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.