11 Questions to Ask Before Getting a Home Loan

Updated October 2026 by Albert Waldron, Awesome Lending Solutions. This article first appeared on awesomelendingsolutions.com.au.

Getting a home loan is one of the biggest financial decisions you'll make. Yet many people focus on the fun part, finding the home, and skip the questions that really shape their future. Here are 11 questions to think through before you apply.

1. Would I qualify for a home loan?

Lenders look at your income, expenses, debts, credit history and deposit. They also check you could still afford repayments if your rate rose by 3%. A broker can give you a realistic idea before you apply.

2. How much can I comfortably afford?

What a lender will approve and what feels comfortable can be very different. With the cash rate at 4.60% after four rises in 2026, test your budget at a rate 0.5% to 1% higher than today's.

3. Am I better off buying than renting?

Buying lets you build equity instead of paying rent, and that equity can later help you buy again or invest. But buying has upfront costs and ongoing costs like rates, insurance and maintenance. Compare both honestly.

4. How much deposit do I need?

Often 5% to 20%. First home buyers may be able to use the 5% Deposit Scheme with no Lenders Mortgage Insurance (LMI). Single parents may qualify for the Family Home Guarantee with just 2%.

5. What government help am I eligible for?

In NSW, first home buyers pay no stamp duty on homes up to $800,000, and the First Home Owner Grant may apply to new homes. Check what applies to you before you set your budget.

6. Fixed, variable or split?

Variable rates give flexibility. Fixed rates give certainty. A split gives you some of both. The right choice depends on your budget and plans.

7. Do I need an offset account?

If you'll keep savings in the bank, an offset account can save a lot of interest while keeping your money available.

8. What fees will I pay?

Look beyond the interest rate. Check application, annual, valuation and discharge fees. The comparison rate gives a better picture of total cost.

9. What are the other costs of buying?

Budget for conveyancing, inspections, insurance, moving and, if you're not exempt, stamp duty.

10. What happens if my circumstances change?

Think about future plans like having children, changing jobs or starting a business. Choose a loan with enough flexibility, and keep a buffer for surprises.

11. Who will help me through the process?

A good broker compares lenders for you, explains your options and handles the paperwork. Under the Best Interests Duty, brokers must act in your best interests.

Frequently asked questions

Should I talk to a broker before I start looking?

Yes. Knowing your budget and getting pre-approval early helps you buy with confidence.

Does asking questions affect my credit score?

No. A conversation doesn't involve a credit check. Only a loan application does.

How long does approval take?

Pre-approval often takes a few days to two weeks, depending on the lender and your documents.

Talk to Awesome Lending Solutions

If you'd like help answering these questions for your own situation, we're happy to walk you through them, with no pressure. Call us on 02 7904 9560 or visit awesomelendingsolutions.com.au to book a chat.

This article is general information only. It does not consider your objectives, financial situation or needs, and it is not financial, tax or legal advice. Scheme rules, interest rates and laws were current as at October 2026 and can change. Speak with a licensed professional before making any decision. Albert Waldron is a Credit Representative (CR 407514) of AFG's Australian Credit Licence 389087.