4 ways your home loan can make or break your home buying journey

When you're on the path to home ownership, don't forget about the home loan. It's almost as important as the ceilings and walls!

You've got your deposit saved up. You've got money to cover stamp duty. You're going to auctions, you've got a budget in place. You're ready to buy your first home. There's just one more thing. The home loan.

If you've just signed a contract to buy a house but you can't get finance approved the whole thing could fall apart.

Here's how to avoid that.

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1. It starts with the deposit

Getting the deposit together is the big challenge for most first home buyers. It takes years of saving and sometimes it still isn't enough.

Especially when a lender requires a 20% deposit. Luckily, there are other options.

Some home loans are available for borrowers with deposits as low as 10% or even 5%. These loans have LVRs (loan-to-value ratios) of 90% or 95%.

This is just lender jargon for the amount you can borrow in relation to your deposit size (if you can borrow 95% then you only need a 5% deposit, for example).

This reduces your deposit size and makes it easier to get into the market. Although you will probably need to pay a lenders mortgage insurance premium on top.

P&N Bank's Basic Variable Home Loan has a maximum 95% LVR, which means home buyers can get it with a deposit of just 5%.

2. Pre-approval, a buyer's secret weapon

When you're on the hunt for your first home, pre-approval gives you the advantage.

Pre-approval is when a lender takes a quick look at your income, deposit size and how much you want to borrow and then gives you an indication if you'll qualify for a loan.

It doesn't mean your loan approval is guaranteed, because you need to find a property and go through a more rigorous application process. But it's a useful guide to how much you can borrow.

And it's not something every lender offers. If you go into an auction with pre-approval it also signals to the seller that you're a serious buyer.

Many home buyers rush to get a home loan application sorted after signing a contract to buy a property. Pre-approval makes it that little bit easier.

P&N Bank offers a 90-day pre-approval to prospective home buyers after you sit down and talk to one of its lending specialists.

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3. A fast lender is a good lender

When you're rushing to settlement day, getting that home loan approved is the most important thing in the world.

This is the time when a fast lender can make a big difference.

Some lenders take weeks to process a home loan application. Some might have an influx of applications or lack the digital technology to speed up the process.

But some lenders can sort your application in days, especially if you tick all the lender's boxes (income, spending, property type, deposit size).

P&N Bank is one lender that does things quick. Loan approval can take 24 to 48 hours for some borrowers, and up to a week for people in more complex situations.

4. Low rates and fees always make the difference

Once you've settled into your home you have to start repaying the home loan. The stressful home buying journey is over. Congratulations!

But in many ways this is just the start. Now comes the years-long slog to pay the thing off.

This is where a good home loan makes a big difference to your finances. A home loan with a competitive interest rate and lower fees is one that will save you a lot of money over the years.

Even just a small difference to your interest rate means hundreds, even thousands of dollars saved each year.

Once you've got a home loan you're not stuck with it either. You can refinance to another lender if you find a loan that's a better deal.

P&N Bank's Basic Variable Home Loan ticks both these boxes, with a very competitive variable interest rate and no ongoing fees.

Learn more about home loans with P&N Bank

^{Credit products issued by Police & Nurses Limited (P&N Bank) ABN 69 087 651 876 AFSL/Australian Credit Licence 240701. Lending criteria, terms & conditions, fees & charges apply. *Rate advertised is for P&I loans >$20k. LVR <60%. Product information current as at 9 June 2025 and is subject to change. Other loan to value ratio tiers and rate options are available on our website. The Target Market Determination (TMD) for this product is available on our website or upon request. **Comparison rate calculated on a loan amount of $150,000 over a term of 25 years based on monthly repayments. For variable interest-only loans, comparison rates are based on an initial 3-year Interest Only period. During an Interest Only period, your Interest Only payments will not reduce your loan balance. This may mean you pay more interest over the life of the loan. WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different Comparison Rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the Comparison Rate but may influence the cost of the loan.}