Home Loan FAQs – Sydney & NSW

A mortgage is a loan used to purchase property, repaid over time with interest.

You borrow money from a lender and repay it in regular instalments over a set period.

Most home loans run for 25–30 years, though you can pay them off faster.

No, but a broker compares multiple lenders and handles the process for you.

Yes — brokers are paid by lenders, not by you.

Typically between 2–6 weeks depending on the lender and complexity.

Pre-approval is an indication of how much a lender may lend you before you buy.

It’s highly recommended so you know your budget and can act quickly.

It’s risky — pre-approval provides financial confidence and protection.

Your full loan application is submitted and assessed by the lender.

Some buyers need 20%, but many can buy with as little as 5–10%.

LMI protects the lender when your deposit is under 20%.

Yes — through higher deposits, government schemes, or family guarantees.

Stamp duty, legal fees, inspections, and moving costs are common.

Yes — depending on lender policies and documentation.

It depends on income, expenses, debts, and lender policies.

Yes — repayments reduce how much you can borrow.

Yes — even unused limits are counted as debt.

Yes — lenders factor these into expenses and liabilities.

Often yes — through better structuring and lender choice.

Yes — many lenders offer flexible options.

Usually 1–2 years, depending on the lender.

Yes — some lenders accept irregular income.

Often yes, if consistent and provable.

Fixed stays the same for a period; variable can change.

It depends on your goals and market conditions.

An account that reduces interest charged on your loan.

Allows access to extra repayments made.

Yes — many borrowers use part fixed and part variable.

Eligible first home buyers in NSW may be able to access the NSW First Home Buyers Assistance Scheme for stamp duty relief, the NSW First Home Owner Grant for eligible new homes, the Australian Government 5% Deposit Scheme, the Australian Government Help to Buy Scheme, and the First Home Super Saver Scheme.

Not always.

Eligible first home buyers in NSW may receive a full exemption from transfer duty on a new or existing home valued up to $800,000, and a concessional rate on homes above $800,000 and under $1 million. For vacant land, a full exemption may apply up to $350,000, with a concessional rate above $350,000 and under $450,000.

No.

In NSW, the First Home Owner Grant is a $10,000 grant for eligible new homes only. It is not available for established homes. For a newly built home, the purchase price must not exceed $600,000. For vacant land plus a building contract, the combined total must not exceed $750,000.

The Australian Government 5% Deposit Scheme helps eligible first home buyers purchase a home with a minimum 5% deposit and without paying Lenders Mortgage Insurance. Eligible single parents or legal guardians may be able to buy with a minimum 2% deposit.

No.

For eligible first home buyers, the current Australian Government 5% Deposit Scheme has no income caps, no waitlists, and no Lenders Mortgage Insurance.

Help to Buy is an Australian Government shared equity scheme.

Eligible buyers need a minimum 2% deposit and a home loan from a participating lender. The Government can contribute up to 30% of the purchase price for an existing home or up to 40% for a newly built home. In return, the Government takes a proportional equity share in the property.

Yes.

Under the current rules, taxable income must be at or below $100,000 for individual applicants or $160,000 for single parents and joint applicants. Help to Buy also has property price caps and cannot be used with other government purchase-support schemes that provide shared equity, loans or guarantees.

Yes, in some cases.

The First Home Super Saver Scheme allows eligible buyers to make voluntary contributions into super and later apply to withdraw eligible amounts plus associated earnings toward a first home deposit. The current limits are up to $15,000 per year and up to $50,000 total.

Sometimes, yes.

Depending on your eligibility and the property you are buying, you may be able to combine NSW stamp duty relief with the First Home Owner Grant, and in some cases also use federal support such as the 5% Deposit Scheme or the First Home Super Saver Scheme. Help to Buy has stricter rules and cannot be combined with other government purchase-support loans, guarantees or shared equity schemes.

You can read our full:

• First Home Buyer Guide

• First Home Buyer Grants & Schemes NSW pages

Those pages go into more detail on deposits, borrowing power, grants, schemes, eligibility and the buying process.

A good time to review your home loan is when your fixed rate is ending, your repayments have increased, your current rate no longer feels competitive, you want to access equity, or your loan structure no longer suits your needs.

The key question is not whether you can switch, but whether switching will actually leave you better off after costs. Moneysmart recommends checking the fees involved and how long it will take to recover the cost of switching.

Often yes, but not always.

A lower rate, different structure, or longer loan term may reduce repayments. But the better comparison is whether the new loan improves your overall position after fees, features, loan term and total cost are considered. Moneysmart recommends working out whether you will save money by changing loans and how long it will take to recover the switching costs.

It can.

Depending on your situation, refinancing may involve a break fee if you are on a fixed rate, a discharge fee to close your current loan, an application fee for the new loan, a switching fee if you refinance internally, and possibly stamp duty depending on the scenario.

Sometimes yes.

Before switching lenders, it can be worth asking your current lender for a better deal. Moneysmart notes that some lenders may reduce your interest rate to keep your business, but any offer should still be compared against other options in the market.

Yes, in many cases.

Homeowners often refinance to access equity for renovations, investing, debt consolidation or other goals. Whether this is possible depends on your property value, loan balance, income, expenses and lender policy. Your refinance should still be assessed carefully to make sure the structure is right for your overall position.

The timeframe can vary depending on the lender, your documents, valuation requirements and how complex the application is.

As a general guide, refinancing can be relatively straightforward when the file is clean and the lender turnaround times are reasonable, but it is always best to allow time for assessment, approval and settlement.

Not necessarily.

A cheaper rate can be a good reason to review your loan, but it should not be the only reason to switch. The better question is whether the new loan leaves you better off once you consider the interest rate, fees, features, flexibility, loan term and your longer-term plans.

Yes.

Refinancing is not only about chasing a lower rate. It can also be used to improve loan features, change structure, consolidate debt, move between fixed and variable, or better align your home loan with your current goals.

You can read our full Refinance Home Loan page for a more detailed breakdown of when refinancing may be worth considering, what costs may be involved, and how the process works.