Topical cluster · Last reviewed 2026-05-01
Australian buyer financing
Australian property financing is shaped by the APRA prudential framework. Mortgage borrowing capacity is tested at the contracted rate plus a 3% buffer, capped by a debt-to-income ceiling, and constrained by lender-specific policies on which income lines count + how much of existing rental income is credited.
The federal layer adds the Home Guarantee Scheme (5% deposit no LMI for eligible buyers) and First Home Super Saver (concessional super contributions for deposit). State first-home concessions stack on top. Together they reshape the upfront-cost math for first home buyers.
This pillar covers deposit-to-settlement: capacity, deposit, LMI, schemes, refinance, equity-pull, bridging. Each rule cites APRA APG 223, Housing Australia, ATO, or the relevant state statute.
Long-form guides
- First home buyer guide, Australia 2026
Every FHB scheme + state concession stacked.
- Home Guarantee Scheme explained
5% deposit, zero LMI. Eligibility caps + state property limits.
- First Home Super Saver explained
Saves $11K-$22K of net tax on a $50K deposit contribution.
Calculators
- Buying power calculator
APRA buffer + DTI guardrail + LMI + HGS + stamp duty.
- Stamp duty calculator (all 8 states)
FHB concessions + foreign-purchaser surcharge per state.
Glossary terms
- APRA serviceability buffer
Rate + 3% rate-stress test.
- Debt-to-income ratio (DTI)
Total debt ÷ gross income; APRA flags > 6×.
- Loan-to-value ratio (LVR)
Loan ÷ property value × 100.
- Lenders Mortgage Insurance (LMI)
One-time premium when borrowing above 80% LVR.
- Home Guarantee Scheme
Federal scheme: 5% deposit, no LMI for eligible FHBs.
- First Home Super Saver (FHSS)
Concessional super contributions for deposit.
- First Home Buyers Assistance Scheme (NSW)
NSW state stamp-duty exemption.
- Stamp duty (transfer duty)
State-level tax on property purchases.
- Borrowing capacity
Lender's serviceability ceiling. Drives the buying-power figure.
- Equity
Asset value minus loan; usable equity = 80% × value − loan.
Quick Q&A
- How much deposit do I need?
- How much can a couple borrow on $150K?
- What is APRA serviceability buffer?
- What is LMI and how much does it cost?
- What is debt-to-income ratio?
- Is FHSS worth it?
- Fixed vs variable home loans?
- What is an offset account?
- What is bridging finance?
- Pre-approval vs formal approval?
- What is rentvesting?
Rent where you live; buy where the maths works.
- Interest-only vs P&I?
Tax-deductibility math + APRA 5-year IO cap + conversion shock.
- What is a guarantor loan?
Family-secured 105% LVR pathway with ASIC + ABA-prescribed safeguards.
- How does refinancing work?
APG 223 §51 +1% buffer carve-out + cashback economics.
- What is the First Home Owner Grant?
State-by-state amounts + 4-way stacking with FHBAS + HGS + FHSS.
- How does HECS affect borrowing capacity?
Lender-policy variation + voluntary-payoff lever.