ANZ Bank in 2026: Profits Up, Strategy Shift, and What It Means for Borrowers
ANZ Bank started 2026 with a strong financial result but also significant internal changes and strategic shifts that have a...
First Home Guarantee (2025–26)
| Category | Details |
|---|---|
| Singles income cap | up to $125,000 per year |
| Couples income cap | up to $200,000 per year (combined) |
Property Price Caps by Location
| Location | Cap |
|---|---|
| Sydney | $900,000 |
| Melbourne | $800,000 |
| Brisbane | $700,000 |
| Rest of NSW | $750,000 |
| Rest of VIC | $650,000 |
| Rest of QLD | $550,000 |
| Perth | $600,000 |
| Adelaide | $600,000 |
| ACT | $750,000 |
| NT / TAS | $600,000 |
Family Home Guarantee
| Category | Details |
|---|---|
| Income cap | $125,000 per year |
| Minimum deposit | 2% |
Understanding the Loan-to-Value Ratio (LVR)
LVR is the percentage of a property’s value that you are borrowing.
Simple formula:
Loan Amount ÷ Property Value × 100
Example
- Property value: $600,000
- Loan amount: $540,000
- LVR: 90%
A higher LVR means a higher risk for the lender and may result in paying Lenders Mortgage Insurance (LMI). A lower LVR can improve your chances of approval and help you access better interest rates.
LVR Impact Table
| LVR | Deposit | LMI |
|---|---|---|
| 80% | 20% | No |
| 90% | 10% | Yes |
| 95% | 5% | Yes (unless waived) |
Lower LVR = lower risk = better interest rates.
Turn Your First Home Dream Into a Clear Plan
Buying your first home is a big step, and understanding your borrowing power, deposit requirements, and available support options can make the process much easier. FS Loan helps you explore your options, compare lenders, and take the right steps toward home ownership with confidence.
Fixed vs Variable Interest Rates
Interest rates come in different types, and choosing the right one is important for long-term financial planning.
Fixed Interest Rate
- Repayments stay the same for a set period
- Protection against interest rate increases
- Less flexibility (limits on extra repayments or refinancing)
Variable Interest Rate
- Rates can go up or down over time
- More flexible features (extra repayments, redraw options)
- Potential savings if interest rates decrease
Comparison Table
| Feature | Fixed Rate | Variable Rate |
|---|---|---|
| Repayment Stability | High | Medium |
| Flexibility | Low | High |
| Rate Changes | None | Yes |
| Extra Repayments | Limited | Usually allowed |
Choosing the right structure depends on your risk tolerance and financial goals.
The Value of Pre-Approval
Pre-approval means a lender has conditionally approved your loan before you buy a property.
Pre-Approval Advantages
- Shows sellers you are a serious buyer
- Helps you act quickly in competitive markets
- Clearly defines your budget
- Reduces the risk of loan rejection
Sample Scenario
Without Pre-Approval
- You find a property
- You make an offer
- Loan gets declined
With Pre-Approval
- You already know your borrowing limit
- Faster offer process
- Stronger negotiating position
Required Documents for a Home Loan
Preparing your documents early can speed up the approval process.
Basic Requirements
- Identification (driver’s licence or passport)
- Recent payslips (last 2–3 months)
- Bank statements (last 3–6 months)
- Tax returns (if self-employed)
- Details of liabilities (loans, credit cards)
Key Loan Features
Modern home loans come with features that can help you save money over time.
Offset Account
An offset account reduces the interest charged on your loan.
Example:
- Loan amount: $500,000
- Offset balance: $50,000
- Interest charged on: $450,000
Redraw Facility
- Allows you to withdraw extra repayments you have made
- Provides flexibility if you need access to funds
Extra Repayments
- Paying more than the minimum reduces interest
- Helps you pay off your loan faster
Common Mistakes First Home Buyers Make
Avoid these common mistakes to save money:
- Overestimating borrowing capacity
- Ignoring additional costs (stamp duty, legal fees, etc.)
- Choosing the wrong loan structure
- Not comparing lenders
- Skipping pre-approval
Example Cost Breakdown
| Cost Type | Estimated Amount |
|---|---|
| Deposit (10%) | $60,000 (on $600k property) |
| Stamp Duty | $20,000 – $30,000 |
| Legal Fees | $1,500 – $3,000 |
| LMI (if applicable) | $10,000 – $20,000 |
Upfront Costs to Budget For Beyond Your Deposit
Stamp duty varies by state and property value (use our Stamp Duty Calculator: Stamp Duty Calculator)
| Cost Type | Amount |
|---|---|
| Legal and conveyancing fees | $1,500 to $3,000 |
| Building and pest inspection | $400 to $800 |
| Lender fees (application, valuation) | $300 to $700 |
| Moving costs | $500 to $2,000 |
As a general rule, allow for $5,000 to $10,000 above your deposit to cover these costs comfortably.
Long-Term Strategy: After Your First Home
Your first home is only the beginning.
A well-structured take can help you with:
- Accelerate equity accumulation
- Later move to a bigger house
- Purchase additional properties
- Build enduring wealth
Why Expert Advice Matters
An average loan can be very different from a well-structured loan over time.
A well-structured home loan can:
- Save tens of thousands on interest payments.
- Lower upfront costs
- Raise borrowing capacity
- Leave room for future investments
End-to-End Support for Your Whole Journey
Support shouldn’t end at loan approval.
A full service includes:
- Preliminary economic assessment
- Loan comparison and structuring
- Assistance with pre-approval
- Support for buying a property
- Coordination of settlements
- Ongoing financial advice
