The AUD Finance learning room
Short, practical explanations for the questions that usually appear between ‘we might buy’ and ‘we are ready to apply’.
Ask Ferdi a questionA clear first conversation. No pressure to proceed.
Income is only the beginning. Lenders also consider living expenses, credit limits, other debts, dependants, employment type and a buffer above the actual interest rate.
Useful takeaway: a smaller credit-card limit or cleared personal debt can sometimes change capacity—but get personalised guidance before making changes.
A 20% deposit can avoid Lenders Mortgage Insurance, but it is not the only way to buy. Some lenders and government-supported pathways allow lower deposits, subject to eligibility.
Useful takeaway: compare the cost of waiting to save more with the cost and risk of buying sooner. There is no universal answer.
Both can reduce interest when extra money sits against your loan, but access, fees, product rules and the treatment of future withdrawals can differ.
Useful takeaway: if the property may later become an investment, ask your broker and tax adviser about structure before moving money around.
Fixed loans offer repayment certainty for a period. Variable loans may offer more flexibility. A split can combine both, but also adds moving parts.
Useful takeaway: choose based on your plans and tolerance for change—not a guess about where rates go next.
A lower rate does not automatically mean a better outcome. Compare discharge, application and break costs, LMI risk, remaining loan term and the total interest effect.
Useful takeaway: ask for a dollar comparison and a realistic break-even point.
Clear loan purpose, separate splits and good records can reduce confusion. But loan structure can interact with tax and legal considerations.
Useful takeaway: involve your accountant or tax adviser before using or recycling borrowed funds.
Independent resources
Your situation will be different
