Xavier is the proud owner and founder of Go Mortgage, an award-winning broker and office located in Arundel on the Gold Coast. Xavier has been working in the finance industry for over 21 years and holds a Diploma in Financial Services and a Degree in Financial Planning. Since 2006 Xavier has been committed to providing 5-star service and helping his clients realise their property dreams.
Deciding if it is better to rent or buy a house in Australia is one of the biggest financial choices most people will ever make. With interest rates shifting, property prices rising, and rental costs creeping up, it’s natural to weigh up the pros and cons. The answer? It depends on your goals, lifestyle, and long-term financial plans.
In this guide, we’ll help you explore the ins and outs of renting vs buying in Australia so you can make an informed decision.
The Case for Buying
Owning a home can be a powerful way to build long-term wealth and stability. It goes beyond just having a place to call your own. It’s about turning your living expenses into an investment.
Here are a few reasons why buying might make sense for you:
1. You’re Building Equity
When you rent, your payments go straight to your landlord. When you buy, your mortgage repayments contribute to owning more of your property over time. As property values increase, so does your equity. According to CoreLogic’s June 2025 report, Australian housing values have risen 8.2% nationally over the past year. That kind of growth could make a big difference to your long-term net worth.
2. You Have More Control
Owning your home gives you freedom. No inspections, no surprise rent increases, and no restrictions on things like renovations or pets. You can make changes that suit your lifestyle and preferences.
If you’re a first home buyer, you could be eligible for grants, concessions, or schemes like the First Home Guarantee. These programs can help reduce upfront costs and get you into the market faster. A mortgage broker can help you explore what’s available and walk you through the process.
The Case for Renting
While buying has its advantages, renting isn’t necessarily a bad choice. In fact, depending on your circumstances, it might be the better option for now.
Here’s when renting could be the smarter move:
1. You Need Flexibility
If your job, family situation, or location is likely to change in the near future, renting gives you the freedom to move. It’s easier to upgrade, downsize, or relocate without the pressure of selling a home.
2. You’re Saving for a Deposit
Buying a home in Australia requires a significant deposit. Renting can give you the breathing room to build savings without taking on mortgage repayments and property maintenance at the same time.
3. Your Budget is Tight
Owning a home comes with a long list of costs like stamp duty, council rates, repairs, insurance, and more. If your income is tight or unpredictable, renting may be more manageable and less financially risky.
Renting vs Buying in Australia: A Quick Comparison
Factor
Renting
Buying
Flexibility
High, easy to move
Lower, longer-term commitment
Upfront Costs
Low, usually just bond and first rent
High, including deposit and stamp duty
Ongoing Costs
Rent, utilities
Mortgage, rates, maintenance, insurance
Financial Growth
None
Potential capital gains and equity
Freedom to Renovate
Limited
Full control
Long-term Stability
Variable
More stable, especially on fixed rate
So, Is It Better to Rent or Buy?
The best option depends on your needs and goals.. The right choice depends on what matters most to you and what you can comfortably afford.
If you value stability, want to invest in your future, and are financially ready to commit, buying a home can be a great long-term strategy. But if you’re still working toward a deposit, expect life changes soon, or need more flexibility, renting might be the better choice for now.
The question is it better to rent or buy comes down to your current goals and your future plans. And since market conditions keep changing, it’s worth checking in with a mortgage broker who can break it all down based on your situation.
Talk to Go Mortgage Today
Still weighing up the pros and cons? At Go Mortgage, we help people make clear, informed decisions about renting vs buying in Australia. If you’re thinking about stepping onto the property ladder or want to better understand your options, we’re here to help.
Get in touch for friendly advice and a tailored home loan strategy that suits where you’re at and where you want to go.
Thinking about buying a home on your own? You’re not alone. More Australians are choosing to enter the property market solo, and it’s not just doable, it’s becoming more common every year.
If you’re wondering: can a single person buy a house? The answer is yes. It might take a bit more planning, but with the right advice and a clear strategy, homeownership is absolutely within reach. Even if you’re on a single income or navigating life as a single mum, buying a property is possible with the right guidance.
Here’s what to know before you start house hunting solo.
It’s Possible With the Right Plan
Buying a home on one income does come with some extra challenges. You’ll need to be a little more strategic, budget-conscious, and prepared for a longer search. Many people have done it before and you can too.
Lenders want to see that you can comfortably manage the loan on your own. That means steady income, a clear savings record, and minimal debt. Once that’s in place, you’ll have a much stronger footing when applying for a loan. If you’re wondering can a single person get a mortgage, the answer is yes, provided your finances are in order and you’re working with a broker who understands your position.
Let’s run through a few smart steps that can help you make it happen.
1. Consider Rentvesting
Getting into the property market doesn’t always mean buying your dream home right away. More solo buyers are embracing rentvesting by purchasing in a more affordable location and renting where they actually want to live. This strategy allows you to start building equity sooner, without giving up the lifestyle you enjoy. It can be especially helpful if your job or personal life is tied to a more expensive area.
2. Increase Your Income (If You Can)
Without a second income to rely on, you’ll need to cover the entire cost of homeownership yourself. That includes the deposit, stamp duty, council rates, home insurance, maintenance, and emergency expenses. If you can increase your income, perhaps through a side hustle, career move or family assistance, you’ll be in a better position to save and borrow. Every extra dollar counts.
3. Start With What You Can Afford
Your first property doesn’t have to tick every box. The most important thing is that it’s manageable financially. A small apartment, studio, or townhouse in an outer suburb might not be your forever home. Still, it can be a smart investment that gets you on the property ladder. Once you own a property, you’re in a better place to upgrade later or use equity to buy again.
4. Speak to a Mortgage Broker
A good mortgage broker can help you explore options that fit your situation. They’ll take the time to understand your financial goals and match you with lenders that are supportive of single applicants. Many lenders also offer flexible home loans tailored to single-income buyers. Your broker will help you avoid common setbacks and explain everything clearly, so you know what to expect at each stage.
5. Explore Government Assistance
You may be eligible for government programs designed to help first home buyers, like the First Home Guarantee. This allows eligible buyers to purchase with as little as a 5% deposit and no Lenders Mortgage Insurance. Some states also offer first home buyer grants and stamp duty concessions.
If you’re a single mum, there may be additional options depending on your circumstances. Some lenders take into account government benefits, child support, or part-time income when assessing your loan application. These considerations can help improve your borrowing power. So if you’re wondering: can a single mum buy a house?, the answer is yes, and there are resources available to support your goal.
You Don’t Have To Do This Process Alone
Buying a house as a single person is a big step, but with the right planning, expert support, and realistic goals, it’s entirely achievable. If you’ve been asking can a single person buy a house, can a single mum buy a house, or can a single person get a mortgage, know that others have done it and so can you.
You don’t need to figure it all out on your own. Get in touch today for personalised advice from our team. We’re here to help you move forward with confidence and find the home loan that suits your life.
Mortgage Relief Incoming – But will Iran’s war change that?
Homeowners awaiting another interest rate cut?
Australia’s homeowners have been riding a rollercoaster of interest rates over the past year. After enduring 13 consecutive rate hikes, a sigh of relief came with the tow recent cuts, and forecasts suggest more are on the horizon. The next interest rate announcement is 8 July 2025. However, just as things were starting to look up, geopolitical tensions have thrown a potential spanner in the works.
The Iran Conflict and Its Global Ripple Effects
The ongoing conflict in Iran has led to a spike in oil prices, which is a crucial component of economic stability worldwide. When oil prices rise, transportation and production costs increase, leading to higher prices for goods and services. This inflationary pressure can compel central banks, like the Reserve Bank of Australia (RBA), to reconsider their monetary policies.
How Global Factors Influence Australian Interest Rates
Oil Prices and Inflation
Higher oil prices can lead to increased inflation, which the RBA often counteract by raising interest rates. This is a defensive measure to maintain the purchasing power of the currency.
Supply Chain Disruptions
Conflicts can disrupt global supply chains, causing shortages that also drive-up prices. This can add further inflationary pressure.
Exchange Rates
Geopolitical tensions can lead to fluctuations in currency values. A weaker Australian dollar might make imports more expensive, contributing to inflation. Currently, the exchange rate for the Australian dollar against the US dollar stands at 65 cents.
Investor Confidence
Global instability can affect investor confidence, leading to capital flow changes. If investors perceive Australia as a safe haven, this can influence the RBA’s decisions on interest rates.
What Homeowners Can Do Now
While waiting to see how these global events unfold, there are proactive steps you as a homeowner can take:
Review Your Mortgage
Consider refinancing to lock in the current lower rates.
Budget for Fluctuations
Prepare for potential rate increases by reviewing your budget and cutting unnecessary expenses.
Stay Informed
Keep an eye on economic news to anticipate any shifts in interest rates.There are different perspectives on the impact as some economists argue that the impact of global events like the Iran conflict on Australian interest rates might be overstated. They suggest that domestic factors, such as employment rates and local inflation, play a more significant role. However, others contend that in our interconnected world, global events can have substantial impacts on national economies.So, we can wrap up by saying the recent interest rate cuts are a relief, the evolving situation in Iran and other global factors remind us of the delicate balance our economy maintains. Are you prepared to navigate the potential changes these global events might bring? 🌏 Reach out to us anytime.To find a great loan and to speak with us about your unique situation, contact us today – call 1300 855 244#MortgageBroker #GoldCoast #MortgageBrokerGoldCoast
SMSF property investment lets you use your super to buy property through a self-managed super fund, rather than purchasing it in your own name.
That can include residential or commercial property, but there are strict rules around how the property is bought, used and financed. In 2026, some of those rules changed, particularly around new residential SMSF property loans.
This guide explains what property SMSFs can still buy, how SMSF lending works, the main costs involved and the key SMSF property investment rules to understand before you invest.
Key Takeaways
SMSFs can still invest in property in 2026, but new residential LRBA borrowing is no longer allowed.
Commercial property borrowing can continue, and residential property can still be bought with cash.
SMSF property comes with extra rules, costs and lending requirements, so getting the structure right matters.
This guide explains what you can buy, how SMSF lending works, what it may cost and how SMSF ownership compares with buying in your own name.
How SMSF Property Investment Works
SMSF property investment means buying real estate using the fund’s cash. Where borrowing is still allowed, such as for eligible commercial property or an existing residential SMSF loan, the loan iswas generally structured through a Limited Recourse Borrowing Arrangement (LRBA).
Under an LRBA, the property is held in a separate bare trust while the loan is being repaid. If the SMSF defaults, the lender’s claim is generally limited to that property rather than the fund’s other assets.
Whether the property is bought with cash or borrowed funds, it must meet the sole purpose test. In simple terms, the property must be held to benefit your retirement, not for personal use now. That means you or your relatives cannot live in, rent or use an SMSF-owned residential property as a holiday home.
The 2026 Residential LRBA Ban: What Changed
From 10 August 2026, however, new residential LRBAs have been banned. SMSFs can no longer take out a new loan to buy residential property. Existing loans are grandfathered (protected and can continue). Commercial property borrowing is unaffected, and SMSFs can still buy residential property with cash.
The change is significant but only relatively narrow and mainly affects new residential SMSF borrowing.
What Can an SMSF Still Buy in 2026?
Commercial property can still be bought through an LRBA if it meets the “business real property” definition under the SIS Act. New residential LRBAs are no longer allowed, but SMSFs can still buy residential or commercial property with cash. Existing residential LRBAs can also be refinanced.
Property Type
LRBA Available?
Cash Purchase?
Notes
Residential (new)
No, from 10 Aug 2026
Yes
Cash only for new purchases
Residential (existing LRBA)
Yes, grandfathered
Yes
Refinancing still permitted
Commercial / business real property
Yes
Yes
Must meet SIS Act s66 definition
Own business premises
Yes
Yes
Must be leased at market rate
If you planned on buying residential property with an SMSF, you’ll now need to look at either a cash purchase or an eligible commercial property instead.
SMSF Property Costs: The Full Picture
Setup typically costs $2,000 to $5,000. Running the fund costs $2,000 to $7,000 or more a year, covering accounting, audits, the ATO’s $259 supervisory levy, and around $70 a year in ASIC fees for a corporate trustee.
Where borrowing is still available, lenders generally want a 20% to 30% deposit, plus stamp duty and legal costs. Recent LRBA rates have run roughly 1% to 2% mid-6% to mid-8%, well above standard investment rates, and these rates move regularly, so it is worth confirming with current lender panels.
Is SMSF Property Investment Still Worth It in 2026?
For some investors , yes. SMSF property can offer a few potential advantages, such as:
Tax Efficiency: These funds can offer tax advantages, including potential capital gains tax discounts and the ability to use rental income to cover loan repayments.
Diversification: Investing in property through your fund allows you to diversify your investment portfolio, reducing risk and potentially increasing overall returns.
Control & Flexibility: With SMSF lending, you have greater control over your investment decisions, allowing you to tailor your strategy to meet your specific financial goals.
Common SMSF Property Mistakes to Avoid
Getting the SMSF property investment rules wrong is behind most SMSF property problems we see:
Signing the contract in the wrong name. The contract needs to be in the bare trustee’s name, not the SMSF’s. Get this wrong, and you can trigger double stamp duty.
Assuming you can still get a new residential LRBA. New residential loans inside an SMSF are banned. Unless your contract was exchanged before that date, cash or commercial property are your only paths forward now.
Running short on post-settlement liquidity. This is still the most common reason SMSF loans get declined. Lenders want cash left over after settlement. That buffer needs to cover repayments, rates and insurance for six to twelve months.
Using borrowed funds for capital improvements. Only repairs and maintenance are allowed while an LRBA is in place. Improvements need to wait until the loan is repaid or be funded separately.
Letting a member or related party live in or use the property. This breaks the sole purpose test. The ATO treats it as a serious compliance breach, with real penalties attached.
SMSF Property vs Personal Name: Which Is Better?
It comes down to your tax bracket, timeline and need for flexibility. SMSF ownership taxes rental income at 15% and CGT at around 10% after 12 months, versus up to 45% plus Medicare and 30 23.5% personally. Negative gearing losses stay in the fund under SMSF ownership but offset personal income if held outside super & new, and you cannot access SMSF property or its equity until preservation age.
The big four banks exited SMSF lending years ago and have not returned. The market now runs on more than ten specialist non-bank lenders. Going directly to a major bank gets a flat decline every time.
Every SMSF property loan application is assessed on factors such as the fund’s balance, available cash, rental income and the type of property being purchased. Because lender policies can vary widely, working with a broker can make it easier to compare what is actually available.
At GO Mortgage Brokers, we work with a panel of specialist lenders for SMSF loans on the Gold Coast. We can also help if you already have an older residential SMSF loan and want to refinance it to see whether a more competitive option is available.
Get Expert SMSF Property Guidance
SMSF property decisions are hard to unwind, so it is worth getting the structure right first. Go Mortgage has 21+ years of experience and direct access to specialist SMSF lenders, and we coordinate closely with your accountant on the fund structure, bare trust, and loan paperwork. We also offer home loans for accountants if you are the one coordinating this for a client.
Book a free SMSF property strategy consultation, or to refinance an existing grandfathered loan. Call 1300 855 244.
FAQ
Yes, with cash. New residential LRBAs are banned from 10 August 2026, but existing ones are grandfathered and can still be refinanced.
Yes. The ban only applies to residential property. LRBAs for qualifying business real property under the SIS Act are unaffected.
A separate structure that holds legal title to a property funded by an LRBA until the loan is repaid, while the SMSF holds the beneficial interest.
Most lenders ask for 20% to 30% of the property’s value, plus enough cash for stamp duty, legal costs and a liquidity buffer.
Rates move often, but recent published rates for residential LRBAs have sat roughly mid-6% to mid-8%. Ask your broker for current panel pricing.
No. Under the sole purpose test, no member or related party can live in, rent or use an SMSF-owned residential property.
An additional tax from 1 July 2026 on realised super earnings above $3 million, with a higher rate above $10 million. It does not apply to unrealised gains.
None of the majors. The market is served by more than ten specialist non-bank lenders, best accessed through a broker.
Yes. Grandfathered LRBAs can be refinanced to a more competitive lender at any time.
Want to get into your new home quicker? Get pre-approved !
What is the home loan pre-approval process?
The home loan pre approval process, also known as conditional approval or approval in principle, is when your bank conditionally approves or denies you for a loan before you apply to buy a house.The bank or other lender checks your finances and assesses whether you’ll be able to successfully repay a loan. If they deem you eligible, you’ll be granted pre-approval to borrow up to a certain amount. Most banks offer pre-approval which lasts for 3 to 6 months, giving you plenty of time to sort out the right home loan.Pre-approval is essentially a guarantee to be approved for a loan if you apply for it, which can be a very useful thing to have while you hunt down the perfect home. After all, it’s incredibly exciting to buy your own home or investment property, but it’s a lengthy and often complex process, and pre-approval on your loan will make the whole process go a lot smoother and quicker.So what happens in the home loan pre-approval process? How do you get it? And at the end of the day, is pre-approval actually worth getting?
How to get pre-approved for a mortgage
1. Review your current finances
The first step in the home loan pre-approval process is doing some initial research into your own finances. Consider your income, your typical expenses, what assets you own and how much you owe, and from there you can get a rough idea of how much you can afford to borrow:Try our Home Loan Borrowing Power CalculatorYou should also consider how much you might be able to afford in monthly repayments, as this will affect how much you are able to borrow:Try our Home Loan Repayment Calculator
2. Consider what sort of home loan you applying are for?
After reviewing your finances, you should also have a look at different types of home loans (fixed vs variable, offset vs redraw) and decide which one is right for your situation.
3. Fill in the pre-approval application with a lender
Having got an idea of the sort of loan you’re after, it’s then a simple matter of applying to your bank for pre-approval (not making the loan application). Most banks let you apply online, over the phone, or in person at a branch. Your application will initially require some basic personal information in order to verify your identity – such as your name, address, and age.Once you’ve sat down with your lender, they will assess several things:
Your credit report, or credit history, which is a record of your loans, credit cards and other credit products over the past several years, including any defaults or bankruptcies. Your credit report determines your credit rating, a numerical score that rates your ability to pay back credit on time.
Your current financial situation as mentioned above, including how much you own and how much you owe.
The loan you’re looking to apply for, and whether or not this is reasonable given your above finances.
Having analysed your finances, your lender will then decide whether or not you’re eligible for the loan that you’d like to take out. If they think you’re capable of repaying the loan, then they will likely grant you pre-approval!
Do all banks offer pre-approval?
Most lenders offer pre-approval but not all of them. If you want to obtain a pre-approvaland we can help you find the best lender to get you pre-approved
Should I get pre-approval?
Home loan pre-approval is by no means compulsory. If you’ve found your dream home and the right loan product for your needs, you can go right ahead and apply directly to your bank without asking for pre-approval.That said, pre-approval is a useful guarantee to have. It has several main benefits when house hunting.
First, pre-approval means you can go from open houses and inspections knowing exactly how much you can afford to spend. You know you’ll be able to get a mortgage on a house within a certain price range, so you won’t waste time looking at homes you can’t afford.Secondly, pre-approval gives you the ability to make a serious offer on a home on the spot, as both you and the home’s owners can be sure you’re the real deal.
Finally, it takes away the headache of having to search out and reconsider a whole bunch of different loans every time you find a property you want to make an offer on. You may make an offer on several homes before being successful, after all.
The home loan pre-approval process takes some time and effort to get, but it’s definitely worth it for the freedom and peace of mind it provides. Most Australian property buyers will find pre-approval a very useful tool.
To find a great loan and ask for pre-approval, contact us today – call 1300 855 244#MortgageBroker #GoldCoast #MortgageBrokerGoldCoast
Owning your home outright might feel like a distant dream – but what if you could achieve it in just 10 years?
Most mortgages are structured over 25 to 30 years. Paying yours off sooner is entirely possible with the right plan and commitment.
If you’re wondering how to pay off your mortgage in 10 years, here are practical, proven strategies to help you get there.
1. Make Fortnightly Repayments Instead of Monthly
It might seem minor, but switching from monthly to fortnightly repayments means you’ll make the equivalent of one extra monthly payment each year. This can significantly reduce your loan term and the total interest you pay.
If you’re serious about how to pay your mortgage faster, this is a simple change that can have a big impact without stretching your budget too far.
2. Make Extra Repayments Whenever You Can
Every dollar counts. Whether it’s a tax refund, bonus at work, or savings from cutting expenses, any extra payment you put toward your mortgage goes directly to the principal. This reduces your balance faster and cuts down the interest charged.
Just be sure your home loan allows extra repayments without penalty. If you’re unsure, speak with a Gold Coast mortgage broker to review your loan structure.
3. Use an Offset Account
An offset account is one of the smartest tools available for reducing interest. It works like a regular bank account, but the balance is offset daily against your home loan – reducing the interest you’re charged.
For example, if your loan is $500,000 and you have $50,000 in your offset account, you’ll only be charged interest on $450,000. It’s an effective way to reduce your loan balance without locking your money away.
4. Refinance to a Lower Interest Rate
Still on your original rate from years ago? You might be overpaying. Refinancing can help you access a lower interest rate or a more flexible loan with better features.
Even a small rate reduction can shave years off your loan term. A trusted Gold Coast mortgage broker can help you compare options and handle the switch.
5. Build Investments Alongside Your Mortgage
A powerful boost to paying down your mortgage in 10 years is to build wealth through investments at the same time. This could include shares, ETFs, an investment property, or other assets that have the potential to grow in value over time.
The idea is simple: rather than relying solely on regular mortgage repayments, you create additional wealth that may be available to help reduce your mortgage balance in the future.
For example, after 10 years of consistent investing, you may decide to sell part of an investment portfolio, use accumulated equity from an investment property, or draw on other assets to make a significant lump-sum payment towards your home loan.
Of course, all investments carry risks and returns are never guaranteed. However, when combined with a disciplined mortgage reduction strategy, investing can potentially provide another pathway to becoming mortgage-free sooner while also building long-term wealth.
6. Set a 10-Year Goal and Stick to It
Very few people pay off their mortgage in 10 years by relying on just one tactic. The homeowners who achieve this goal typically use a combination of strategies working together over time.
If you’re committed to how you can pay your mortgage off in 10 years, start with a clear plan.
Work out the repayments needed to hit your goal using an online mortgage calculator, adjust your budget accordingly.
Increase your repayment frequency.
Use an offset account effectively.
Review your loan regularly
Reduce unnecessary expenses
Build investments
Discipline, consistency, and regular check-ins can keep you on track. You might need to make sacrifices now, but the reward of a mortgage-free life is well worth it.
Ready to Crush Your Mortgage in 10 Years?
If you’re serious about financial freedom, now’s the time to take action. At Go Mortgage, we’ll help you create a custom plan to pay off your home loan faster – whether through refinancing, offset strategies, or simple repayment tweaks.
Wondering how much can first home buyers borrow in 2026? Most Australians on a single income of around $90,000 to $110,000 can borrow somewhere between $480,000 and $620,000, but your real number depends on your debts, your living expenses, the lender you pick, which first home buyer scheme you stack on top, and the applicable interest rate at the time of applying for the loan.
On the Gold Coast, where median house prices now sit above $1.3 million, knowing your true borrowing power is the difference between making confident offers and watching properties slip past you. This guide breaks down exactly how lenders work it out in 2026, what’s changed under APRA’s new rules, and how to push your number higher without overstretching.
Quick Answer: How Much Can a First Home Buyer Borrow?
Rough rule of thumb: Most lenders will lend 4 to 6 times your annual income, depending on debts and expenses.
Single on $90,000: Roughly $480,000 to $560,000.
Couple on $180,000: Roughly $900,000 to $1.1 million.
APRA’s 3% buffer: Banks must stress-test you at 3 percentage points above the actual rate.
New 2026 DTI cap: From February 2026, only 20% of new loans can exceed a 6x debt-to-income ratio.
First Home Guarantee: Buy with a 5% deposit, no LMI, no income caps (since 1 October 2025).
How Much Can a First Home Buyer Borrow?
The short answer: lenders typically lend somewhere between 4 and 6 times your gross annual income, but the exact number swings based on your dependents, debts, and which lender you apply to. The same applicant can see a $50,000 to $150,000 difference between two banks for the same income, which is why knowing how mortgage brokers assess your affordability matters so much in 2026.
Indicative Borrowing Power by Income
These are rough estimates only, based on a 30-year loan, 6.5% assessment rate, no dependents, no existing debts, and minimal credit card limits. Your real first-time buyer maximum mortgage could be higher or lower, depending on the lender.
Annual Gross Income
Single Borrower
Joint (Same Combined Income)
Notes
$70,000
$370,000 – $440,000
Single applicant only
HECS or credit limits drop this
$90,000
$480,000 – $560,000
$960,000 – $1.12M
Most common FHB band
$110,000
$580,000 – $680,000
$1.16M – $1.36M
Sits at QLD price cap
$130,000
$680,000 – $800,000
$1.36M – $1.6M
DTI cap may apply
$150,000+
$790,000 – $920,000
$1.58 – $1.84M
Lending shopper matters most
Run your own numbers through our borrowing power calculator for a more accurate estimate based on your situation.
How Lenders Calculate Your Borrowing Power
When you’re a first-time buyer, your borrowing capacity is determined by several key factors: income, expenses, debts, deposit size, loan term, and the assessment rate. Each lender weighs these differently, and that’s where the gap between banks opens up.
Income (PAYG, Bonuses, Overtime, Self-Employed
Lenders count salary, overtime, and bonuses, but they shade them. Base salary is taken at 100%; bonuses and overtime are usually 80%. Self-employed individuals need two years of tax returns.
Living Expenses and the HEM Benchmark
Banks compare your living expenses to the Household Expenditure Measure (HEM) and use the higher figure. Higher 2025 HEM benchmarks mean lower borrowing power than a year ago.
Existing Debts (Credit Cards, Car Loans, HECS/HELP)
Existing debts (like credit cards or personal loans) eat into your serviceability fast. A $10,000 credit card limit (even with a $0 balance) cuts capacity by roughly $50,000 to $60,000. HECS on $100,000 knocks off $40,000-$70,000.
Serviceability Buffer (3% Stress Test)
APRA requires every bank to assess your loan at 3 percentage points above the actual rate. If your rate is 6.0%, the bank’s test rate is 9.0%.
Did you know that ‘Non Bank’ lenders are not subject to these same APRA rules, and why they can sometimes offer you a higher loan amount?
Debt-to-Income (DTI) Ratio, and the New 2026 APRA Cap
From February 2026, no more than 20% of any bank’s new loans can have a DTI of 6x or more, which is a real constraint for higher-income first home buyers and a strong reason to use a broker.
How Much Deposit Do You Need on the Gold Coast?
5%, 10%, and 20% Deposit Scenarios on a $750,000 Home
5% deposit ($37,500): Loan of $712,500. No LMI under the First Home Guarantee
10% deposit ($75,000): Loan of $675,000. LMI of roughly $14,000-$18,000
20% deposit ($150,000): Loan of $600,000. No LMI
When You’ll Need to Pay LMI (and How to Avoid It)
LMI kicks in at 80% LVR or higher. The simplest way to avoid it as a first- time buyer in 2026 is the First Home Guarantee, which lets you purchase with as little as 5% deposit, without paying Lenders Mortgage Insurance (LMI), lifting first-time home buyer loan limits without penalty. See how much deposit you need to buy a house or a mortgage with no deposit options.
First Home Buyer Schemes that Boost What You Can Buy
First-time home buyers in Australia may be eligible for stamp duty exemptions or concessions, depending on their state or territory. These schemes can significantly affect how much you need to save and how much you can borrow.
First Home Guarantee: Since 1 October 2025, no income caps, no place limits. Gold Coast cap is $1,000,000
QLD $30,000 FHOG: New builds under $750,000, contracts before 30 June 2026
QLD Stamp Duty Exemption: From 1 May 2025, zero duty on new homes (no cap), and on established homes up to $700,000
FHSS: Save up to $50,000 in super at 15% tax. Couples can pool $100,000
If you’re eligible for the First Home Buyers Grant Gold Coast, this could boost your deposit and improve your borrowing power.
How to Increase Your Borrowing Power
There are a few ways you can improve your first home buyer’s borrowing capacity and lift your first-time buyer’s maximum mortgage:
Reducing credit card limits or personal debt
Pay down personal and car loans before applying
Cutting unnecessary expenses in the months before applying
Applying jointly with a partner or co-buyer
Choose a lender with higher DTI tolerance
A mortgage broker can help you identify which lenders are more favourable to first home buyers and what changes you can make to borrow more (if needed)
Borrowing the maximum isn’t always the best option. It’s important to choose a loan that gives you flexibility and peace of mind, not financial stress.
How Go Mortgage Helps Gold Coast First-Time Home Buyers
If you’re wondering how much first-time home buyers can borrow, Go Mortgage can help you get clear on numbers and loan options.
Voted Broker of the Year 2023, our Arundel team compares 30+ lenders and will calculate your borrowing capacity, explore first home buyer incentives, and help you build a strategy that gets you into your first home sooner. Book your free consultation with mortgage broker for first home buyers on the Gold Coast.
Frequently Asked Questions
How much can a first-time buyer borrow on $100,000?
Roughly $530,000 to $620,000 with no debts, no dependants, and minimal credit card limits. HECS or a car loan will pull that down. The same income can produce a $50,000+ swing in your first-time buyer’s maximum mortgage between two lenders.
Is the First Home Guarantee still available in 2026?
Yes, and it’s the most accessible it’s ever been. Since 1 October 2025, no income caps and no place limits, with higher price caps. For Gold Coast buyers, the property cap is now $1 million—a meaningful boost to first-time home buyer loan limits.
How much deposit do I need to avoid LMI?
Without a scheme, 20%; with the First Home Guarantee, just 5%, and you skip the LMI entirely. Help to Buy can drop it to 2%, though that scheme involves the government taking an equity share. Working out how much first home buyers can borrow against each option is where a broker saves you time.
Is “rentvesting” a good idea in 2026? With Gold Coast median house prices around $1.35 million and vacancy rates sitting near 1.1%, more Australians are renting where they want to live, and buying where the numbers work.
Rentvesting can be a smart way into the property market, but it isn’t the right move for everyone. Here’s a clear look at rentvesting pros and cons to help you decide if it suits your situation.
In Summary:
What it is: You rent a home in your preferred suburb and buy an investment property in a more affordable area.
Best for: Buyers priced out of lifestyle suburbs who want to start building equity sooner.
Main upside: Earlier market entry, tax deductions, rental income, and lifestyle flexibility.
Main trade-off: You give up the $30,000 Queensland First Home Owner Grant, the FHSS scheme, and you’ll pay CGT when you sell.
Bottom line: Rentvesting works best when held long term, when the investment property is well chosen, and when the financing structure is right.
What is Rentvesting?
Rentvesting involves renting a property to live in while simultaneously owning one or more investment properties. This strategy allows individuals to reside in areas that suit their lifestyle or work commitments, which might be unaffordable to buy into, while building wealth through property investments in more affordable markets.
Think of it as separating the home you live in from the asset that builds your wealth. The two don’t have to be the same property, and in many parts of South-East Queensland right now, splitting them apart is the only way the maths works.
Rentvesting Vs Buying Your Own Home
Factor
Rentvesting
Buying Your Own Home
Where You Live
Your preferred suburb (renting)
Where you can afford to buy
Tax Deductions
Yes (interest, depreciation, expenses)
No
$30,000 QLD FHOG
Forfeited (must be principal residence)
Available on new homes < $750k until 30 June 2026
QLD Stamp Duty (First Home)
Full duty payable
Zero on new homes since 1 May 2025
Capital Gains Tax On Sale
Applies (50% CGT discount OR inflation indexation)
Generally exempt under main residence rule
Lifestyle Flexibility
High (can relocate easily)
Lower (tied to one location)
The Pros of Rentvesting
Live Where You Want Without the Price Tag
One of the top benefits of rentvesting is the ability to live in your desired location without the financial burden of purchasing property there. You get the Burleigh cafes, the Gold Coast surf, or the Brisbane CBD walkability, without taking on a $1.5 million mortgage to do it.
Enter the Property Market Sooner
By investing in more affordable areas, you can enter the property market sooner. This approach allows you to start building equity and benefit from potential capital growth without waiting to afford a home in your preferred living area.
Tax Deductions: Interest, Depreciation, Expenses
The ATO lets you claim interest, council rates, insurance, property management fees, repairs, and depreciation against your rental income. These tax deductions are one of the most underrated benefits of rentvesting; for a typical newly built investment property, depreciation alone can deliver over $12,000 in deductions in year one, according to BMT Tax Depreciation.
Rental Income Offsets Your Costs
In tight markets like South-East Queensland, your tenant’s rent often covers most of the mortgage interest. With Queensland vacancy rates hovering near 1%, finding tenants generally isn’t an issue.
Flexibility to Relocate for Work or Lifestyle
If your job moves, your relationship changes, or you fall in love with another suburb, you can break a lease much more easily than you can sell a home. Your investment keeps working in the background.
The Cons of Rentvesting
You Miss Out on the First Home Owner Grant and FHSS
Choosing to rentvest may disqualify you from first-home buyer grants and stamp duty concessions, as these incentives are typically available only to those purchasing a primary residence.
In Queensland, that’s a real number: a $30,000 grant on new homes under $750,000 (available until 30 June 2026, then dropping back to $15,000), plus zero stamp duty on new builds from 1 May 2025. The First Home Super Saver Scheme, which lets you withdraw up to $50,000 of voluntary super contributions, also requires the property to be your home, not an investment.
Capital Gains Tax Applies When You Sell
Selling an investment property at a profit may incur capital gains tax, reducing your overall return. This tax does not apply to the sale of a primary residence, making it an important consideration in the rentvesting strategy.
You’re Still a Tenant
Renting your residence can lead to less stability, as landlords may choose to sell the property or not renew leases, requiring you to relocate.
Managing a Property from Afar
As a property investor, you’re responsible for managing the investment property, including maintenance, tenant issues, and associated costs. Most rentvestors hire a property manager (typically 7-10% of rent), which adds cost but reduces hassle.
Rentvesting Tax Implications Explained
Negative Gearing and Depreciation
If your interest, rates, fees, and depreciation exceed your rental income, the loss reduces your taxable income (negative gearing). The actual after-tax weekly cost depends on your marginal rate, loan amount, and the depreciation claimed. Still, for a typical mid-priced investment property, the net holding cost often comes in at $100-$150 per week, once tax savings are factored in.
A good rentvesting calculator will let you model these numbers against your own income and marginal tax rate. A quantity surveyor’s depreciation report (usually $400-$900) typically pays for itself many times over.
The CGT 6-Year Rule (The Hybrid Play)
Under the ATO’s six-year rule, if you live in a property first, then move out and rent it, you can treat it as your main residence for up to six years and pay no CGT when you sell, provided you don’t claim another property as your main residence in the same period. See our guide to first home buyer grants and support for the eligibility details.
QLD Land Tax for Investors
Queensland’s land tax threshold for individuals sits at $600,000. Most single Logan or Ipswich investments come in well under that on land value, but it’s worth modelling if you plan to grow a portfolio.
How Rentvesting Affects Your Borrowing Capacity
Rental income from your investment property can lift what lenders will offer you. Most banks count 70-80% of expected rent toward serviceability. The trade-off is that investor loan rates are typically 0.2-0.4% higher than owner-occupier rates, and you’ll usually need at least a 10-20% deposit to avoid Lenders Mortgage Insurance.
Want to test the numbers with a rentvesting calculator? Try our borrowing power calculator for a quick estimate.
Is Rentvesting Right for You?
Rentvesting May Suit You If:
You want to live in a high-cost suburb but can’t afford to buy there
Your career or lifestyle requires flexibility to relocate
You’re comfortable being a tenant for the medium term
You’ve got a stable income and can cover any cash-flow gap
You’re focused on long-term wealth, not emotional ownership
Rentvesting Probably Isn’t for You If:
Owning your own home is non-negotiable for emotional reasons
You’re buying a brand-new home and would lose $30,000+ in grants and stamp duty savings
You can’t comfortably cover both rent and any shortfall on the investment
You’d struggle to manage the responsibilities of being a landlord
Talk to Go Mortgage About Your Rentvesting Plan
Rentvesting can build serious long-term wealth, but only when the property, the loan structure, and your tax position are all working together. Weighing up the rentvesting pros and cons is easier with someone who’s done it hundreds of times.
Our Arundel-based team has helped hundreds of Gold Coast clients navigate this decision, and we’ll tell you straight if the numbers don’t stack up. Contact Go Mortgage on the Gold Coast or book a discovery chat to see what your rentvesting position could actually look like and discuss property investment on the Gold Coast.
Frequently Asked Questions
Is rentvesting a good idea in 2026?
For many Gold Coast and South-East Queensland buyers, yes. Particularly in lifestyle suburbs where the gap between rent and mortgage repayments is wide. The maths gets stronger when you hold long-term and pick a growth area for the investment.
Do rentvestors get the First Home Owner Grant?
The QLD FHOG requires you to live in the property for at least 6 continuous months within the first year. If you buy purely for investment purposes, you forfeit the $30,000 grant.
Can I claim negative gearing on a rentvested property?
As of 2026, negative gearing remains available to all Australian property investors, though the Treasury is modelling potential changes ahead of the May 2026 budget. Any reform is widely expected to grandfather existing properties.
Do rentvestors pay capital gains tax?
Yes, rentvestors will need to pay capital gains tax (CGT) on the gain when they sell their property. However, the 50% CGT discount no longer applies for properties purchased after 1 July 2027. Under the new government reforms, a minimum 30% tax rate on capital gains will apply, and only real gains above inflation will be taxed. Properties purchased before 1 July 2027 will still be eligible for the traditional 50% CGT discount, provided they’ve been held for longer than 12 months.
How much deposit do I need to rentvest?
Most lenders want 10-20% for an investment loan. On a $620,000 property, that’s $62,000-$124,000 plus stamp duty and legal costs. A conversation about how much first home buyers can borrow is a good starting point if you’re stretching.
Can I use equity from a rentvested property?
Once your investment grows, you can refinance and pull equity to fund your own home or a second investment. See our guide on using equity to renovate or buy for how that works in practice.
If you’re thinking about purchasing property, one of the first questions that comes to mind is: how much deposit do I need to buy a house in Australia? While there’s no one-size-fits-all answer, understanding the basics of deposit requirements can help you plan and prepare with confidence.
Let’s break it down so you know what to expect—and how to put your best foot forward as a buyer.
What Is a House Deposit?
A house deposit is the upfront amount you contribute towards the purchase price of a property. The rest of the funds are typically borrowed from a lender as a home loan. The size of your deposit plays a big role in what type of loan you can get, the interest rate you’ll be offered, and whether you’ll need to pay Lenders Mortgage Insurance (LMI).
How Much Deposit Do I Need for a House?
In most cases, lenders prefer a deposit of at least 20% of the property’s purchase price. So, if you’re buying a home for $600,000, a 20% deposit would be $120,000.
That said, it’s possible to get a loan with a smaller deposit—sometimes as low as 5%. But smaller deposits often come with extra conditions, such as:
Lenders Mortgage Insurance (LMI)
Stricter lending criteria
Fewer loan product options
Higher interest rates
What If I Don’t Have a 20% Deposit?
Plenty of Australians buy homes with less than 20%. If you’re asking, “how much do you need for a house deposit” and you’re a first home buyer, you might be eligible for support through government initiatives like the First Home Guarantee or the First Home Super Saver Scheme.
The First Home Buyers Gold Coast team at Go Mortgage can help you understand what support you may qualify for—and how much you really need upfront.
In some cases, a guarantor loan (where a family member secures part of your loan with their own property) can also help you enter the market sooner without a full 20% deposit.
What Other Costs Should You Plan For?
In addition to your deposit, there are other costs to budget for, such as:
Stamp duty (may be discounted for eligible first home buyers)
Conveyancing and legal fees
Building and pest inspections
Loan application and settlement fees
Moving costs and insurances
A clear understanding of all costs can help you avoid surprises and set realistic savings goals.
How Much Deposit Do You Really Need to Buy a Home?
So, how much deposit do you need to buy a house in Australia? Ideally 20%, but many buyers successfully enter the market with less—especially when guided by experienced mortgage professionals.
At Go Mortgage, we work with first-time and seasoned buyers to find the right home loan and deposit strategy for their situation. Whether you’re planning to buy now or saving for later, we’ll help you make a confident, informed start.
Start Your Home Buying Journey with Confidence
Still wondering “how much deposit do I need for a house”? Let’s work it out together. At Go Mortgage, we’ll help you understand your options, maximise any available government support, and match you with a home loan that suits your budget and goals.
Book your free consultation today and take the first step toward owning your own home—on your terms.
Start Your Home Loan Journey Today
Let’s get your home loan journey underway. Chat with our team and we’ll help you understand your options and map out your next steps.
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