Summary: Everything a first home buyer needs to know about mortgages

Short answer: Need deposit, income proof, good credit. Shop rates. Get pre-approval. Do not max out borrowing. Extra payments save thousands.

What this actually means in plain English

A mortgage is a loan to buy a house. You need a deposit (5-20%), proof of income, and a good credit history. Shop around for rates. Fixed rates give certainty. Floating rates give flexibility. Extra payments save thousands. Do not borrow the maximum — leave room for rate rises. Get pre-approval before house hunting. Read everything before signing.

Key Facts

Deposit: 5% (First Home Loan) or 20% (standard)
Pre-approval essential before making offers
Fixed vs floating: choose based on risk tolerance
Extra payments early save the most interest
Do not borrow maximum — leave buffer for rate rises
Read all documents before signing

Example

Deposit: $30,000 (5%)

Loan: $570,000

Rate: 7.0%

Term: 30 years

Monthly: $3,327 + insurance + rates

Buffer: Keep $200/month spare for rate rises

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