Australian mortgage guides
Straight answers to the questions buyers actually ask — then model your own numbers in the free calculator.
Investing
- What Is Rentvesting, and Does It Stack Up?Rentvesting means renting where you want to live while buying an investment property somewhere cheaper. See how it works in 2025-26, a worked example, and how to model rent vs buy in True Loan.
- What Is Negative Gearing? A Worked ExampleA plain-English guide to negative gearing in Australia for 2025-26, with a fully checkable worked example and how to model the loan side in True Loan.
- Stamp Duty: Investment Property vs Owner-OccupierInvestors generally pay the same stamp duty rate as owner-occupiers in Australia, but miss out on first-home-buyer concessions. Here's how it works, with a worked NSW example.
Equity & LVR
- What Is LVR and How Do You Calculate It?LVR (loan-to-value ratio) is your loan divided by the property's value, shown as a percentage. Learn how to calculate it, why the 80% threshold matters for LMI, and how to model it in True Loan.
- How to Calculate the Usable Equity in Your HomeUsable equity is typically 80% of your home's value minus your loan balance. Here's the formula, a worked example, and how to model it in True Loan.
- How Much Equity Will You Have in 5 or 10 Years?Estimate your home equity and LVR in 5 and 10 years using projected property value and remaining loan balance, with a worked Australian example and how to model it in True Loan.
- How Much Equity to Buy a Second Property?How to work out usable home equity to buy a second or investment property in Australia, with the 80% LVR rule, a worked example, and how to model it in True Loan.
Borrowing power
- The 3% Serviceability Buffer ExplainedHow APRA's 3% serviceability buffer works in 2025-26, why lenders assess your loan at a higher rate, and roughly how much it trims your borrowing power, with a worked example you can model in True Loan.
- How Much More Can You Borrow When Rates Fall?A grounded 2025-26 guide to how a falling interest rate lifts your borrowing capacity in Australia, including the APRA 3% buffer, a checkable worked example, and how to model it in True Loan.
- How a Credit Card Limit Cuts Your Borrowing PowerA credit card limit reduces your home loan borrowing power by roughly $5,000-$6,000 per $1,000 of limit, because lenders assess the full limit, not the balance. Here's how it works for 2025-26 and how to model the gap in True Loan.
- How Much Can You Borrow on a $100k Salary?An estimate of how much an Australian on a $100k salary can borrow for a home loan, how lenders calculate it with the 3% buffer, plus a worked example and how to model the repayments in True Loan.
Fixed vs variable rates
- What Happens When Your Fixed Rate Expires?When a fixed-rate period ends, your loan automatically reverts to your lender's variable rate. Here's how that changes your repayments, with a worked $600k example you can model in True Loan.
- How Does a Split Home Loan Work?A plain-English guide to how split (part-fixed, part-variable) home loans work in Australia for 2025-26, with a checkable worked example and how to model one in True Loan.
- Fixed vs Variable Home Loan: The Real Lifetime CostFixed vs variable home loan over 30 years: a worked $600k example comparing total interest, what happens at revert, and how to model both in True Loan.
- Comparison Rate vs Interest Rate ExplainedThe interest rate is what a lender charges on your balance; the comparison rate folds in most fees to show a loan's true cost. Here's how each works in Australia, with a worked example.
Repayment frequency & type
- Weekly vs Fortnightly vs Monthly Mortgage RepaymentsHow weekly, fortnightly and monthly mortgage repayments compare in Australia, why the "fortnightly saves a fortune" claim depends on the method your lender uses, and how to model it.
- Interest-Only vs P&I: How Much More Interest?A worked Australian example showing how much extra interest an interest-only period adds over the life of a home loan, and how to model it in True Loan.
Loan term & payoff
- Total Interest on a $600k Home Loan Over 30 YearsA $600,000 home loan at 6% over 30 years costs roughly $695,000 in interest — more than the amount borrowed. See the maths and how to model it in True Loan.
- Extra Per Month to Pay Off Your Mortgage in 20 YearsWork out how much extra per month pays off your Australian mortgage in 20 years instead of 30, with a checkable $600k worked example and how to model it in True Loan.
- Does Refinancing Reset Your Loan Term to 30 Years?Refinancing doesn't automatically reset your mortgage to 30 years, but it commonly does. See a worked $600k example showing the extra interest, and how to model it in True Loan.
- 40-Year vs 30-Year Home Loan: The Extra InterestA 40-year home loan trims your monthly repayment but can add roughly $290,000 in interest on a $600k loan at 6%. See the maths and model your own loan term in True Loan.
- 25 vs 30 Year Home Loan: How Much More Interest?Compare a 25-year vs 30-year Australian home loan: how much extra interest a 30-year term costs, with a worked $600k example you can model in True Loan.
Refinancing
- Refinancing a $600k Mortgage From 6.5% to 5.5%Estimate the repayment and interest savings of refinancing a $600,000 Australian home loan from 6.5% to 5.5%, with a worked example and how to model it in True Loan.
- Is Refinancing Worth It to Save 0.5% on Your Rate?A 0.5% rate cut on a $600k loan saves roughly $190 a month. Here's how to weigh that against refinancing costs and LMI, with a worked example you can check in True Loan.
- How Much Does It Cost to Refinance in Australia?A plain-English guide to what it costs to refinance a home loan in Australia in 2025-26: discharge fees, mortgage registration, valuation, application fees, LMI and fixed-rate break costs, with a worked example and how to model it in True Loan.
Buying process
- Pre-Approval vs Unconditional Approval ExplainedA plain-English guide to home loan pre-approval (conditional approval) versus unconditional/formal approval in Australia, how long pre-approval lasts, and how to model your numbers in True Loan.
- How Much Cash Do You Need at Settlement?After your exchange deposit, the cash you still need at settlement is the rest of your contribution to the purchase price plus stamp duty, LMI (if any), registration and conveyancing fees. Here is how to work it out for the 2025-26 financial year and model it in True Loan.
LMI
- Pay LMI Upfront or Capitalise It Into Your Loan?How paying Lenders Mortgage Insurance upfront compares to capitalising it into your home loan in Australia, with a worked $600k example and how to model both in True Loan.
- How Much Is LMI on a $600k Loan With a 10% Deposit?A 10% deposit puts you at 90% LVR, so a $600k loan typically attracts roughly $10,000-$12,000 in LMI. Here's how it's worked out and how to model it.
- How Much Deposit Do You Need to Avoid LMI?A clear, accurate guide to how big a deposit you need to avoid Lenders Mortgage Insurance in Australia for 2025-26, with a worked example and how to model it in True Loan.
- How Is LMI Calculated, and Why Does It Jump at 95%?How Lenders Mortgage Insurance is calculated in Australia, why the premium jumps sharply between 90% and 95% LVR, with a worked $600k example you can model in True Loan.
Deposits
- Pay LMI Now or Keep Saving for 20%?Compare buying now with Lenders Mortgage Insurance against saving longer for a 20% deposit, with a worked $600k example and how to model both in True Loan.
- How Much Deposit Do You Need to Buy a House in Australia?Australia home deposit guide: 5% gets a loan, 20% avoids LMI, plus First Home Guarantee rules and a NSW worked example. 2025-26 figures.
- How a Guarantor Home Loan Works (and the LMI It Saves)A plain-English guide to how guarantor home loans work in Australia for 2025-26, how much LMI they can save, and how to model the numbers in True Loan.
- Total Upfront Cost to Buy Your First Home in AustraliaA 2025-26 breakdown of the total upfront cost to buy your first home in Australia - deposit, stamp duty, LMI, government and conveyancing fees - with a worked example you can model in True Loan.
Upfront & ongoing costs
- Ongoing Costs of Owning a Home Per YearA 2025-26 breakdown of the yearly running costs of owning a home in Australia — council rates, water, insurance, strata, maintenance and land tax — with a worked example and how to model them in True Loan.
- Land Tax on Investment Property by StateA 2025-26 guide to land tax on Australian investment property: how it is calculated, which states have the lowest thresholds, a worked example, and how to budget for it in True Loan.
- How Much Are Strata Fees, and What Do They Cover?A 2025-26 guide to typical strata fees on Australian apartments, what the administrative and capital works funds cover, and how to factor them into your ownership costs with True Loan.
Offset & extra repayments
- Offset vs Extra Repayments: Which Saves More?Offset accounts and extra repayments both cut mortgage interest. See how each works in Australia, a worked $600k example, and how to model both in True Loan.
- Offset vs Redraw: What's the Difference?Offset accounts and redraw both cut home-loan interest, but they work differently. Here's how each works in Australia, the tax catch for investors, and a worked $600k example you can model in True Loan.
- How Much Does a $50,000 Offset Save on a $600k Loan?Keeping $50,000 in an offset on a $600k home loan at 6% can save roughly $200,000 in interest and clear the loan about 4-5 years early. See the maths.
- How Much Does a $10,000 Lump Sum Save on Your Mortgage?A $10,000 lump sum off your home loan can save tens of thousands in interest and cut years off the term. See a worked example for a $600k loan and model your own in True Loan.
- Does an Offset Lower Repayments or Shorten Your Loan?An offset account keeps your minimum repayment the same but cuts the interest you're charged, so more of each payment clears the principal and the loan finishes early. Worked example and how to model it in True Loan.
Stamp duty
- Stamp Duty on an $800k First Home in NSW (2025-26)Eligible NSW first home buyers pay $0 stamp duty on an $800,000 home in 2025-26 under the First Home Buyers Assistance Scheme. Here's how it works.
- Stamp Duty on a $600k First Home in Victoria (2025-26)If you're an eligible first home buyer in Victoria, a $600,000 home attracts $0 stamp duty in 2025-26. Here's how the exemption works, a worked upfront-cost example, and how to model it in True Loan.
- How Is Stamp Duty Calculated in Australia?A plain-English guide to how stamp (transfer) duty is calculated in Australia for 2025-26 — the dutiable value it's based on, the sliding-scale brackets, first-home-buyer concessions, and a checkable worked example.
- First Home Buyer Stamp Duty Thresholds by State (2025-26)A 2025-26 guide to the property price at which first home buyers start paying stamp duty in every Australian state and territory, with a worked example and how to model your full upfront costs in True Loan.
- Deposit Plus Stamp Duty: Your Total Funds at SettlementWork out the total cash you need at settlement in Australia: deposit, stamp duty, LMI, registration and conveyancing - with a checkable worked example and how to model it in True Loan.
- Can You Add Stamp Duty to Your Home Loan?In Australia you usually can't add stamp duty directly to a home loan, but you can sometimes borrow more to cover it. Here's how it works, a worked NSW example, and how to model it in True Loan.