Australian home loan questions, answered plainly.

Borrowing capacity depends on income, living expenses, debts, dependants, credit history, property type, deposit, and lender assessment buffers. A calculator can give a guide, but lenders apply their own policy.

Borrowing capacity is an estimate of the loan amount a lender may consider affordable based on your financial position. It is not an approval.

Yes. HECS or HELP repayments reduce take-home income in lender servicing calculations, so they can lower borrowing capacity even though the debt is different from a normal personal loan.

Stamp duty is a state or territory tax that may apply when you buy property. The amount depends on location, price, buyer type, and concessions.

Some first home buyers may receive a concession or exemption depending on the state, property value, and eligibility rules. Check your state revenue office before relying on an estimate.

Lenders mortgage insurance, or LMI, is insurance that protects the lender if the borrower defaults. It often applies when borrowing above 80% of the property value.

You may avoid LMI with a larger deposit, family guarantee, some professional packages, government schemes, or lender-specific offers. Rules vary by lender.

LVR means loan-to-value ratio. A $600,000 loan on a $750,000 property is an 80% LVR. LVR can affect interest rates, approvals, and LMI.

A 20% deposit can help avoid LMI, but some borrowers buy with less using LMI, grants, guarantees, or government schemes. You also need to allow for upfront costs.

Common costs include stamp duty, conveyancing, inspections, lender fees, registration fees, moving costs, insurance, and possible LMI.

A guarantor loan lets a family member support part of the loan, often using equity in their property. It can reduce deposit pressure or LMI, but it creates real risk for the guarantor.

If the borrower cannot repay and the property sale does not clear the debt, the guarantor may be responsible for the guaranteed portion. They should get independent legal and financial advice.

Pre-approval is a lender indication that you may qualify for a loan up to a certain amount, subject to conditions. It is not a guarantee of final approval.

Many pre-approvals last around three months, but the period varies by lender. Your position may need to be reassessed if income, debts, rates, or lender policy change.

Some pre-approvals involve a credit enquiry. Too many enquiries in a short period can affect how lenders view your application.

A fixed rate locks the interest rate for a period. A variable rate can move up or down. Each has trade-offs around flexibility, certainty, offset access, and break costs.

An offset account is a transaction account linked to a home loan. Money in the offset can reduce the loan balance used to calculate interest.

Redraw lets you access extra repayments you have made, subject to lender rules. It is different from an offset account and may have limits.

More frequent repayments can reduce interest if they result in paying more over the year or reducing the balance earlier. The exact benefit depends on the loan setup.

Yes, extra repayments can reduce the loan balance faster, which may reduce interest and shorten the loan term, especially early in the loan.

Refinancing means replacing your current loan with a new loan, either with the same lender or a different lender. Borrowers refinance for rate, features, cashflow, or structure.

It may be worth checking if your rate is uncompetitive, your fixed term is ending, your equity improved, your needs changed, or your lender will not negotiate. Compare savings against switching costs.

A comparison rate includes the interest rate plus certain fees and charges. It helps compare loans, but it is based on standard assumptions and may not match your exact loan.

Many mortgage brokers are paid by lenders if a loan settles, though some may charge a fee. Ask the broker how they are paid and whether any fee applies.

No. Docked provides calculators, education, and enquiry routing. Any credit assistance should come from a licensed broker, lender, or authorised credit representative.

Docked may receive a referral fee, affiliate commission, or similar benefit if your details are referred or if you proceed with a provider after consenting.

The quick check is designed to read statement files in your browser where possible. If you submit a help request, Docked may receive the affordability summary and file names, not the statement files from the static page flow.

Scanned, image-based, protected, or unusually formatted PDFs may not expose transaction text to the browser. CSV, TXT, OFX, and QIF exports usually work better for instant estimates.

Yes, but lenders may review tax returns, financials, BAS, business bank statements, income consistency, and add-backs. Policies vary widely.

Often yes, but lenders usually want evidence of consistency over time. The required history varies by lender and employment type.

It can. Lenders may review return-to-work dates, employer letters, savings, partner income, and how repayments will be managed while income is reduced.

Yes. Lenders often assess credit card limits even if the card is paid off each month. Reducing or closing unused limits can improve servicing.

Yes. Monthly repayments reduce surplus income and can lower borrowing capacity. The remaining term and repayment amount matter.

Debt-to-income ratio compares total debts to gross income. Some lenders apply extra review or limits at higher ratios.

Genuine savings usually means money you have saved or held over time. Some lenders require it for high-LVR loans.

Yes, but lenders usually shade rental income, meaning they may only use part of it to allow for vacancy, expenses, and risk.

They may count if consistent and evidenced. Lenders may use a lower percentage or average over a period.

Common documents include ID, payslips, bank statements, tax returns for self-employed borrowers, loan statements, rates notices, rental evidence, and details of assets and debts.

Docked records your enquiry and, if you have consented, may refer it to a licensed broker, lender, aggregator, or authorised credit representative. Expected response time is within 1 business day.

Be careful. Auction contracts are usually unconditional. You should confirm finance, valuation risk, deposit access, and legal review before bidding.

Bridging finance can help buy a new property before selling an existing one. It can be useful but may be more expensive and needs careful exit planning.

A construction loan usually releases funds in stages as building work progresses. Lenders review contracts, plans, valuations, permits, and builder details.

Yes, but lenders assess investment loans differently, including rental income, existing debts, tax position, buffers, and property type.

Interest-only loans require payments of interest only for a period. Repayments may be lower during that period, but the loan balance does not reduce unless you make extra payments.