Awesome Lending Solutions

Thursday, 8 October 2026

Am I a "Financially Fit" First Home Buyer? A Simple Checklist

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

Before you start going to open homes, it's worth asking: am I financially fit to buy? Being "financially fit" doesn't mean being rich. It means your finances are in good enough shape that a lender will say yes, and that you can comfortably manage the loan. Here's a simple checklist.

1. Be clear on what you can afford

Lenders look at your income, expenses and debts, and test whether you could afford repayments if your rate rose by 3%. With the cash rate at 4.60% after four rises in 2026, borrowing power is lower for many buyers than a year ago. Get a realistic figure from a broker before you set your budget.

2. Review your finances

Income: lenders like stable income. Some need you to be past probation in a new job.
Debts: credit cards, car loans, personal loans, HECS-HELP and Buy Now Pay Later all reduce borrowing power. Lenders count your full credit card limit, not just the balance.
Credit history: check your credit report for free and fix any errors.

3. Build a realistic budget

Track your spending for a month. Lenders review your bank statements, so regular saving and sensible spending help. Cancel subscriptions you don't use and cut back on takeaway and impulse buys in the months before you apply.

4. Save your deposit and costs

How much you need depends on the price and any schemes you use:

With the 5% Deposit Scheme, you may only need 5% and pay no LMI. There have been no income caps since October 2025.
With Help to Buy, you may need just 2%. Income caps apply.
In NSW, first home buyers pay no stamp duty on homes up to $800,000.

Don't forget conveyancing, inspections and moving costs.

5. Show genuine savings

Many lenders like to see savings built up over at least three months. Regular deposits into a savings account show good money habits.

6. Keep a buffer

Try to keep some savings aside after you buy, ideally in an offset account, for repairs, rate rises or a change in income.

Your financial fitness checklist

I know my realistic borrowing power
My credit report is clean and accurate
I've reduced or closed debts I don't need
I've tracked my spending and have a budget
I have my deposit and buying costs saved
I'll still have a buffer after I buy

An example

Josh earns $90,000 and wants to buy a $650,000 unit. He reduces his credit card limit from $10,000 to $2,000, closes two Buy Now Pay Later accounts and saves $1,000 a fortnight for six months. His broker confirms he qualifies for the 5% Deposit Scheme and the NSW stamp duty exemption. He buys with a 5% deposit, no LMI and no stamp duty, and keeps a $10,000 buffer in his offset.

Frequently asked questions

How long does it take to get financially fit?

Often three to twelve months, depending on your starting point.

Will a broker check my credit?

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

Can I buy with a small deposit?

Yes. Government schemes and guarantor loans can help eligible buyers buy with 2% to 5%.

Talk to Awesome Lending Solutions

Want to know how financially fit you are right now? We can review your situation and give you a clear plan, 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.

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.

Buying Off the Plan as a First Home Buyer: Pros, Cons and Risks

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

Buying off the plan means signing a contract to buy a home, usually an apartment or townhouse, before it's built or finished. For first home buyers, it can be appealing. But it comes with risks that are easy to miss. Here's what you need to know.

Why first home buyers like off the plan

Time to save: you usually pay a deposit now and the rest at settlement, which can be a year or more away.
A brand-new home: modern fittings and fewer early repairs.
Government help: new homes can qualify for the NSW First Home Owner Grant of $10,000 (for new homes up to $600,000), and first home buyers pay no NSW stamp duty on homes up to $800,000.
Low-deposit options: the 5% Deposit Scheme can be used for new homes within the price caps.

The risks to understand

1. Your loan isn't approved until close to settlement

Pre-approval usually lasts three to six months. If settlement is 18 months away, the lender will reassess you closer to the date. If rates rise or your situation changes, you might be able to borrow less than you planned. The four rate rises in 2026 are a good example of how quickly this can change.

2. Valuation risk

The lender values the property at settlement, not when you sign. If values have fallen, as they have across many capitals in 2026, the valuation may be lower than the price. You would need to make up the difference.

3. Building delays and sunset clauses

Projects can run late. Contracts include a "sunset date" when either side may be able to cancel. Get legal advice on this clause.

4. What you see isn't always what you get

Finishes, layout and views can change. Read the contract and plans carefully.

5. Lender rules on apartments

Some lenders limit lending on very small apartments or large high-rise developments. Check this before you sign.

Six steps to get ready

Get your finances in order: reduce debts and keep saving.
Get a broker's view early on how much you could borrow and which lenders accept the development.
Research the developer and builder: check past projects and reviews.
Have a solicitor review the contract, especially the sunset clause and deposit terms.
Keep saving after you sign, so you have a buffer if the valuation comes in low.
Avoid big changes to your job or debts before settlement.

An example

Emily signs a contract for a $650,000 off-the-plan apartment in Western Sydney, with settlement due in 15 months. She pays a 5% deposit using a deposit bond. Her broker confirms which lenders accept the building. She keeps saving, and when settlement comes, she uses the 5% Deposit Scheme with no LMI and no stamp duty. Because she kept saving, she has a buffer for a slightly lower valuation.

Frequently asked questions

Can I get pre-approval for off the plan?

You can get an idea of your borrowing power, but formal approval usually happens close to settlement.

Can I use the First Home Owner Grant?

In NSW, the grant is for new homes, including off the plan, if you meet the eligibility rules and price caps.

What happens if the valuation is lower than the price?

You'll usually need to cover the gap with extra savings, or find a lender with a higher valuation.

Talk to Awesome Lending Solutions

Off-the-plan purchases need careful planning from day one. We can check your borrowing power, explain which lenders accept the development and help you stay on track to settlement. Call us on 02 7904 9560 or visit awesomelendingsolutions.com.au to book a chat.

Why Your Bank Can Raise Rates Even When the RBA Doesn't

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

Many borrowers assume their home loan rate only moves when the Reserve Bank (RBA) changes the cash rate. That's not always true. Banks can, and sometimes do, change rates on their own. Here's why that happens and what you can do about it.

What the RBA controls

The RBA sets the cash rate, which is the rate banks charge each other for overnight loans. It's the RBA's main tool for managing inflation. In 2026, the RBA raised the cash rate four times, taking it to 4.60% at the end of September, its highest level since 2011.

When the cash rate moves, most lenders follow quickly. But the cash rate is only one part of what it costs a bank to lend you money.

Why banks can raise rates when the RBA doesn't

1. Funding costs

Banks get money from deposits and from borrowing in Australian and overseas markets. If those costs rise, banks may pass them on, even if the cash rate stays the same.

2. Regulation

The banking regulator, APRA, sets rules on how much capital banks must hold and how they lend. Back in 2015, APRA's limits on investor lending led many banks to raise investor and interest-only rates outside the RBA cycle. In February 2026, APRA introduced a new limit on loans where total debt is six or more times income. Rules like these can affect how banks price certain loans.

3. Risk and loan type

Banks price investor, interest-only and high-LVR loans differently. They may lift rates on one type of loan to slow demand.

4. Competition and profit

Banks also set rates based on how hard they're competing for customers and their own profit targets.

Why new customers often get better rates

Many lenders offer sharper rates to attract new borrowers than they give existing ones. Over time, a loyal customer can end up paying noticeably more than someone who just walked in the door. This is sometimes called the "loyalty tax".

What you can do

Know your rate. Check your latest statement.
Compare it with new-customer rates for a loan like yours.
Ask your lender for a rate review. Many will lower your rate if you ask, especially with a competing offer.
Consider refinancing if your lender won't move.
Use an offset account to reduce the interest you pay.
Think about a split loan if you'd like some certainty while rates are rising.

An example

Lisa's $600,000 variable loan was at 6.64% after the 2026 rises. New customers with a similar loan were being offered about 6.14%. Her broker asked her lender for a review, and when they wouldn't match it, helped her refinance. Her repayments fell by about $200 a month.

Frequently asked questions

Can my bank raise my rate without the RBA moving?

Yes. Variable rates can change at any time. Your lender must tell you about the change.

Do banks always pass on RBA rate cuts in full?

Not always. Some pass on more or less, and timing can vary.

How often should I check my rate?

At least once a year, and after every RBA change.

Talk to Awesome Lending Solutions

We can check your rate against the market and, if there's a better deal, help you get it, whether that's with your current lender or a new one. 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. 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.

Financial Resolutions: A Simple Money Reset for the Year Ahead

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

New Year is a popular time to set goals, but you don't need to wait for January to get your finances in shape. Whether it's the start of the year or just the start of a new month, a simple money reset can make a real difference. Here's an easy way to set financial goals you'll actually keep.

Step 1: Write down your goals

Goals feel more real when they're written down. Take five minutes and fill in these lines:

My top 3 personal goals for the next 12 months are:

_________________
_________________
_________________

My top 3 financial goals for the next 12 months are:

_________________
_________________
_________________

Make each one specific. "Save more" is hard to measure. "Save $15,000 towards a home deposit by December" is clear.

Step 2: Revisit your budget

Living costs and interest rates have changed a lot. The cash rate rose four times in 2026 to 4.60%, so many households are paying more on their home loans than a year ago. Look at:

What comes in each month
Your fixed costs, like rent or mortgage, bills and insurance
Everyday spending, like food, transport and entertainment
Subscriptions you no longer use

Small changes add up. Cutting $150 a month in unused subscriptions and takeaway is $1,800 a year.

Step 3: Pay yourself first

Set up an automatic transfer to savings, or to your offset account, on payday. Money you don't see is money you don't spend.

Step 4: Tackle expensive debt

Credit cards and personal loans often charge far more interest than a home loan. Paying them down frees up cash flow and can increase how much you can borrow later. Lenders also count your full credit card limit, so reducing limits you don't need can help too.

Step 5: Review your home loan

If you have a mortgage, a quick review is one of the most valuable things you can do:

Is your rate still competitive compared with what new customers are offered?
Are you using your offset account?
Is your fixed rate ending soon?
Could a small extra repayment each month cut years off your loan?

Step 6: Plan for the big things

If buying a home is on your list, find out what you'd need. First home buyers may be able to use the 5% Deposit Scheme, which has had no income caps since October 2025. In NSW, first home buyers pay no stamp duty on homes up to $800,000.

Step 7: Check in regularly

Put a reminder in your calendar every three months to check your progress. Celebrate wins, and adjust goals if life changes.

An example

Tom and Priya set three money goals: save $20,000, clear a $6,000 credit card, and review their home loan. They:

Set up a $1,200 automatic transfer to their offset each fortnight
Paid an extra $500 a month off the credit card and closed it once cleared
Had their loan reviewed and moved to a sharper rate, saving about $180 a month

Frequently asked questions

How many financial goals should I set?

Two or three is plenty. Too many goals can be hard to stick to.

Should I save or pay off debt first?

Usually clear high-interest debt first, while keeping a small emergency fund.

How often should I review my home loan?

At least once a year, and whenever rates change.

Talk to Awesome Lending Solutions

If one of your goals is to buy a home, invest or get a better home loan rate, we'd love to help you make a plan. Call us on 02 7904 9560 or visit awesomelendingsolutions.com.au to book a chat.

Holiday Homes as Investments: The Good, the Bad and the Ugly

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

Every holiday season, we hear from two groups of people. Some have just come back from a great break and want to buy a holiday home in the same spot. Others already own one and are wondering if it was a good idea. A holiday property can be a wonderful asset, but it can also be a costly mistake. Here's what to weigh up.

The good

Somewhere to get away: a place your family can enjoy for years.
Rental income: in popular spots, peak-season rent can be strong.
A future home: some owners plan to retire there one day.
Possible growth: well-located coastal and lifestyle areas can grow in value over time.

The bad

Seasonal income: rent can be high in summer and very low in winter.
Higher costs: short-stay management fees, cleaning, furnishing and insurance cost more than a standard rental.
Tougher lending: some lenders treat short-stay income cautiously, or only count part of it.
Local rules: many councils and states now regulate short-term rentals. In NSW, for example, short-term rentals must be registered and some areas limit how many nights a year you can rent a whole home.

The ugly

Smaller markets: holiday towns often have fewer buyers, so prices can swing more and properties can take longer to sell.
Personal use limits tax deductions: you can only claim costs for the times the property is rented or genuinely available for rent. The ATO looks closely at holiday homes.
Negative gearing changes: for established homes bought after 7:30pm on 12 May 2026, rental losses can't be used to reduce tax on your wages from 1 July 2027.
Capital gains tax: a holiday home isn't your main residence, so CGT applies when you sell. From 1 July 2027, the 50% discount is replaced by indexation and a 30% minimum tax.

Tips before you buy

Visit out of season. A town that buzzes in January may be quiet in July.
Check local short-stay rules with the council before you sign.
Get real rental figures from local property managers, not just peak-week prices.
Budget for empty weeks and higher running costs.
Check how lenders will treat it. Some count only part of short-stay income, and some have rules on small or remote properties.
Talk to your accountant about how personal use affects deductions.

An example

Mark and Jenny want a $750,000 beach house on the NSW South Coast. They plan to use it for four weeks a year and rent it out the rest of the time.

Peak-season bookings look strong, but winter is quiet, so their realistic income is much lower than the summer rate suggests.
Because they use it themselves, they can only claim some of the costs.
Their broker uses equity in their home for the deposit and sets up a separate loan split, so the interest is easy to track.
They keep a cash buffer for repairs and empty weeks.

Is a holiday home right for you?

It can be, if you love the area, can comfortably cover the costs, and see it as a long-term lifestyle asset rather than a quick money-maker. If your main goal is investment returns, a standard rental in a strong market may do the job with less risk.

Frequently asked questions

Can I get a home loan for a holiday home?

Yes. It's usually treated as an investment or second home loan, depending on how you use it.

Do lenders count Airbnb-style income?

Some do, often only part of it and with a history of bookings. Policies vary.

Can I claim all the costs?

Only for the times it's rented or genuinely available for rent. Personal use reduces what you can claim.

Talk to Awesome Lending Solutions

Every situation is different. At Awesome Lending Solutions, we can show you how lenders will view a holiday property and help you set up the loan the right way. Call us on 02 7904 9560 or visit awesomelendingsolutions.com.au to book a chat.

How Many Investment Properties Do You Need to Retire?

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

Many investors dream of the day their rental income replaces their wage. But when you ask how many properties it will take, most people aren't sure. The honest answer is that the number of properties matters far less than the amount of equity you own and the income it produces. Here's a simple way to work it out.

Start with the lifestyle you want

Before you think about properties, think about money. How much would you need each year to live comfortably in retirement? Include:

Everyday living costs, like food, bills, transport and insurance
Travel, hobbies and helping family
Health costs, which usually rise as we get older
A buffer for repairs, vacancies and surprises

Many people land somewhere between $60,000 and $100,000 a year. Your number is personal, and it's the starting point for everything else.

It's about equity, not property count

Ten heavily mortgaged properties can produce less spare cash than two properties you own outright. That's because rent goes to the bank first. What you live on is the rent left after interest, rates, insurance, strata, maintenance and management fees.

As a rough guide, a residential property might return a net yield of around 2.5% to 4% of its value after costs, once it's debt-free.

A simple example

Sarah wants $80,000 a year in retirement.

If her properties return a net 3.5% a year once debt-free, she needs about $2.3 million in clear equity ($80,000 ÷ 0.035).
That could be three debt-free properties worth about $770,000 each, or four or five properties with some debt still owing.
Her super and the Age Pension (if she's eligible) could reduce the amount she needs from property.

So the real target isn't "five properties". It's "about $2.3 million of debt-free property, or a mix of property and super that produces the same income".

Growth phase, then consolidation phase

Most successful property investors move through two stages:

Growth phase: buy well-located properties, hold them and let equity build over time.
Consolidation phase: stop buying, pay down debt (sometimes by selling one property to clear others), and switch the focus to income.

Selling can trigger capital gains tax, so plan this with your accountant well before you retire.

What's changed for investors in 2026

Negative gearing: for established homes bought after 7:30pm on 12 May 2026, rental losses can't be used to reduce tax on your wages from 1 July 2027. New builds keep the existing rules.
Capital gains tax: from 1 July 2027, the 50% CGT discount is replaced by indexation and a 30% minimum tax on gains.
Interest rates: the cash rate rose four times in 2026 to 4.60%, which makes holding costs higher.
Lending limits: since February 2026, APRA limits how many loans banks can write where total debt is six or more times income. This can affect investors with several loans.
SMSF borrowing: new borrowing to buy residential property inside an SMSF has been banned since 10 August 2026.

These changes make cash flow, structure and planning more important than ever.

Five steps to build your plan

Work out your retirement income target.
Check what your super and other investments are likely to provide.
Calculate the debt-free property equity you need to cover the gap.
Map out a realistic buying plan based on your borrowing power and cash flow.
Plan your consolidation phase, including when and how you'll reduce debt.

Frequently asked questions

Can I really live off rental income?

Yes, many people do, but it usually takes a clear plan, low or no debt, and a buffer for vacancies and repairs.

Is it better to own more properties or fewer, better ones?

Fewer, well-located properties are often easier to manage and can grow more in value. The right mix depends on your budget and goals.

How long does it take?

Most investors need 15 to 25 years or more. Starting earlier gives your properties more time to grow.

Talk to Awesome Lending Solutions

Every situation is different, and the right plan depends on your goals, income and timing. At Awesome Lending Solutions, we help investors structure their loans for both the growth and consolidation phases, and we work alongside your accountant and financial adviser. Call us on 02 7904 9560 or visit awesomelendingsolutions.com.au to book a chat.