Interest-Only Investment Loans in Australia: Pros, Cons and 2026 Rules

This article first appeared on awesomelendingsolutions.com.au.

Interest-only loans are popular with property investors because they lower repayments and free up cash flow. But they also have risks, especially when the interest-only period ends. Here's how they work and when they make sense.

What is an interest-only loan?

With an interest-only loan, your repayments only cover the interest for a set period, usually one to five years. You don't pay down the loan balance during that time.

When the interest-only period ends, the loan usually switches to principal and interest. Because you now have fewer years left to repay the full amount, your repayments can jump sharply.

Why investors use interest-only loans

1. Better cash flow

Lower repayments can make an investment property easier to hold, especially when rents don't fully cover costs.

2. Pay down non-deductible debt first

Interest on your home loan isn't tax deductible, but interest on investment loans usually is. Many investors keep their investment loans interest-only and put extra money into their home loan or offset account. This reduces their non-deductible debt faster.

3. Flexibility

Lower required repayments give you room to handle vacancies, repairs or rate rises.

The downsides

• You don't build equity through repayments. You rely on the property growing in value.
• Higher interest rate. Interest-only rates are usually higher than principal and interest rates.
• More interest overall. Because the balance doesn't fall, you pay more interest over the life of the loan.
• Repayment shock. When interest-only ends, repayments can rise significantly.

The repayment jump: an example

Leah has a $600,000 investment loan at 6.5% over 30 years, with five years interest-only.

• Interest-only repayments: about $3,250 a month
• After five years: she must repay $600,000 over 25 years. Repayments rise to about $4,050 a month.

That's an increase of around $800 a month. Planning for this is essential.

How lenders assess interest-only loans

Lenders assess interest-only loans carefully. They usually calculate your repayments as if you were paying principal and interest over the shorter remaining term, plus the 3% serviceability buffer. This means interest-only loans don't usually increase how much you can borrow.

Lenders may also ask why you want interest-only and how you plan to repay the loan.

Interest-only and the 2026 tax changes

The new negative gearing rules mean that for established residential properties bought after 7:30pm on 12 May 2026, rental losses can't be used against your wage income from 1 July 2027. If your property runs at a loss, the after-tax cost of interest-only repayments may be higher than before. Investors in this situation may want to focus more on cash flow.

For new builds and grandfathered properties, the existing tax treatment generally continues.

What to do when your interest-only period ends

You have several options:

1. Switch to principal and interest – often at a lower rate.
2. Ask for a new interest-only period – with your current lender, subject to approval.
3. Refinance – to a lender that will offer a new interest-only period.
4. Sell – if the property no longer fits your plans.

Start reviewing your options three to six months before the interest-only period ends.

Is interest-only right for you?

Interest-only may suit you if:

• You're an investor with a home loan you want to pay down first
• You have a clear plan for the loan
• You can comfortably handle the higher repayments later

It may not suit you if:

• You're stretching your budget to afford the property
• You're relying solely on growth
• You have no plan for when the interest-only period ends

Frequently asked questions

Can owner-occupiers get interest-only loans?

Yes, but it's less common and lenders may be stricter. It's usually used for short periods, such as during parental leave.

Is interest-only interest tax deductible?

For investment properties, interest is generally deductible, subject to the 2026 rules for new purchases of established homes.

How long can interest-only last?

Usually up to five years for investors, sometimes longer with some lenders.

Can I make extra repayments on an interest-only loan?

Usually yes, but for investors it often makes more sense to put spare money in an offset account or against the home loan.

Planning ahead: a simple checklist

• Note the date your interest-only period ends
• Work out your future principal and interest repayment now
• Build a cash buffer to cover the increase
• Review your rental income and costs each year
• Talk to your broker six months before the period ends to compare your options

A little planning turns a potential repayment shock into a smooth, manageable transition.

Talk to Awesome Lending Solutions

Every situation is different, and the right loan depends on your goals, income and timing. At Awesome Lending Solutions, we compare a wide panel of lenders and explain your options in plain English, 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.

How to Switch Home Loan Lenders in Australia: A Simple Guide

This article first appeared on awesomelendingsolutions.com.au.

Switching your home loan to a new lender sounds like a lot of work. In reality, most of the heavy lifting is done for you, especially if you use a mortgage broker. Here's how switching works and what to expect.

Why switch lenders?

People switch lenders to:

• Get a lower interest rate
• Reduce fees
• Get better features, like an offset account
• Access equity
• Get better service

With rates rising four times in 2026, many borrowers are finding their existing lender's rate is no longer competitive.

Before you switch: ask your current lender

Call your current lender and ask them to match the best rate you can find. Sometimes this solves the problem in one phone call. If they don't offer a competitive rate, it may be time to move.

Step-by-step: how to switch lenders

Step 1: Review your current loan

Check your:

• Balance and rate
• Remaining term
• Fixed or variable status
• Any fees for leaving (discharge fees and break costs)

Step 2: Compare new loans

Compare comparison rates, fees and features. Make sure the new loan suits how you use your money.

Step 3: Gather your documents

You'll usually need:

• Photo ID
• Recent payslips or tax returns
• Recent home loan statements (usually six months)
• Statements for other debts
• Council rates notice

Step 4: Apply

You or your broker submits the application. The new lender checks your income, expenses, credit and the property value.

Step 5: Valuation

The lender values your property, often from a desktop report, sometimes with a visit. The valuation affects your Loan to Value Ratio and your rate.

Step 6: Approval and documents

Once approved, you'll receive loan documents to sign. You'll also sign a discharge authority, which tells your old lender you're leaving.

Step 7: Settlement

Your new lender pays out your old loan. Your old mortgage is discharged and the new one is registered. Your repayments start with the new lender.

How long does it take?

Usually two to six weeks. Delays can happen if documents are missing, the valuation is lower than expected or the old lender is slow to process the discharge.

What it costs

Typical costs include:

• Discharge fee: often $150 to $400
• Government registration fees: a few hundred dollars
• Application or settlement fees: often $0 to $600
• Break costs: if fixed
• LMI: if your new loan is above 80% of the property value

Some lenders offer cashback that can offset these costs.

Tips for a smooth switch

• Don't cancel direct debits early. Keep paying your old loan until settlement.
• Update your direct debits after settlement. Make sure repayments go to the new loan.
• Move your offset or savings carefully. Wait until the new account is set up.
• Keep your repayment amount. Paying the same as before helps you pay off the loan faster.

When switching may not be right

• Your fixed rate has high break costs. Wait until it expires.
• Your property value has dropped. If your LVR goes over 80%, LMI may wipe out savings.
• Your income has fallen. You might not pass the new lender's test.
• You plan to sell soon. You may not recover the switching costs.

An example

Nina's loan of $430,000 is at 6.94%. She switches to a new lender at 6.24%. Her monthly repayment falls by about $190. She keeps paying her old amount and puts the difference towards her loan, cutting years off her term.

Frequently asked questions

Will I have to pay LMI again?

Only if your new loan is over 80% of the property value. LMI doesn't transfer between lenders.

Can I switch lenders if I'm on a fixed rate?

Yes, but you may pay break costs. Get a quote first.

Will my old lender try to keep me?

Often. When you request a discharge, your lender may offer a better rate. It's worth hearing them out.

Do I need to tell my old lender why I'm leaving?

No. But giving a reason can prompt a retention offer, which could save you the effort of switching.

Can I switch if I'm behind on repayments?

It's harder, because lenders check your repayment history. Talk to your current lender about hardship options first, and get advice before applying elsewhere.

Switching with a broker

When you switch through a broker, they compare lenders, prepare the application, follow up the valuation and keep in touch with both lenders until settlement. You still make every decision, but you spend far less time on hold and filling in forms. For busy families and business owners, that time saving alone can make the switch worth it.

Talk to Awesome Lending Solutions

Every situation is different, and the right loan depends on your goals, income and timing. At Awesome Lending Solutions, we compare a wide panel of lenders and explain your options in plain English, 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.

First Home Buyer Help in NSW: Grants, Stamp Duty and Schemes for 2026

This article first appeared on awesomelendingsolutions.com.au.

Sydney is one of the most expensive places in the world to buy a home. That makes help for first home buyers in NSW especially valuable. The right mix of schemes can save you tens of thousands of dollars and get you into a home years sooner.

Here is a simple guide to every main type of help available to first home buyers in NSW in 2026.

1. First Home Buyers Assistance Scheme (stamp duty)

Stamp duty (also called transfer duty) is a tax you pay when you buy property. In NSW, it is often the biggest upfront cost after your deposit.

Under the First Home Buyers Assistance Scheme:

• Homes up to $800,000 – no stamp duty at all
• Homes over $800,000 and under $1 million – reduced stamp duty
• Vacant land up to $350,000 – no stamp duty
• Vacant land over $350,000 and under $450,000 – reduced duty

The scheme covers both new and existing homes. To qualify, you must be at least 18, an Australian citizen or permanent resident, buying your first home and planning to live in it for at least 12 months.

On an $800,000 home, the saving is around $30,000.

2. NSW First Home Owner Grant

The NSW First Home Owner Grant is a $10,000 payment for eligible:

• New homes, off-the-plan homes or substantially renovated homes up to $600,000
• House-and-land builds with a total value up to $750,000

The grant is not available for existing homes.

3. The 5% Deposit Scheme (federal)

This scheme lets eligible first home buyers buy with a 5% deposit and no Lenders Mortgage Insurance. Since October 2025, there are no income caps and no limit on places.

In NSW, the price caps are:

• $1.5 million in Sydney and regional centres
• $800,000 in other areas

4. Help to Buy (federal)

Help to Buy is a shared equity scheme. The government can own up to 40% of a new home or 30% of an existing home with you. You need just a 2% deposit, and your loan is smaller.

In NSW, the price caps are $1.3 million in Sydney and regional centres and $800,000 elsewhere. There are income caps, which are indexed each July. The old NSW Shared Equity Home Buyer Helper closed to new applicants in June 2024, so Help to Buy is now the main shared equity option.

5. Family Home Guarantee (federal)

Eligible single parents and single legal guardians can buy with a 2% deposit and no LMI. You don't need to be a first home buyer, but you can't currently own property.

6. First Home Super Saver Scheme

You can save up to $50,000 of your deposit inside super through voluntary contributions, which may help you save faster because of lower tax.

Putting it together: two examples

Example 1: Jack buys an existing $780,000 unit in Parramatta

• 5% Deposit Scheme: needs $39,000 deposit, no LMI
• Stamp duty: $0 (under $800,000)
• First Home Owner Grant: not eligible (existing home)

Jack saves around $30,000 in stamp duty and avoids LMI.

Example 2: Priya and Sam build a house-and-land package in Western Sydney for $740,000

• First Home Owner Grant: $10,000
• Stamp duty on the land: likely $0 if the land is under $350,000
• 5% Deposit Scheme: buy with 5%, no LMI

Rules that catch people out

• Price caps are strict. Going even slightly over a cap can cost you thousands.
• Both partners count. If your partner has owned property before, it may affect your eligibility for some schemes.
• You must live in the home. Most schemes require you to move in within 12 months and stay at least 6 to 12 months.
• Timing matters. Some schemes must be applied for before settlement.

The market in 2026

Sydney home values have fallen in 2026, and by the end of September they were around 8.6% below their February peak. Rates have also risen. For some first home buyers, softer prices create opportunity. For others, rising repayments make budgeting more important than ever. Either way, make sure your repayments are comfortable now and if rates rise further.

How a broker can help

Working out which schemes you qualify for, and how to combine them, can be tricky. A mortgage broker can check your eligibility, compare participating lenders and make sure you get every dollar of help you are entitled to.

Frequently asked questions

Can I get stamp duty relief and the 5% Deposit Scheme together?

Yes, as long as you meet the rules for both.

Is there an income limit for NSW stamp duty relief?

No. The First Home Buyers Assistance Scheme does not have an income cap.

What if I'm buying with someone who has owned a home before?

You may not be able to get some first home buyer benefits. Speak to a broker or conveyancer before you sign.

Talk to Awesome Lending Solutions

Every situation is different, and the right loan depends on your goals, income and timing. At Awesome Lending Solutions, we compare a wide panel of lenders and explain your options in plain English, 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.

Home Loan Cashback Offers: Read the Fine Print Before You Switch

This article first appeared on awesomelendingsolutions.com.au.

Cashback offers are a popular way for lenders to attract new customers. A few thousand dollars in your account can be tempting, especially when budgets are tight. But a cashback isn't always the great deal it seems. Here's what you need to know before you switch.

What is a home loan cashback?

A cashback is a one-off payment from a lender when you take out a new home loan, often when you refinance. Offers usually range from $1,000 to $4,000, sometimes more for large loans.

Why lenders offer cashbacks

Lenders use cashbacks to win new customers, especially refinancers. They're hoping you'll stay for many years, which makes the cashback worthwhile for them.

The catch: the rate

The most important question is: is the interest rate competitive?

If a cashback loan has a higher rate than other loans, the extra interest can quickly outweigh the cashback.

Example:

• Loan A: 6.29% with a $3,000 cashback
• Loan B: 6.09% with no cashback
• Loan size: $600,000

The 0.2% difference costs about $1,200 a year. After about two and a half years, Loan A costs more than Loan B, even after the cashback.

Common cashback conditions

Read the fine print. Cashbacks often require:

• A minimum loan amount – often $250,000 or more
• A maximum LVR – often 80%
• Settlement within a deadline – sometimes 60 to 120 days
• Owner-occupied or principal and interest loans only
• One cashback per household or application
• Applying through certain channels – not all cashbacks are available everywhere
• Keeping the loan for a minimum period – some lenders may claw back the cashback if you leave early

Other costs to compare

• Application and settlement fees
• Annual package fees
• Discharge fee from your old lender
• Break costs if you're on a fixed rate
• LMI if your LVR is above 80%

When a cashback is a good deal

A cashback can be great value if:

• The rate is also competitive
• The fees are low
• The loan has the features you need
• You plan to keep the loan long enough, but may review it again later
• It covers your switching costs

Cashbacks and frequent refinancing

Some borrowers "churn" between lenders to collect multiple cashbacks. This can work, but each switch involves:

• A credit enquiry
• Paperwork and time
• Possible costs
• A risk of being approved for less if your situation has changed

It's usually better to focus on getting a great rate and reviewing it regularly.

Cashbacks in 2026

With the cash rate at 4.60% after four rises in 2026, many borrowers are looking to refinance, and lenders are competing hard with cashbacks. But in a higher rate environment, a small rate difference is worth more than ever. Focus on the rate first.

An example

Olivia is offered a $4,000 cashback to refinance her $550,000 loan at 6.34%. Her broker finds another lender at 6.14% with no cashback but no fees.

• The 0.2% difference saves her about $1,100 a year.
• After just under four years, the lower-rate loan is ahead.
• She plans to keep her loan for at least five years, so she chooses the lower rate.

A simple test

Ask yourself: "If there was no cashback, would I still choose this loan?" If the answer is no, think carefully.

Questions to ask the lender

• What exactly do I need to do to qualify?
• When will the cashback be paid?
• Can it be clawed back if I leave early?
• Is the rate the same as for borrowers who don't get the cashback?

A quick cashback checklist

• Compare the rate with similar loans that have no cashback
• Add up all fees on the new loan
• Include your switching costs
• Check the deadline and conditions
• Ask about clawbacks
• Work out the break-even point

If the cashback loan still comes out ahead after all of this, it may be a good deal. If not, the lower-rate loan is usually the smarter choice over the long term.

Frequently asked questions

Are cashbacks taxable?

For owner-occupied loans, cashbacks are generally not treated as income. For investment loans, they may affect the cost base or deductions. Ask your accountant.

Can I get a cashback through a broker?

Many lenders offer cashbacks through brokers. Some offers are direct only.

Should I refinance just for a cashback?

Only if the overall loan is competitive.

What if my lender offers a cashback to stay?

Compare the total cost with the alternatives, just as you would for a new lender. A retention offer can be a good result if the rate is also sharp.

Talk to Awesome Lending Solutions

Every situation is different, and the right loan depends on your goals, income and timing. At Awesome Lending Solutions, we compare a wide panel of lenders and explain your options in plain English, 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.

How Does a Mortgage Broker Work? A Step-by-Step Explanation

This article first appeared on awesomelendingsolutions.com.au.

If you've never used a mortgage broker before, you might wonder what they actually do. In simple terms, a broker is your guide and helper through the home loan process. Here's how it works, step by step.

Step 1: Getting to know you

Your first conversation is about understanding you. A broker will ask about:

• Your goals (buying, refinancing, investing)
• Your income and job
• Your expenses and debts
• Your savings or equity
• Your timeframe
• What's important to you in a loan

This usually takes 30 to 60 minutes and can be in person, by phone or by video.

Step 2: Working out your options

The broker then works out:

• How much you can borrow
• Which lenders are likely to approve you
• Which government schemes you may qualify for
• What loan features would suit you

Lenders each have their own policies and calculators. A good broker knows these differences well.

Step 3: Comparing loans

The broker compares loans from their lender panel. They look at:

• Interest rates and comparison rates
• Fees
• Features like offset accounts and redraw
• Lender policies that suit your situation

Step 4: Making a recommendation

Your broker explains which loan they recommend and why. Under the Best Interests Duty, they must act in your best interests. They'll usually show you other options too, and give you a document called a credit proposal or preliminary assessment, which explains the recommendation.

You make the final decision.

Step 5: Collecting documents

You'll provide documents such as:

• Photo ID
• Payslips or tax returns
• Bank statements
• Statements for existing debts

The broker checks everything before it goes to the lender, which reduces delays.

Step 6: Lodging the application

The broker submits your application and supporting documents to the lender. They then follow up with the lender and answer any questions on your behalf.

Step 7: Approval

You might first receive pre-approval (if you're still looking) or go straight to formal approval (once you have a property or are refinancing). The lender orders a valuation of the property.

Step 8: Loan documents and settlement

When your loan is approved, the lender issues loan documents. Your broker can help explain them. The broker then works with your conveyancer and the lender to make sure settlement happens on time.

Step 9: After settlement

A good broker doesn't disappear. They'll check in to:

• Make sure your loan is set up correctly
• Review your rate regularly
• Help when your fixed rate ends
• Help with future goals like renovating or investing

How brokers are paid

Most brokers are paid by lenders through:

• Upfront commission – a percentage of the loan amount, paid after settlement
• Trail commission – a small ongoing percentage while the loan is active

These are disclosed to you in writing. For most standard loans, you don't pay the broker directly.

What brokers don't do

Brokers aren't usually tax agents, financial planners or lawyers. A good broker will tell you when you need advice from one of these professionals.

Why it matters in 2026

With rates rising four times in 2026, the new APRA debt-to-income limit, an expanded 5% Deposit Scheme and new tax rules for investors, there are more moving parts than ever. A broker keeps track of these so you don't have to.

An example

Sarah and Ben want to buy their first home in Sydney. Their broker:

1. Works out they can borrow $720,000
2. Confirms they qualify for the 5% Deposit Scheme and NSW stamp duty exemption
3. Compares participating lenders and recommends one with a full offset account
4. Gets them pre-approved within a week
5. Manages the process through to settlement after they buy a $760,000 unit

How long does the whole process take?

From your first chat to settlement, it's often six to twelve weeks when buying. That includes finding a property. Refinances are usually faster, often two to six weeks. The more organised your documents are, the quicker things move.

Frequently asked questions

Do I have to pay a broker?

Usually not for standard home loans. Brokers must tell you about any fees upfront.

Can I talk to a broker before I'm ready to buy?

Yes. Many people talk to a broker months before they buy, to plan their savings and budget.

What if the broker's recommendation doesn't suit me?

You don't have to accept it. A good broker will explain alternatives and adjust to your needs.

Will a broker check my credit?

Only with your permission, and usually only when you're ready to apply.

Talk to Awesome Lending Solutions

Every situation is different, and the right loan depends on your goals, income and timing. At Awesome Lending Solutions, we compare a wide panel of lenders and explain your options in plain English, 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.

Negative Gearing in 2026: What's Changed for Property Investors

This article first appeared on awesomelendingsolutions.com.au.

For decades, negative gearing has been a central part of property investing in Australia. In 2026, that changed. New laws passed in June 2026 limit negative gearing for many future investors. If you own investment property, or plan to buy, here's what you need to know in plain English.

What is negative gearing?

A property is "negatively geared" when the costs of owning it, such as loan interest, rates, insurance and repairs, are more than the rent it earns. The difference is a loss.

Under the old rules, you could use that loss to reduce the tax on your other income, such as your wages. This lowered your tax bill and made it easier to hold the property while you waited for its value to grow.

What changed in 2026?

The changes were announced in the federal Budget on 12 May 2026 and passed into law in June 2026. In simple terms:

• Established residential properties bought after 7:30pm (AEST) on 12 May 2026 – from 1 July 2027, rental losses can only be offset against residential rental income or capital gains from residential property. They can't reduce the tax on your wages. Unused losses can be carried forward.
• Properties held before that time – including those under contract but not yet settled – are grandfathered. They keep the existing treatment until they are sold.
• New builds – properties that add to housing supply are exempt. They keep full negative gearing.
• Commercial property – not affected by these changes.
• Some other exemptions – such as widely held trusts and build-to-rent developments.

A second law passed in August 2026 clarified that properties received through inheritance or a relationship breakdown keep their tax treatment.

What does this mean for investors?

If you already own investment property

If you held the property before 7:30pm on 12 May 2026, you can generally keep negatively gearing it as before. Refinancing your loan doesn't usually change when you acquired the property.

If you're buying an established property now

Your losses will be "quarantined" from 1 July 2027. They can still be used, but only against residential rental income or capital gains. This means your after-tax holding costs may be higher, so cash flow becomes more important.

If you're buying a new build

New builds keep negative gearing. They are also exempt from APRA's debt-to-income limit. This may make new builds more attractive for some investors, but they come with their own risks, such as builder quality and higher prices.

A simple example

Anna earns $120,000 and buys an established unit in June 2026. In 2027–28, the unit makes a $10,000 loss.

• Old rules: she could reduce her taxable income to $110,000, saving roughly $3,000 or more in tax.
• New rules: she can't reduce her wage income. The $10,000 loss carries forward to use against future rental profits or capital gains.

Her property still works, but her yearly cash flow is tighter.

What about capital gains tax?

From 1 July 2027, the 50% CGT discount is replaced by cost-base indexation and a 30% minimum tax on gains. Gains made before 1 July 2027 keep the 50% discount. New builds can choose between the old discount and the new method.

How this affects borrowing

Lenders look at your cash flow. Some lenders used to factor in the tax benefit of negative gearing when working out your borrowing power. With quarantined losses, that benefit may be smaller for new purchases of established homes. This could reduce how much some investors can borrow.

Strategies investors are considering

• Focusing on cash flow – properties with higher rental yields
• New builds – to keep negative gearing
• Paying down non-deductible debt – like the home loan, first
• Commercial property – which isn't affected by the residential changes
• Holding grandfathered properties – rather than selling and rebuying

Always speak with your accountant before acting, as everyone's situation is different.

Frequently asked questions

Is negative gearing gone?

No. It's still available for new builds and for properties held before 12 May 2026. It's limited for established homes bought after that.

Can I convert my home into a rental and negatively gear it?

Reports on the changes say that a home you live in can later be rented out and negatively geared, but check the details with your accountant.

Do the changes apply to commercial property?

No. They only apply to residential property.

Does refinancing my investment loan affect grandfathering?

Generally no, because grandfathering depends on when you acquired the property. Get tax advice for your situation.

Talk to Awesome Lending Solutions

Every situation is different, and the right loan depends on your goals, income and timing. At Awesome Lending Solutions, we compare a wide panel of lenders and explain your options in plain English, 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.

Refinance Calculator: How to Work Out if Refinancing Saves You Money

This article first appeared on awesomelendingsolutions.com.au.

A refinance calculator can quickly show whether switching your home loan could save you money. But the answer is only as good as the numbers you put in, and many people miss the details that matter. This guide shows you how to use a refinance calculator properly.

What a refinance calculator does

Most refinance calculators compare your current loan with a new loan. They show:

• Your current repayments
• Your new repayments
• How much you could save each month and year
• How long it takes to recover your switching costs
• Total interest saved over the life of the loan

The numbers you'll need

Gather these before you start:

About your current loan

• Loan balance
• Interest rate
• Years remaining
• Repayment type (principal and interest or interest only)
• Ongoing fees (annual or monthly)

About the new loan

• Interest rate and comparison rate
• Upfront fees (application, valuation, settlement)
• Ongoing fees
• Any cashback offered

Switching costs

• Discharge fee from your old lender
• Government registration fees
• Break costs if you are on a fixed rate
• Lenders Mortgage Insurance if your new loan is over 80% of the property value

A worked example

Here is a simple refinance comparison.

Current loan

• Balance: $500,000
• Rate: 6.79%
• Term left: 25 years
• Annual fee: $395
• Monthly repayment: about $3,465

New loan

• Rate: 6.19%
• Term: 25 years
• Annual fee: $0
• Monthly repayment: about $3,280

Savings and costs

• Monthly saving: about $185
• Yearly saving: about $2,220, plus the $395 annual fee
• Switching costs: about $900
• Break-even: about four months

In this case, refinancing makes sense.

The common traps

1. Comparing different loan terms

If you compare your current loan with 25 years left to a new 30-year loan, the new loan will always look cheaper each month. But you may pay more interest overall. Always compare the same term.

2. Forgetting fees

A lower rate with a high annual fee might not save as much as you think. Use the comparison rate or add the fees in yourself.

3. Ignoring break costs

If you are on a fixed rate, break costs can be large. Get a quote from your lender before you decide.

4. Ignoring the offset

If you keep savings in an offset account, a loan without one may cost you more, even with a lower rate. Include your average offset balance in your comparison.

5. Assuming your property value

If your property has fallen in value, your Loan to Value Ratio might be higher than you think. This affects which rates you can get and whether you'll pay LMI. With values down in most capitals during 2026, it's worth checking.

How to make the most of refinancing

• Keep your repayments the same. If your new repayment is lower, keep paying the old amount. You'll pay off the loan faster and save more interest.
• Use the savings wisely. Put them into your offset account or an emergency fund.
• Check again next year. Rates and offers change often.

When a calculator isn't enough

Calculators can't tell you whether a lender will approve you. Approval depends on your income, expenses, credit and property value. Since February 2026, lenders are also limited in how many high debt-to-income loans they can approve. A broker can check this before you apply.

Frequently asked questions

What's a good break-even time for refinancing?

If you recover your costs within one to two years and plan to keep the loan longer, refinancing is usually worth considering.

Do refinance calculators include LMI?

Many don't. If your loan will be over 80% of the property value, ask for a quote.

Can a calculator tell me if I'll be approved?

No. It only shows the potential savings. Approval depends on the lender's assessment.

What if the savings look small?

Small savings still add up. A $100 a month saving is $1,200 a year and much more over the life of the loan. But if your switching costs are high, or you plan to sell soon, it may be better to ask your current lender for a rate review instead.

A quick refinance checklist

Before you rely on a calculator result, make sure you have:

• Used your actual remaining loan term, not a fresh 30 years
• Included every fee on both loans
• Checked break costs if you are fixed
• Checked your likely property value and LVR
• Included the value of your offset balance
• Asked your current lender for its best offer

If the numbers still stack up after all of that, refinancing is likely worth exploring.

Talk to Awesome Lending Solutions

Every situation is different, and the right loan depends on your goals, income and timing. At Awesome Lending Solutions, we compare a wide panel of lenders and explain your options in plain English, 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.

First Home Buyer Schemes in Australia: Every Government Incentive Explained

This article first appeared on awesomelendingsolutions.com.au.

There is more help for first home buyers in Australia than ever before. The problem is that it is spread across federal and state governments, and every scheme has its own rules. This guide puts it all in one place, in plain English.

Federal schemes (available Australia-wide)

1. The 5% Deposit Scheme

This is the big one. Eligible first home buyers can buy with a 5% deposit and no Lenders Mortgage Insurance (LMI). Since 1 October 2025, there are no income caps and no limits on places. Property price caps apply depending on location.

Best for: buyers with a steady income who have saved 5% and want to own 100% of their home.

2. The Family Home Guarantee

Eligible single parents and single legal guardians can buy with a 2% deposit and no LMI. You do not have to be a first home buyer, but you must not currently own property.

Best for: single parents who want to buy sooner.

3. Help to Buy

Help to Buy opened on 5 December 2025. It is a shared equity scheme. The government can contribute up to 40% of the price of a new home, or 30% of an existing home, in return for the same share of the property. You need a 2% deposit, and your loan is much smaller.

There are income caps (around $103,000 for singles and $165,000 for couples and single parents in 2026–27, indexed each July) and price caps ($1.3 million in Sydney and regional centres, $800,000 in the rest of NSW). Places are limited, and only a few lenders take part.

Best for: buyers on moderate incomes who can't borrow enough on their own.

4. First Home Super Saver Scheme (FHSS)

You can make extra voluntary contributions to your super and then withdraw them, plus earnings, to help with your deposit. The maximum you can release is $50,000 per person. Because super is taxed at a lower rate, you may save faster than in a normal bank account.

Best for: buyers who are a year or more away from buying and want to save tax.

State schemes

First Home Owner Grant

Each state offers a cash grant, mainly for new homes. In NSW it is $10,000 for new homes up to $600,000, or house-and-land builds up to $750,000. Queensland offers $30,000, and the Northern Territory offers up to $50,000.

Stamp duty concessions

Most states reduce or remove stamp duty for first home buyers. In NSW, the First Home Buyers Assistance Scheme means no stamp duty on homes up to $800,000 and reduced duty up to $1 million. For many buyers, this is worth more than the grant.

Can you combine schemes?

Often, yes. Here is a common NSW combination:

• 5% Deposit Scheme – to avoid LMI
• First Home Buyers Assistance Scheme – to avoid stamp duty
• First Home Owner Grant – if buying a new home under the cap
• First Home Super Saver Scheme – to help build the deposit

There are some limits. For example, you cannot use Help to Buy and the 5% Deposit Scheme on the same purchase.

Which scheme is right for you?

Ask yourself these questions:

1. How much have I saved? If you have 5% or more, the 5% Deposit Scheme may suit you. If you only have 2%, look at Help to Buy or, if you are a single parent, the Family Home Guarantee.
2. How much can I borrow? If your income limits how much you can borrow, Help to Buy can reduce the size of the loan you need.
3. Do I want to own the whole home? Under Help to Buy, the government shares in any growth in value. Under the 5% Deposit Scheme, all the growth is yours.
4. Am I buying new or existing? This affects the grant and some price caps.

A word of caution

Schemes make buying easier, but they do not make the loan smaller (except Help to Buy). You still need to be comfortable with your repayments. With the cash rate at 4.60% after four rises in 2026, it is wise to leave room in your budget for further changes.

Getting help

The best scheme depends on your income, savings, the property and where you are buying. A mortgage broker can check which schemes you qualify for, compare participating lenders and make sure you don't miss out on savings.

Frequently asked questions

Do I need to apply for each scheme separately?

Some are applied for through your lender (like the 5% Deposit Scheme and often the grant). Others, like stamp duty concessions, are handled by your conveyancer.

Do schemes change often?

Yes. Price caps are reviewed regularly and income caps for Help to Buy are indexed each July. Always check the latest rules before you sign a contract.

Can I use a scheme to buy an investment property?

No. These schemes are for homes you will live in.

Talk to Awesome Lending Solutions

Every situation is different, and the right loan depends on your goals, income and timing. At Awesome Lending Solutions, we compare a wide panel of lenders and explain your options in plain English, 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.

Why Choosing a Home Loan Isn't All About the Interest Rate

This article first appeared on awesomelendingsolutions.com.au.

It's natural to focus on the interest rate when choosing a home loan. After all, it has a big impact on your repayments. But the loan with the lowest rate isn't always the best loan for you. Here's what else matters, and why.

1. Fees

A low rate can come with fees that add up:

• Application or establishment fees
• Annual package fees
• Monthly account fees
• Discharge fees when you leave

On smaller loans, fees can matter more than a small difference in rate. That's why the comparison rate, which includes most fees, is a better guide than the headline rate.

2. Features you'll actually use

Offset account

If you keep savings, an offset account can save more than a slightly lower rate. For example, $40,000 in offset at 6.2% saves around $2,480 a year in interest.

Extra repayments

If you want to pay off your loan faster, make sure you can make extra repayments without penalty.

Redraw

Lets you access extra repayments in an emergency.

Split loans

Lets you combine fixed and variable rates.

3. Flexibility

Life changes. You might have a baby, change jobs, renovate or invest. A flexible loan can adapt. Some low-rate loans have strict limits that cost you later.

4. Lender policy

The lowest-rate lender might not accept:

• Your type of income (casual, self-employed, contractor)
• Your property type
• Your deposit source
• Government schemes like the 5% Deposit Scheme

A loan you can't get approved for is no use, however low the rate.

5. How the lender treats existing customers

Some lenders offer sharp rates to new customers, then let rates drift higher. Others keep rates competitive for existing customers. Over many years, this can matter more than your starting rate.

6. Service and turnaround times

If you're buying at auction or have a tight settlement, a slow lender can cost you the property. Service matters, especially when things get complicated.

7. Honeymoon rates

Introductory rates that jump after one or two years can look attractive but cost more over time. Always ask what the rate will be after the intro period.

8. Cashback offers

Cashback can be helpful, but it shouldn't hide a higher rate. A 0.15% higher rate on a $600,000 loan costs about $900 a year.

9. Your long-term goals

If you plan to invest later, structure and features like offset become more important. If you plan to sell in two years, low fees and no break costs may matter more.

An example

Two loans for $600,000:

Loan A: 6.04%, no offset, $0 fees, slow turnaround, strict policy

Loan B: 6.14%, full offset, $395 annual fee, fast turnaround, flexible policy

Sam has $35,000 in savings. With Loan B, his offset saves around $2,150 a year, which more than covers the higher rate and fee. Loan B is also more likely to approve his overtime income. For Sam, Loan B is the better loan.

Rates still matter

None of this means rates don't matter. With the cash rate at 4.60% after four rises in 2026, rates matter a lot. The point is that the best loan balances rate, cost, features and fit.

Why the Best Interests Duty matters

Mortgage brokers must act in your best interests. That means considering your goals, needs and preferences, not just finding the lowest rate. A broker should explain why a loan suits you, and what trade-offs are involved.

Questions to ask beyond the rate

• What is the comparison rate?
• What are all the fees, now and later?
• Which features are included, and will I use them?
• Does this lender accept my income and property type?
• How does this lender treat existing customers over time?

A simple way to compare

Write down the rate, fees, features and policy fit of each loan side by side, then estimate the total yearly cost for your situation, including any offset savings. The loan with the lowest total cost and the best fit for your life is usually the winner, even if its headline rate isn't the lowest.

Frequently asked questions

Should I always choose the lowest rate?

Not always. Consider fees, features, flexibility and lender policy.

What's the comparison rate?

A rate that includes most fees, based on a standard example. It's a better guide to cost than the advertised rate.

Is an offset account worth the fee?

If you keep enough savings in it, usually yes.

How can I compare all these factors?

A broker can model the total cost and benefits for your situation.

Talk to Awesome Lending Solutions

Every situation is different, and the right loan depends on your goals, income and timing. At Awesome Lending Solutions, we compare a wide panel of lenders and explain your options in plain English, 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.

Mortgage Broker vs Bank: Which Is Better for Your Home Loan?

This article first appeared on awesomelendingsolutions.com.au.

When you need a home loan, you have two main choices: go directly to a bank, or use a mortgage broker. Both can work. The right choice depends on your situation and what you value. Here's a fair comparison.

The key difference

• A bank can only offer its own home loans.
• A broker can compare loans from a panel of lenders, which often includes major banks, smaller banks, credit unions and non-bank lenders.

Comparing the two

Choice

Bank: one lender's products.

Broker: many lenders' products, often dozens.

Advice and legal duty

Bank: must follow responsible lending rules.

Broker: must follow responsible lending rules and the Best Interests Duty, which requires brokers to act in your best interests and put your interests first if there's a conflict.

Cost

Bank: no broker fee.

Broker: usually no direct cost for standard home loans, as the lender pays the broker. Some brokers charge fees for complex deals and must tell you upfront.

Rates

Banks sometimes offer the same rates through brokers as directly. Brokers may also access rates or lenders you wouldn't easily find yourself. Neither option guarantees the lowest rate.

Service

Bank: you deal with the bank's staff, who may change over time.

Broker: you usually have one point of contact who manages the whole process and often stays with you after settlement.

Complex situations

Brokers often shine when your situation doesn't fit neatly into one bank's rules, such as:

• Self-employed income
• Casual or contract work
• Past credit issues
• Investors with several properties
• Using government schemes
• Unusual properties

When going direct to a bank might make sense

• You have a simple situation and a strong relationship with your bank
• Your bank offers a great deal for existing customers
• You're comfortable comparing the market yourself

Even then, it can be worth asking a broker to check whether your bank's offer is competitive.

When a broker might be better

• You want to compare many lenders without lots of credit enquiries
• You're a first home buyer and want help with schemes
• You have complex income or credit history
• You're an investor and need help with structure
• You're short on time

Does using a broker cost more?

For standard home loans, brokers are paid a commission by the lender. This doesn't increase your interest rate. In Australia, lenders generally pay similar commissions across loans, and the Best Interests Duty requires brokers to recommend the loan that suits you.

A real-world example

Hannah is self-employed and has been in business for 18 months. Her bank says it needs two full years of tax returns. A broker finds a lender that accepts one year of tax returns plus business statements, and she's approved for a competitive loan.

The 2026 picture

In 2026, the lending landscape is changing fast:

• Four rate rises have pushed the cash rate to 4.60%
• APRA's debt-to-income limit affects how many high-DTI loans each bank can write
• Each lender's appetite changes from month to month

A broker who sees many lenders' policies every day can often spot which lenders are best placed for your situation right now.

How to make the most of either option

Whichever path you choose:

• Gather your documents early
• Be honest about your income, expenses and debts
• Ask about fees and features, not just the rate
• Get everything in writing
• Review your loan every year

Questions to ask either one

Whether you speak to a bank or a broker, ask:

• What's the comparison rate, not just the advertised rate?
• What fees will I pay upfront and each year?
• Does this loan have an offset account?
• What happens when any discount or fixed period ends?
• How will you help me after settlement?

The answers will tell you a lot about whether the loan, and the service, will suit you over the long term.

Frequently asked questions

Do banks pay brokers?

Yes. Lenders pay brokers an upfront and ongoing commission. This is disclosed to you.

Can a broker get a better deal than my bank?

Sometimes. A broker can compare your bank's offer with many others, so you can see where it stands.

Will a broker include my bank in the comparison?

Usually, if your bank is on their panel. Ask.

Is my information safe with a broker?

Brokers must follow privacy laws and only share your information with lenders and others needed to process your loan. You can ask your broker to explain how your information is stored and used.

Talk to Awesome Lending Solutions

Every situation is different, and the right loan depends on your goals, income and timing. At Awesome Lending Solutions, we compare a wide panel of lenders and explain your options in plain English, 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.

Why Use a Mortgage Broker for Investment Property Finance?

This article first appeared on awesomelendingsolutions.com.au.

Buying an investment property isn't just about finding the right property. The way you finance it can affect your cash flow, tax position and ability to buy again. A specialist mortgage broker can help you get all of this right from the start.

Why investors need more than a good rate

For investors, the right loan structure can matter more than the rate. A good structure can:

• Protect your tax deductions
• Keep your borrowing capacity open for future purchases
• Reduce risk by spreading loans across lenders
• Give you flexibility to sell or refinance

A poor structure can do the opposite.

What an investment broker does

1. Works out your borrowing power

Each lender treats investors differently. Some count more rental income. Some treat existing debts more generously. Some handle negative gearing differently in their calculations. A broker knows these differences and can help you borrow what you need.

2. Designs your loan structure

A broker can help you:

• Separate investment and personal debts
• Use offset accounts effectively
• Avoid cross-collateralisation (tying properties together)
• Decide between interest-only and principal and interest
• Set up separate splits for deposits and purchases

3. Plans for your next purchase

If you want to build a portfolio, the order you use lenders matters. A broker can plan which lenders to use now and which to keep for later.

4. Keeps up with rule changes

2026 has brought big changes for investors:

• Negative gearing is now limited for established residential properties bought after 7:30pm on 12 May 2026. From 1 July 2027, losses on these can only offset residential rental income or capital gains.
• New builds keep negative gearing access.
• The 50% CGT discount is being replaced from 1 July 2027 by indexation and a 30% minimum tax.
• SMSF residential borrowing – new limited recourse loans for residential property in super have been banned since 10 August 2026.
• APRA's debt-to-income limit – since February 2026, banks can only write 20% of new loans where debt is six or more times income.

A broker who works with investors every day understands how these changes affect lending.

5. Manages the process

From pre-approval to settlement, a broker handles the paperwork, liaises with lenders and keeps you updated.

What a broker isn't

A mortgage broker helps with finance. They aren't usually a tax adviser or financial planner. A good broker will work alongside your accountant and, if needed, a financial adviser or buyer's agent.

How brokers are paid

For most standard investment loans, brokers are paid a commission by the lender. This is disclosed to you. Brokers must also act in your best interests under the law.

Questions to ask an investment broker

• How many lenders do you work with?
• How many investor clients do you help?
• How would you structure my loans?
• How do the 2026 tax changes affect my plans?
• How will this purchase affect my ability to buy again?

An example

Ryan owns his home and one investment property, both with one bank. Both properties are cross-collateralised. He wants to buy again.

His broker:

• Separates the two properties so each loan stands alone
• Moves the investment loan to a lender with better rental income treatment
• Sets up a separate equity split for the next deposit
• Identifies a lender with capacity for his debt-to-income level

Ryan now has more borrowing capacity and more flexibility for the future.

Investing in 2026

Rising rates, falling values in most capitals and new tax rules mean investors need to plan more carefully than in recent years. Some investors are shifting towards new builds, which keep negative gearing and are exempt from APRA's debt-to-income limit. Others are looking at commercial property. A broker can help you understand how each option affects your finance.

Frequently asked questions

Do I need a broker if I already have a bank?

Not always, but a broker can compare many lenders and help with structure, which your bank can't do across the market.

Can a broker help me buy a second or third property?

Yes. Portfolio planning is one of the most valuable things an investment broker does.

Will a broker give me tax advice?

No. A broker can explain how lending works, but you should get tax advice from your accountant.

When should I talk to a broker?

Before you start looking. Knowing your budget and structure early helps you move fast when you find the right property, and avoids costly structure mistakes that are hard to undo later.

Talk to Awesome Lending Solutions

Every situation is different, and the right loan depends on your goals, income and timing. At Awesome Lending Solutions, we compare a wide panel of lenders and explain your options in plain English, 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.

How to Refinance to a Lower Interest Rate in Australia

This article first appeared on awesomelendingsolutions.com.au.

In 2026, the cash rate has risen four times, reaching 4.60% at the end of September. That has pushed up repayments for millions of Australians. While you can't control the cash rate, you can control the rate you pay on top of it. Refinancing to a lower rate is one of the best ways to take back some control.

Why your rate may be higher than it should be

Many lenders charge existing customers more than new customers. This is sometimes called the "loyalty tax". If you have had the same loan for several years, there's a good chance you are paying more than someone who just signed up.

Even a small difference matters. On a $600,000 loan, every 0.25% is worth roughly $1,000 to $1,500 a year in interest.

Step 1: Find out your current rate

Check your latest statement or online banking. Note:

• Your interest rate
• Your loan balance
• Years left on the loan
• Any fees you pay (such as an annual package fee)
• Whether you are on a fixed or variable rate

Step 2: Compare what's on offer

Look at rates for borrowers like you. The best rates usually go to borrowers who:

• Owe 80% or less of the property value (or even 60% or less)
• Have a principal and interest owner-occupied loan
• Have a good credit history
• Have stable income

Compare the comparison rate, which includes most fees, not just the advertised rate.

Step 3: Ask your current lender

Before switching, call your lender. Tell them the rate you have been offered elsewhere and ask if they can match or beat it. Many lenders have a retention team for exactly this.

If they offer a good deal, you may save money with no paperwork.

Step 4: Weigh up the costs

If you decide to switch, add up:

• Discharge fee on your old loan
• Application and settlement fees
• Government registration fees
• Break costs if fixed
• LMI if your loan is above 80% of the property value

Then compare these costs to your yearly savings. If you'll recover the costs within a year or two, refinancing is often worth it.

Step 5: Keep your loan term the same

A common trap is refinancing into a fresh 30-year loan. Your repayments drop, but you add years of interest. Where possible, keep the same remaining term, or keep paying your old repayment amount to pay the loan off faster.

Step 6: Apply and settle

Your broker or new lender handles the application, valuation and settlement. Most refinances take two to six weeks.

An example

Daniel owes $620,000 with 26 years left. His rate is 6.84%. He's offered 6.24% by another lender.

• Current repayment: about $4,255 a month
• New repayment: about $4,020 a month
• Saving: about $235 a month, or $2,800 a year

His switching costs are around $1,000, so he recovers them in about four months.

What if rates rise again?

If the RBA raises rates again, your new lender's variable rate will likely rise too. But you'll still be starting from a lower base, so you'll stay ahead. Some borrowers choose to fix part of the loan for certainty.

Watch out for these traps

• Honeymoon rates – a low rate for one or two years, then a much higher one.
• Cashbacks – useful, but not if they hide a higher rate.
• High fees – an annual fee can wipe out a small rate difference.
• Missing features – a cheap loan with no offset may cost you more if you have large savings.

Can't refinance? Try this

If falling property values or a change in income make it hard to switch lenders, you can still:

• Ask your lender for a rate review
• Move to a cheaper product with the same lender
• Make extra repayments to reduce your LVR so you qualify later

Frequently asked questions

How often should I check my rate?

At least once a year, and whenever the cash rate changes.

Is it worth refinancing for a 0.2% difference?

It can be, especially on a larger loan. Compare your yearly saving with the costs.

Do I need a broker to refinance?

No, but a broker can compare many lenders, handle the paperwork and negotiate for you.

What rate can I expect?

That depends on your loan size, LVR, loan type and credit history. Borrowers with an LVR under 60% and a principal and interest owner-occupied loan usually get the sharpest rates. A broker can show you real offers based on your situation, not just advertised rates.

Talk to Awesome Lending Solutions

Every situation is different, and the right loan depends on your goals, income and timing. At Awesome Lending Solutions, we compare a wide panel of lenders and explain your options in plain English, 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.

The 5% Deposit Scheme Explained: Buy Your First Home With 5% and No LMI

This article first appeared on awesomelendingsolutions.com.au.

Saving a 20% deposit can take years. While you save, prices can move and rent eats into your budget. That is why the Australian Government 5% Deposit Scheme has become so popular. It lets eligible first home buyers purchase with just a 5% deposit, without paying Lenders Mortgage Insurance (LMI).

Here is how the scheme works in 2026 and what you need to know before you apply.

What is the 5% Deposit Scheme?

The 5% Deposit Scheme used to be called the First Home Guarantee. Under the scheme, the government guarantees part of your loan to the lender. This guarantee covers up to 15% of the property value.

Because the lender is protected, it does not need you to pay LMI, even though you only have a 5% deposit. LMI can cost tens of thousands of dollars, so this is a big saving.

What changed in October 2025?

From 1 October 2025, the scheme was expanded:

• No income caps – your income no longer stops you from using it
• No limit on places – you no longer have to wait for a spot to open
• Higher property price caps – so you can buy in more areas
• Regional scheme merged in – the old Regional First Home Buyer Guarantee was folded into this scheme

These changes made the scheme available to many more buyers. Take-up jumped sharply in the months that followed.

Property price caps

The home you buy must be at or below the price cap for its location. Both the purchase price and the lender's valuation must be under the cap.

Some of the current caps are:

• NSW – $1.5 million in Sydney and regional centres; $800,000 in other areas
• Victoria – $950,000 in Melbourne and regional centres; $650,000 elsewhere
• Queensland – $1 million in Brisbane and regional centres; $700,000 elsewhere

You can check the exact cap for any postcode on the official First Home Buyers website.

Who is eligible?

To use the scheme, you generally need to:

• Be an Australian citizen or permanent resident
• Be at least 18 years old
• Be a first home buyer, or not have owned property in Australia in the past 10 years
• Have at least a 5% deposit from genuine savings or other approved sources
• Plan to live in the home (it cannot be an investment property)

You can apply as a single person or with a partner, friend or family member.

What types of property can you buy?

You have plenty of choice. The scheme covers:

• Existing houses, townhouses and apartments
• New homes and house-and-land packages
• Off-the-plan purchases
• Vacant land with a building contract

An example

Let's say Mia wants to buy a $750,000 unit in Western Sydney.

• 5% deposit: $37,500
• Loan amount: $712,500
• LMI under the scheme: $0

Without the scheme, Mia would likely pay well over $20,000 in LMI, or she would need to keep saving for years. Because the unit is under $800,000, she may also pay no stamp duty under the NSW First Home Buyers Assistance Scheme.

Things to think about

The scheme is a great tool, but it is not free money. Keep these points in mind:

• You still have to pass serviceability. Lenders must check you can afford repayments at your rate plus a 3% buffer.
• A smaller deposit means a bigger loan. You will pay more interest over time.
• Prices can fall. With values falling across most capitals in 2026, buying with a small deposit means less buffer if prices drop.
• You need to use a participating lender. Not every lender offers the scheme.

How to apply

You cannot apply to the government directly. You apply through a participating lender or a mortgage broker who works with participating lenders. The lender checks your eligibility and reserves your guarantee as part of the loan application.

A broker can compare participating lenders, check if your property fits the cap, and make sure you also get any stamp duty or grant benefits you are entitled to.

Frequently asked questions

Is there still an income cap?

No. Since 1 October 2025, there is no income cap for the 5% Deposit Scheme.

Can single parents get a smaller deposit?

Yes. The Family Home Guarantee allows eligible single parents and guardians to buy with a 2% deposit and no LMI. They do not need to be first home buyers.

Can I use the scheme with Help to Buy?

No. You need to choose one or the other. A broker can help you work out which suits you better.

Talk to Awesome Lending Solutions

Every situation is different, and the right loan depends on your goals, income and timing. At Awesome Lending Solutions, we compare a wide panel of lenders and explain your options in plain English, 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.

Why Your Home Loan Structure Is So Important

This article first appeared on awesomelendingsolutions.com.au.

Most people focus on the interest rate when choosing a home loan. But how your loan is set up, its structure, can matter just as much. A good structure can save you tax, give you flexibility and help you reach future goals. A poor one can cost you thousands and limit your options. Here's why loan structure is so important.

What is loan structure?

Loan structure is how your borrowing is organised. It includes:

• How many loan splits you have
• Fixed or variable portions
• Principal and interest or interest-only
• Offset and redraw arrangements
• Which properties secure which loans
• Whose names are on the loans and titles

1. Split loans for different purposes

If you borrow for different reasons, such as your home, an investment, renovations or a car, it's best to keep them in separate splits. This:

• Makes it easy to track deductible and non-deductible interest
• Helps you pay down personal debt faster
• Keeps your records clean for your accountant

Mixing purposes in one loan can make it very hard to claim interest correctly.

2. Offset vs extra repayments

If you might rent out your home one day, keeping savings in an offset account instead of paying down the loan can protect future tax deductions. Paying down the loan and then redrawing for personal use usually means the redrawn amount isn't deductible.

3. Fixed and variable splits

Splitting between fixed and variable can give you:

• Certainty on part of the loan
• Flexibility, offset and extra repayments on the rest

With the cash rate rising four times in 2026, many borrowers are using splits to balance certainty and flexibility.

4. Avoiding cross-collateralisation

Cross-collateralisation is when one lender uses more than one of your properties as security for your loans. It can:

• Make it harder to sell one property
• Give the lender control over your equity
• Make refinancing more complicated

Where possible, each property should secure its own loan. If you need to use equity from one property, consider a separate loan secured only by that property.

5. Interest-only vs principal and interest

For investors, keeping investment loans interest-only and paying down the home loan first can make sense, because home loan interest isn't deductible. But this depends on your goals and cash flow.

6. Ownership

Whose name is on the title and loan affects:

• Tax on rental income and capital gains
• Borrowing power
• Asset protection
• First home buyer eligibility

Get advice from your accountant before buying.

7. Planning for the future

A good structure considers where you want to be in five or ten years. If you plan to invest, upgrade or start a business, set up your loans so they support those goals.

How the 2026 tax changes make structure more important

The 2026 laws limit negative gearing for established residential properties bought after 7:30pm on 12 May 2026. Losses on these properties are quarantined from 1 July 2027. Properties held before then keep the existing treatment. Clean, separate loan splits make it easier to track which interest relates to which property, which is now more important than ever.

An example

Jess and Matt own their home and want to buy an investment property.

Poor structure:

• One loan with their bank, secured by both properties
• Investment deposit mixed into their home loan
• Savings used to pay down the home loan, then redrawn

Better structure:

• Home loan with an offset account
• Separate equity split for the investment deposit, secured by their home
• Separate investment loan secured by the investment property
• Investment loans with a different lender where possible

The better structure keeps deductions clear, protects flexibility and makes future borrowing easier.

Fixing a poor structure

If your loans are already tangled, it's often possible to fix them. Refinancing to separate securities, splitting loans or moving one loan to another lender can untangle things. It's best done with your broker and accountant working together.

Structure checklist

• Separate splits for each purpose
• Offset on the home loan
• Each property securing its own loan

Frequently asked questions

Can I fix a poor structure later?

Often, yes, by refinancing or restructuring. But some tax consequences can't be undone, so it's best to get it right early.

Is cross-collateralisation always bad?

Not always, but it reduces flexibility. Many investors prefer to avoid it.

How many splits should I have?

As many as you have different purposes, within reason. Your broker can help.

Who should help with structure?

A broker for the loans and an accountant for tax.

Talk to Awesome Lending Solutions

Every situation is different, and the right loan depends on your goals, income and timing. At Awesome Lending Solutions, we compare a wide panel of lenders and explain your options in plain English, 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.

Mortgage Broker in Sydney: Local Home Loan Help From North Strathfield

This article first appeared on awesomelendingsolutions.com.au.

When you search for a "mortgage broker near me" in Sydney, you'll find hundreds of options. Choosing a local broker you can trust makes a big difference. A broker who knows Sydney understands the suburbs, the price caps, the lenders' local policies and the challenges buyers face here.

Awesome Lending Solutions is a Sydney mortgage broking business based in North Strathfield in Sydney's Inner West. We help people across Sydney and NSW buy homes, refinance and invest.

Why choose a local Sydney broker?

Local market knowledge

Sydney is a big and diverse market. Prices, property types and lender attitudes vary from suburb to suburb. A local broker understands:

• Scheme price caps by postcode
• Lender policies on unit sizes, high-density buildings and certain postcodes
• Flood zones and other issues that can affect valuations
• How NSW stamp duty and grants work

Face-to-face meetings

Many clients like to sit down in person, especially for big decisions. We also meet by phone and video for busy families and clients across NSW.

Relationships with local professionals

A local broker often works alongside conveyancers, accountants, buyer's agents and real estate agents in the area, which can make the process smoother.

About Awesome Lending Solutions

Our director and finance strategist, Albert Waldron, has been a mortgage broker since 2002 and started Awesome Lending Solutions in its current form in 2014. Over that time, the business has:

• Settled more than 1,000 loans
• Worked with a panel of over 60 lenders
• Helped clients in every state and territory except the Northern Territory

Albert is a member of the FBAA and a Credit Representative (CR 407514) of AFG's Australian Credit Licence 389087.

Our office is at Level 1, 5 George Street, North Strathfield NSW 2137, close to Strathfield, Concord, Homebush, Burwood and Rhodes.

Who we help

• First home buyers – including the 5% Deposit Scheme, Help to Buy and NSW stamp duty exemptions
• Single parents – including the Family Home Guarantee with a 2% deposit
• Refinancers – to lower rates, consolidate debts or access equity
• Property investors – including structure, portfolio planning and the 2026 tax changes
• Self-employed borrowers – including low doc options
• SMSF borrowers – for commercial property, now that residential SMSF borrowing is banned

How the process works

1. Free first chat – we learn about your goals and situation.
2. Assessment – we work out your borrowing power and scheme eligibility.
3. Comparison – we compare suitable loans across our lender panel.
4. Recommendation – we explain our recommendation and the alternatives.
5. Application – we prepare and lodge the paperwork.
6. Approval and settlement – we manage the process and keep you updated.
7. Ongoing reviews – we check in to make sure your loan stays competitive.

The Sydney market in 2026

Sydney has seen a lot of change this year:

• The cash rate rose to 4.60% at the end of September, its fourth rise in 2026.
• Sydney home values were about 8.6% below their February peak by the end of September.
• The 5% Deposit Scheme now allows purchases up to $1.5 million in Sydney with no income cap.
• NSW first home buyers pay no stamp duty on homes up to $800,000.

These changes create both challenges and opportunities. Local advice can help you make sense of them.

What our clients value

Clients often tell us they value plain-English explanations, quick responses and the feeling that someone is on their side. Buying a home is stressful. Our job is to make the finance part as clear and calm as possible.

How brokers are paid

For most home loans, we are paid by the lender. This doesn't add to your loan costs, and we disclose all payments to you in writing. Under the law, we must act in your best interests.

Suburbs we often help with

We regularly help buyers and home owners in North Strathfield, Strathfield, Concord, Homebush, Burwood, Rhodes, Five Dock, Parramatta and across the Inner West and Western Sydney. We also help clients in regional NSW and interstate, so wherever you're buying, we can help you understand your options.

What to bring to your first chat

• Recent payslips or tax returns
• Recent bank statements
• Details of any debts
• Your goals and rough timeframe

Frequently asked questions

Do I need to live near North Strathfield to use you?

No. We help clients across Sydney and NSW, and in most other states, by phone and video.

Is the first meeting free?

Yes. There's no cost or obligation for an initial chat.

How quickly can I get pre-approval?

It depends on the lender and your documents, but many pre-approvals are completed within a few days to two weeks.

Talk to Awesome Lending Solutions

Every situation is different, and the right loan depends on your goals, income and timing. At Awesome Lending Solutions, we compare a wide panel of lenders and explain your options in plain English, 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.

Investment Loan Rates in Australia: How to Find the Best Deal

This article first appeared on awesomelendingsolutions.com.au.

Investment loan rates directly affect your cash flow and returns. Even a small difference can add up to thousands of dollars a year. But the "best" investment loan isn't just the one with the lowest rate. This guide explains how investment rates work and how to compare them properly.

Why are investment rates higher?

Lenders usually charge investors a little more than owner-occupiers. This is because:

• Investors are seen as slightly more likely to default in tough times
• Regulators expect banks to hold more capital against investor loans
• Investment loans are often interest-only, which carries more risk

The gap between owner-occupied and investor rates changes over time, so it's worth checking the current market.

What affects your rate?

Your rate depends on:

• Repayment type – interest-only rates are usually higher than principal and interest
• Loan to Value Ratio (LVR) – lower LVRs usually get better rates
• Loan size – larger loans may get bigger discounts
• Rate type – variable, fixed or split
• Your profile – income, credit history and portfolio size
• The lender – each has its own pricing and appetite for investors

Rates in 2026

The Reserve Bank raised the cash rate four times in 2026, to 4.60% at the end of September. Most lenders passed these rises on to variable rates. If you haven't reviewed your investment loan this year, you may be paying more than you need to.

How to compare investment loans

1. Compare the comparison rate

This includes most fees and gives a better picture of the real cost.

2. Check the interest-only terms

If you want interest-only, ask:

• How long can I have interest-only?
• What's the rate difference?
• What happens when it ends?

3. Look at features

• Offset account – useful, but for investment loans, an offset on your home loan is often more valuable
• Split loans – useful for different purposes
• Free extra repayments

4. Check lender policies

This is often more important than the rate for investors. Ask:

• How much rental income will you count?
• How do you treat negative gearing in serviceability?
• Do you accept my property type and location?
• How do you assess existing investment loans with other lenders?

Since February 2026, banks are limited in how much lending they can do where total debt is six or more times income. If you have several properties, some lenders may have more capacity than others.

5. Watch the fees

Annual package fees are common. On larger loans, a package can be worth it for the rate discount. On smaller loans, it may not be.

An example

Two investment loans on $600,000:

Loan A: 6.49% interest-only, $395 annual fee

Loan B: 6.69% interest-only, no annual fee

Interest cost per year:

• Loan A: about $38,940 plus $395 = $39,335
• Loan B: about $40,140

Loan A is around $800 cheaper each year, even with the annual fee.

Tax and your rate

Interest on investment loans is usually tax deductible. But the 2026 tax changes mean that for established residential properties bought after 7:30pm on 12 May 2026, losses can only be used against rental income or capital gains from 1 July 2027, not against your wages. This changes the after-tax cost of interest for some investors. A lower rate helps no matter which rules apply to you.

Ways to get a better rate

• Ask your current lender for a rate review
• Reduce your LVR below key thresholds (like 70% or 60%)
• Switch from interest-only to principal and interest if it suits your plan
• Use a broker to compare a wide range of lenders

Fixed or variable for investors?

Fixed rates give certainty for budgeting, which some investors value when rates are rising. Variable rates give flexibility to sell, refinance or pay down without break costs. Many investors split their loans.

Frequently asked questions

Is the lowest investment rate always best?

No. Lender policy and features can matter more, especially if you plan to keep buying.

Can I get owner-occupied rates on an investment?

No. If you rent out the property, it must be on an investment loan.

How often should investors review their rates?

At least once a year, and whenever the cash rate changes.

Do all lenders charge the same investor premium?

No. Some lenders price investors much more competitively than others, which is why comparing a wide range matters.

Will a lower rate improve my borrowing power?

Slightly, yes. Lenders assess your repayments at your rate plus 3%, so a lower rate can help a little with serviceability for future purchases.

Talk to Awesome Lending Solutions

Every situation is different, and the right loan depends on your goals, income and timing. At Awesome Lending Solutions, we compare a wide panel of lenders and explain your options in plain English, 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.

Home Loan Refinancing Options in Australia: Which One Suits You?

This article first appeared on awesomelendingsolutions.com.au.

Refinancing isn't one single thing. There are several ways to refinance, and each one suits a different goal. Before you start, it helps to know what you want to achieve. Then you can choose the option that fits.

Option 1: Ask your current lender for a better rate

This is the simplest option. You stay with your lender but ask for a lower rate. Many lenders offer better rates to new customers than to existing ones. If you ask, especially with a competing offer, they may lower your rate.

Best for: people who are happy with their lender and want a quick saving with no paperwork.

Pros: fast, no new application, no fees.

Cons: your lender may only offer a small discount.

Option 2: Switch to a new lender

You move your loan to a new lender with a lower rate or better features.

Best for: people who want the best possible rate or features their current lender doesn't offer.

Pros: potentially larger savings, access to better products.

Cons: new application, valuation and some fees.

Option 3: Switch products with your lender

Some lenders let you change to a different product, such as a loan with an offset account, without a full refinance.

Best for: people who need different features but like their lender.

Option 4: Cash out refinance

You refinance for a higher amount and take out some of your equity as cash, for things like renovations or investing.

Best for: people with good equity and a clear purpose for the funds.

Pros: access to cash at a home loan rate.

Cons: bigger loan, more interest. Lenders will want to know how you'll use the money.

Option 5: Debt consolidation

You roll higher-interest debts, like credit cards or personal loans, into your home loan.

Best for: people struggling with multiple debts who want one lower repayment.

Pros: lower interest rate, simpler budgeting.

Cons: short-term debts become long-term debts. If you don't repay them faster, you may pay more interest overall.

Option 6: Change your rate type

You can refinance to change between:

• Variable – flexible, often with an offset account
• Fixed – certainty for one to five years
• Split – part fixed, part variable

With the cash rate at 4.60% after four rises in 2026, some borrowers are looking at fixed rates for peace of mind. Others prefer to stay variable in case rates fall later. A split loan can give you a bit of both.

Option 7: Restructure your loans

Refinancing can also be a chance to fix a poor loan structure. For example:

• Separating investment and home loan debt for tax reasons
• Splitting a loan to use an offset account effectively
• Removing a former partner from a loan after a separation
• Releasing a guarantor

Option 8: Refinance an investment loan

Investors can refinance to lower rates, switch between interest-only and principal and interest, or release equity for the next purchase. Investors should also think about recent tax changes, such as the 2026 negative gearing rules, before restructuring.

How to choose the right option

Ask yourself:

1. What is my main goal? Lower repayments, cash, features or certainty?
2. How much equity do I have? Ideally your loan is 80% or less of the property value.
3. How long will I keep the loan? This affects whether fees and costs are worth it.
4. Am I on a fixed rate? If so, check break costs.
5. Has my financial situation changed? This affects what lenders will approve.

Refinancing in NSW

In NSW, refinancing involves registering a new mortgage and discharging the old one through the land registry. Your new lender usually handles this through electronic settlement. Government fees apply, but they are usually a small part of the overall cost.

An example

Jess has a $480,000 loan at 6.89% with her original lender. She also has a $12,000 credit card at 19.99%.

• She refinances to a new lender at 6.19%.
• She adds the credit card to her home loan.
• Her total monthly repayments drop significantly.

Jess commits to paying an extra $350 a month so the credit card debt is still cleared within three years.

Frequently asked questions

Which refinancing option saves the most?

It depends on your situation. Switching lenders often gives the biggest rate cut, but asking your lender first is quick and easy.

Can I do more than one option at once?

Yes. Many people switch lenders, change rate type and consolidate debt in one refinance.

Is now a good time to look at my options?

If you haven't reviewed your loan this year, yes. Four rate rises in 2026 mean many loans are no longer competitive.

Talk to Awesome Lending Solutions

Every situation is different, and the right loan depends on your goals, income and timing. At Awesome Lending Solutions, we compare a wide panel of lenders and explain your options in plain English, 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.