Owner Occupier, LVR <80%
Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.
Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.
Read our Mozo Review to learn more about the Unloan Variable
Owner Occupier, Principal & Interest, LVR <90%
Get fast online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.
Get fast online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.
Read our Mozo Review to learn more about the Express Home Loan
Owner Occupier, Principal & Interest, LVR 70-80%
Enjoy competitive rates for owner occupiers. Enjoy unlimited free extra repayments. Flexibility to redraw additional payments for free. No ongoing monthly service fee. Settlement fee waived on new borrowings from $50,000 (T&Cs apply).
Enjoy competitive rates for owner occupiers. Enjoy unlimited free extra repayments. Flexibility to redraw additional payments for free. No ongoing monthly service fee. Settlement fee waived on new borrowings from $50,000 (T&Cs apply).
Read our Mozo Review to learn more about the Discounted Home Value Loan
Investment, LVR <80%
Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for investors. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.
Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for investors. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.
Read our Mozo Review to learn more about the Unloan Variable
Fixed, Owner Occupier, Principal & Interest, LVR<70%
No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.
No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.
Read our Mozo Review to learn more about the Basic Home Loan
Owner Occupier, Principal & Interest, <80% LVR
Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.
Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.
Read our Mozo Review to learn more about the Fixed Rate
Owner Occupier, LVR<60%, Principal & Interest
Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.
Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.
Read our Mozo Review to learn more about the Basic Home Loan
LVR<80%, Owner Occupier, Principal & Interest
Get a competitive variable rate with ING’s Mortgage Simplifier. Free extra repayments, no monthly or annual fees. Freedom to make free extra repayments or redraws.
Get a competitive variable rate with ING’s Mortgage Simplifier. Free extra repayments, no monthly or annual fees. Freedom to make free extra repayments or redraws.
Read our Mozo Review to learn more about the Mortgage Simplifier
Owner Occupier, LVR<60%, Principal & Interest
Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.
Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.
Read our Mozo Review to learn more about the Offset Home Loan
Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.
While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.
When calculating your borrowing power, your bank or lender will take into account a number of financial factors in order to determine how much they will let you borrow. These include:
The above calculator will give you an estimate of your borrowing power based on your current income and living expenses.
Let’s say that you’re earning $50,000 a year and currently spend $38,000 a year, with $14,000 of that going towards paying rent. Since you won’t have to worry about rent when you’re living in your newly purchased home, we can remove that from the equation. That puts your yearly expenses at $24,000.
Assuming an interest rate of 6.25% p.a. and a loan term of 30 years, you’ll be able to borrow somewhere in the ballpark of $193,595.
By changing factors like your expenses or finding a lower home loan interest rate you might be able to increase your borrowing power. For example, by shaving down your expenses by $4,000 per year, to $20,000, you could borrow $237,965.
Use the home loan borrowing calculator above to work out how much you could afford to borrow in your situation.
Unfortunately, if your income is $50,000 and you aren’t expecting a substantial pay increase in the immediate future, you may be limited in terms of how much banks will let you borrow. That said, there are still avenues available to you if your dream home falls outside your means.
If your parents or other family members have property of their own, they can act as your guarantors when taking out a loan. That means the equity in their house will be used as security for a portion of your home loan, essentially reducing the risk you pose as a borrower and allowing you to borrow more.
Before you dive into the guarantor route, make sure both parties (the guarantor and the beneficiary) understand the risks involved.
In the eyes of a bank, two incomes are better than one, because it lowers the risk of a serious illness or an unexpected job loss wiping out your ability to make repayments. So, whether you’re a couple, or a group of friends that have decided to pool their finances, you’ll find you’re in a much stronger financial position to borrow than going solo.
If a joint application or guarantor home loan aren’t options, it might be wise to reevaluate your goals a little bit, and perhaps look outside your preferred areas (or even cities) for something that fits your budget. Sometimes it pays to think of the first property you own as a stepping stone into the market, so you can snap up the property of your dreams down the track.
Income is just one factor in being approved for a mortgage. With the level of scrutiny that’s being applied to homebuyers’ finances nowadays, you’ll have to show you’re more than ready for a loan.
On top of that, lenders will also be paying close attention to your credit score. If you’ve been nothing but responsible with lines of credit (that is, you make all your repayments in full and on time), you should be able to get in their good books. If not, you might want to hunker down and work on getting your credit score in top shape.
Ideally, you should have at least 20% of a property’s value saved up for a deposit, because that means you won’t need to pay Lenders Mortgage Insurance (LMI). That means if you have your sights set on a $500,000 apartment, you’ll need to have at least $100,000 saved. This might seem like a tall order, but lenders prefer to deal with borrowers who have proof of genuine savings, as that signals they’re less likely to default on the loan.
If a deposit of 20% is currently out of your reach, you’ll be glad to know there are loans out there with Loan-to-Value Ratios (LVRs) of up to 95%, meaning you could potentially put down a deposit of $25,000 on a $500,000 home. Just keep in mind that if you opt for one of these low deposit home loans, you’ll need to factor the cost of LMI into your budgeting.
It's also wise to see if your state or territory governments offer First Home Owners Grants, a lump-sum which can be used as part of your deposit, or an exemption from paying stamp-duty on your new home.
The amount of interest you’ll pay will depend on a few things, namely the size of the loan, the length of the loan term, and of course the interest rate. Let’s assume you’ve been approved to take out a loan of $250,000. You’re also looking at an interest rate of 7% p.a. and intend to pay it off over a period of 30 years. In this scenario, your total interest paid will be $348,773.
If, however, you do a little extra work and find a home loan that offers a more attractive rate, you stand to pay a lot less. For example, if you opt for a home loan with an interest rate of 6.25% p.a. you'll pay $304,146 in interest over the life of the loan - a difference of almost $45,000.
That’s why it’s a good idea to shop around before you borrow: even a small difference in the interest rate can save you tens of thousands of dollars in the long-term. For an idea of what low interest rates currently looks like, be sure to visit our home loan comparison page.
Your repayments, like the amount of interest you pay and how much you can borrow in the first place, will depend on a number of factors. These include:
Using a mortgage repayments calculator, we can work out that if you’re taking out a loan of $250,000 for 30 years and paying an interest rate of 6.25% p.a., your monthly repayments will be $1,539. Over the life of the loan, you'll be up for $289,438 in total interest payable.
If you find a home loan that offers weekly or fortnightly repayments, you might be able to one step ahead of the interest on your loan and reduce the amount you owe your lender in the long-term.
For example, using those same figures, making weekly repayments of $351 work outs to $1,404 per month. That's a saving of $135 per month, or $5,683 over the life of the loan.
Now that you’ve got a rough estimate of how much you’ll be able to borrow, the next step is to find a home loan that suits you. Our home loan comparison table will give you a selection of quality options, and you can filter your search to hone in on the kind of home loan you’re after.