A clean, practical guide to home loans in NSW in 2026 — loan types, rates, deposits, upfront costs, approval steps, and the key first home buyer pathways.
1) What is a home loan?
A mortgage is a long-term loan used to buy property. Most buyers repay over 25–30 years, with repayments made weekly/fortnightly/monthly.
The amount you borrow (the loan balance).
The cost of borrowing, charged by the lender.
2) Loan types most buyers use
Choose the structure that matches your goals: lower repayments now vs paying down principal sooner.
Repay principal + interest. Most common for owner-occupiers.
Lower initial repayments, but balance doesn’t reduce during the IO period.
3) Fixed vs variable (and split loans)
Fixed gives stability for a period; variable offers flexibility and commonly supports offsets and extra repayments.
Predictable repayments for 1–5 years. Break costs can apply if you exit early.
Rate can move. Often best for offsets, extra repayments, and ongoing flexibility.
4) Deposits and common entry points in 2026
Your deposit size influences rate, approval strength, and whether LMI applies.
Strong position; often avoids LMI.
Possible with the right servicing and structure; 5% may suit eligible buyers via guarantees.
5) The home loan process (step-by-step)
A simple workflow that keeps you in control from first numbers to settlement day.
Borrowing power → repayments → upfront costs. Use the Calculators.
Pre-approval → property → valuation → formal approval → settlement → move in.
Next step
Use the calculators to sanity-check repayments and borrowing power, then follow the service path that matches your scenario.