Home Loans
Purchasing your home is a big step for anyone. The experienced and friendly mortgage brokers at Gateway Finance work hard to get the best loan for your property purchase.
Your perfect home loan starts here
A home loan is a secured loan from a lender used to purchase a residential property, repaid in regular instalments of principal and interest over an agreed term, typically 25 to 30 years. Purchasing your home is a big step for anyone. The experienced and friendly mortgage brokers at Gateway Finance work hard to get the best loan for your property purchase. We take the time to understand your finance goals and dreams to curate a selection of the best options for your home loan. Use our borrowing power calculator to see how much you can borrow, or our stamp duty calculator to estimate your upfront costs.
Should you use a broker or go straight to your bank?
Both paths can get you a home loan, but the experience and outcome can differ significantly.
| Feature | Mortgage Broker | Direct to Bank |
|---|---|---|
| Lender options | Compares 28+ lenders across banks, credit unions and specialist lenders | Limited to that single bank's loan products |
| Application handling | Prepares and lodges your application, chasing up the lender on your behalf | You complete and submit the application yourself |
| Rate negotiation | Brokers negotiate with multiple lenders competing for your business | You accept the rate the bank offers or negotiate alone |
| Ongoing support | Reviews your loan periodically and helps refinance when better rates appear | Contact the bank directly for any changes or questions |
| Cost to you | Broker is paid by the lender, not by you | No broker fee, but no independent comparison either |
| Best suited to | Borrowers who want choice and ongoing guidance without paying broker fees | Borrowers confident managing their own application and comparison |
Lender options
Compares 28+ lenders across banks, credit unions and specialist lenders
Limited to that single bank's loan products
Application handling
Prepares and lodges your application, chasing up the lender on your behalf
You complete and submit the application yourself
Rate negotiation
Brokers negotiate with multiple lenders competing for your business
You accept the rate the bank offers or negotiate alone
Ongoing support
Reviews your loan periodically and helps refinance when better rates appear
Contact the bank directly for any changes or questions
Cost to you
Broker is paid by the lender, not by you
No broker fee, but no independent comparison either
Best suited to
Borrowers who want choice and ongoing guidance without paying broker fees
Borrowers confident managing their own application and comparison
For most borrowers, a broker delivers broader comparison and ongoing support at no direct cost.
Principal and interest or interest only: which is right for you?
The repayment type you choose affects your cash flow, your total interest paid and how quickly you build equity.
| Feature | Principal & Interest | Interest Only |
|---|---|---|
| Repayment structure | Each repayment reduces both the loan balance and the interest | Each repayment covers only the interest, balance stays the same |
| Loan balance | Decreases steadily over the term | Does not reduce during the interest-only period |
| Repayment size | Higher repayments as you pay down principal | Lower repayments during the interest-only period |
| Total interest paid | Less interest over the life of the loan | More interest over the life of the loan |
| Equity growth | Builds equity in your property from day one | No equity built through repayments, only through market growth |
| Best suited to | Owner-occupiers wanting to pay off their home | Investors managing cash flow or borrowers needing short-term relief |
Repayment structure
Each repayment reduces both the loan balance and the interest
Each repayment covers only the interest, balance stays the same
Loan balance
Decreases steadily over the term
Does not reduce during the interest-only period
Repayment size
Higher repayments as you pay down principal
Lower repayments during the interest-only period
Total interest paid
Less interest over the life of the loan
More interest over the life of the loan
Equity growth
Builds equity in your property from day one
No equity built through repayments, only through market growth
Best suited to
Owner-occupiers wanting to pay off their home
Investors managing cash flow or borrowers needing short-term relief
Most owner-occupiers benefit from principal and interest, while interest-only suits specific investment or short-term cash flow strategies.
Key information about home loans
Buying a home can be confusing with so much information to absorb. We provide an overview of the important information regarding home loans.
Borrowing
When you apply for a home loan, you borrow a specific amount of money from a lender to purchase a property. The amount you can borrow depends on various factors, including your income, expenses, credit history, and the value of the property.
Interest Rates
Home loans typically come with either a variable interest rate or a fixed interest rate, or a combination of both. A variable rate can change over time, while a fixed rate remains the same for a predetermined period.
Repayments
Owner Occupier Home loans are usually repaid in regular instalments over an agreed loan term, which is often 25 to 30 years. Each repayment includes both principal and interest. The frequency can be monthly, fortnightly, or weekly.
Loan Term
The loan term is the length of time you have to repay the loan in full. Shorter loan terms typically result in higher monthly repayments but lower overall interest costs. Longer loan terms can lower monthly repayments but result in more interest paid.
Deposit
When purchasing a property, most lenders in Australia require a deposit. The deposit is a percentage of the property's purchase price and serves as an upfront payment. Generally, a deposit of 20% is recommended to avoid paying LMI, although a lender may lend up to 95%.
Lender's Mortgage Insurance (LMI)
If you have a deposit of less than 20% of the property's value, you may need to pay LMI. LMI is a type of insurance that protects the lender if you default on the loan. The cost of LMI is typically added to your loan amount.
Additional Costs
When taking out a home loan, you should also consider additional costs such as application fees, valuation fees, legal fees, and ongoing fees charged by the lender. These costs can vary depending on the lender and loan product.
It's important to note that home loan products and features can vary among lenders, so it's advisable to research and compare different options to find the most suitable loan for your needs. Additionally, seeking advice from a mortgage broker or financial professional can provide valuable guidance tailored to your specific circumstances.
Disclaimer: Please keep in mind that the information provided here is a general overview, and it's always recommended to consult with a mortgage professional for specific details and advice regarding home loans in Australia.
How it Works
We want to help you achieve your finance needs and get you in your new home sooner. Here's the process on how we get your loan approved quickly.
Initial discovery call
Chat with us to discuss your specific financial goals and dreams.
Research, Planning & Comparison
We work hard to present to you the best solution, lender and interest rate based off our initial discovery call.
Submit your application
We will help you complete all the necessary paperwork and requirements with your chosen lender to get your application sorted.
Ongoing Support
We will monitor your application and keep in touch along the way. We work behind the scenes to make sure everything is as smooth for you as possible.
Home Loan Key Factors
There are several key factors to consider for a home loan
Interest Rates
Compare interest rates offered by different lenders to find the best deal for your loan.
Fees and Charges
Take into account any upfront fees, ongoing fees, or exit fees associated with the loan.
Loan Features
Evaluate the features offered by different lenders, such as offset accounts, redraw facilities, and additional repayment options. Choose a loan that aligns with your financial goals and requirements.
Creditworthiness
Lenders assess your creditworthiness when applying for a home loan. Maintaining a good credit score and demonstrating a reliable repayment history for existing loans and credit cards can improve your chances of approval. We will organise a copy of your credit file as part of the process to check your score and any credit markers that may influence the loan.
Lender Options
There are so many different lenders with a variety of differing products. Not every product and lender will suit your financial needs. We provide research to consider the options that suit your financial situation and provide options from the lenders on our panel.
Before proceeding with refinancing, it's important to carefully evaluate your individual circumstances and financial goals. It's recommended to seek advice from a financial professional or mortgage broker who can provide personalized guidance based on your situation.
Disclaimer: Please note that the information provided here is general in nature, and it's always advisable to consult with a mortgage professional for specific details and guidance regarding refinancing a home loan in Australia.
Finance solutions we Offer
Variety is the key to financial success. We make your finance easy by reviewing from our large panel of lenders to get the best loan for your financial needs.
Frequently asked questions
Common questions about getting a home loan, answered by our brokers.
How much deposit do I need to buy a home in Australia?
Most lenders require a deposit of at least five to twenty percent of the property's purchase price. A deposit of twenty percent or more lets you avoid Lender's Mortgage Insurance, which protects the lender if you default. Your broker can confirm which lenders accept lower deposits and how LMI applies to your situation.
What does a mortgage broker cost me?
Using a mortgage broker is free for you in most cases, as the lender pays the broker a commission when your loan settles. You receive professional guidance, lender comparison and application management without paying out of pocket. Your broker will disclose any fees or commissions before you proceed, so there are no surprises.
How long does home loan approval take?
Home loan approval typically takes between one and four weeks, depending on the lender, the complexity of your application and how quickly you supply supporting documents. Pre-approval can be faster. Your broker manages the timeline, follows up with the lender and keeps you informed at each stage so the process moves smoothly.
What is Lender's Mortgage Insurance and how do I avoid it?
Lender's Mortgage Insurance, or LMI, is a one-off insurance premium charged when your deposit is below twenty percent of the property value. It protects the lender, not you. You can avoid LMI by saving a deposit of twenty percent or more, or by using a government guarantee scheme that allows a lower deposit.
Can I get a home loan if I am self-employed?
Yes, self-employed borrowers can get a home loan by providing tax returns, business financials and notices of assessment to verify income. Some lenders offer low-doc or alt-doc loans for borrowers whose tax returns do not reflect their full earning capacity. A broker can identify which lenders assess self-employed income most favourably.
What is the difference between pre-approval and formal approval?
Pre-approval is a conditional indication from a lender of how much you can borrow, based on your stated income and expenses. Formal approval is unconditional, granted after the lender has verified your documents and valued the property. Pre-approval helps you house-hunt with confidence, while formal approval locks in the loan.
Ready to find the right loan for you?
Book a free consultation with our expert team today. We'll compare 28+ lenders to find the best deal for your situation.