WHICH ONE ARE YOU
The four home loan scenarios everyone fits into
No matter your age or experience, first timer or seasoned investor, everyone sits in
one of these four scenarios at some point. Knowing which one you’re in is what turns dreaming about home ownership into a plan.
Number1
No deposit and no income, yet
YOUR FOCUS: EDUCATION AND PLANNING
At this stage your goal isn’t to apply for a loan. It’s to prepare.
* Learn how banks assess you. Deposits and income drive every lending decision.
* Define what matters to you. Location, property type and budget all shape the goal.
* Build a realistic plan with achievable milestones and timeframes.
Broker tip: even if you’re not ready to apply, getting advice early can save you months of trial and error later.
Number 2
Income available, no deposit
YOUR FOCUS: FINDING A CREATIVE WAY TO BRIDGE THE GAP
* Government schemes. The First Home Guarantee can allow a purchase with as little as a 5% deposit, with no lenders mortgage insurance.
* Family guarantor. Parents can use their property as security in place of your deposit.
* Gifted funds. A family member can provide a non-repayable gift towards the deposit. Proceeding with LMI. Sometimes paying it is the right call, it’s simply a cost to weigh against waiting longer.
* LMI waivers. Certain professions, doctors and lawyers among them, can qualify for reduced or waived LMI.
Broker tip: you may not need to wait twelve months to buy. Understanding these options is often what fast-tracks the timeline.
Number 3
Deposit available, income uncertain
YOUR FOCUS: STRENGTHENING YOUR BORROWING POSITION
* Work backwards. Identify the income your property goal actually requires.
* Count everything. Regular overtime, allowances and bonuses can all support your assessment.
* Look ahead. A pay rise, second job or side income can shift your eligibility.
* Stay honest. If income can’t move soon, adjusting the property target is still a powerful step forward.
Broker tip: a smaller purchase now can beat a bigger one someday. Equity starts working the day you own something.
Number 4
Deposit and income available
YOUR FOCUS: IT’S GO TIME, AND CLARITY WINS
Set your real budget. Compare rent against mortgage repayments plus the ownership costs, rates, insurance and maintenance.
Know what matters. Split your must-haves from your nice-to-haves, and know your ceiling.
Get pre-approved. It shows sellers you’re serious and lets you offer with a short finance clause.
Broker tip: even pre-approved buyers benefit from a goals conversation. The right property should fit the long-term plan, not just the budget.