Awesome Lending Solutions

Wednesday, 28 October 2026

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.

Tuesday, 27 October 2026

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:

Works out they can borrow $720,000
Confirms they qualify for the 5% Deposit Scheme and NSW stamp duty exemption
Compares participating lenders and recommends one with a full offset account
Gets them pre-approved within a week
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

Monday, 26 October 2026

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

Sunday, 25 October 2026

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

Saturday, 24 October 2026

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:

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.
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.
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.
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

Friday, 23 October 2026

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

Thursday, 22 October 2026

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.