Straight Answers · Knowledge centre
Property finance, explained properly.
Quick, plain-English answers to the questions people actually ask: how much deposit you need, how lenders work out what you can borrow, when refinancing is worth it and how investors use equity. Each one gives you the short answer first, then a worked example and the common mistakes to avoid.
Start here
What Is Equity?
Equity is the difference between what your property is worth and what you still owe on it. If your home is valued at $865,000 and your loan balance is $412,300, you have $452,700 in equity. You usually can't borrow against all of it, though. Most lenders will lend up to 80% of the property's value without lenders mortgage insurance (LMI), so your usable equity is that 80% figure minus your current loan, and you still need to pass the lender's serviceability test to access it.
6 min readFirst Home BuyersHow Much Deposit Do I Need?
Most lenders prefer a 20% deposit, which lets you avoid lenders mortgage insurance (LMI), but many people buy with 5% to 10%. With a smaller deposit you will usually pay LMI unless you qualify for an exemption or a government scheme such as the federal 5% Deposit Scheme. On top of the deposit, budget for stamp duty (if it applies), legal fees, inspections and loan costs. The right deposit balances getting into the market sooner against borrowing more.
6 min readFundamentalsBorrowing Capacity Explained
Your borrowing capacity is the maximum a lender is willing to lend you, based on whether you could still afford the repayments if interest rates rose. Lenders look at your income, living expenses, existing debts, credit card limits and number of dependants, then test repayments at an assessment rate usually around 3% above the actual rate. Different lenders use different calculators, so the amount you can borrow can vary noticeably from one lender to the next.
7 min readCategory 01
First Home Buyers
Everything you need to go from saving to settlement, explained without jargon. Start with the checklist, then work through deposits, government schemes and LMI.
Explore First Home BuyersCategory 02
Property Investing
Practical lending knowledge for building a property portfolio. It covers how equity works, how lenders assess investors, and the structures that keep your options open.
Explore Property InvestingCategory 03
Refinancing
Refinancing can save thousands each year, or quietly cost you more. These guides help you tell the difference.
Explore RefinancingCategory 04
Finance Fundamentals
The building blocks behind every home loan decision. Understand these and the rest of the process gets far easier.
Explore FundamentalsCategory 05
Sunshine Coast Property
A local perspective on buying, living and investing on the Sunshine Coast, from the people who call it home.
Explore Sunshine CoastCategory 06
Investor Finance Hub
Going from one investment property to a portfolio is mostly a finance challenge. This hub covers buffers, equity, bank assessment and long-term planning.
Explore Investor FinanceBook a discovery call
Let’s talk straight about your next move.
Book a free, no-obligation discovery call with Andrew. We’ll look at where you are now, where you want to be, and the clearest way to get there. In person on the Sunshine Coast, or by phone and video anywhere in Australia.