.

Use our free refinance savings calculator to enter your exact figures and see your monthly saving, annual saving, total interest saved, and break even timeline.

When cashback changes the equation

Many lenders offer cashback incentives for refinancers, typically $2,000 to $4,000. When cashback equals or exceeds your total switching cost, your break even point is immediate, meaning you are in front from day one. However, cashback offers typically require you to keep the loan for a minimum period (usually two years) or repay the cashback if you switch again. Factor this into the comparison.

Step 5 Apply With Your New Lender

Once you have identified the loan and confirmed the numbers make sense, it is time to apply. Most lenders require the following documents:

Documents you will need

Last two payslips (or last two years’ tax returns if you are self employed)
Last three months’ bank statements showing salary credits and living expenses
Statement of your existing home loan showing current balance and repayment history
Evidence of property ownership (council rates notice or title search)
Most recent mortgage repayment receipts or statements
Photo ID (passport or driver’s licence)
Details of any other assets (savings, investments, vehicles)
Details of any other liabilities (car loans, credit cards, personal loans)

What happens during assessment

The new lender will assess your application against their current lending criteria: income, expenses, existing debts, property value, and LVR. They will conduct a credit check (one enquiry on your credit file) and usually order a property valuation. The credit check will cause a small, temporary dip in your credit score.

Assessment typically takes 3–10 business days for a straightforward refinance at most lenders. Complex applications (borrowers who are self employed, multiple properties, or unusual income structures) can take longer.

If you apply through a broker, the broker prepares the application on your behalf, selects the lender most likely to approve at the best rate based on your profile, and liaises with the lender throughout assessment. You typically submit documents once rather than multiple times to multiple lenders.

Step 6 Settlement and Discharge

Once your application is approved, the new lender issues a formal approval (unconditional letter of offer). You sign the loan documentation and the settlement process begins.

How the handover works

You sign the new loan documents and return them to the new lender
The new lender contacts your current lender to arrange discharge of the existing loan
Your current lender prepares a discharge authority and calculates the payout figure
Settlement is booked. Your conveyancer or the lenders’ settlement teams coordinate a settlement date
On settlement day, the new lender pays out the old loan in full. The mortgage is discharged from your current lender and registered with the new lender
Your first repayment to the new lender is typically due 30 days after settlement

The full process from application approval to settlement typically takes 2–4 weeks. There is no simultaneous property transaction to coordinate (unlike a purchase), which makes refinancing materially simpler than buying. Most borrowers describe the process as less stressful than expected.

If you are using an offset account on the current loan, ensure you transfer any offset balance before settlement, as it will not automatically transfer to the new lender.

Discharge Fees and Break Costs: What to Watch Out For

The costs of refinancing are generally modest for variable rate borrowers but can be substantial for those exiting a fixed rate loan.

Cost	Typical Amount	Notes
Discharge fee	$150 to $500	Charged by your current lender to close the loan and release the mortgage. Most lenders charge this regardless of loan type.
Application / setup fee	$0 to $600	Some new lenders charge an establishment fee. Many competitive lenders charge nothing. Check the PDS.
Legal / settlement	$200 to $400	Some lenders include this in their fee structure. Clarify with your broker.
Fixed rate break cost	$0 to $50,000 or more	Only on fixed loans exited before the fixed period ends. Can be very large. See below.
Cashback (offset)	Up to $4,000+	Many lenders offer cashback to refinancers. Deducted from your net switching cost.

Fixed Rate Break Costs: The Most Important Number to Get Right

If you are on a fixed rate home loan and want to refinance before the fixed period ends, your lender can charge a break cost (also called an economic cost or early repayment fee). This is not a standard penalty. It is a calculation based on the difference between your contracted fixed rate and current wholesale funding rates for the remaining fixed term, applied to your outstanding balance.

If rates have fallen significantly since you fixed, the break cost can be tens of thousands of dollars. If rates have risen since you fixed, the break cost may be zero or close to it.

Always contact your current lender and request an exact break cost figure before signing anything with a new lender. Break costs must be disclosed on request under the National Consumer Credit Protection Act. Do not estimate this number — get it in writing.

In many cases, it is worth waiting until the fixed period ends before refinancing. If the fixed period ends in 6 months, the break cost of exiting now needs to be compared against 6 months of the higher rate versus the lower rate. The break cost would need to be lower than 6 months of rate differential savings to make early exit worthwhile. A broker can model this for you precisely.

How a Mortgage Broker Makes Refinancing Easier

Most Australians who refinance do so through a mortgage broker, and for good reason. Refinancing involves comparing dozens of products, negotiating with lenders, assembling documents, managing the assessment process, and coordinating settlement. A broker handles all of this.

What a broker does that you cannot easily do yourself

Access to 50+ lenders — Banks only show you their own products. A broker with a full panel can compare major banks, specialist lenders, and boutique institutions simultaneously
Negotiation — Brokers submit volume to lenders and have negotiating leverage to access rates not publicly advertised
Credit file management — Multiple direct applications to multiple lenders each create a credit enquiry. A broker identifies the right lender first and typically submits one application
Application quality — A poorly presented application gets declined or results in a worse rate. A broker packages your application to meet the lender’s criteria
Paperwork coordination — The broker liaises between the new lender, your current lender, and settlement teams. You sign where instructed
Free to you — Mortgage brokers are paid by the lender at settlement. There is no charge to the borrower for a standard refinance

Stanford Financial’s refinancing service

Stanford Financial is a Springfield Central brokerage with multiple industry awards and access to over 50 lenders. Our Lending Director, Steven Beach, reviews every refinancing scenario personally. We serve Brisbane, Ipswich, Logan, Gold Coast and clients across Australia.

We start every refinance assessment the same way: a free home loan health check that compares your current loan against the market, tells you what rate you should be paying, and shows you the exact numbers before you commit to anything.

No obligation, no fee, no impact on your credit file until you decide to proceed
MFAA Diversified Business and Newcomer Award 2022
Access to major banks, specialist lenders, and boutique institutions
Refinancing completed remotely for borrowers across Australia

Frequently Asked Questions

How often can I refinance my home loan?

There is no legal limit on how often you can refinance. Practically, refinancing too frequently can affect your credit score, reset cashback clawback periods, and incur repeated switching costs. Most financial professionals suggest reviewing your loan every 2 to 3 years. If your rate is materially uncompetitive, reviewing sooner is worth it regardless of when you last refinanced.

Will refinancing affect my credit score?

Yes, briefly. When you apply for a new home loan, the new lender performs a credit enquiry, which appears on your credit report and typically reduces your score by a small amount for a short period. A broker typically submits one application to the most suitable lender based on your profile, which is more efficient than applying to multiple lenders directly.

Do I need a new property valuation to refinance?

Most lenders require a property valuation as part of the refinancing process. This is typically arranged and paid for by the new lender at no cost to you, or included in the application fee. The valuation determines your current LVR, which affects the rate you are offered and whether LMI applies. In some cases, lenders accept an automated valuation rather than a full physical inspection, which speeds up the process.

Can I refinance if I have less than 20% equity?

Yes, but LMI may apply if your LVR is above 80%. This adds a cost to refinancing that may erode or eliminate the benefit of the lower rate. Use our LMI calculator to check the LMI cost at your current property value and loan balance before proceeding. Some lenders offer cashback that can offset LMI costs in specific scenarios.

How long does refinancing take?

Refinancing typically takes 2 to 6 weeks from application to settlement. The main variables are the speed of the new lender’s credit assessment, valuation turnaround, and coordination with your existing lender for discharge. Refinancing is materially simpler than a new purchase as there is no contract deadline, no conveyancer managing a settlement workspace, and no simultaneous sale to coordinate. Your broker manages the process on your behalf.

Can refinancing help me access equity?

Yes. If your property has increased in value since you purchased, or you have paid down a significant amount of principal, you may have equity you can access by refinancing to a higher loan amount. Common uses include home renovations, investment property deposits, and debt consolidation. The funds are typically paid into your nominated account at settlement. See our refinancing loans page for more detail on equity access.

Book a Free Home Loan Health Check

If you have not reviewed your home loan in the last two years, you owe it to yourself to find out what you are actually paying versus what you could be paying. A 0.5% rate difference on a $600,000 loan saves approximately $160,000 over 25 years. That is not rounding error. That is material.

A free home loan health check with Stanford Financial takes 15 minutes and gives you a clear answer: is your current loan competitive, and if not, what is a better option worth to you in real dollars? There is no obligation to proceed and no credit file impact unless you choose to apply.

Call 0483 980 002 or book your free assessment online. We typically respond within one business day.

Reviewed and Verified

Key Highlights

The standard deposit most lenders prefer is 20% of the property’s purchase price but this is not the only pathway into the market
Borrowing more than 80% of the property value typically triggers Lenders Mortgage Insurance (LMI), which can add tens of thousands of dollars to your loan costs
Queensland first home buyers purchasing a new home can currently access a $30,000 First Home Owner Grant for contracts signed before 30 June 2026
The First Home Guarantee allows eligible buyers to purchase with just a 5% deposit and no LMI — with no income caps and no limit on places as of October 2025
From 1 May 2025, first home buyers in Queensland pay zero stamp duty on new homes and vacant land, with no property value cap
For established homes, a full stamp duty concession applies on properties up to $709,999, with a partial concession up to $800,000
A family member can act as a guarantor, allowing some buyers to purchase with a much smaller deposit or even no deposit at all
Your deposit is just one part of the picture, you also need to budget for stamp duty (if applicable), conveyancing fees, building and pest inspections, and moving costs
A mortgage broker can help you identify which government schemes you qualify for, how to stack them, and which lenders accept the smallest deposits with the best terms

Saving for a home deposit is one of the biggest financial goals most Australians will ever take on. But before you start calculating how long it will take to reach a magic number, it’s worth understanding that “how much deposit do I need” has a more nuanced answer than most people realise.

The amount you need depends on whether you’re buying new or established, whether you qualify for government assistance, whether you want to avoid LMI, and how your lender assesses your overall position. In Queensland especially, the combination of available grants, stamp duty concessions, and federal guarantee schemes has made a smaller deposit more viable than at almost any point in recent history.

This guide breaks down exactly what you need to know, with current Queensland figures confirmed as at March 2026. If you’re also trying to understand your overall borrowing position, our guide on how much you can borrow for a home loan covers the lender assessment process in detail.

The Standard Deposit: Why Lenders Love 20%

Most lenders in Australia assess home loans against a Loan to Value Ratio (LVR), that is, the size of your loan expressed as a percentage of the property’s value. A 20% deposit means an 80% LVR, which is the threshold most lenders treat as the boundary between standard and higher-risk lending.

When you borrow above 80% LVR, meaning your deposit is less than 20%, the lender typically requires you to pay Lenders Mortgage Insurance (LMI). LMI is not insurance for you; it protects the lender if you default. The cost can be significant.

On a $700,000 property with a 5% deposit, LMI could add approximately $25,000 to $30,000 to your loan costs. On a $900,000 property, that figure could exceed $40,000.

This is why 20% has long been held up as the gold standard deposit, it removes LMI from the equation entirely. But as we’ll explain below, there are several legitimate pathways to purchase with a smaller deposit without carrying that cost.

Can I Buy a House With Less Than 20% Deposit?

Yes, and many Queenslanders do. Here are the main scenarios:

10% Deposit (90% LVR)

A 10% deposit is a common entry point for buyers who don’t yet have 20% saved. LMI will apply, though the cost is lower than at 5% LVR. Some lenders are more competitive than others at 90% LVR. Our low deposit home loans page covers what to expect at this level, and a broker can identify which lenders offer the best rates and terms for your situation.

5% Deposit via the First Home Guarantee

The First Home Guarantee is a federal government scheme that allows eligible buyers to purchase with just a 5% deposit, with the government guaranteeing the remaining 15% of the standard 20% threshold. This means the lender treats your loan as if you have a 20% deposit, so no LMI is payable.

As of 1 October 2025, the scheme was significantly expanded:

No income caps – the previous thresholds of $125,000 for individuals and $200,000 for couples have been removed entirely
No cap on places – unlike previous years where annual places were limited, the scheme now has unlimited places
Higher property price caps for Queensland – Brisbane, Gold Coast, and Sunshine Coast: up to $1,000,000. The rest of QLD: up to $700,000

This is one of the most significant expansions of first home buyer assistance in Australian history, and it means far more Queenslanders now qualify than before.

2% Deposit via the Family Home Guarantee

The Family Home Guarantee is designed for eligible single parents or single legal guardians of at least one dependent. It allows purchase with as little as a 2% deposit, with the government guaranteeing up to 18% of the property’s value, again, with no LMI payable. Speak to a Stanford Financial broker to confirm your eligibility.

No Deposit via a Guarantor Loan

Some buyers are able to purchase with no deposit at all using a guarantor home loan, where a family member, typically a parent, uses the equity in their own property to guarantee part of your loan. This can allow you to borrow up to 100% of the purchase price in some cases. The guarantor’s property is used as additional security, and once you’ve built sufficient equity in your own home, the guarantee can be released.

This approach works well for first home buyers who have strong income but haven’t yet had time to save a full deposit. Our first home loan page covers this in more detail, and our team can walk you through whether it’s appropriate for your family’s circumstances.

QLD-Specific Help: Grants and Concessions in 2026

Queensland is one of the most generous states in Australia when it comes to first home buyer assistance. Here is a current summary of what’s available as at March 2026.

Queensland First Home Owner Grant (FHOG)

The Queensland Government currently offers a $30,000 First Home Owner Grant to eligible buyers purchasing or building a new home. Key conditions:

Amount: $30,000 for contracts signed between 20 November 2023 and 30 June 2026. After 30 June 2026, the grant reverts to $15,000
Property type: New homes only – the property must never have been previously occupied or sold as a place of residence. This includes house and land packages, off-the-plan purchases, and owner-built homes
Price cap: Total value of the home (including land and contract variations) must be under $750,000
Residency: You must move in within 12 months of settlement or construction completion and live there as your principal place of residence for at least six months
Eligibility: At least one applicant must be an Australian citizen or permanent resident aged 18 or over, and must be a genuine first home buyer who has not previously owned residential property in Australia

Important: The $30,000 grant applies only to new homes. If you’re buying an established property, you won’t be eligible for the FHOG — but you may still qualify for significant stamp duty concessions, and the First Home Guarantee applies to both new and established purchases.

Stamp Duty (Transfer Duty) Concessions for First Home Buyers

Queensland’s stamp duty concessions for first home buyers were significantly improved from 1 May 2025:

New homes and vacant land: Zero stamp duty with no property value cap. This applies to new builds, house and land packages, and vacant land where you intend to build your first home
Established homes up to $709,999: A full concession of $17,350 applies, which effectively reduces stamp duty to nil for most properties in this range
Established homes $710,000 to $800,000: A partial concession applies on a sliding scale — you pay some stamp duty, but less than the standard rate
Established homes $800,000 and above: No concession applies; standard stamp duty rates are payable

First Home Super Saver Scheme (FHSS)

The federal First Home Super Saver Scheme allows you to make voluntary contributions into your superannuation and then withdraw up to $50,000 of those contributions (plus associated earnings) for a home deposit. Contributions are taxed at 15% going in, rather than your marginal income tax rate, making it a tax-effective way to build your deposit. The FHSS is available for both new and established homes and can be combined with the FHOG and First Home Guarantee.

At a Glance: Key Schemes for QLD First Home Buyers

Scheme	What It Offers	Property Cap (QLD)	Key Condition
QLD First Home Owner Grant	$30,000 cash grant	Under $750,000	New homes only; contracts before 30 June 2026
First Home Guarantee	Buy with 5% deposit, no LMI	$1M (Brisbane/GC/SC); $700K (rest of QLD)	New or established; no income cap
Family Home Guarantee	Buy with 2% deposit, no LMI	Same as FHBG	Single parents/guardians only
Stamp Duty (new home)	Zero transfer duty	No cap	New homes and vacant land from 1 May 2025
Stamp Duty (established)	Up to $17,350 concession	Up to $709,999 (full); $800,000 (partial)	First home buyers only
First Home Super Saver	Withdraw up to $50,000 from super	No cap	Voluntary super contributions only

How to Stack Government Assistance: A Real QLD Example

One of the most powerful things about the current Queensland assistance landscape is that many of these schemes can be used together. Here is an example showing how a first home buyer purchasing a new home in the Springfield/Ipswich corridor could structure their purchase.

Scenario: First home buyer purchasing a new house and land package for $620,000 in Springfield Central, QLD, using the First Home Guarantee and applying for the FHOG.

Item	Estimated Amount (on $620,000 new build)
5% deposit required (First Home Guarantee)	$31,000
Stamp duty on new home	$0 (full exemption from 1 May 2025)
Queensland First Home Owner Grant (applied at settlement)	−$30,000
Conveyancing fees (estimate)	$1,500 – $2,000
Building and pest inspection	$500 – $700
Loan application / lender fees (estimate)	$0 – $600
LMI cost	$0 (waived via First Home Guarantee)
Total estimated net cash needed beyond grant offset	~$3,000 – $5,000

In this scenario, the $30,000 grant effectively offsets almost the entire 5% deposit, meaning a buyer in this price range could enter the market with very limited cash savings beyond standard purchase costs. Stanford Financial is based in Springfield Central and regularly helps buyers in this corridor navigate exactly this kind of purchase structure.

The grant is typically paid at settlement by your lender on your behalf through the Queensland Revenue Office. Your broker and conveyancer will coordinate this process – you don’t need to handle it separately. If you’re in Ipswich or surrounds, our Ipswich mortgage brokers can help you through the same process.

Beyond the Deposit: Other Upfront Costs to Budget For

Your deposit is the largest single upfront cost, but it’s not the only one. Here is a full picture of what you’ll need to budget for when buying in Queensland:

Stamp duty (transfer duty): Nil for eligible first home buyers purchasing new homes or land from 1 May 2025. Concessions apply to established homes under $800,000
Conveyancing fees: Typically $1,200 to $2,500 depending on complexity. Stanford Legal, part of the Stanford Group, provides competitive conveyancing services and works alongside Stanford Financial to streamline the process for our clients
Building and pest inspection: Around $400 to $800. Non-negotiable for established properties; important even for new builds approaching practical completion
Loan application fees: Varies by lender. Many lenders charge nil for standard applications, though some charge $300 to $600
Lenders Mortgage Insurance (LMI): Nil if you qualify for the First Home Guarantee or have a 20% deposit. Otherwise potentially $10,000 to $40,000+ depending on purchase price and LVR. See our low deposit home loans page for more on how LMI works
Moving costs: Typically $500 to $2,500 depending on distance and volume
Utility connection and setup costs: Budget $200 to $500 for connection fees across electricity, gas, internet, and water

As a general guide, plan to have your deposit plus an additional 3% to 5% of the purchase price available to cover purchase costs, unless stamp duty is waived in your situation.

Do I Need ‘Genuine Savings’?

Many lenders require that a portion of your deposit comes from what they call ‘genuine savings’ — that is, money you have accumulated yourself over a period of time (typically three to six months). This demonstrates that you have the financial discipline to service a home loan.

Genuine savings typically includes:

Regular deposits into a savings account over at least three months
Superannuation contributions under the First Home Super Saver Scheme
Term deposits or managed investment accounts

The following are generally not considered genuine savings by most lenders:

A lump sum gift from a parent or family member (though gifted funds can supplement genuine savings)
Tax refunds received as a lump sum
The First Home Owner Grant itself

If you don’t yet meet a lender’s genuine savings requirement, a Stanford Financial broker can help identify which lenders have more flexible policies or how to structure your savings over the coming months to maximise your eligibility.

How Much Should I Aim to Save?

The honest answer is: it depends on your strategy. Here is a simple framework:

If you’re eligible for the First Home Guarantee: Aim for 5% of the purchase price plus purchase costs (minus any grant). For a $600,000 home, that’s approximately $30,000 in deposit plus $3,000 to $5,000 in costs. The $30,000 FHOG offsets much of this if buying new
If you want to avoid LMI without a government scheme: Save 20% of the purchase price plus costs. For a $600,000 home, that’s $120,000 in deposit plus $5,000 to $10,000 in costs
If you’re using a guarantor: You may need little to no deposit, but you’ll still need cash for purchase costs, typically $3,000 to $8,000 depending on the purchase price and whether stamp duty applies

These are general guides. Your specific requirements will depend on the property, the lender, and your individual circumstances. Whether you’re buying your first home, an investment property, or looking to refinance an existing loan, a free assessment with Stanford Financial will give you a clear picture of exactly what you need based on your actual situation.

Frequently Asked Questions

Can I use the Queensland First Home Owner Grant as my deposit?

The Queensland Government does not recommend relying on the grant as your deposit. The timing matters: the grant is typically paid at settlement, whereas your deposit is required at contract signing or exchange. Some lenders may factor in the incoming grant when assessing your overall position, but you will generally need genuine savings available upfront. Speak to a Stanford Financial broker about how to sequence your funds correctly.

Can I buy an established home with a 5% deposit?

Yes, the First Home Guarantee applies to both new and established properties. You do not need to buy a new home to access the 5% deposit scheme – though only new home buyers are eligible for the $30,000 First Home Owner Grant. An established home purchase with a 5% deposit through the guarantee would still attract zero or reduced stamp duty if the property falls within the relevant concession thresholds.

Can I use my superannuation for a deposit?

Not directly. You cannot access your regular superannuation contributions for a home deposit. However, if you make voluntary contributions to your super, you can withdraw up to $50,000 of those voluntary contributions under the First Home Super Saver Scheme. This is separate from your compulsory employer contributions, which remain locked until retirement.

What if I’ve previously owned an investment property?

If you have previously owned an investment property but never lived in it, you may still be eligible for the First Home Owner Grant and stamp duty concessions in Queensland. However, the rules are specific: you must not have previously received a First Home Owner Grant in any Australian state or territory, and you must not have owned a property that you lived in. This is an area where getting advice from a broker and conveyancer before you apply is important to avoid inadvertently disqualifying yourself. Our investment loan page has further information on how investment property ownership is treated by lenders.

How does a bad credit history affect my deposit requirements?

If you have adverse credit history – defaults, missed payments, or a prior bankruptcy – most lenders will require a larger deposit, often 20% or more, regardless of LMI considerations. Some specialist lenders will consider applications with blemished credit at a higher LVR, but the rate and fee structure will differ. Our bad credit home loans page explains what options are available, and a broker can assess your specific credit position before you apply.

How long does it take to save a deposit?

At a savings rate of $1,000 per month into a high-interest savings account, saving a 5% deposit on a $600,000 home would take approximately two and a half years. Saving a 20% deposit at the same rate would take around ten years. This is one of the main reasons government schemes exist — to allow buyers to enter the market sooner rather than saving while prices move beyond reach. Understanding your full borrowing capacity alongside your deposit target gives you a complete picture of where you stand.

How Stanford Financial Can Help

Working out how much deposit you need is only the first step. Knowing which schemes you actually qualify for, how to structure your application to maximise your position, and which lenders will give you the best outcome at your deposit level — this is where a mortgage broker’s expertise makes a tangible difference.

At Stanford Financial, our brokers are based in Springfield Central and work with clients across Queensland and Australia wide. We have access to over 50 lenders and will assess your full picture at no cost to you, with no obligation to proceed.

If you’re planning to buy in the next six to eighteen months, the earlier you book an assessment, the better – there are practical steps you can take now to maximise your deposit, protect your credit file, and position yourself for the strongest possible application when the time comes. You can read more about how we work on our process page.

Ready to find out exactly what you need? Book a free, no-obligation assessment with Stanford Financial today. Call us on 0483 980 002 or contact us online.

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Key Highlights

Your borrowing capacity is not a fixed number, it is calculated individually based on your income, living expenses, existing debts, credit history, and deposit size
Most lenders will consider lending between four to six times your gross annual income, though this is a starting point, not a guarantee
Lenders use the Household Expenditure Measure (HEM) as a minimum benchmark for living expenses even if your actual spending is lower, lenders will apply HEM as the floor
Credit card limits are assessed at their full limit, not your current balance reducing or closing unused credit cards can significantly increase your borrowing capacity
Buy Now Pay Later accounts such as Afterpay and Zip are treated as debts by lenders and will reduce how much you can borrow
HECS-HELP debt reduces your assessable income and affects borrowing capacity, even if repayments feel manageable
A mortgage broker can assess your position across 50-plus lenders simultaneously without triggering multiple credit enquiries on your file
First home buyers may be eligible for the First Home Guarantee, allowing a 5% deposit without paying LMI
Getting a pre-approval before you start house hunting clarifies your budget and strengthens your position when making an offer
Stanford Financial offers a free assessment with no obligation to proceed

If you have started thinking about buying a home, chances are the first question you have asked yourself is: how much can I actually borrow? It is one of the most important things to understand before you start inspecting properties, and getting a clear picture early can save you a lot of time, stress, and disappointment down the track.

The honest answer is that your borrowing capacity is not a single fixed number. It is calculated based on a combination of your income, your expenses, your existing financial commitments, and the policies of the lender you approach. Two people on the same salary can end up with very different borrowing limits depending on how their finances are structured.

In this guide, we walk you through exactly how lenders assess your borrowing capacity, what factors make the biggest difference, and how working with a mortgage broker can help you put your best foot forward.

What Is Borrowing Capacity?

Borrowing capacity refers to the maximum amount a lender is willing to offer you for a home loan, based on their assessment of your ability to make repayments comfortably. It is sometimes referred to as your borrowing power or serviceability.

Lenders are not just asking whether you can afford the loan today. They are also stress testing whether you could continue to make repayments if interest rates were to rise, or if your personal circumstances were to change. This is a regulatory requirement under responsible lending obligations, and it is the reason two people earning the same income can receive quite different borrowing assessments.

What Factors Determine How Much You Can Borrow?

There are several key inputs that lenders use when calculating your borrowing capacity. Understanding each one helps you see where you have room to improve your position before you apply.

Your Income

Your gross income is the starting point. This includes your base salary, any overtime or allowances, rental income if you own investment property, and in some cases, government payments such as Family Tax Benefit. For self-employed applicants, lenders typically look at your last two years of tax returns to establish your average income.

Not all income is treated equally. Lenders generally apply a shading factor to variable income such as bonuses, commissions, and casual wages, using only a percentage of those amounts in their calculations. This is especially relevant for self-employed borrowers, where documenting income clearly and compliantly can make a significant difference to the outcome. A mortgage broker can help you understand exactly how your income will be assessed by different lenders.

Your Living Expenses

This is one of the most significant factors in modern lending assessments. Since the introduction of tighter responsible lending standards following the Royal Commission into Banking in 2019, lenders have scrutinised living expenses far more carefully than they once did.

Most lenders use a benchmark called the Household Expenditure Measure (HEM) as a floor for living expenses. HEM is a nationally recognised dataset that estimates reasonable living costs based on your household size and location. Even if your actual expenses are lower than HEM, many lenders will use the HEM figure in their calculations.

Your bank statements from the last three to six months will generally be reviewed as part of the application process, so consistent patterns of high discretionary spending can affect your outcome.

Your Existing Debts and Financial Commitments

Every financial commitment you currently have reduces the amount a lender is willing to offer you on a new home loan. This includes:

Car loans and personal loans
Credit card limits (note: lenders assess the full credit limit, not just your current balance)
Buy Now Pay Later accounts such as Afterpay and Zip
HECS-HELP debt
Any existing mortgages, including investment property loans

One of the most common and most impactful ways to increase your borrowing capacity before applying is to reduce or close unused credit cards and cancel any Buy Now Pay Later accounts you no longer need. Each of these liabilities is factored into your assessment regardless of whether you actually use them.

Your Credit History

Your credit score reflects how reliably you have managed financial obligations in the past. A strong credit history demonstrates to lenders that you are a lower risk borrower, which can improve not only your borrowing capacity but also the interest rate you are offered.

Late payments, defaults, and multiple credit enquiries in a short period can all have a negative effect on your score. If you are planning to apply for a home loan in the next six to twelve months, it is worth checking your credit report and addressing any issues early. You can access your credit report for free through agencies such as Equifax, Experian, and illion.

Your Deposit and Loan-to-Value Ratio (LVR)

The size of your deposit relative to the purchase price is known as your Loan-to-Value Ratio, or LVR. A lower LVR meaning a larger deposit generally results in better loan terms and a higher borrowing capacity, as it reduces the lender’s risk. Most lenders prefer an LVR of 80% or below. If you are working with a smaller deposit, our low deposit home loan options may be worth exploring.

If your deposit is less than 20% of the purchase price, you will typically be required to pay Lenders Mortgage Insurance (LMI), which is a one-off premium that protects the lender in the event of default. LMI can add several thousand dollars to the upfront cost of your purchase, although in some cases it can be capitalised into the loan. First home buyers may also have access to government schemes that allow purchasing with a 5% deposit without paying LMI.

The Number of Dependants in Your Household

Lenders factor in the number of dependants in your household when assessing your living expenses. More dependants generally means higher assumed household costs, which reduces the income available for loan repayments. This does not mean that families cannot borrow well. It simply means that having accurate information about your household structure is important when your application is assessed.

How much can you typically borrow?

As a general rule of thumb, most lenders will consider offering between four to six times your gross annual income, subject to your expenses and existing debts. For example, a household with a combined income of $150,000 might qualify for somewhere between $600,000 and $900,000, though the actual figure will depend on your individual financial profile and the lender’s policies.

This is a rough guide only. Your actual borrowing capacity can differ significantly from these estimates, which is why speaking with a mortgage broker is the most reliable way to get an accurate figure.

Understanding the Household Expenditure Measure (HEM)

The Household Expenditure Measure is a standard benchmark used by the majority of Australian lenders when assessing living expenses. It is based on research into typical Australian household spending patterns and is segmented by household size, income level, and postcode.

In practice, this means even if your personal spending is quite lean, the lender may use HEM as the minimum expense figure in their serviceability calculation. Conversely, if your actual declared expenses exceed HEM, which they may if you have a high lifestyle spend, the lender will use your actual figures.

Understanding HEM is important because it explains why two borrowers with similar incomes but different household sizes may receive quite different borrowing assessments. Your mortgage broker can help you understand which category you fall into and how this affects your specific outcome.

How a Mortgage Broker Can Help Maximise Your Borrowing Capacity

One of the most practical advantages of working with a mortgage broker is that they can assess your borrowing capacity across multiple lenders simultaneously, rather than being limited to a single institution’s criteria. Different lenders apply different policies when it comes to income shading, expense assessment, and treatment of certain liability types, and these differences can result in meaningfully different borrowing outcomes. You can learn more about our process and how we work with you from first assessment through to settlement.

At Stanford Financial, we take the time to understand your full financial picture before approaching any lender. We look at how your application will be viewed by different institutions, and we help you structure it in a way that presents your situation most effectively. This might involve:

Advising you to reduce or close unused credit card limits before applying
Identifying lenders who treat your type of income more favourably
Helping self-employed borrowers present their income clearly and compliantly
Clarifying how your HECS debt or existing commitments are affecting your capacity
Identifying whether you qualify for a professional package product with better terms

With access to a panel of more than 50 lenders, we are not tied to any one institution. Our job is to find the product and lender that suits your goals.

Meet our team to see who will be supporting you through the process.

Common Mistakes That Reduce Your Borrowing Capacity

There are several common financial habits that can reduce your borrowing capacity without you realising it. Being aware of these before you apply can make a real difference to your outcome.

Too many credit cards or high limits. Even if your credit card balances are zero, lenders count the full credit limit as a potential liability. A $20,000 credit card limit can reduce your borrowing capacity by as much as $80,000 to $100,000, depending on the lender.

Buy Now Pay Later accounts. BNPL services such as Afterpay and Zip are now widely recognised by lenders as consumer debts. Even with small outstanding balances, these accounts are included in your liability assessment.

Irregular or undocumented income. Income that is not clearly documented through payslips or tax returns can be difficult for lenders to assess, which may result in a lower income figure being used in the calculation. This is particularly relevant for self-employed borrowers and contractors.

Applying with multiple lenders simultaneously. Each credit enquiry made by a lender is recorded on your credit file. Multiple enquiries in a short period can signal financial stress to lenders and reduce your score. Working with a broker allows you to be assessed across multiple lenders without triggering multiple credit enquiries upfront.

Not accounting for all income. Many borrowers underreport income by forgetting to include rental income, government payments, overtime, or other allowable earnings. Ensuring your income picture is complete can meaningfully increase your borrowing capacity.

How Borrowing Capacity Changes With Income

To give you a practical sense of how borrowing capacity shifts with different income levels, here are four illustrative examples. These are estimates based on typical lender serviceability calculations and assume standard expenses, no existing debts, and a 20% deposit. Your actual result may differ based on your specific circumstances.

Household Income	Estimated Borrowing Range	Typical Monthly Repayment*	Notes
$80,000 p.a.	$320,000 to $480,000	~$1,700 to $2,550/mo	Single income, no dependants
$100,000 p.a.	$400,000 to $600,000	~$2,100 to $3,200/mo	Single income, typical household
$150,000 combined	$600,000 to $900,000	~$3,200 to $4,800/mo	Dual income, couple
$200,000 combined	$800,000 to $1,200,000	~$4,250 to $6,400/mo	Dual income, strong serviceability

*Repayment estimates based on a 6.5% variable rate over a 30-year term. For illustrative purposes only. Your actual rate and repayments will vary.

Steps to Take Before You Apply

If you are planning to apply for a home loan in the next few months, there are several steps you can take right now to improve your borrowing capacity and strengthen your application.

Review and reduce your credit card limits and cancel any cards you do not actively need
Close Buy Now Pay Later accounts you no longer use
Avoid taking on any new debt in the six months before your application
Avoid multiple credit enquiries by working with a broker rather than applying directly to multiple lenders
Build up genuine savings history, as consistent saving behaviour signals financial discipline to lenders
Gather your financial documentation early, including payslips, tax returns, bank statements, and identification
Check your credit report and address any errors or defaults before you apply

The more organised and financially stable your profile looks at the time of application, the better your outcome is likely to be.

Borrowing FAQs

How much can I borrow for a home loan?

The amount you can borrow for a home loan depends on several factors, including your income, expenses, existing debts, and credit history. At Stanford Financial, we evaluate your financial situation to determine the maximum loan amount you qualify for, ensuring it aligns with your repayment capability. You can schedule a consultation with one of our loan advisors for a precise assessment by visiting our contact page.

Can I borrow more if I have a co-borrower?

Yes. Adding a co-borrower such as a partner or spouse means their income is included in the assessment, which typically increases your combined borrowing capacity. However, their existing debts, credit history, and living expenses will also be factored in. In most cases, a joint application results in a meaningfully higher borrowing limit than a solo application.

Does pre-approval affect my credit score?

A formal pre-approval application will result in a credit enquiry being recorded on your file, which can have a minor and temporary impact on your score. However, this is generally a small and manageable effect for borrowers with otherwise healthy credit profiles. Conditional or indicative assessments, the kind that Stanford Financial can provide in the early stages, do not require a formal enquiry, so you can explore your options without affecting your credit file before you are ready to proceed.

Does my HECS-HELP debt affect how much I can borrow?

Yes. HECS-HELP debt is treated as a committed expense in lender assessments because the repayment is automatically deducted from your income once you earn above the threshold. This effectively reduces your net assessable income. For borrowers with significant HECS debt, particularly those in specialist professions such as medicine, dentistry, and pharmacy, this can have a noticeable effect on borrowing capacity. A broker can help you understand the impact and identify lenders who treat this liability more favourably.

How quickly can I increase my borrowing capacity?

Some changes can have an almost immediate effect. Reducing or cancelling credit card limits and closing BNPL accounts, for example, can improve your position in a matter of weeks. Building up your savings history typically takes a few months to demonstrate to lenders. Addressing credit file issues such as clearing defaults can take longer, but the improvement to your borrowing position is often significant. If you have had credit difficulties in the past, our bad credit home loans page outlines some of the options available to you. Speak with one of our brokers for advice tailored to your specific circumstances.

What if I am building rather than buying an existing property?

If you are building a new home, the lending process works a little differently. Rather than receiving the full loan amount upfront, funds are released in stages as construction progresses. You can read more about how this works on our construction loans page.

Ready to Find Out What You Can Borrow?

Understanding your borrowing capacity is the first and most important step in your home buying journey. At Stanford Financial, we work with more than 50 lenders across Australia to help you find the right loan at the right terms, and we do it at no cost to you.

Whether you are a first home buyer trying to understand your position, an investor looking to grow your portfolio, or someone simply wanting to know what is possible, our team is here to help.

Book a free assessment with Stanford Financial today and take the first step with confidence. Get in touch here or on 0483 980 002.

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Key Highlights

Home equity is the difference between your property’s current market value and your remaining mortgage balance and for many Australians, it is a substantial and underutilised asset
Lenders typically allow you to borrow up to 80% of your home’s value minus what you still owe, giving you usable equity that can act as a deposit on an investment property
Equity can be accessed through refinancing, a home equity loan, or a line of credit without needing to sell your home
Investment properties accessed through equity can generate rental income and potential tax benefits, but maintaining a financial buffer for rate changes and vacancies is essential
Stanford Financial can assess your equity position and guide you through the right structure for your circumstances, at no cost to you

At Stanford Financial, we understand the aspiration to grow your investments and offer a guiding hand in using your home equity to purchase additional property.

Expanding your property portfolio is an exciting venture that can open a world of opportunities. For many Australians, the key to unlocking this path lies within their current home. Your home is not just a place of comfort and memories, it is also a valuable asset that can help achieve multi-property ownership.

What Is Home Equity?

Home equity is the difference between your property’s current market value and the balance of your mortgage. For instance, if your home is valued at $500,000 and you owe $300,000 on your mortgage, your equity is $200,000. This equity builds up over time as you pay down your mortgage and as your property’s value appreciates.

In Australia’s growing real estate market, homeowners often find themselves sitting on a substantial amount of equity, which can be a great tool in property investment. It’s like having a financial ace up your sleeve that you may not realise you possess.

The Process of Accessing Equity

Accessing the equity in your home isn’t a standard process for everyone as it begins with understanding just how much equity you have. This is where a property valuation comes in.

In Australia, property values can fluctuate based on various factors, from market trends to home improvements. Getting a professional valuation or a market appraisal from a real estate agent gives you a current idea of your property’s worth and these are often free of charge.

Once you know your home’s value, subtract your current mortgage balance from this amount to determine your accessible equity. It’s important to note that lenders often allow you to borrow up to 80% of your home’s value minus the debt you owe (without incurring Lenders Mortgage Insurance).

For example, if your home is valued at $500,000, 80% of its value is $400,000. If you owe $300,000, your accessible equity could be up to $100,000.

This Is Where Stanford Financial Come In

With an idea of your accessible equity, the next step is to approach a trusted mortgage broker like Stanford Financial. We will assess your financial situation, including your income, debts, and credit history, to determine how much banks could be willing to lend you.

There are different ways to access equity, such as through a home equity loan, line of credit, or by refinancing your current mortgage. Each option has its benefits and considerations, and the right choice depends on your financial goals and circumstances.

Together we will decide on the best financial product for your goals and we will go through the application process. This typically involves providing detailed financial information and possibly an additional property valuation. Upon approval, the lender will provide the funds or credit facility, which you can then use towards purchasing your next property.

With the equity accessed, it’s crucial to have a clear plan for your property investment. Consider factors such as property location, type, rental yields, and long-term capital growth prospects. Remember, while accessing equity can be a powerful tool for growing your property portfolio, it’s important to do so with careful planning and consideration of the risks involved. Consulting with mortgage brokers like us at Stanford Financial can provide personalised guidance tailored to your specific financial situation and goals.

Maximising Equity for Property Investment

When contemplating the use of home equity to purchase additional property, it’s essential to consider the full range of benefits, assess your personal financial situation, acknowledge the potential risks, and understand the importance of professional advice. This comprehensive approach ensures that you make a well-informed and strategic investment decision.

Benefits of Using Equity to Buy Another Property

Using equity to invest in property can offer several advantages, including potential tax benefits. For instance, tax deductions may be available for property investment-related expenses, or you might benefit from negative gearing.

Additionally, leveraging equity can be a catalyst for growth in your investment portfolio, enabling you to acquire additional properties more quickly than if you were saving for a full deposit. If invested wisely, the new property can generate rental income, potentially leading to an increased cash flow, opening doors to further investment opportunities.

Considerations of Using Equity To Buy Another Property

Along with assessing the benefits of using equity to buy another property, it is equally important to determine your current financial health and future objectives. Considerations such as your income stability, existing debts, and long-term financial goals are pivotal.

This evaluation helps in determining how effectively using equity aligns with your overall investment strategy and retirement planning. Understanding the risks is also critical. Property investment can be affected by factors like market volatility, changes in interest rates, and unforeseen maintenance costs, so maintaining a financial buffer is crucial. This buffer ensures you can manage the extra loan repayments and additional property upkeep, even in challenging circumstances.

The Role of Professional Advice

Given the complexities and significant implications of using equity for property investment, the value of professional financial guidance cannot be ignored. Stanford Financial mortgage brokers offer personalised guidance based on your unique financial situation, risk tolerance, and long-term aspirations.

They can help you decipher the subtleties of different loan products, comprehend the tax implications and your investment strategies. This expert guidance ensures that your decision to invest using equity is not only well-informed but also aligns with your overall financial goals.

Using Equity Is A Strategic Path to Purchasing Additional Property in Australia

While leveraging home equity to purchase additional property can be an effective strategy, it requires a balanced and forward-thinking approach. Considering the advantages, understanding your financial situation, being aware of the risks, and seeking professional advice are all critical steps in ensuring that you leverage your home equity effectively and responsibly.

As you try to decide if using your home equity to expand your property portfolio is the right way to go, remember that such financial decisions are as unique as your personal circumstances.

At Stanford Financial, we specialise in helping you change your financial situation and achieve your goals. Our team is dedicated to educating and empowering you with information that aligns with your specific financial landscape, ensuring that every step you take is informed, strategic, and conducive to your long-term success.

Whether you’re taking your first steps into property investment or looking to expand your existing portfolio, we’re here to help. Reach out to us today.