How can I get a first home loan with less than 20% deposit?

If you’re struggling to build a 20% deposit or you want to speed up the process of owning your first home, there are ways to take out a home loan with as little as a 5% deposit. One option is taking out lenders mortgage insurance (LMI), which protects the lender if you’re unable to make your repayments. You may also be eligible for the various government grants and schemes available for first home buyers.

I'm a first home buyer – is there any help out there to make my loan cheaper?

Some lenders offer special loans tailored to first home buyers that are worth checking out. You can use our comprehensive guide to learn more about getting a loan as a first home buyer. And don't forget about first home buyers' grants offered by many state and territory governments.

Can a mortgage broker find me a cheap home loan?

Mortgage brokers compare loans for you and are experts at helping borrowers find appropriate products. If you're confused or need help, a broker can be very useful. But you should also know that many of the market's lowest rates (including many listed on this page) are offered by small lenders that don't appear in a mortgage broker's panel. If the lender isn't in the broker's panel, they cannot help you. But brokers are helpful for other reasons, and if you have more concerns than just finding the absolute lowest rate, then speaking to a mortgage broker is a good idea. Just do your own research as well.

I want a cheap home loan, but I need to save a deposit first. How do I save that much money?

Saving up for your home loan deposit is a serious challenge for everyone. However, there are ways to trim your expenses, build your deposit and find home loans that don't need large deposits. To master the art of saving for a home loan deposit, you should look at our in-depth, 6-part guide to home loan deposits.

A mortgage rate I've seen looks too good to be true. How do I know if I can trust the lender?

You should always be comfortable with the lender you're planning on going with. If you're not aware of a lender, try calling it to find out about the company and its service level before lodging an application. Speak to previous customers or read customer reviews online. Keep in mind that little-known lenders might be funded by a larger bank, as is the case with NAB-backed ubank or Firstmac-backed loans.com.au.

How do banks treat bonus income for a home loan?

Whether a lender will consider bonus income as part of your home loan application depends on the lender and the type of bonus you receive. In many cases, receiving bonuses can improve your borrowing capacity. In others it may be disregarded altogether. Irregular bonuses are less likely to be assessed by a lender. If you can prove that you are paid bonuses or commissions on a regular basis and with a consistent amount, a lender will usually be satisfied to include it in your home loan assessment. Overtime bonuses may be considered if you work in a specific profession, such as emergency service workers, or if you have a contractual agreement to work a certain number of overtime hours per month. If you receive additional income off the back of an investment property, lenders will usually take a large portion of that income into consideration. It won’t take the full 100% as it assumes some of the income will go towards maintaining the property/ies. Income from investments like stocks and shares may also be considered by lenders depending on the payment structure and the type of investment. Speak to your lender or mortgage broker to find out whether your bonus income will be assessed. Always be sure to provide evidence of your bonuses through tax returns, payslips and/or a letter from your employer.