Q: Is this figure a pre-approval?

No — it's an indicative estimate only. A pre-approval is a formal assessment by a specific lender of your documents. The good news is that pre-approval through us is free and usually sorted within days.

Question 1

Why do lenders give different numbers for the same income?

Accepted Answer

Every lender treats income, expenses and existing debts differently — some count 100% of bonus or overtime, others shade it to 80%, and each has its own living-expense floor and debt-to-income cap. It&#x27;s common for the highest and lowest offer on the same application to differ by six figures, which is exactly why we compare 40+ lenders before you commit.

Question 2

Do HECS/HELP debts and credit cards really matter?

Accepted Answer

More than most people expect. A credit card limit counts against you even if unused, because lenders assume you could max it out overnight — most assess around 3% of the limit as a monthly commitment, which is what this calculator does. HECS repayments come straight off your assessable income. Closing an unused card or dropping a limit can add tens of thousands to your borrowing power.

Question 3

What is HEM, and why might it override my expenses?

Accepted Answer

HEM — the Household Expenditure Measure — is a benchmark of typical living costs by household size and income, and every lender uses it as a floor: if you declare less than the HEM for your household, they assess you at HEM anyway. That&#x27;s why this calculator asks for adults and dependants and uses the higher of your figure and the benchmark. Declaring realistic expenses matters — lenders verify them against your statements.

Question 4

Why doesn&#x27;t this calculator ask for my deposit?

Accepted Answer

Because what you can borrow and what you can purchase for are different questions. Your purchase price depends on your deposit AND the upfront costs that come out of it — stamp duty (which varies a lot by state), LMI if you&#x27;re under 20%, legals and government fees. Adding a deposit to a borrowing figure without those would overstate your budget. Use our stamp duty calculator for your state, or better, let us map your full funding position — it&#x27;s the first thing we do.

Question 5

Is this figure a pre-approval?

Accepted Answer

No — it&#x27;s an indicative estimate only. A pre-approval is a formal assessment by a specific lender of your documents. The good news is that pre-approval through us is free and usually sorted within days.

Question 6

Do fortnightly repayments really pay the loan off faster?

Accepted Answer

Only if you pay half the monthly amount each fortnight. Because there are 26 fortnights, you sneak in one extra monthly payment a year, which can cut years off a 30-year loan. If your lender simply divides the monthly figure, it makes no difference.

Question 7

Will an offset account lower my repayment?

Accepted Answer

Not the minimum repayment itself, but every dollar in offset stops interest accruing on a dollar of the loan — so more of each repayment goes to principal and the loan finishes sooner. Whether an offset beats a lower basic rate depends on your balance; we can do that maths for you.

Question 8

Principal & interest or interest-only — which is better?

Accepted Answer

P&I costs more each month but every payment reduces the debt. Interest-only keeps payments lower (popular with investors for cashflow and tax) but the balance doesn&#x27;t move and the rate is usually higher. Owner-occupiers generally do best on P&I.

Question 9

Do I pay stamp duty on a house & land package?

Accepted Answer

Usually only on the land. If the build contract is separate and construction happens after the land settles, duty is generally assessed on the land value alone — often saving $15k–$25k versus an equivalent established home. It is one of the biggest structural advantages of building new.

Question 10

When do I actually have to pay it?

Accepted Answer

Typically at or shortly after settlement — your conveyancer handles the lodgement. It usually can not be added to your loan, so it needs to be part of your cash-to-complete.

Question 11

I&#x27;m a first home buyer — what am I entitled to?

Accepted Answer

Depending on the state and price: full or partial duty exemptions, the First Home Owner Grant on new builds, and federal low-deposit schemes. Eligibility rules are fiddly, so we check them all as part of any first-home chat, free.

Question 12

What are the usual costs of refinancing?

Accepted Answer

Typically $1,000–$1,500 all-in: a discharge fee from your current lender, government mortgage registration fees, and sometimes a new-lender application or valuation fee (often waived). Two watch-outs: break costs if you are on a fixed rate, and LMI if your equity is under 20%. We always check both first.

Question 13

Do monthly and annual fees really matter?

Accepted Answer

More than most people think. A $10 monthly service fee plus a $395 annual package fee is over $500 a year — on a $300k balance that&#x27;s like paying an extra 0.17% in rate. Enter each loan&#x27;s monthly and annual fees above and every figure — the table, the break-even and the total saving — includes them. Many of the sharpest loans we place have no ongoing fees at all, while package loans trade an annual fee for offset accounts and rate discounts; we&#x27;ll tell you which actually wins for you.

Question 14

Do I have to reset my loan to 30 years?

Accepted Answer

No — this is one of the biggest refinance myths. You can match the new loan to your remaining term. Many people choose a 30-year term for the lower minimum as a safety net, then keep paying their old amount so the extra goes straight to principal. What hurts is resetting to 30 years and only paying the new minimum — tick &#x27;keep paying my current repayment&#x27; above to see the difference.

Question 15

What&#x27;s the process, and how long does it take?

Accepted Answer

We compare 40+ lenders and shortlist sharper options, package your documents, and the new lender values your property (usually a free desktop valuation). After formal approval you sign new loan documents and the new lender pays out the old one behind the scenes. Most switches complete in 2–4 weeks and you do almost nothing.

Question 16

Will refinancing hurt my credit score?

Accepted Answer

A single application creates one credit enquiry — a small, short-lived dip. What damages scores is applying to many lenders at once, which is another reason to have a broker place you with the right lender the first time.

Question 17

Is it worth paying LMI to get a lower rate?

Accepted Answer

This comes up when your deposit or equity is under 20%: one lender might charge no LMI but a higher ongoing rate, while another charges (say) $10,000 LMI upfront for a sharper rate. Enter the no-LMI offer as the current loan with $0 costs and the LMI offer as the new loan with the LMI in once-off costs — the table shows exactly how many years the rate saving takes to claw back the upfront cost. Rough guide: the longer you hold the loan without refinancing again, the more the lower rate wins. We run this comparison for clients every week.

Question 18

Should I roll my credit cards and car loan into the mortgage?

Accepted Answer

It cuts the rate on that debt dramatically and turns several repayments into one — but stretching a 3-year car loan over 30 years can cost more interest overall despite the lower rate. That&#x27;s why the consolidation section shows both numbers, and the fix when it bites: shorten the loan term (or keep paying what you pay today) so your cash flow still improves while the interest comes back down. Structured properly, consolidation is one of the most powerful resets there is — it&#x27;s bread and butter for us.

Question 19

Is a cashback offer worth switching for?

Accepted Answer

Sometimes — but a $2,000 cashback on a rate 0.3% higher typically costs you more within two years. Enter the cashback in the once-off benefits field and the table shows exactly when the advantage runs out. We always compare the full picture: rate, fees, cashback and features, over the time you will actually hold the loan.

Question 20

How is the score worked out?

Accepted Answer

Five checks, weighted by impact: your rate against a sharp panel rate for your loan type and equity band (40 points), how recently the loan was reviewed (15), loan structure — offset, interest-only, fixed-rate rolloff timing (20), ongoing fees (10) and your equity position (15). Every deduction is shown with the reason, so nothing is a black box.

Question 21

Will this affect my credit score?

Accepted Answer

No. Nothing is submitted anywhere — the whole check runs inside your browser. A credit enquiry only ever happens later, if you choose to apply for a new loan.

Question 22

What rate do you compare mine against?

Accepted Answer

A sharp variable rate for your loan type — owner-occupier vs investor, principal-and-interest vs interest-only — and your loan-to-value ratio, the same loadings lenders use. Our brokers maintain the rate table from the live pricing they see across 40+ panel lenders, and the date it was last updated is shown with your result. It is not a quote; live pricing, including unadvertised discretionary discounts, is what a broker confirms.

Question 23

My loan is fixed — should I still check?

Accepted Answer

Especially then. The most expensive month in most loans is the one after a fixed period ends, when the loan rolls to the lender’s revert rate. If your fixed period ends within 12 months, the smart move is lining up the next step now — refinancing or repricing can be arranged to start the day the fixed rate finishes, with no break costs.

Question 24

Why do brokers do this for free?

Accepted Answer

Brokers are paid by the lender you end up with, at no cost to you — and by law must act in your best interests, which includes telling you when your current loan is the best deal and staying put is the right answer. That happens, and we’ll say so.

Question 25

What are “peak debt” and “end debt”?

Accepted Answer

Peak debt is everything you owe while you own both homes: your current mortgage, plus the money to buy the new place (price, stamp duty and costs, less your cash), plus any interest that gets added along the way. When your old home sells, the proceeds pay the bridge down — whatever remains is the end debt, which simply becomes a normal home loan. Some downsizers have no end debt at all — what brokers sometimes nickname a “no-tail bridge”.

Question 26

Do I make repayments during the bridge?

Accepted Answer

It depends on the lender, and it’s the biggest fork in the road. Some capitalise the interest — no repayments while you wait to sell, the interest is added to the loan instead. Others require interest-only payments on the whole amount the entire time, which means proving you can afford both properties at once. Which family fits you is usually the first thing a broker works out.

Question 27

Why is my sale price counted at only 85%?

Accepted Answer

Lenders never bank on your full expected sale price. They shade it — typically to 85–90% — to cover agent fees, legals and the risk the market is softer than hoped. We use 85%, the most conservative documented figure, so a result that passes here should survive the real assessment. If your home sells for more, the end debt only gets smaller.

Question 28

What if my home doesn’t sell in time?

Accepted Answer

Most bank bridges run for a maximum of 12 months. Sell inside that window and everything settles as planned; run past it and lenders can apply pressure — higher rates, or stepping in on the sale. That’s why the plan matters: a realistic price, a realistic timeline, and a lender whose terms match both. If you’ve already exchanged contracts, the risk largely disappears — and the numbers here get better too.

Question 29

Where do my answers go?

Accepted Answer

Nowhere, unless you choose to send them. The figures you enter go to our own calculator service only to work out your result — nothing is stored, and there’s no sign-up and no credit check. If you book a chat, your numbers ride along with the booking so you don’t have to explain everything again — that’s it.

Question 30

How much deposit do I actually need to buy?

Accepted Answer

The classic answer is 20% to avoid Lenders Mortgage Insurance, but most first home buyers don&#x27;t wait that long: 5% deposit government schemes, lender specials and family guarantees can get you in with far less — sometimes years earlier, which matters when prices rise faster than you can save.

Question 31

Where should deposit savings live?

Accepted Answer

Somewhere safe, liquid and earning — usually a bonus-rate saver or term deposit. Lenders also like to see genuine savings: three or more months of regular deposits in your own name. Shares and crypto can fall 20% the month before you need the money.

Question 32

Does the interest I earn get taxed?

Accepted Answer

Yes — savings interest is ordinary income, taxed at your marginal rate. On a large balance it&#x27;s worth remembering at tax time, and it&#x27;s one reason an offset account beats a savings account once you own a home.

Question 33

Is rent really "dead money"?

Accepted Answer

Not exactly — rent buys you housing, flexibility and freedom from maintenance, and renting can win if property growth is weak and you invest the difference. But rent buys no asset and rises forever, while a P&I mortgage eventually ends. It depends on the growth rate, which is why this tool lets you change it.

Question 34

I can&#x27;t afford to buy where I rent. Any options?

Accepted Answer

Rentvesting — renting where you love living and buying an investment where the numbers work — is exactly this play. You stay in your suburb and still get on the property ladder. It has tax and lending implications worth getting right.

Question 35

How much deposit stops me from buying right now?

Accepted Answer

Often less than you think: low-deposit schemes, family guarantees and grants exist for this. If the ownership column looks appealing but the deposit is the blocker, that is a solvable problem — talk to us.

Question 36

How do progress payments actually work?

Accepted Answer

Your builder invoices at fixed stages (slab, frame, lock-up, fixing, completion) and your lender pays each invoice by drawing down your loan, usually after an inspection. You only pay interest on what has been drawn so far, which is why early-build repayments are small and grow with each stage.

Question 37

Why does my own money go in first?

Accepted Answer

Lenders require your contribution to be spent before theirs — it protects them if the project stalls. In practice your deposit covers the land settlement and early stages, and the loan takes over from there, exactly as the table shows.

Question 38

What if the build runs longer than 8 months?

Accepted Answer

Very common — weather, trades and materials all stretch timelines. A longer build means more interest-only months on the same balances, so budget a buffer. Most lenders allow 12–24 months to complete before the loan must convert; tell us early if you are at risk of exceeding it.

Question 39

Can variations blow up my loan?

Accepted Answer

They can — variations signed during the build usually come from your own pocket, because the loan was sized on the original contract. If you are dreaming of an upgrade, price it into the contract before finance approval, not after.

Question 40

Why does building attract so much less stamp duty?

Accepted Answer

When you buy land and then build, duty is generally assessed on the land value only — the building contract is not dutiable. Buy an equivalent established home and duty hits the full price. In QLD and SA, first home buyers currently pay zero duty on new homes and land with no price cap, and the NT exempts new house-and-land packages for any buyer. That structural gap, plus the grant, is why building often starts $20k–$40k in front.

Question 41

What does the 5% Deposit Scheme toggle actually change?

Accepted Answer

A place in the federal scheme (the expanded First Home Guarantee — from October 2025 there is no income test and no cap on places) lets you buy with as little as 5% deposit while the government guarantees the rest, so no Lenders Mortgage Insurance is payable. On a 10% deposit for a $700k purchase that is roughly $13k of LMI removed. Property price caps apply by area (for example $950k in Melbourne, $1m in Brisbane, $1.5m in Sydney) — we check your eligibility and caps as part of any first-home chat.

Question 42

What if the build runs six months late?

Accepted Answer

It happens — weather, trades, titles. A late build means more months of rent and construction interest with no house at the end of it. Push "months to handover" up and watch the verdict: if the answer flips on a six-month delay, the decision is finer than it looks and the builder&#x27;s track record matters more than the price list. Budget a buffer either way.

Question 43

Will the finished home really be worth land plus build cost?

Accepted Answer

That is the deliberately conservative assumption here — no instant equity windfall on handover. Some builds value up on completion, especially where land has run hard during construction; plenty do not, and a valuer&#x27;s number is the one your lender uses. If a package only works with a day-one windfall priced in, it does not work.

Question 44

Should I use the First Home Super Saver scheme while I wait?

Accepted Answer

The FHSS scheme lets you save part of your deposit inside super at concessional tax rates, which can genuinely lift the waiting path&#x27;s return. We have left it out of the model on purpose: you have to manage the contributions yourself, the ATO release process takes time, and mistakes — over-contributing, or mistiming the release against settlement — are costly and stressful. It can absolutely be worth it, but set it up with advice, not off a calculator.

Question 45

Where could this comparison be wrong?

Accepted Answer

Growth rates are guesses — the defaults are moderated from published data, not forecasts, and the break-even line tells you how much they matter. Building carries risks waiting does not: builders fail, programs slip, variations cost. Location is not priced in — a new estate 45 minutes further out is a real cost in fuel, time and resale. Duty and LMI are estimates current as at August 2026, and every grant has residency, occupancy and value-cap conditions. Meeting the headline test is not the same as being eligible.

Question 46

What exactly changed with negative gearing?

Accepted Answer

In the 2026–27 Federal Budget, now law, negative gearing on residential property was limited to new builds. If you buy an established investment after 7:30pm AEST on 12 May 2026, then from 1 July 2027 any net rental loss can no longer be deducted against your salary — it carries forward against future rental profits or capital gains. Eligible new builds keep full negative gearing.

Question 47

Which rules apply if I rent out the home I already live in?

Accepted Answer

If you held it, or were under contract, before 7:30pm AEST on 12 May 2026, it is grandfathered — tick "old rules" and a rental loss still offsets your salary. Two traps: only interest on the loan that bought or improved that home is deductible (a redraw or top-up used for your next place is not, even though it sits on the same loan), and moving out changes its CGT main-residence position — the six-year absence rule can help, but it needs advice before you sign a lease.

Question 48

I already own an investment property — am I affected?

Accepted Answer

No. Properties held or under contract before 7:30pm AEST on 12 May 2026 are grandfathered and keep negative gearing under the old rules. The change applies to established properties acquired after that date.

Question 49

Are quarantined losses just gone?

Accepted Answer

Not gone — deferred. They carry forward and can offset future rental profits or capital gains when you sell a rental property. What you lose is the year-by-year refund against your salary, which is the cashflow benefit this estimator shows.

Question 50

Why does the estimator show extra tax when the rent covers the costs?

Accepted Answer

A property that is positively geared adds taxable income, taxed at the owners&#x27; marginal rates in the split you enter. The estimate is year one only and simplified — depreciation, the timing of costs and your other income all move it, so treat it as a guide, not a return.

Question 51

So is new the way to go now?

Accepted Answer

For many investors the 2026 rules have genuinely tilted the field towards new builds: stamp duty on the land only, full depreciation, negative gearing retained, plus builder warranties, low early maintenance and strong tenant appeal. Established property can still suit particular strategies, so it comes down to your goals, borrowing power and timeline. That is a conversation we have every day — bring your numbers and we will map both paths honestly.

Question 52

Why is depreciation so different between the two?

Accepted Answer

New builds let you claim both capital works (2.5% a year of the build cost) and brand-new plant and equipment. Since 2017, second-hand plant in established homes can not be claimed by new owners, so an established property&#x27;s deductions are usually a fraction of a new build&#x27;s. A quantity surveyor&#x27;s depreciation schedule is money well spent either way.

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Negative gearing estimator