hello-home-loans---home-loan-broker-brisbane

The Advantages & Disadvantages of Variable Rate Loans

Wed, 11 Feb 2026 10:07:51 GMT

What are The Advantages of a Variable Rate Home Loan?

A variable rate product is a great option for borrowers wanting to reduce their loan balance quickly. Most variable rate loans offer unlimited additional repayments, with no penalty for paying off your loan early. If you receive an inheritance or decide to sell your home, you can repay your home loan without additional fees or charges. (A good home loan broke r can help you make an informed choice)

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Most lenders offer what’s called a “redraw facility”. A redraw facility allows you to make additional repayments, above your minimum payment, allowing you to “redraw” those additional payments for future use. This means borrowers can reduce their interest payable as the balance of their loan is decreased for the duration that those additional repayments are held in their home loan.

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Some lenders also offer an offset account, usually at additional cost, which works similarly to a redraw facility, but has some differences, including tax benefits. An offset account helps you reduce the interest payable on your home loan while keeping funds accessible in a bank account. The interest on your loan is reduced by the funds held in your offset account. Most lenders will provide you with a debit card attached to your offset account, which works great for people who have their salary paid into their offset account, allowing them to access funds for daily expenses, whilst minimising interest on their loan.

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To give an example of how an offset account works, let’s say you have a home loan of $500,000, but you have $100,000 in your offset account. Your lender will charge interest on your loan based on a loan of $400,000.

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If you want to read more about offset and redraw facilities, check out our other article on how do offset accounts work.

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One of the advantages of using an offset vs redraw is if you have an investment loan that you are claiming tax deductions on and decide to use extra funds to reduce your loan, you can still access these funds if needed for personal expenses, such as buying a car. However, if you withdraw the funds directly from your loan, the ATO considers it a separate loan, which may no longer be tax deductible. An offset account avoids this scenario by keeping funds separate. It’s best to consult a tax accountant for advice specific to your situation.

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Disadvantages of Variable Rate Loans

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Variable rate loans are unpredictable – if interest rates rise, so will your repayments, which can make it difficult to budget. Additionally, lenders can have the discretion to change rates at any time, not just in response to RBA announcements.

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What is a Fixed Rate Home Loan?

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A fixed rate home loan is a home loan that has a rate that does not change for the duration of the fixed period. Most lenders offer fixed rates for 1, 2, 3, 4, or 5 years, and even longer with some lenders, at an agreed interest rate. This means that as interest rates change, whether up or down, your interest rate on your home loan remains the same, and therefore your repayments will remain the same during the fixed period.

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Benefits of Fixed Rate Home Loans

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A fixed rate loan is ideal for borrowers who want to know exactly what their repayments will be. It’s great for those on a strict budget orthose concerned about rising interest rates. When rates rise, you won’t see any increase until your fixed period expires, but it also means that your rate will remain the same when interest rates decrease.

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At the end of the agreed period, usually 1 to 5 years, you will revert to a variable rate, and this is subject to whatever the lender is offering at the time your fixed rate expires.

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Considerations When Choosing a Fixed Rate Loan

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The downside to fixed rate loans is that you miss out on rate reductions if interest rates fall. Most fixed rate loans also lack features like offset accounts or redraw facilities. While some lenders allow up to $10,000 per year in additional repayments on your fixed rate without penalty, you typically cannot access these extra funds until the loan reverts to a variable rate. If you want to pay off your loan early, sell your home, or otherwise break the fixed rate agreement, you could face significant penalties. This will depend on several factors such as how long you have left on your fixed term, and interest rate trends. It’s crucial to discuss this with your broker and lender before you consider selling your home or breaking your fixed rate.

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Splitting your Home Loan: The Best of Both Worlds?

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If you’re still unsure whether a fixed or variable interest rate is right for you, most lenders will allow you to split your home loan into two or more loans. This will allow you to benefit from both rate types: the security of a fixed rate, and the flexibility of a variable rate. This works great for people who want to lock in an interest rate for a portion of the debt, while still being able to make additional repayments on their home loan and take advantage of an offset account should they wish to.

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Speak to an Expert About Your Mortgage Options

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If you want to discuss your home loan and get tailored advice, arrange a 1 on 1 appointment with one of our experts today.

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Getting Pre-Approval For Your Home Loan In Australia

Sun, 08 Feb 2026 02:11:26 GMT

Home Loan Pre-Approval - What Is It and How Do I Get It?

Let's talk about common questions around getting pre-approved for a home loan in Australia. We’ll explain how preapprovals work, what the benefits are, and whether a preapproval for a home loan might be the right move for you. Our Brisbane home loan brokers are here to guide you through the process. Book a free assessment .

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What is Home Loan Pre-Approval?

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A pre-approval, also known as an “Approval in Principle” (AIP), is a conditional approval for a home loan before you find a property. The lender assesses most of the details you’d normally submit for a full home loan approval —such as your income, loan-to-value ratio (LVR), employment history, living expenses, asset, liabilities, borrowing power, and credit history— without evaluating the property itself.

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After assessment, the lender issues a pre-approval subject to the property you eventually choose being acceptable to them as security. With most lenders, your pre-approval lasts 90-days. During this time, if you find a property, the lender will require a signed contract of sale and property valuation to move your pre-approval to a formal approval. In some cases, if you provide updated documentation (like recent payslips and bank statements), lenders may extend this period to 180 days.

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What Are the Benefits of Getting A Home Loan Pre-Approval?

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Getting pre-approval offers several advantages:

Increased Negotiating Power: A pre-approval allows you to make an unconditional offer. Depending on the state you are purchasing in, you can make your offer without a finance clause—making your offer more attractive to sellers and helping you to negotiate a better price.

Clear Budgeting: Pre-approval gives you a clear spending limit, ensuring you stay within your budget and avoid overpaying. You’ll also have an idea of what your repayments will look like.

Streamlined Property Search: Knowing your budget helps narrow down your property search, saving time by focusing on areas within your range. It can also help you expedite your offer acceptance.

Reduced Stress: With your finances pre-approved, you’ll have peace of mind knowing that only the property itself needs to pass the lender’s criteria before you can proceed.

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Why Home Loan Pre-Approval is Essential When Buying Property at Auctions

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At Hello Home Loans , we highly recommend clients who plan to bid at auction get pre-approval before bidding. Bids made at auction are unconditional, meaning that you’re committed to purchasing the property if you win. Without pre-approval, you risk being unable to settle if your loan application is denied, which could lead to significant penalties.

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However, pre-approval does not guarantee the lender will accept the property as security. Factors like high-rise building restrictions, proximity to powerlines, zoning, and other specifics may affect a property’s eligibility. We suggest researching the property before bidding, which can include consulting a solicitor or conveyancer to review flood mapping, body corporate history, and other important considerations.

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If you have a property in mind, ask your home loan broker to check with the lender on the likelihood of it being accepted before the auction.

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Additional Tips

Dealing with Real Estate Agents: If you’re pre-approved, you don’t have to disclose this to agents. However, mentioning it can sometimes help agents advocate for your offer. We advise against revealing your exact pre-approval amount, as it may prompt the agent to push for a higher offer.

Using a Finance Clause: If you’re making an offer and have concerns about the lender acceptance, consider including a seven-day finance clause in your contract (subject to state regulations). This allows time for a property valuation and final lender approval.

Should You Get a Pre-Approval?

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Pre-approvals are beneficial if you plan to buy soon and want clarity on your budget. They’re essential if you plan to bid at auction. However, if you think it may take you longer than 90 days to find a property, it may be wise to hold off on pre-approval to avoid a lapse that could require resubmission, potentially affecting your credit score.

If you’re planning to buy soon and would like tailored advice based on your financial situation, along with full support from start to finish, book in a one-on-one appointment with one of our Home Loan Specialists.

A Guide to Guarantor Loans Buying Property with No Deposit

Sun, 01 Feb 2026 11:17:37 GMT

Guarantor Loans Explained: Buy Your First Home Sooner

Are you a first home buyer looking to enter the property market in Brisbane, but struggling to save a deposit? “Get your parents to go guarantor” is advice many first home buyers hear. Guarantor loans, also known as “Family Pledge Loans”, can help you purchase a property with limited or no deposit. Don’t get us wrong, navigating these complex loans can be confusing – but this guide breaks down everything you need to know about this increasingly popular option. You will need to engage the services of an experienced home loan broker in Brisbane to assist with this process.

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What is a Guarantor Loan?

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A guarantor loan allows a third party—typically your parents, siblings, or children—to offer up their property as additional security to help you secure a home loan. For this arrangement to work, your guarantor must have sufficient equity in their home, and the lender must deem them suitable to provide the guarantee. Certain factors, such as relying on a pension or Centrelink payments may disqualify someone from being a guarantor.

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These loans are particularly beneficial for people with good income but little to no deposit.

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How Does a Guarantor Loan Work?

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Let’s use an example to explain how most lenders structure guarantor loans:

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Matthew is purchasing a property for $500,000 in Brisbane. For this example, Matthew does not have a cash deposit and also wants to borrow $30,000 to cover the costs of purchasing the property such as stamp duty. The total amount Matthew wants to borrow is $530,000.

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The lender splits this $530,000 into two portions:

The first loan is for 80% of the property value being purchased - $400,000 based on the $500,000 purchase price.
The remaining $130,000 is set up as a separate loan secured against the guarantor’s property.

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Both loans are in Matthew’s name. The loans won’t appear on his guarantor’s credit history, and the guarantor isn’t responsible for repaying the debt. Matthew must have sufficient income to service the total debt he is borrowing. The guarantor’s income is not considered when calculating Matthew’s borrowing power.

Common Questions About Guarantor Loans

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“Can the bank sell my guarantor’s house if I default on my loan?”

The short is answer is yes, technically. In rare cases, the bank could force the sale of your guarantor’s home, and all guarantors and borrowers must be aware of this.

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However, lenders typically provide assistance and solutions for a considerable period before resorting to such measures. Maintaining open communication with your lender will help avoid this scenario.

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“Are my parents/guarantors required to get legal advice?”

This one depends on the lender. Some require it, while others don’t. Some lenders allow you to waive the requirement; however, we recommend all guarantors speak to a solicitor to ensure they understand their legal responsibilities. Hello Home Loans can refer you to professionals we have used before and trust to get the job done if you’re not sure where to get advice.

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“Do my guarantors have to be working?”

No. Each lender has different policies, but if your guarantor’s net asset position is comfortable, some lenders will accept retired or unemployed parents. Since the borrower is responsible for repaying the debt, most lenders don’t assess your parent’s income but need to understand what their assets, liabilities and living expenses are. A broker can assist in determining the likelihood of a lender accepting a guarantor.

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“Do my guarantors have to have paid off their mortgage?”

No. If your guarantors have a home loan, ideally your broker would approach the same lender for a guarantor loan. If that lender doesn’t offer guarantor loans, your parent’s lender must then give permission for your new lender to put a second mortgage on the property. Not all lenders allow this, so it’s crucial you speak to a broker to understand your options.

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Lenders have minimum equity requirements for guarantors — generally, they must have at least 20-30% equity after the guarantee has been provided.

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“Who can provide a guarantee?”

Generally, parents, siblings or children. However, with good reasoning, some lenders may accept grandparents or other extended family members.

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“Can I purchase with $0 or no deposit?”

Yes, you can borrow 100% of the purchase plus the cost associated with the purchase like stamp duty.

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“What happens if my guarantors want to sell their home?”

If they are buying another home, you may be able to switch the security with your lender, leaving the loans untouched. If they are not purchasing again, the loans will need to be refinanced, and this may not be possible if you don’t yet have enough equity.

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If your guarantor wants to sell in the near future, we caution against getting a guarantor loan and consider whether your guarantor would provide a gift to you instead. Talk to a broker about your options surrounding this.

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“Do my parents/guarantors own part of my property?”

No, they have no legal ownership of your property.

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“How do I remove the guarantee once I have enough equity?”

This is a straightforward process, generally done once you owe 80% or less than the current value of your home. Your broker can arrange with the lender to remove the guarantee, or you can refinance your home loan to another lender.

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“Can I buy an investment property with a guarantee?”

Yes, both owner-occupied and investment purchases are allowed with most lenders. You’ll also gain the advantage of being able to consider future rental income from the investment property purchase which can increase your borrowing power.

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Will my guarantors be affected by providing the guarantee?

While it won’t affect your guarantor’s borrowing power, providing a guarantee will reduce the available equity in their property, should they wish to access it later. Their financing options may also become limited as they’ll have a mortgage placed on their property by your chosen lender.

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We highly recommend arranging a meeting with all parties before considering a guarantor loan so that everyone clearly understands how they will be affected and what their obligations are.

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Can I get pre-approval when using a guarantor?

Yes, not only is pre-approval possible with guarantor loans, but Hello Home Loans strongly recommends getting pre-approval before you start negotiating on properties when using a guarantor. Getting pre-approved before you start house hunting outs you in the strongest negotiating position and helps avoid the disappointment of having a contract fall through due to financing issues.

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How Do I Get Started with a Guarantor Loan?

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Due to the complex nature of these loans, it’s important to speak to a mortgage broker in Brisbane as early as possible. Lenders have several requirements before approving these loans, and your broker must have a thorough understanding of the position of all borrowers and guarantors before providing any advice.

Hello Home Loans™ has proven success getting these loans approved.

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Guarantor loans are an excellent pathway to enter the Brisbane property market sooner. If you’d like to speak to one of our home loan specialists in Brisbane to get the process start, fill out the contact form below to arrange a time to speak with us.

Bridging Loans How to Buy Your New Home Before You Sell

Tue, 06 Jan 2026 10:10:33 GMT

How a Bridging Loan Works – Step by Step

Whether you’re upsizing, downsizing or relocating in South-East QLD, buying a new home before you’ve sold your current home can feel tricky. You might need the equity in your existing home, or maybe you don’t have the borrowing power to juggle two mortgages at once. You will need to speak to a home loan broker for specialist advice.

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A bridging loan could be the solution. It’s designed for buyers who want to secure their next property first, move in, and then sell their old home.

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What Is A Bridging Loan?

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A bridging loan is a short-term loan that allows you to buy a new home before you’ve sold your current one. Most lenders will give you 6 to 12 months where you can own both properties before your old home must be sold.

This type of loan is useful for a variety of circumstances. You might want to move into your new home and take the time to renovate your old one before listing it, to achieve a better sale price. Without a bridging loan, you may have to complete those renovations while still living in the property - or rent elsewhere in the meantime. Or perhaps you're relocating, either to a new suburb or interstate, and need to settle on your next property before your existing one has sold.

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How Does A Bridging Loan Work?

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Most lenders will lend you 100% of the funds required to purchase the new home, including covering costs like stamp duty. This means you don’t need a deposit to proceed.

Each lender structures their loans differently, but typically, you’re assessed based on the debt you’re expected to have remaining once your old home is sold. This means you don’t need to have the income to support two home loans - just the one home loan you’ll hold once the sale has gone through.

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The bank will value the home you already own, as they will need to take security over both the home you already own and the one being purchased. Once your current property is sold, lenders generally expect the loan-to-value ratio (LVR) of the remaining loan to be 80% or less. If you’re a first home buyer with only have 5% equity, you may not yet be eligible for a bridging loan – but there may be alternative options, so it’s worth speaking to a broker.

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It’s worth noting that not every lender offers bridging loans, so you may need to move your current home loan to a lender that offers these types of loans as part of the process.

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Take a look at this handy diagram that takes you through each step:

What Does A Bridging Loan Cost?

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This depends on the lender; some charge a higher interest rate on these loans due to the short-term nature of the loan, aiming to recover the cost of having the loan approved and set up; while some lenders treat these loans exactly as they would a standard loan and charge the same rates and fees. We’ll always recommend the most cost-effective solution based on your circumstance. However, eligibility for lower-rate products will still depend on equity, credit history, and overall financial position.

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Because most lenders don’t pay broker commissions on bridging loans, Hello Home Loans charges a fee for facilitating them. The fee is calculated on a case-by-case basis depending on the complexity of the loan application and the amount of work involved. In most cases, it’s between $2,000 and $3,000, paid upfront before your application is submitted. It’s a worthwhile investment to ensure your finance is set up correctly and you have ongoing support throughout the process.

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Common questions

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I have no income to support a bridging loan but once I have sold my home, I won’t have any debt? Am I eligible for a bridging loan?

Yes, if you meet the criteria of some lenders, you can get a bridging loan with no income . Some banks assess the expected debt remaining once the property is sold. This is a great option for retirees who want to downsize or relocate where they can access finance from first tier, cost effective lenders, without requiring income to support the loan.

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Can I get a pre-approval for a bridging loan before I start making offers?

Yes! Not only is it possible but we highly recommend a pre-approval for a bridging loan is sought before making offers. A pre-approval provides peace of mind that the bank has approved you for bridging up to a certain amount, and ensures the strongest negotiating position for you when making offers to purchase, helping you avoid disappointment should you miss out on a property if your finance falls through after making an offer.

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I’m separating from my partner, and we’re selling our jointly owned home. I want to buy a home just for myself, is it possible to get a bridging loan?

Yes, if you're separating from your partner and selling a jointly owned property, some lenders may consider a bridging loan for your individual purchase, provided your income, credit history and equity position are strong. In most cases, you’ll need to provide documentation like a court order or formal separation agreement that outlines your legal entitlement to the sale proceeds.

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Do I need to make repayments on my bridging loan?

Lenders look at this differently, some lenders require no repayments where they expect there to be no debt remaining. The interest charged is added to the balance and paid off when the property is sold.

If there’s likely to be residual debt after the sale, the loan will be treated like a standard home loan with monthly repayments, which can be split into fortnightly or weekly payments, if preferred. Repayments will begin once you settle on the new property.

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What happens if my old property doesn’t sell within the bridging period?

This is a very rare occurrence, however, if your property doesn’t sell within the bridging period, some lenders may offer an extension, but this can come with extra costs or changes to the loan terms converting it into a standard home loan. It’s important to go into a bridging arrangement with a clear sale strategy.

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When Should You Talk to a Mortgage Broker?

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The best time to speak with a home loan broker in Brisbane is now – even if you're not ready to buy immediately, or in the planning stage. Bridging loans are more complex than standard loans and require more detailed assessment. For example, they rely on full physical valuations rather than online estimates, which can add time to the process.

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Hello Home Loans™ has helped many clients use bridging loans successfully - from helping a couple move from a small 400sqm block in south of Brisbane to a large acreage in Forestdale, Logan; to supporting downsizers making a lifestyle change from Brisbane to Ipswich. Every client’s situation is unique, and that’s why tailored advice matters.

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If you’re considering buying before you’ve sold, now is the right time to start the conversation and book an appointment with your broker. Don’t risk falling in love with a property that might not work out for you.

Book a free, no-obligation chat with one of our experienced Brisbane mortgage brokers . We'll help you understand your options, answer all your questions, and create a clear path forward.

�� 0434 314 044 - Call us for a free assessment, or fill out the contact form below:

Home Loans For Professionals; Relaxed Rules & LMI Waivers

Thu, 04 Dec 2025 09:28:22 GMT

Home Loan Benefits for Professionals in Eligible Australian Industries

When it comes to borrowing money, whether you are going through a mortgage broker or through a bank, it's not simply how much you earn , but how you earned it. Aussie banks and lenders have several policies and offerings catering to people working in specific industries that give them favourable options for borrowing money.

There are several reasons for this, like the high-income nature of certain industries, the career-long reliability of the income, consistency of extra hours available and the excellent repayment history from other borrowers working in that industry.

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Lower deposits and waiving Lender’s Mortgage Insurance

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Several lenders have offerings to borrowers working in specific fields to allow them to purchase a property for less deposit than usually required and pay no Lender’s Mortgage Insurance. Doctors, Accountants, Lawyers and more can get approved for loans with a 10%, 5% and even a 0% deposit. They also don’t need to be first home buyers; they don’t even have to be buying an owner-occupied property. Lenders know that certain occupations, historically, are great borrowers, and they are rewarded for this.

Here's a list of the professions in 2025 that can access some form of LMI waiver:

(and we’re updating this regularly as lenders provide new offerings for certain professions)

Doctors (including specialists, GPs, surgeons)
Lawyers, solicitors, barristers, judges
Accountants, actuaries, financial analysts
Nurses, midwives, paramedics
Police officers and firefighters
Allied health professionals (physiotherapists, psychologists, optometrists, etc.)
Teachers
Veterinarians
Professional athletes and creatives (in some cases!)

You might have noticed some odd job titles in there like people in creative and sporting industries, yes, some lenders have LMI waivers specifically for people working in these industries, with some lenders having policy specific for celebrities and well-known individuals.

Keep in mind that some lenders have criteria you must meet in order to be eligible for an LMI waiver, these could be things like minimum income thresholds, holding a certain level of education like a bachelor’s degree in your assigned field or being registered with a relevant professional body such as AHPRA for people in the medical field.

Didn’t see your profession on the list? Doesn’t mean you aren’t eligible. Hit the contact us page to find out if our home loan brokers in Brisbane can get you an LMI waiver. Lenders can make exceptions if your profession is like others on the list. If you’re a first home buyer, or haven’t owned property in the last 10 years, you might be eligible for the First Home Guarantee – more .

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Greater borrowing power when working in certain jobs

‍ Essential workers get a lot of love from lenders. Most industries that earn overtime have this income shaded to maybe 80% or even 60% of what is earnt to allow for fluctuations or that you may just not be able to maintain that level of overtime for an extended period.

Due to the nature of the work, if you’re considered an “essential worker”, many lenders do not shade the overtime that you have earnt and will use 100%.

For example, someone working at the local supermarket who earnt $10,000 in a year in overtime, for most lenders, they’re going to reduce your overtime to $8,000. However, someone like a police officer or nurse who earnt $10,000 in overtime can use all $10,000 towards their borrowing power and therefore, borrow more money.

This works the same way for someone who works casual. Where a lender would shade your income in the same way to account for unpaid leave and fluctuating hours, essential workers, working casually, might have no shading to their income and can usually borrow more than a non-essential worker, working the same hours getting the same pay. No matter your role or industry, this is where a broker is useful to determine which lenders look at your income most favourably. Each lender looks at and calculates your income differently and that’s why sometimes your maximum borrowing power between lenders changes considerably.

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Lenient lending criteria

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If you’re in a preferred profession, you might also benefit from relaxed rules when borrowing money.

While this is on a case-by-case basis, lenders can often overlook application criteria that might otherwise have been a “no”. An example of this might be where a lender normally requires you to have been in your position for 6 months before approving you a loan, certain professions are less risky and banks can overlook this requirement, getting you into your home sooner.

Self-employed individuals working in certain professions who would normally be required to provide 2 years’ worth of tax returns, could get approved with only 1 year or even interim financials where they have not been operating for 12 months yet.

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Will I get a better interest rate?

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A frequent question, but the answer is generally, no. Majority of lenders determine your interest rate based on metrics like your total loan amounts, the loan to value ratio of your loans, and the purpose of the funds (principal and interest or interest only). While a preferred profession may help you access Lender’s Mortgage Insurance waivers or unlock greater borrowing power, it won’t reduce your interest rate with majority of lenders.

I’m working in a preferred profession and I’m thinking about buying, how do I get the process started?

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Due to the flexibility around what lenders can do for you, we recommend you speak with a broker before you start looking for a property. Depending on your role will determine what perks are available to you and what you might be able to borrow.

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Fill out your details and one of our experts will be in touch.

What Does a Mortgage Broker Do? | How Brokers Help You Get a Home Loan

Wed, 15 Oct 2025 06:56:36 GMT

Understanding the Role of Your Mortgage Broker

Are you a Brisbane resident thinking about getting a home loan? You've probably heard various opinions about home loan brokers from the media, friends, or family. Let's cut through the noise and explore exactly what mortgage brokers do and how we can help make your home ownership dreams a reality.

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‍The Role of Your Mortgage Broker

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Getting a home loan for a property in QLD can feel overwhelming, but that's where a Brisbane mortgage broker becomes your greatest ally. Just as you trust a qualified accountant to navigate complex tax laws, a mortgage broker is your expert guide through the world of home lending. We take the time to understand your unique financial situation, looking at everything from your income and credit history to your assets and living expenses. This comprehensive approach helps us determine your borrowing capacity and match you with the right lender for your circumstances.

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But we're more than just number crunchers. Whether you're buying your first home, building your dream house, refinancing your existing loan, or planning a renovation, we're here to support you every step of the way. At Hello HomeLoans, we pride ourselves on being your dedicated point of contact from your initial application right through to your final payment. We don't just set and forget – we regularly review your loan to ensure you're always getting the best possible deal.

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Why Choose a Home Loan Broker Over a Bank?

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The power of choice – that's what sets mortgage brokers apart. At Hello Home Loans , we maintain relationships with over 40 different lenders, each offering unique products and assessment criteria. This diversity matters because no two borrowers are exactly alike. Some lenders might look more favourably at your overtime income, while others might be more flexible with property types or credit history. By understanding these nuances, we can match you with a lender who appreciates your specific situation.

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Think of us as your personal negotiator in the lending world. Banks know that when a broker reaches out, you mean business. If your current lender isn't offering competitive rates, we'll negotiate on your behalf. And if they won't budge? We have dozens of other options ready to compete for your business.

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We also understand that your time is precious. Instead of dealing with multiple bank appointments and endless hold music, you'll have direct access to your broker. We handle all the paperwork, communicate with lenders, and answer your questions promptly. No more repeating your story to a different person every time you call.

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Our service extends beyond just securing your loan. We've built strong relationships with trusted professionals in the property industry, from conveyancers to buyers' agents. When you need expert advice, we can connect you with professionals who share our commitment to exceptional service.

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Understanding How Mortgage Brokers Get Paid

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Transparency about fees and commissions is crucial to us. Most Australian mortgage brokers , including Hello Home Loans, receive payment through lender commissions. This typically includes an upfront commission of around 0.65% of your loan amount, plus an ongoing trail commission of about 0.15% annually. For example, on a million-dollar loan, the upfront commission would be $6,500, with an annual trail commission starting at $1,500 (which reduces as you pay down your loan).

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Sometimes, we may need to charge additional fees, particularly for complex applications involving self-managed super funds, company structures, or bridging loans. We might also charge a fee for smaller loans or when funds won't be used immediately. Rest assured; we'll always discuss any fees upfront before proceeding with your application.

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Debunking Common Myths

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Let's address some common misconceptions about mortgage brokers.

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"A broker will take me to whatever lender gives them the biggest commission" – False.

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You might have heard that brokers choose lenders based on who pays the highest commission. This is incorrect. – most lenders offer similar commission structures, so there’s no incentive to take you to one lender over another when it comes to getting paid commission. Brokers are also legally required to act in your best interests under what’s called a ‘best interest duty’, meaning we are required to explain on every loan application, why this lender is the best for the customer.

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“Your interest rate will be higher if you use a broker rather than approaching the lender or bank directly” – False.

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Another myth is that broker loans come with higher interest rates. In reality, almost every lender gives rates specific to the individual applying for the loan. Your rate is determined by factors like your loan value ratio (LVR) or deposit, loan amount, and purpose – not whether you use a broker. Banks offer the same rates whether you come to them directly or through a broker.

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“Mortgage brokers work for the banks” – False.

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Mortgage brokers don't work for the banks. We operate independently, which allows us to provide unbiased recommendations based solely on what's best for you.

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When Should You Talk to a Broker?

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The best time to start a conversation with a Brisbane home loan broker is now – even if you're not ready to buy immediately. Understanding your borrowing capacity and required deposit early in the process helps you set realistic goals and develop an effective savings plan. We can guide you through the preparation phase, helping with a savings plan to meet your timeframe goal, keeping you on track until you're ready to make your move. We’ll also be in touch throughout your journey to keep you on track.

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If you think you’re ready to buy but haven’t spoken to a broker yet, it’s time to book an appointment. Don’t get your heart set on a place that might not work out for you. You may be a candidate for a pre-approval to help negotiate a better deal or to prepare you to bid at auction, and your approval can take some time.

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Tips for preparing to meet with a broker

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Have your most recent payslips available, no older than 45 days, and if you earn anything on top of a base salary or are a casual worker, your income statement for the most recent financial year which you can download through the ATO portal. Have your tax returns ready if you are self-employed and any relevant financial documents like company returns, this will depend on the structure of your business.

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Look through your bank accounts and have a basic understanding of what your living expenses are as your broker will ask. Start a list of your assets and liabilities, Hello Home Loans recommend declaring any assets worth $1,000 or more. This could be the usual things like Home Contents, Superannuation and savings accounts but could also be shares, jewellery, recreational vehicles like jet skis or motorbikes. Everything contributes to your overall financial position and will assist the lender in assessing your loan.

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Start looking at properties to give you a general idea of what you might need to spend in your desired location, so your broker has a starting point. A rough budget will assist with calculating what you’re able to achieve.

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Common Questions from First Home Buyers

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What incentives are available for first home buyers?

There’s a number of grants, concessions and schemes available to first home buyers. Take a look at our complete guide to first home buyers here .

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How can a mortgage broker help me as a first home buyer?

Hello Home Loans does more than assess your borrowing power and submit your application with the lender. We’re here from when you've found your perfect property through to settlement and beyond. We are there to support you through every step providing tailored advice and answer any questions. Don’t worry about sitting on hold with your bank, call us and say Hello.

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Get In Touch

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Hello Home Loans are Brisbane based mortgage brokers and we're passionate about helping people break into the market. We understand the challenges of today's market and work tirelessly to make the process as smooth as possible.

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Take the first step towards your property goals today. Book a free , no-obligation consultation with one of our expert brokers. We'll help you understand your options, answer all your questions, and create a clear path forward.

First Home Buyer Loans | What’s Available to Help You Buy Your First Home

Mon, 08 Sep 2025 07:13:37 GMT

First Home Buyer Benefits Guide: What’s Available to Help You Buy Your First Home?

There’s never been more support available for first home buyers but navigating these benefits can be confusing. With this guide and the help of a Brisbane home loan broker , we explain the key perks and benefits to help you understand what’s available and how to make the most of them.

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What is the First Home Guarantee (FHG)?

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The First Home Guarantee (FHG) is a government scheme allowing eligible first home buyers and those re-entering the property market to buy an owner-occupied home with just a 5% deposit. Single parents may even qualify for a reduced 2% deposit.

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For those re-entering the property market, eligibility requires that they have not owned property in the last 10 years.

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Ordinarily, a deposit of less than 20% requires Lender’s Mortgage Insurance (LMI), which protects the lender and can cost tens of thousands of dollars. However, under the FHG, the government provides a guarantee that protects the lender, enabling you to avoid LMI. For example, on a $500,000 home, the lender would only require a $25,000 savings deposit. Keep in mind that additional fees, like stamp duty, may still apply—though first home buyers might qualify for a stamp duty concession (more on that below).

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Deposit and Genuine Savings Requirements:

The deposit usually needs to consist of "genuine savings," meaning funds that have been in your account for at least three months to demonstrate consistent saving habits.

Some lenders may accept rental payment history as an alternative to genuine savings, which can be beneficial for buyers without long-standing savings.

Gifted funds may also be accepted as part of the deposit if they have been in your account for three months.

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Other Key Criteria:

Property types : Eligible properties include newly built homes, established homes, and off-the-plan townhouses or apartments.

Income and price caps : These vary by location/post code.

Residency : You must be a citizen or permanent resident, and the property must remain owner-occupied during the guarantee period.

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Loans under the First Home Guarantee must be with an approved lender, and must meet the eligibility criteria. It’s important to note that the government does not own a part of your property, and the guarantee can be released once you have 20% equity in your property. We recommend speaking with your broker if you think you might be eligible to release the guarantee.

Your property must also remain owner-occupied during the duration of the guarantee. If you wish to rent out your property, the guarantee must be released. This would require refinancing your loan, and you may need to pay Lender’s Mortgage Insurance (LMI) if there’s less than 20% equity in your property.

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How Does the First Home Super Saver Scheme (FHSSS) Work?

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The First Home Super Saver Scheme (FHSSS) is a government scheme that allows first home buyers trying to save their deposit to purchase a home to make voluntary additional super contributions, taxed at the applicable superannuation rate of 15%, rather than the applicant’s income tax bracket which is usually higher than 15%. This does not include the required minimum contribution your employer makes to your super, contributions must be additional to this.

First home buyers can contribute an additional $15,000 per financial year up to a total of $50,000 across multiple years. When they are ready to buy, they simply request their superannuation company release the funds. We recommend doing this as early as possible as it can take some time for the release request to be processed.

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Check out this great example of how much can be saved from NGS Super:

Example savings calculations are referenced from NGS Super's First Home Super Saver Scheme Guide.

How much you can save is relevant to your taxable income and the contributions you’re making. We recommend speaking to an accountant to receive specific advice around your circumstances.

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What is the First Home Owner’s Grant (FHOG)?

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The First Home Owner’s Grant (FHOG) is a grant paid to first home buyers when purchasing a home. This can be between $10,000 and $30,000 depending on which state you are buying. It has specific requirements based on which state the property is being purchased in and is generally only available for new properties. This includes purchasing land and building a home or buying a new property off the plan like a townhouse or apartment.

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There are several criteria, which often include:

Income limits and property price caps (varies by state – refer to the specific state website for information).
Occupancy requirements : Typically, you must occupy the property for a certain period.

The funds from the first home owner’s grant can form part of your deposit but usually only where applicants have a rental history with a real estate agent otherwise it will not likely form part of your minimum deposit but can be used towards your purchase. In most cases, the lender will apply for the grant on your behalf with your consent and funds will be paid directly to your lender.

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Can I Get a Stamp Duty Concession?

Stamp duty is a tax levied by the state you are purchasing a property in. Each state has their own requirements and calculations as to what you will be required to pay and whether you can receive a reduction or concession. First home buyers in many states can pay $0 or a reduced amount should they live in the property for a set amount of time, usually 12 months.

This concession can add up to thousands of dollars saved and will help reduce the deposit required to purchase.

A conveyancer or solicitor in your relevant state can help provide specific advice as to what you are eligible for, and we recommend speaking to one before starting your property buying journey.

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Can I Combine Multiple First Home Buyer Benefits?

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Yes! Depending on your circumstances, you may combine several of these benefits for greater financial assistance.

Each of the above have their own resources available online with detailed information and eligibility quizzes to assist in determining what’s available to you.

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We recommend booking in a time with one of our finance specialists at Hello Home Loans who can help determine your eligibility as well as calculate your borrowing power and deposit required.

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Disclaimer: The information provided in this article is current as of 21st November 2024, and is intended as a general guide only. Benefits, eligibility criteria, and available schemes may change over time or vary by state/territory. We recommend consulting with a Hello Home Loans broker and visiting official government websites for the most up-to-date information specific to your circumstances before making any financial decisions.

How Do Offset Accounts Work In Australia

Wed, 16 Jul 2025 02:58:14 GMT

Understanding How Offset Accounts Can Help You Save Money $

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How Does an Offset Account Work for Home Loans?

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An offset account helps you reduce the interest payable on your home loan by keeping funds in a separate, linked bank account. Your loan interest is calculated on the balance of your loan, minus the amount held in your offset account. For example, if you have a home loan of $500,000 and $100,000 in your offset account, your lender will charge interest based on $400,000. This can result in significant savings over time. Most lenders will provide you with a debit card attached to your offset account, which works great for people who have their salary paid into their offset account, allowing them to access funds for daily expenses, whilst minimising interest on their loan. A good home loan broker will be able to guide you through this process.

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With an offset account, you also have easy access to your money, the same as a regular transaction account. You can use it for daily expenses, set up direct debits, or pay bills via BPAY, and other features you might normally use, all while reducing your interest costs. Most lenders require a “package loan” to access an offset account, which typically involves an annual fee—usually around $395, but does vary. This annual fee entitles you to the offset account (and sometimes multiple offset accounts with some lenders), a discount of 0.15% off the lenders advertised rate, and often they waive their annual fee on their credit card should you apply for one as well.

What is the Difference Between A Basic Home Loan Or One With An Offset Account?

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Should I get a basic home loan or a package home loan?

When considering whether you need a simple redraw facility versus a more expensive offset account option, there are several factors to consider. In this article, we will explain what a redraw facility is, what an offset account is, how they both work, and how they can best work for you.

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What is a Redraw Facility?

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A redraw facility is a feature of most basic home loans. It allows you to access any extra payments you’ve made beyond your minimum required repayments. Essentially, you can reduce your interest charges by making extra payments, which decreases the balance of your loan for the duration that those extra payments are held. You can then withdraw those extra funds if needed. Unlike an offset account, the extra repayments are kept directly in your home loan account, and not in a separate bank account.

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Most basic home loans have a redraw facility, often with a slightly lower interest rate compared to loans with an offset account. While most lenders don’t charge fees for using a redraw facility via online banking, some may apply charges for accessing it over the phone or in branch.

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Which Option is Right for Me?

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At Hello Home Loans, we generally only recommend a basic home loan for borrowers who are owner-occupiers and who never intend to have any investment debt, whether that be an investment property or investing in other assets such as shares or bonds.

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We also take into account whether you typically keep enough funds in your offset account to justify the cost. For borrowers who only maintain a few thousand dollars in their offset account, the fees may outweigh the interest savings, making it more expensive to have the offset account than the benefits it provides.

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If you are an owner-occupier right now but plan to turn your property into an investment property, purchase a new property for investment purposes, or invest your money elsewhere, we usually recommend you have an offset account. This is because of the tax implications that can arise from using a redraw facility versus an offset account.

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Everyone’s financial position is different so it is best to speak with one of our experts so we can determine the right loan structure for you.
We also highly recommend speaking with a qualified tax accountant and financial planner to get specific advice around investing and tax. At Hello Home Loans, we work closely with several professionals, including your accountant, to tailor the structure of your home loan products to suit your needs.

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Ready to Get Started?

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If you’re unsure which option is best for you, let us help! Contact Hello Home Loans to speak with one of our home loan specialists in Brisbane . We’ll work with you to find the right loan structure that meets your financial goals and helps you get the most out of your home loan.

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