Understanding Home Loans

When looking for a good deal on a home loan (mortgage), the interest rate matters. A home loan is a long-term debt, so even a small difference in interest adds up over time.

If you want the best home loan rates in Sydney, speak to the friendly team at Loan Station. As expert home loan brokers in Sydney, we have extensive knowledge of more than 30 lenders’ policies. So we know how to get your loan over the line with the rates and features that suit your financial circumstances and lifestyle.

30+ Lenders

AMP,  All State Home Loans, ANZ, Bankwest, BCU, Bank of China, BOQ, Beyond Bank, Bank of Sydney, Bank of Melbourne, Bank SA, Commonwealth Bank, Citibank, DBA – Depost Bond Australia, Firstmac, Granite Home Loans, Heritage Bank, Macquarie, Mkm, Mortgage House, My State, EZY Mortgage, NAB Bank, Pepper Money, RAMS, Resimac Home Loans, Suncorp

Types of loans

Low-deposit home loan – Need a home loan in Sydney but don’t have a 20% deposit? Loan Station can get you approval from one of our lenders with as little as a 3% deposit.

Single income and self-employed – Loan Station are one of the best home loan brokers in Sydney. So we can help you get on the property ladder even if you are self-employed or earn a single income.

Pre-approval – At Loan Station, we don’t just find you the best home loan rates in Sydney. We can also get you pre-approved within 48 hours.

Refinancing – Switching your mortgage to a new lender can help you save money and pay off your home loan faster. Read more about refinancing here.

Offset – An offset account is a transaction account linked to your home loan. You can make deposits or withdraw from it as you would with a regular transaction account.

The big difference is that when you hold money in an offset account over a period of time, you can reduce the amount of interest charged on your home loan. The higher the balance and the longer the period, the less interest you’ll pay. And this could help you pay off your loan sooner.

How Much Deposit Do I Need?

Depending on your circumstances, we can get you approved for a loan with as little as a 3% deposit. And with over 30 lenders on our panel, you can be sure of some of the best home loan rates in Sydney.

3% Deposit

From as little as a 3% deposit, Loan Station can help you find the best loan that can get you into your property quickly.

20% Deposit

While Loan Station can help you get a home loan with as little as a 3% deposit, saving a 20% deposit means you avoid paying lender’s mortgage insurance. The larger the deposit, the less you have to borrow, which means, all else being equal, lower monthly repayments. As you pose less risk as a borrower, some lenders may offer you lower interest rates too.

Want to avoid lender’s mortgage insurance on your home loan in Sydney but can’t save a 20% deposit? Having a family member guarantee your mortgage can help you break into the property market sooner, even with a smaller deposit.

First Home Buyers Loans

Are you a first-time home buyer in Sydney? Discover the path to owning your first property with ease, thanks to valuable NSW and federal government first home buyer grants and incentives. These programs are subject to regular updates, making it difficult to determine your eligibility. That’s where a trusted home loan broker in Sydney, such as Loan Station, can guide you through the process.

NSW Government First Home Buyers Assistance

New Homes

Buy a new home valued at less than $650,000, apply for a full exemption and pay no transfer duty.

Buy a new home valued between $650,000 and $800,000 and apply for a concessional transfer duty rate. The amount will be based on the value of your home.

Existing Homes

Buy an existing home valued at less than $650,000, apply for a full exemption and pay no transfer duty.

Buy a new home valued between $650,000 and $800,000, and apply for a concessional transfer duty rate. The amount will be based on the value of your home.

Vacant Land

You won’t pay transfer duty if your land is valued at less than $350,000.

For land valued between $350,000 and $450,000, you’ll receive a concessional rate.


Need help getting into your home sooner? As one of the best home loan brokers in Sydney, Loan Station can explain how a guarantor can help your situation. This is when a family member provides security to the loan without giving you or the lender any money. As the homeowner, you will be responsible for making the loan repayments. But if you subsequently default on the mortgage, your guarantor may be held liable.

What can I afford if I'm renting?

Saving a deposit for home loans in Sydney can be challenging when you are renting. But did you know that you can use your rental history as proof that you can service your loan? If you have been renting for 12 months or more, many lenders will take that into consideration when they assess your ability to service the loan.

Upfront costs

Buying your next home? Saving your deposit is the first hurdle for many, but you’ll need more than your deposit. Here is our helpful list of other fees and charges you will need to cover on top of saving for your deposit.

Upfront Costs

Stamp duty is the tax payable to the government when you buy any property within NSW.

However, from 16 January 2023, first home buyers in NSW can choose between paying upfront stamp duty or a smaller annual property tax when they buy a home valued up to $1.5 million.

The annual tax payments are based on the property’s land value and set at the following rate for 2022-23 and 2023-24:

  • $400 plus 0.3% of land value for owner-occupied properties
  • $1,500 plus 1.1% of land value for investment properties

NSW Stamp Duty Rates

As of 1 July 2021, the following standard transfer duty rates apply.

Property value Transfer duty rate
$0 to $14,000 $1.25 for every $100 (the minimum is $10)
$14,000 to $32,000 $175 plus $1.50 for every $100 over $14,000
$32,000 to $85,000 $445 plus $1.75 for every $100 over $32,000
$85,000 to $319,000 $1,372 plus $3.50 for every $100 over $85,000
$319,000 to $1,064,000 $9,562 plus $4.50 for every $100 over $319,000
Over $1,064,000 $43,087 plus $5.50 for every $100 over $1,064,000

Each year the threshold amounts for standard transfer duty and premiums are adjusted for inflation, in accordance with the consumer price index.

Legal Costs: You will need to pay a conveyancer or solicitor to help you with the legal process of buying a home.

Mortgage Establishment Fees: Also called establishment fees, these are fees that cover the cost of the documentation of the new mortgage. This is a one-off payment that can roughly cost between $200 – $700 depending on the loan. As expert home loan brokers in Sydney, Loan Station can let you know which lenders waive establishment fees on certain products or for special promotions.

Title Transfer Fee: Transfer of ownership, around $150

Lender’s Mortgage Insurance: LMI is payable if the deposit is less than 20% and is a one off cost for the lender’s security purpose.

Mortgage Registration Fees: The mortgage registration fee is paid when a mortgage is established or discharged. The cost is approximately $150

Building and Pest Inspections: Approximately $300 – $800, depending on the property’s location and size.

What is LVR and LMI?

Loan-to-value ratio (LVR)

LVR is the amount you’re borrowing, represented as a percentage of the value of the property you’re buying. The bigger your deposit, the lower the LVR will be.

Lender’s mortgage insurance (LMI)

LMI is a type of insurance you can expect to pay if you borrow more than 80% of your home’s value. While you pay the premium, LMI protects the lender, not the borrower.

Looking for the best home loan rates in Sydney?

Fill in this form and one of our lending professionals will be in touch to discuss how we can help you get on the property ladder.

    Loans to Suit You

    At Loan Station, our mission is to help you realise your dream of becoming a homeowner without the stress of wondering which loan is the best fit for you. Our team will identify the finest home loan refinance with cashback option to suit your needs and lifestyle