Your questions,
answered

Most lenders allow 5-6x your annual income as a rough guide, but it depends on your specific circumstances. Use our borrowing power calculator or get in touch for a personalised assessment.

The standard minimum is 5%, though 20% avoids lenders mortgage insurance (LMI). First home buyers may qualify for government schemes with deposits as low as 2-5%.

Yes. Most lenders want to see 2 years of tax returns and financial statements, though low doc and alt doc options exist for borrowers with less paperwork. We cover this in detail, including income assessment methods and documentation requirements, on our self-employed home loans page at trimark.com.au/home-loans/self-employed/.

Yes. Lenders assess all your commitments including credit cards, personal loans, car loans, HECS debt, and buy-now-pay-later services when calculating your borrowing capacity.

Generally a score above 600 is considered acceptable by most lenders. Scores above 700 give you access to the most competitive rates.

Yes. Debt recycling is a completely legitimate strategy under Australian tax law. The deductibility of interest on borrowings used to produce assessable income is grounded in section 8-1 of the Income Tax Assessment Act 1997 and confirmed by ATO rulings including TR 95/25 and TR 2000/2. The strategy isn't a loophole — it's the everyday application of long-standing deductibility rules. What makes or breaks it is the loan structure and paper trail, not the concept itself.

The core ATO requirement is that borrowed funds must be used directly to acquire income-producing assets, and the deductible and non-deductible portions of your debt must be kept completely separate. This is the principle established in cases like Domjan v FCT and FCT v Roberts & Smith. In practice that means: split your loan from day one, never mix investment borrowings with personal spending, draw investment funds directly from the split loan into the investment account, and keep a clear audit trail. If you co-mingle funds, the ATO can disallow the deduction entirely.

Not directly, and this is one of the most common mistakes. Money sitting in an offset account is still considered your own savings — if you pay it into your home loan and redraw it, the purpose test for deductibility gets murky. The clean approach is to have a dedicated split loan (or a separate investment loan) that you pay down from cash and then redraw exclusively into an investment account. Keeping the offset separate preserves flexibility without breaking the deductibility trail.

It depends on how much spare cash flow and equity you're putting through the cycle. For most Australian households running $20,000-$40,000 per year through the strategy, meaningful conversion of non-deductible to deductible debt happens over 10-15 years, with the investment portfolio often matching or exceeding the original home loan over 20 years. Debt recycling isn't a fast-track payoff — it's a long-horizon wealth strategy that grows an investment portfolio alongside your mortgage.

A margin loan is a standalone investment loan secured against your share portfolio, with margin calls if the portfolio drops in value. Debt recycling uses your existing home loan structure — there are no margin calls, the security is your property, and interest rates are typically far lower than margin loans. Debt recycling is much more conservative, which is why it suits everyday homeowners whereas margin loans are usually reserved for more experienced investors.

Yes, and it can work especially well. You can debt recycle into additional income-producing assets like ETFs, managed funds, or direct shares, which sit alongside your investment property. For investors with an owner-occupied home plus a rental, debt recycling converts the non-deductible owner-occupier portion into a diversified investment portfolio over time, which also smooths out the concentration risk of holding just property.

Two things. First, you trigger capital gains tax on any profit (with the 50% CGT discount if you've held for more than 12 months). Second, the deductibility of the interest on that portion of the loan depends on what you do with the sale proceeds — if you reinvest into new income-producing assets, deductibility continues; if you use the proceeds for personal purposes, the interest loses its deductible status from that point. Speak to your accountant before selling.

Debt recycling isn't right for everyone. Avoid it if your cash flow is tight, if you're planning to have children or change jobs in the next 1-2 years, if you don't have a stable emergency fund, or if you're uncomfortable with share market volatility. It's also rarely worth it for people in the lowest tax brackets — the tax deduction is only as valuable as your marginal rate. And anyone within 5-10 years of retirement should think carefully about the drawdown risk. This is a long-horizon, stable-income strategy.

Most first home buyers start with 5% of the purchase price. If you can get to 20%, you avoid paying lenders mortgage insurance (LMI), which saves you thousands. There are also government schemes like the First Home Guarantee that let you buy with 5% and skip LMI entirely. And if you have family support, a guarantor loan could mean borrowing 100% with no deposit at all. We'll walk you through what you qualify for.

Both approaches have trade-offs. A 20% deposit means no LMI and lower repayments, but it can take years to save that much. In that time, prices often keep moving. Getting in sooner with 5-10% costs more upfront (LMI), but you start building equity earlier. We can run the numbers on both and show you what actually works out better for your situation.

Yes. Most lenders are fine with a gift from immediate family. They'll need a signed statutory declaration saying the money is a genuine gift with no strings attached. Some lenders also like to see that you've saved some of the deposit yourself, even if it's a smaller portion. We'll tell you exactly what's needed before your parents put anything in writing.

A guarantor loan allows a family member to use their property equity as additional security, so you can borrow with a smaller deposit, sometimes even zero. The risk is that if you default, the guarantor's property could be used to cover the shortfall. We structure these carefully to limit the guarantee amount and help you release the guarantee as quickly as possible.

There are a few big ones. The First Home Guarantee lets you buy with 5% and no LMI. The First Home Owner Grant gives you $10,000-$30,000 toward a new build (amount depends on your state). Help to Buy is a shared equity scheme where the government chips in part of the purchase price. On top of that, most states offer stamp duty exemptions or concessions for first home buyers. Eligibility and price caps vary, so we'll map out exactly which ones apply to you.

The government puts in 30% of the purchase price for an existing home (40% for a new build), so you need a much smaller loan. You own the home, you live in it, but the government holds an equity share. That share gets repaid when you sell, refinance, or your income hits a certain level. One thing to know: you can't combine this with the First Home Guarantee. It's one or the other.

It depends on your state. In NSW, for example, you pay zero stamp duty on properties under $800,000 and get a concession up to $1,000,000. Victoria, Queensland, and other states each have their own thresholds. We'll confirm exactly what you're entitled to based on where you're buying and the price.

Yes, through the First Home Super Saver Scheme (FHSSS). You make voluntary contributions into your super, and when you're ready to buy, you can withdraw up to $50,000 for your deposit. The benefit is tax: those contributions are taxed at 15% instead of your normal rate, so you save faster. It's especially useful if you're on a higher income.

Generally, no. Most government schemes and grants require that neither applicant has previously owned property in Australia. There are some exceptions depending on the scheme and state, so it's worth checking your specific situation with us.

LMI is a one-off insurance premium that protects the lender (not you) if you default on your loan. It applies when you borrow more than 80% of the property's value and can cost $10,000-$35,000+. You can avoid it by saving a 20% deposit, using a guarantor loan, or qualifying for the First Home Guarantee scheme.

Yes, and it catches a lot of people off guard. Lenders count your HECS repayments as a commitment even if your income is below the repayment threshold. As a rough guide, $30,000 in HECS can reduce what you're able to borrow by $30,000-$50,000. It's worth knowing your balance before we run the numbers.

Yes. Lenders treat active BNPL accounts as ongoing debt. Even a small Afterpay balance can reduce how much you're able to borrow. If you're planning to apply in the next few months, close any BNPL accounts you don't need. Ideally, do this 2-3 months before your application.

Pre-approval is a lender confirming how much they'll lend you, usually valid for 60-90 days. And yes, get it before you start looking. It means you know your actual budget, you can move fast when the right place comes up, and agents take you more seriously when you've already got finance sorted.

No. Once the hammer falls, the contract is binding. No cooling-off, no finance clause. That's why you need to do your homework beforehand: get pre-approved, organise building inspections, have your solicitor review the contract, and set a firm limit you won't go past. Auction day is not the time to figure these things out.

Absolutely. Skipping inspections is one of the most common first home buyer regrets. A building and pest inspection typically costs $400-$800 and can uncover structural issues, termite damage, or defects that could cost tens of thousands to fix. For apartments, also review the strata report for any upcoming special levies.

The deposit is just the start. Stamp duty is usually the biggest extra cost (varies by state). Then there's conveyancing or solicitor fees ($1,500-$3,000), building and pest inspections ($400-$800), loan application fees, title registration, and moving costs. A good rule of thumb: budget 5-7% of the purchase price on top of your deposit for these extras.

More than you'd expect. Council rates, water rates, home and contents insurance, building insurance (or strata levies if you're in an apartment), and general maintenance. Budget around 1-2% of your property's value per year for upkeep. All up, these ongoing costs can run $5,000-$15,000+ a year depending on the property.

There's a real trade-off here. Buying a home to live in unlocks FHB grants, stamp duty savings, and capital gains tax exemption when you sell. Buying an investment first while you keep renting (called "rentvesting") can build wealth faster, but you give up most of those FHB benefits. We can model both paths and show you which one puts you further ahead.

Variable gives you flexibility: extra repayments, offset accounts, and you benefit when rates drop. Fixed gives you certainty for 1-5 years, but you're locked in. A lot of first home buyers split the difference, something like 70% variable and 30% fixed. There's no universally right answer here. It comes down to how much certainty you need versus how much flexibility you want.

An offset account is a transaction account linked to your home loan. The balance in this account is deducted from your loan balance when calculating interest. For example, if you owe $500,000 and have $30,000 in your offset, you only pay interest on $470,000. It can save you thousands over the life of your loan and is one of the most effective tools for paying off your mortgage faster.

Nobody has ever reliably timed the Australian property market. Prices dip, but the long-term trend has always been up. While you wait, you're still paying rent and prices may keep climbing. The better question is: can you comfortably afford the repayments, and does the property work for you? If the answer's yes, waiting for a crash that may never come is a gamble too. We focus on making sure you're financially ready, and the timing is yours to call.