Questions worth asking.

Mortgage loyalty tax refers to existing borrowers paying higher interest rates than new customers because they haven't reviewed or renegotiated their home loan.

Refinancing can be worthwhile if it helps reduce your interest rate, improve loan features, consolidate debt, or better align your mortgage with your financial goals.

Most experts recommend reviewing your mortgage every 12 months or after significant financial changes such as a pay rise, a new job, or the end of a fixed-rate period.

Switching costs in Australia typically include a discharge fee from your current lender (around $300 to $400), settlement and government fees on the new loan, and potential break costs if you're on a fixed rate. Many lenders offer cashback or fee waivers that can offset these costs.

A refinance application creates a credit enquiry, which may cause a small, temporary dip in your score. Applying with a single, well-matched lender, rather than multiple banks at once, keeps the impact minimal.

Most lenders require a 20% deposit to avoid Lenders Mortgage Insurance (LMI). First home buyers can often purchase with as little as 5% through the First Home Guarantee scheme, or 10 to 15% with LMI included in the loan.

Depending on your state and property type, you may be eligible for the First Home Owner Grant, stamp duty concessions, and federal schemes like the First Home Guarantee. Eligibility usually depends on price caps, income, and whether the property is new or established.

Yes. A family guarantor (typically a parent) can use equity in their own property as additional security, allowing you to borrow up to 100% of the purchase price and often avoid LMI.

The First Home Guarantee Scheme allows eligible first home buyers in Australia to purchase a property with as little as a 5% deposit without paying Lenders Mortgage Insurance.

Eligible Victorian first home buyers may qualify for the First Home Owner Grant, stamp duty concessions, and the federal First Home Guarantee Scheme depending on the property type and purchase price.

Yes. Eligible buyers may avoid Lenders Mortgage Insurance through the federal First Home Guarantee Scheme, or by using a family guarantor or a 20% deposit.

Some incentives apply to established homes, but many state-based grants are now focused primarily on new builds and off-the-plan properties.

Yes. Understanding your borrowing capacity, grant eligibility, and loan structure before signing a contract can help avoid costly mistakes and maximise available incentives.

HPAS (Home Purchase Assistance Scheme) is a one-off lump sum grant from the Department of Defence to help eligible ADF members cover the upfront costs of buying or building their first home in their current posting location. The current amount is $16,949 before tax, typically around $11,800 in your hand after tax depending on your marginal rate. You can read more on our services page or contact us to see how it fits your first home purchase.

You generally need to be a permanent ADF member (or a reservist on continuous full time service for at least 12 months), purchase in your current posting locality, have at least 12 months of service remaining at that location, intend to live in the home for at least 12 months as your principal place of residence, and not have received HPAS previously. It is payable only once in your entire period of service. Because eligibility depends on your exact service type, posting location and ownership share, speak with a Vairo broker to confirm whether you qualify.

Yes. HPAS does not cancel out other entitlements. It can be combined with DHOAS (an ongoing mortgage subsidy), HPSEA (which reimburses certain buying and selling costs), the First Home Owner Grant, and state-based stamp duty concessions. Stacking these together can meaningfully change your deposit and borrowing position. Estimate your DHOAS entitlement using the official DHOAS subsidy calculator, or read about our Defence member lending services.We are unable to confirm your eligibility for DHOAS. For full eligibility criteria, visit dhoas.gov.au or call 1300 434 627.

HPAS is paid after settlement once your claim is approved through Defence payroll, and it can take up to around 16 weeks to land in your account. Most settlements happen within four to six weeks, so it should not be relied on as part of your deposit at settlement. Plan your cash flow around the delay before signing contracts. If you are unsure how this affects your timeline, book a consult to map it out.

Yes. After you have satisfied the 12 month owner-occupier requirement, you may rent the property out and retain the HPAS benefit. Buying in your posting location does not lock you out of using the property as an investment down the track. If you are planning to turn the property into an investment later, see our Defence member lending services.

Lenders assess your borrowing capacity based on income, living expenses, existing debts, dependants, and a buffer above the actual interest rate (assessment rate). Each lender applies its own formulas, which is why your borrowing power can vary significantly between banks.

Fixed rates give you certainty over repayments for a set term but limit flexibility (e.g. extra repayments, offset features). Variable rates move with the market and offer more flexibility. Many borrowers split their loan to get a balance of both.

An offset account is a transaction account linked to your home loan. The balance is offset against your loan, reducing the interest you pay. For most owner-occupiers with a healthy cash buffer, the interest savings outweigh any account fees.

Pre-approval typically takes 2 to 5 business days. Full approval and settlement on a purchase usually take four to six weeks from contract signing, depending on the lender, property type, and complexity of your situation.

Common factors that reduce borrowing power include credit card limits, car loans, Buy Now Pay Later accounts, personal debt, and high living expenses.

Yes. Lenders assess your credit card limits, even if the balance is paid off.

Yes. Car finance repayments can significantly reduce how much you may be able to borrow for a mortgage.

They can. Some lenders treat BNPL accounts as liabilities and may also review spending behaviour associated with them.

Yes. Speaking with a mortgage broker early can help identify borrowing issues, improve strategy, and avoid costly mistakes before submitting a home loan application.

LVR means loan to value ratio. It shows the loan amount as a percentage of the lender accepted property value. A $640,000 loan against an $800,000 property has an 80% LVR.

Divide the loan amount by the lender accepted property value, then multiply by 100. For example, $720,000 divided by $800,000 and multiplied by 100 gives a 90% LVR.

For a purchase, lenders generally use the lower of the contract price and their accepted valuation. If the valuation is below the price, your LVR can rise even though the requested loan has not changed.

No. An 80% LVR commonly avoids lenders mortgage insurance, but the lender still assesses income, expenses, debts, credit history, loan purpose and whether the property meets its policy.

Yes. Your LVR can fall as you repay principal or if an accepted property valuation rises. It can increase if the property value falls or you add more lending against the property.

HPSEA (Home Purchase or Sale Expenses Allowance) is a reimbursement for the reasonable costs of selling and buying a home as part of a posting cycle, things like agent commissions, stamp duty, solicitor fees and mortgage costs. It is not a lump sum grant, and it cannot be used for your first ever property purchase. That is what HPAS is for. See our Defence member lending services or contact us to map which entitlement applies to your move.

HPSEA generally applies once you already own a home, receive a posting order, and need to sell that home and buy again at your new location. You must sign a contract to sell within 2 years of receiving your posting order, sign a purchase contract within 4 years, and have at least 12 months remaining at the new location. Buying before your posting order is issued usually disqualifies that property. Speak with a Vairo broker to confirm eligibility for your specific cycle.

Eligible costs typically include real estate agent commissions on the sale, stamp duty on the new purchase, conveyancing and solicitor fees for both transactions, mortgage discharge fees on the sold property, loan establishment costs on the new loan, and in some circumstances removal and relocation costs. Amounts are based on actual expenses, subject to what Defence considers reasonable. Get tailored guidance through our Defence member lending services.

Yes. DHOAS provides an ongoing monthly subsidy into your home loan based on years of service and is independent of HPSEA, which covers transaction costs when a posting forces you to sell and buy. Used together across a career, they substantially reduce the cost of moving. You can estimate your DHOAS subsidy with the official DHOAS subsidy calculator.We are unable to confirm your eligibility for DHOAS. For full eligibility criteria, visit dhoas.gov.au or call 1300 434 627.

No. If you sign a contract to buy a home before you receive your official posting order, that property is not eligible for HPSEA. The purchase has to be linked to the posting, not just happen to coincide with it. Defence will check the sequence. If you are unsure about timing, book a consult before you sign anything.

Yes. Australian citizens and permanent residents living overseas can usually access home loans from a range of lenders. The key is choosing a lender whose policy fits your country of residence, currency, and employment type.

Most lenders will consider overseas income, but how they assess it varies significantly. Some accept close to your full income, while others discount it by 20 to 40% depending on the currency, country, and employment structure.

Many lenders require a slightly larger deposit for non-residents and expats, often around 20 to 30% depending on the property and lender. Australian citizens working overseas typically have more flexibility than non-residents.

Yes. Investment property purchases are common for Australian expats. The right structure, lender, and ownership setup can make a meaningful difference to tax outcomes, borrowing capacity, and future flexibility when you return home.

Australian citizens generally are not subject to foreign purchaser surcharges, even when living overseas. Permanent residents and visa holders may be treated differently depending on the state, so it is worth confirming before signing a contract.

Yes. Mortgage brokers can often negotiate with lenders on your behalf and compare alternative loan options across multiple banks and lenders.

Most Australian mortgage brokers are paid a commission by the lender once your loan settles, not by you. Brokers are legally required to act in your best interests and disclose any commissions upfront.

A bank can only offer its own loan products. A mortgage broker compares loans across a panel of lenders, including major banks, second-tier lenders and non-banks, to find a structure that matches your situation.