A home loan is how most Australians make owning property possible without draining their entire savings. With house prices what they are, few of us can buy outright, so the loan you choose, and the lender behind it, matters as much as the property itself.
Banks and other lenders each offer different rates, features, and eligibility rules. We compare across our panel of 45+ lenders to find the loan that actually fits your situation, not just the first offer on the table.
Who you’ll be borrowing from
There are three main types of lenders you’re likely to come across in Australia.
Banks
The major banks most Australians already know, with large branch networks and a full suite of loan products. Familiar, but not always the sharpest rate on offer.
Mutuals & member-owned lenders
Building societies, credit unions, and mutual banks are owned by their members, not shareholders. Many borrowers value the more personal service this can bring.
Non-bank lenders
Privately owned lenders who don’t hold a banking licence but follow the same Australian credit laws. Often more flexible, and able to offer competitive rates by borrowing at wholesale prices.
Types of home loans
Bridging loan
Buying your next property before you’ve sold your current one? A bridging loan gives you up to 6 months to sell, so the timing doesn’t have to line up perfectly.
Construction loan
Funds are drawn down in stages as building progresses, rather than paid out as one lump sum, matching your builder’s payment schedule.
Fixed vs variable rate
A fixed rate locks in your repayments, typically for 1–5 years, giving certainty even if rates move. A variable rate can rise or fall with the market, which may work in your favour or against it.
Interest-only home loan
Repayments cover interest only, not the principal, which keeps repayments lower for a set period (usually up to 5 years). Lenders still assess your ability to cover full principal and interest repayments before approving this option.
Introductory (honeymoon) rate loan
A lower rate for the first 6–12 months to help you settle in, before reverting to the lender’s standard rate. Useful for managing early cash flow, but check what the ongoing rate will be.
Home loans for pensioners
Getting a home loan later in life or on a pension can be harder, as lenders view it as higher risk, but it’s not impossible. Options can include reverse mortgages, line of credit loans, and investment loans, and we can talk you through what’s realistic for your situation.
Line of credit loan
Once you’ve built equity in your home, a line of credit lets you draw on those funds as needed, paying interest only on what you use. Convenient, but can erode your equity if not managed carefully.
Low doc loan
Designed for self-employed borrowers and investors who can’t provide the usual paperwork. Lenders rely on alternative evidence, like BAS statements or an accountant’s declaration, to assess your suitability.
Non-conforming loan
For borrowers who don’t meet standard lending criteria, often due to credit history. Usually requires a larger deposit and comes with a higher rate to offset the lender’s risk, but it can be a genuine path back into the market.
Self-employed home loans
Self-employed applicants generally need: an ABN registered for at least 2 years, the last 2 years’ personal and business tax returns, recent financial statements, details of any liabilities, and the last month’s business bank statements. We’ll help you get this together.
Split rate loan
Fix part of your loan and leave the rest variable, in whatever proportion suits you. You get some certainty from the fixed portion and some flexibility from the variable portion.
Variable (principal and interest) loan
The standard home loan structure. Your rate moves broadly in line with the Reserve Bank of Australia’s cash rate decisions, and each repayment reduces both interest owing and the loan balance itself.
What does a mortgage broker actually do?
We do the comparison work across our lender panel so you don’t have to, and handle the application and paperwork on your behalf. Our service costs you nothing; we’re paid by the lender once your loan settles.
Bank or broker?
Your bank can only offer you their own products. As a broker, we compare across 45+ lenders, so you see a genuinely wider range of rates and features before deciding.
Why work with V M Mortgage & Finance
Beyond finding you the right loan, we guide you through the entire application, so you always know what’s happening and why. There’s no obligation to go with any particular lender; the recommendation is built entirely around what suits you.
If you’re not sure how to compare your options, that’s exactly what we’re here for. Get in touch for a free, no-pressure chat.