Home Finance Options and Tips

Information in this article is general in nature and does not constitute financial or legal advice. Scheme details, eligibility criteria, grant amounts, and income thresholds are subject to change. Always verify current information through the relevant state or federal government sources and seek advice from a licensed mortgage broker or financial adviser before making decisions.

Home Finance Options and Tips

When it comes to buying land or building your first home, one of the most important decisions you’ll make is how you’ll finance it. The good news is that whether you’re a first home buyer taking that first step onto the property ladder, or purchasing for a second or third time, there are more finance options available today than ever before.

To help guide you through the landscape, we consulted with Don Crellin, Managing Director of Resolve Finance, and Geoff Burden, mortgage and finance broker at GWB Finance, two experienced professionals who work with home buyers every day.

Where Should I Start?

Securing a home loan can feel overwhelming, but the process becomes far clearer when you have the right guidance from the start. Before you start browsing land or comparing house and land packages, it pays to understand your financial position and what lenders will be looking for.

The best first step is to engage an experienced mortgage broker. A good broker will assess your individual goals and circumstances, identify the most suitable loan products from a wide panel of lenders, and help you put together the strongest possible application.

“A lot of people come to me with preconceived ideas of what their family or friends tell them they should get,” Geoff Burden said. “What suits your brother, sister, or best friend may not be the best lender or loan option for you. It’s really important that the lender and loan product is tailored to what your requirements are.”

Don Crellin reinforces the value of working with a professional broker early. “Understanding what lenders look for when assessing applications can also help borrowers prepare and boost their chances of securing a loan,” he said.

Today’s mortgage brokers typically access 40 or more lenders through their aggregator panels, meaning they can compare a wide range of products to find the right fit for your needs, at no cost to you.

What Do Lenders Look For?

When you apply for a home loan, lenders evaluate several key areas of your financial life. Understanding these factors, and taking steps to strengthen them, can make a significant difference to your borrowing capacity and the outcome of your application.

Savings

A consistent savings history is one of the clearest signals of financial discipline that lenders look for.

“They will be looking for a regular pattern of savings and will be trying to determine your ability to repay your loan,” Mr Crellin said. “They will want to see you making regular deposits into a separate account that has an increasing balance. It’s about demonstrating that over and above your normal expenditure, you have the capacity to put away a little more.”

Expenses

Lenders examine all of your outgoings, including discretionary spending on entertainment, travel, clothing, and food. Small regular expenses like streaming subscriptions are taken into account. Going through your bank statements line by line helps you understand what’s essential and where you can reduce spending before applying.

Debt

Every debt you carry reduces how much a lender will offer you, and the impact is greater than many people expect.

“Having too many or too high credit card limits can cause a massive reduction in borrowing capacity. Personal loans and car loans also reduce your ability to borrow what you want,” Mr Burden said.

A key point many borrowers miss: lenders assess your credit card limit, not just your current balance. If you have a $10,000 limit, lenders will assume you need to service approximately $300 per month, regardless of how much you actually owe. Reducing your credit card limits before applying can directly improve your borrowing capacity.

It’s also worth understanding Comprehensive Credit Reporting (CCR), which has been in place in Australia since 2018 and is now fully embedded in how lenders assess applications. Under CCR, your credit file shows 24 months of repayment history across all credit accounts, meaning consistent, on-time payments are a positive signal to lenders, not just the absence of defaults.

“Make sure you pay all your bills on time — don’t be late or miss any credit card payments,” Mr Burden warned. “Financial institutions can now see much more information regarding people’s payment conduct and credit history than they could before.”

Employment

Lenders pay close attention to the stability of your income, not just how much you earn, but the nature of your employment.

“They’re interested in the stability of your income, which includes the nature of your job, the sector you work in, how long you’ve been with your current employer, whether you’re on probation, and whether your previous jobs were in similar fields,” Mr Crellin explained.

The Serviceability Buffer

One additional factor worth understanding: APRA (the Australian Prudential Regulation Authority) requires lenders to assess whether you could still afford your repayments if interest rates were 3% higher than today’s rate. This stress-test buffer is applied to every application, so reducing your debts and outgoings improves how you perform against it.

Types of Home Loans in Australia

Choosing the right home loan is an important step in the home buying journey, and the best option will depend on your financial situation, goals, and appetite for flexibility or certainty.

From low-deposit loans designed to help buyers enter the market sooner, to fixed, variable and split rate options, there are a range of loan structures available in Australia. There are also specialised products for self-employed borrowers, interest-only arrangements, and financing options tailored for house and land packages.

Understanding how each type of loan works can help you identify which features and repayment structure best suit your circumstances.

Understanding Interest Rates

Your interest rate is one of the most significant factors in determining your monthly repayments and the total cost of your loan over time.

When comparing loans, look beyond the advertised interest rate to the comparison rate, this includes both the interest rate and most fees and charges associated with the loan, giving you a more accurate picture of the true cost.

Whether you choose a fixed, variable, or split rate structure will affect how your repayments respond to changes in the market. A mortgage broker can model different scenarios based on your situation to help you make the right choice.

State-by-State Finance Options

Beyond standard home loan products, each state offers specific grants and schemes to help first home buyers get into the market sooner. Here’s a current summary of what’s available in the states where Satterley operates.

Across Western Australia, Victoria and Queensland, where Satterley communities are located, buyers may be able to access initiatives such as:

• First Home Owner Grants (FHOG) for new homes or house and land packages
• Stamp duty concessions or exemptions in certain states
• Low-deposit government-backed loans, such as Keystart in Western Australia
• Shared equity programs designed to reduce the upfront purchase cost
• Australian Government schemes that allow eligible buyers to purchase with a smaller deposit

These programs are regularly updated and eligibility criteria can vary by state, income level and property value.

Take the Next Step with Satterley

Understanding your finance options is one of the most empowering things you can do as a prospective home buyer. With the right loan, the right grants, and the right professional advice, homeownership is more achievable than many people realise.

At Satterley, we’ve been helping Australians find their place in a community for over 45 years. With masterplanned communities across Western Australia, Victoria, and Queensland, our Sales Professionals are experienced in working alongside first home buyers, helping you understand your options and connect with the right finance professionals.

For detailed advice on the finance pathway that best suits your circumstances, we recommend speaking with a licensed mortgage broker or your financial provider.

Explore our communities across WA, VIC, and QLD, or get in touch with our team to start the conversation.