At Hatch Financial Services, we understand that buying a home—whether it’s your first, your next, or an investment—comes with plenty of questions. As of April 2025, the Australian mortgage market continues to shift, with changing government schemes, interest rate movements, and lender policies.
To help you make sense of it all, we’ve answered some of the most common questions our clients ask. If you’re unsure about anything, just ask a broker—we’re here to help.
1. How much can I borrow for a home loan?
Your borrowing capacity is determined by several factors, including your:
– Income and employment type
– Living expenses and financial commitments
– Existing debts (e.g. credit cards, car loans, personal loans)
– Credit score and history
– The specific lender’s policy, including how they assess serviceability
As a general rule, most lenders will allow a single person to borrow up to four to five times your annual income, though this varies depending on your financial situation and the current lending environment.
Tip: Chat to a Hatch mortgage broker to calculate your borrowing power and avoid overextending yourself.
2. What is the First Home Owner Grant (FHOG), and am I eligible?
The First Home Owner Grant (FHOG) is a government initiative designed to help first-time buyers enter the property market. Each state and territory administers its own version of the grant, which usually applies to newly built homes or substantially renovated properties.
As of April 2025, here are some examples:
– NSW: Up to $10,000 for new homes under $750,000
– VIC: $10,000 for new builds valued up to $750,000
– QLD: $30,000 grant until June 2025 for eligible new homes
Eligibility varies, but typically you must:
– Be at least 18 years old
– Be an Australian citizen or permanent resident
– Occupy the property as your principal place of residence
– Not have owned a property in Australia before
Aside from the FHOG there are a range of other programs available (state by state) to help First Home buyers to get into the property market.
Tip: A Hatch broker can explain the various programs available and assess your eligibility under each. They can then guide you through the process for each.
3. Should I choose a fixed or variable interest rate for my mortgage?
The right choice depends on your financial goals and risk appetite.
– Fixed rate loans offer stability in repayments for a set term (typically 1 to 5 years). They’re ideal if you want budgeting certainty or believe rates will rise.
– Variable rate loans may rise or fall based on market conditions. They offer more flexibility, such as unlimited extra repayments and redraw options.
Many borrowers in 2025 are also choosing split loans, combining both fixed and variable features.
Tip: Speak to a Hatch broker to model different rate scenarios and help you choose the best structure for your situation.
4. What are the upfront costs involved in purchasing a property?
In addition to your deposit, you’ll need to factor in several upfront costs:
– Stamp Duty – One of the largest expenses, varying by state and purchase price
– Conveyancing or legal fees – $1,000 to $2,500
– Pest and building inspections – $400 to $800
– Loan application or settlement fees – Varies by lender (often negotiable)
– Lenders Mortgage Insurance (LMI) – If borrowing more than 80% of the property’s value
– Moving costs and utility connections – Typically $1,000–$3,000
Tip: Our brokers will provide a personalised breakdown of your expected costs based on your property type, location, and lender selection.
5. How does the loan application process work?
Here’s a simplified overview of the loan application process with Hatch Financial Services:
1. Initial consultation – We assess your needs and financial situation.
2. Pre-approval – We identify lenders and apply for a conditional loan amount.
3. Property selection – You find a home that meets your needs.
4. Formal approval – We submit documents to the lender.
5. Settlement – Your loan is funded, and ownership of the property is transferred.
Tip: We manage the paperwork and communication with lenders to keep the process smooth and stress-free.
6. Can I get a home loan with a small deposit?
Yes, it is possible. Many lenders allow you to borrow with as little as a 5% deposit.
One such initiative is the First Home Guarantee (FHG), which supports eligible buyers to purchase a home with a 5% deposit and no LMI, backed by Housing Australia.
To qualify in 2025, you must:
– Be an Australian citizen or permanent resident
– Have a taxable income below $125,000 (single) or $200,000 (couples)
– Intend to live in the property
– Not currently own property in Australia
Tip: Hatch brokers can determine if you’re eligible and help you access these schemes before they reach their annual cap.
7. What is Lenders Mortgage Insurance (LMI), and do I need to pay it?
Lenders Mortgage Insurance (LMI) is a one-off premium paid by borrowers who have a deposit smaller than 20% of the property’s value. It protects the lender, not the borrower, in the event of loan default.
While LMI can cost thousands of dollars, it enables borrowers to get into the market sooner with a lower deposit.
Tip: Doctors, nurses, lawyers, accountants, police officers, ambulance officers and some other professionals may be eligible for LMI waivers. Ask a Hatch broker if you qualify.
8. How do interest rate changes affect my mortgage repayments?
If you have a variable rate home loan, your repayments will increase or decrease in line with changes to the RBA’s cash rate.
– Rate rises mean higher monthly repayments.
– Rate cuts reduce your interest burden.
Fixed rate loans remain unchanged during the fixed term but will revert to a variable rate or new fixed rate upon expiry.
Tip: Use Hatch’s mortgage calculators or speak to a broker for up-to-date repayment estimates.
9. What documents are required for a home loan application?
To apply for a home loan, you’ll generally need the following:
– Proof of ID – Driver’s licence, passport, Medicare card
– Proof of income – Payslips, employment contract, or tax returns
– Bank statements – Savings, expenses, and debts
– Assets and liabilities – Loans, credit cards, super, or investments
– Deposit evidence – Savings account statements or gift declarations
Tip: Hatch uses secure platforms that make providing documents to simple and secure which speeds up the loan process.
10. How can a mortgage broker assist me in the home-buying process?
A mortgage broker acts as your personal finance guide. At Hatch Financial Services, our brokers:
– Compare options with over 30 lenders
– Recommend suitable loan options
– Handle paperwork and negotiations
– Provide pre-approval and settlement support
– Assist with grants and schemes
– Offer advice on structuring and refinancing
Tip: Our service is free for most borrowers, as we’re paid by the lender you choose.
Ask a Broker Today. Need personalised advice? We’re here to help.
At Hatch Financial Services, we believe every buyer deserves expert, honest advice—whether you’re just starting your homeownership journey or growing your investment portfolio.
Book a free consultation with one of our experienced mortgage brokers today and take the first step towards your next property with confidence.
Visit our contact us page or call us on 1300 442 824
