Question 1

How much can I borrow to buy a home in Australia?

Accepted Answer

Lenders typically allow you to borrow 4–6× your gross annual income, depending on your expenses, debts, and the lender's assessment criteria. Use the Mortgage Affordability Calculator to get a personalised estimate based on your actual income and outgoings.

Question 2

What deposit do I need to buy a home?

Accepted Answer

A 20% deposit avoids Lenders Mortgage Insurance (LMI), but you can purchase with as little as 5% using LMI. First home buyers may also qualify for state-based stamp duty concessions and the First Home Guarantee scheme, which allows eligible buyers to purchase with a 5% deposit without LMI.

Question 3

What other costs are involved beyond the purchase price?

Accepted Answer

Budget for stamp duty (varies by state — typically 3–6% of purchase price), legal and conveyancing fees ($1,000–$3,000), building and pest inspection ($500–$1,000), mortgage registration fees, and moving costs. These can add 3–5% on top of the purchase price.

Question 4

Should I fix or float my mortgage rate?

Accepted Answer

Fixed rates offer certainty — you know exactly what your repayments will be for 1–5 years. Variable rates tend to be lower when rates are falling and offer more flexibility for extra repayments. Many buyers split their loan: part fixed, part variable. The right choice depends on your risk tolerance and how likely the RBA is to cut rates.

Question 5

How long does it take to buy a home in Australia?

Accepted Answer

From starting your search to settlement typically takes 3–6 months. Pre-approval takes 1–2 weeks, finding the right property and making an offer can take weeks to months, and the settlement period is usually 30–90 days after exchange of contracts.

🏠Buying a Home

Mortgage Affordability