Frequently asked questions
How much you can borrow for a home loan depends on your individual financial circumstances. This includes your income, ongoing living expenses, deposit amount, existing loans or debts and any assets or investments you hold.
You can use our home loan borrowing power calculator to get an estimate of how much you may be able to borrow, based on your personal situation.
Your home loan repayments depend on several factors, including the loan amount, loan term, interest rate, and how often you make repayments.
Our home loan repayments calculator can help you estimate your repayments on a weekly, fortnightly or monthly basis, based on your borrowing needs.
A deposit is the amount you contribute upfront toward the purchase price of a property, usually from savings.
In most cases, you’ll need a minimum deposit of 20% of the property’s purchase price to avoid paying Lenders Mortgage Insurance (LMI). If you have less than a 20% deposit, LMI is generally required. Some lenders offer home loans with deposits as low as 5%, but LMI usually applies. Eligible first home buyers may also be able to purchase a home with a 5% deposit and no LMI through the Home Guarantee Scheme.
A larger deposit can reduce how much you need to borrow and may lower your ongoing repayments.
There are several Australian Government programs are designed to help first home buyers. These include both state-based grants and national guarantee schemes.
Australian Government 5% Deposit Scheme
The Australian Government 5% Deposit Scheme allows eligible buyers to purchase a home with as little as a 5% deposit while avoiding Lenders Mortgage Insurance (LMI), thanks to a government guarantee. It applies to owner-occupied homes within set regional price caps, making it easier to get into the market sooner without needing a 20% deposit.
Australian Government Help to Buy Scheme
The Australian Government Help to Buy Scheme is a shared equity initiative that can make home ownership more achievable for both first home buyers and Australians returning to home ownership.
With a deposit from as little as 2%, you may be able to buy a home with support from the Australian Government.
First Home Owner Grant (FHOG)
The FHOG is a state-based grant available to eligible first home buyers who are purchasing or building a new home. Each state sets its own rules, including property value caps and residency requirements. This means the amount you can receive — and your eligibility — will differ depending on where you buy.
Lenders Mortgage Insurance (LMI) is a one-off insurance cost paid by the borrower when their home loan deposit is less than 20%. It protects the lender if the borrower defaults and the property sale does not cover the outstanding loan balance.
LMI can allow you to buy a property with a smaller deposit - sometimes as little as 5% of the purchase price. To avoid paying LMI, you’ll generally need a deposit of at least 20% of the property’s value.