Purchasing established property offers flexibility and immediate access to housing or investment opportunities. 

Whether owner-occupied or investment-focused, it’s a versatile option for achieving your property goals with fewer uncertainties than building.

Purchasing Established Property

Why choose us for your next home loan?

We simplify the process for clients seeking home purchase loans, refinancing options, or finance for purchasing, upsizing, or investing in property. Our goal is to make the journey smooth, so you can focus on your property goals.

House and land home loans combine land purchase and construction finance, letting you secure a block and build your dream home under a single lending arrangement. 

This approach simplifies financing, avoiding multiple home loan applications. 

House & Land Finance

Embarking on your first home purchase?

Discover the array of low-deposit government schemes, stamp duty concessions, and first home buyer grants designed to make your journey into the property market more accessible and affordable. 

First Home Buyer Benefits

Our team is trusted by hundreds of happy clients for exceptional home loan advice and support. 

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Enjoy professional mortgage broker support with no fees charged in almost every circumstance. 

Access Over 40+ Lenders 

Explore a variety of property purchase loans, credit impairment solutions, and investment loan options to find your best fit. 

Bridging Property Finance

Bridging finance is a short-term loan that helps homeowners purchase a new property before selling their current one, commonly used for downsizing. 

It allows buyers to secure a property even if their borrowing capacity doesn’t fully support the loan long-term. 

Lenders use the current property as security, requiring it to be sold within 6-12 months. Proceeds from the sale pay down the bridging loan, reducing the debt to an approved amount, making this a flexible solution for transitional property purchases.

Using equity from your property provides flexible solutions for your next purchase.

Options include selling and using proceeds, increasing your home loan for a deposit, or cross-securing properties based on your financial goals.

Using Equity to Buy Property 

Bridging loans provide short-term funding, covering the gap between buying a new property and selling your existing one. 

They offer flexibility, allowing you to secure your next home without pressure the sale of your current property first. 

Bridging Property Finance

Navigating the home loan process with a challenging credit history can be difficult.

Solutions are available for borrowers with credit impairments, including missed payments, defaults, and discharged bankruptcy, offering opportunities to move forward with your property goals. 

Low Credit Score Borrowers

How specialist lenders assess borrowers

Key takeaways

Specialist lenders take a more personalised approach to borrowers with a low credit history. They consider applicants with recent credit issues, such as mortgage arrears, debt agreements, or bankruptcy. 

They also review applicants with defaults, judgments, or multiple credit enquiries. 

These lenders assess the reasons behind credit issues, current financial behaviour, and ability to meet repayment obligations, offering a more inclusive pathway to securing property purchase home loans.

Loan features and considerations

Improving your eligibility

While bad credit home loans offer opportunities, they often come with: 

Higher interest rates which are based on the overall application strength, reflecting the increased risk to the lender.

Requirements for larger deposits or property equity to reduce the loan-to-value ratio. 

Additional fees or charges, including lender’s mortgage insurance.

Comparing offers from different lenders is crucial, which is why our mortgage brokers carefully assess options to connect you with a lender that maximises your approval chances while keeping interest rates and fees manageable. 

By understanding the landscape of bad credit home loans and taking proactive steps, you can navigate the path to homeownership, even with a low credit score. 

Specialist lenders offer home loan options for individuals with low credit scores. 

Expect higher interest rates and potentially larger deposit requirements. 

Consulting with a mortgage broker experienced in bad credit home loans can provide valuable insights and access to suitable lenders.

To enhance your chances of securing a loan with a low credit score: 

Review your credit report to ensure accuracy and address any discrepancies.

Demonstrate financial stability through consistent employment and responsible budgeting.

You may need either a larger deposit or property equity to improve your application chances. 

Limit any further credit applications as multiple enquiries can impact your credit score negatively.

Low Credit Score Home Loans

A low credit score can result from various factors, including missed payments, defaults, or bankruptcy. 

Traditional banks often view such histories as high-risk, leading to loan application rejections. 

However, non-bank lenders adopt a more comprehensive approach, evaluating your current financial stability, available property equity and capacity to repay, rather than focusing solely on past credit mishaps.

How does a bridging loan work?

Key points:

When you take out a bridging loan, the lender calculates your peak debt, which includes the existing mortgage balance and the purchase price of the new property. 

Once your current property is sold, the sale proceeds reduce this peak debt, leaving a remaining balance as your ongoing mortgage.

Considerations to keep in mind

Bridging loans are flexible but vary significantly between lenders. 

Some lenders allow capitalised interest, while others require ongoing repayments 

Your equity and financial position determine the type of bridging loan suitable for your needs. 

By understanding how different lenders approach bridging finance, you can choose the solution that aligns with your property goals and financial situation.

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Higher interest rates and potential fees can increase the overall cost.

If your property doesn’t sell within the loan term, you may face financial strain.

Understanding the lender’s repayment requirements and end debt policies is crucial.

How do lenders handle bridging finance?

Bridging loans vary significantly between lenders. Some allow interest to be capitalised during the bridging period, meaning no repayments are needed until the current property is sold, providing relief for those without savings.

Others require borrowers to demonstrate they can make regular interest repayments throughout the term. 

Certain lenders offer a "no end debt" scenario, where the sale of the existing property clears the entire loan if sufficient equity exists. Conversely, some require an "end debt" structure, continuing a portion of the loan as a standard home loan after the bridging period.

Advantages of bridging finance

Secure your next property without rushing the sale of your current home.

Act quickly in competitive property markets.

Tailored solutions depending on your financial situation and lender policies.

Key features of bridging finance 

Bridging loans usually have a 6 to 12-month term, providing temporary financing to bridge the gap between property purchases and sales.

Total debt during the bridging period includes your current mortgage, new property costs, and fees, reduced once the existing property is sold.

Some lenders capitalise interest onto the loan each month, requiring no repayments, while others need regular interest or partial principal repayments during the bridging period.

Bridging loans have higher rates than standard home loans due to their short-term nature and increased lender risk.

Sufficient equity in your current property is essential, as sale proceeds reduce the total debt and determine ongoing loan requirements.

Bridging finance fees are often higher than traditional lender fees and should be carefully reviewed to understand the total loan costs. 

Lenders expect property sales within the bridging term; delays may require renegotiation, potentially increasing overall costs.

Introduction to buying property with equity 

Equity is the difference between your property’s current value and the balance remaining on your mortgage. 

For instance, if your property is valued at $800,000 and your loan balance is $400,000, your total equity is $400,000. The amount of equity you can access will depend on the method you choose:

Refinance: Increase your current home loan to withdraw funds.

Cross-Securing: Use your current property as collateral for the new property 

Selling and using Proceeds: Pay off the mortgage and use the sale proceeds for the next purchase.

Let’s break down each option to help you determine which approach best fits your needs. 

Option 3: Selling your current property and using the proceeds for the next purchase

If you choose to sell your current property, the sale proceeds after repaying the existing mortgage can be used as the deposit (or full purchase) for the new property. 

This approach is straightforward and avoids leveraging multiple loans or properties. 

Example:

Current property sale price: $800,000

Current loan balance owing: $400,000

Sale proceeds after mortgage payout: $400,000 (note that real estate agent fees and other selling costs will be deducted from this amount) 

You can use the remaining $400,000 from the sale proceeds as a deposit for your new property.

Advantages:

Simple financial arrangement with no ties between properties.

Reduced risk of financial overextension, as you rely only on the proceeds from the sale.

Accessing the full equity from the sale proceeds increase of only accessing up to 80% or 90% of the property value. 

Disadvantages:

Requires selling the current property, which might not align with your long-term investment goals or the market conditions.

Potential time delay between selling the current property and purchasing the new one.

Moving costs and the emotional burden of selling a home.

Option 1: Refinancing your home loan to access equity for a deposit (avoiding cross-securing)

In this method, you refinance your existing property and withdraw equity up to 80% or 90% (above 80% typically requires Lenders Mortgage Insurance) to use as a deposit for the new purchase. 

This keeps each loan independent, reducing the risk of tying the properties together.

Example:

Current property value: $800,000

Current loan balance owing: $400,000 

Available equity: $240,000 (calculated as 80% of property value = $640,000 minus the $400,000 loan balance)

Equity amount to be released: $100,000 (this $100,000 will be added to your $400,000 home loan, meaning you now have repayments on a $500,000 home loan)

The $100,000 is then used as the deposit for your new property purchase.

Advantages: 

Properties are not tied together, allowing flexibility for refinancing or selling in the future.

The new loan can be structured independently with a different lender if desired.

Access equity without needing to sell your current property.

Disadvantages:

You’ll need sufficient income to service repayments on both loans. 

Refinancing increases repayments due to the additional equity withdrawal.

Typically, only up to 90% of the property value can be accessed, leaving 10% equity unavailable.

Option 2: Cross-securing with the current property

Cross-securing involves using the equity in your current property as collateral for the new loan. where both properties are held as security with the same lender under two seperate home loans. 

Instead of a cash deposit, the lender combines the values of your existing property and the new property to calculate your available equity for the purchase. 

Example:

Current property value: $800,000

Current loan balance: $400,000 (equity = $400,000)

New property purchase price: $600,000

Loan needed for new property: $600,000

The lender allows you to cross-secure both properties and uses the equity in your existing property to cover the deposit and purchase costs for the new property. 

Advantages:

Faster access to financing, as the equity in your current property can be leveraged immediately.

Disadvantages:

Both properties are linked with the lender, potentially complicating future refinancing or the sale of one property. 

You’ll need sufficient income to service repayments on both loans. 

Increased risk if property values fall, as negative equity in one property could impact both.

Typically, only up to 80% of the combined property values can be accessed, leaving 20% equity unavailable.

Using Equity to Buy Property

Using the equity in your current property can provide flexible options to help you purchase your next property. 

Whether by selling your existing property and using the proceeds, increasing your current home loan to access equity, or cross-securing the new property with your existing one, each approach offers unique advantages depending on your financial goals and circumstances. 

Understanding these methods can simplify the process and ensure you make informed decisions when planning your next property purchase 

House & Land Package Finance

House and land home loans combine land purchase and construction finance, letting you secure a block and build your dream home under a single lending arrangement. 

A house & land home loan merges two key components: buying the land and then funding the construction of your property, streamlining your path to a new home. 

This approach simplifies financing, letting you predict costs, manage timelines, and potentially reduce stamp duty. It’s an attractive option for first-time buyers or anyone seeking a tailor-made design without multiple loans.

Benefits of a house & land package

Loan structures & progressive payments

One of the main advantages of a fixed-price house and land package is the clarity around costs. When you sign a fixed-price contract with a builder, you often gain a more predictable timeline and budget. 

Mostly the stamp duty is only payable on the land value, which can reduce upfront expenses compared to an established purchase where the property is already built.

For construction loans, lenders will make progressive payments also known as drawdowns, at specific stages of the build outlined below:

Base Stage: The land is prepared, levelled, and the concrete slab is laid.

Frame Stage: The timber or steel frame of your home is constructed, outlining walls, windows, and roof trusses. 

Lock-Up Stage: External walls, roofing, and windows are installed, enclosing the home and making it weatherproof, allowing interior work to begin.

Fixing Stage: The interior takes shape with the installation of plasterboard, skirting, architraves, cabinetry, and doors. 

Completion Stage: The builder adds final details like painting, electrical fit-offs, and any remaining fittings. After a thorough inspection, your home is prepared for the final handover.

With most lenders, you only pay monthly interest on the loan amounts drawn and released, making it easier to budget and reducing costs during the early stages. 

Once construction is complete, the loan usually transitions to a normal home loan with principal and interest repayments, allowing you to pay down the mortgage over the next 30 years. 

Understanding house & land construction loans

A house & land home loan essentially merges two key components: buying the land and then funding the construction of your property. Rather than dealing with two separate mortgages, you have one unified loan structure. 

Combines the land purchase and construction finance into a single transaction, streamlining the application process. 

Typically it involves one loan structure with a single repayment, rather than managing separate mortgages for the land purchase and the construction. 

Summary: House and land finance

Not all lenders offer construction finance, and those that do may have varying approval credit criteria. 

Some lenders can finance up to 98% of the property’s security price, including lenders mortgage insurance (LMI). 

Our mortgage brokers are experts in construction finance and work closely with some of Australia’s largest building companies. To find the best lender for your unique situation, we recommend booking a phone call with one of our brokers for tailored advice and guidance.

Deposit options and purchase fees 

Steps to purchasing a property 

When buying an established property, understanding deposit requirements and associated fees is crucial. 

For most buyers, a 20% deposit will help you avoid Lenders Mortgage Insurance (LMI), though lower deposits are possible depending on the loan and your financial position. 

Some lenders offer low-deposit loans for as little as 5%, but this often incurs additional costs, such as LMI.

Be prepared for upfront purchase fees, including:

Stamp duty payable on the entire purchase price, which varies by state and property value.

Legal and conveyancing fees to manage the transaction.

Inspection costs for building and pest checks. (if applicable)

Investment purchases 

Considering your available home loans

For investors, established properties can offer immediate rental income and the opportunity to build equity over time. 

Key considerations include:

Researching rental demand in the area.

Assessing property maintenance requirements.

Understanding potential tax benefits, such as deductions for interest, depreciation, and property expenses.

Choosing the right property for investment often involves:

Analysing historical growth trends and rental yields.

Considering proximity to amenities, schools, and public transport.

Consulting with your tax accountant and a mortgage broker prior to the purchase can ensure you've structured your new home loan to maximise returns.

Buying a property becomes simpler when you understand the key steps involved. From budgeting to settlement, this guide ensures you're informed and prepared to secure your next home or investment. 

Establish you budget and get pre-approval ― Speak with a mortgage broker to determine your borrowing capacity and secure loan pre-approval. 

Research, inspect, and conduct due diligence ― Explore the market, inspect properties, and conduct thorough research on your options. 

Make an offer and sign the contract ― Have a conveyancer review the purchase contract, submit your offer, and sign the contract once accepted.

Formal approval & preparing for settlement ― Your mortgage broker will finalise your finance application for formal approval and guide you through settlement preparation. 

Settlement and take ownership ― Your conveyancer and mortgage broker will coordinate settlement, after which you can take possession of the property. 

Choosing the right loan type is crucial to achieving your financial goals. Your mortgage broker should guide you through the various home loan types, deposit options, and loan features available to suit your needs. 

For owner-occupiers, principal and interest loans are a common choice, helping you:

Reduce debt over time.

Build equity in the property.

For investors, interest-only loans can maximise cash flow, as rental income offsets holding costs.

Additional loan features like offset accounts or redraw facilities can further enhance flexibility, allowing you to:

Reduce interest payments.

Access extra funds when needed.

Each loan type offers unique benefits, and professional advice can help match the right product to your situation.

Purchasing Established Property 

With careful planning and expert advice, buying an established property can be a streamlined process, whether buying your next home or expanding your investment portfolio. 

For owner-occupiers, it offers the opportunity to move in immediately, while investors can generate rental income quickly.

Understanding deposit options, purchase fees, and loan types is essential to ensure your purchase aligns with financial goals.

Frequently asked questions

We’ve compiled the most common questions our clients ask about working with a mortgage broker. 

If you don’t see your question here, feel free to reach out to our expert mortgage brokers by calling or emailing us using the button below.

Renovation Loans

Whether you’re refreshing an existing home or planning a new build, the right financing can protect both your budget and timeline.

Renovation finance often includes progressive drawdowns for projects ranging from minor fixes to major structural changes, while house & land construction loans bundle land purchase and building costs into a single arrangement. 

Depending on the scale of your project, lenders may require builder quotes, council approvals, and a clear project plan to help you secure a favourable deal and avoid cost blowouts. 

Understanding renovation finance

Benefits of a house & land package

Renovation finance is designed for homeowners looking to improve or expand an existing property. Unlike typical home loans, it can accommodate everything from a simple kitchen update to major structural changes. 

Can fund minor cosmetic makeovers or large-scale overhauls.

Can require council approvals and a licensed builder’s contract if changes are structural changes to your property. 

Loan structures & progressive payments

One of the main advantages of a fixed-price house and land package is the clarity around costs. When you sign a fixed-price contract with a builder, you often gain a more predictable timeline and budget. 

Mostly the stamp duty is only payable on the land value, which can reduce upfront expenses compared to an established purchase where the property is already built.

For construction loans, lenders will make progressive payments also known as drawdowns, at specific stages of the build: for example, slab down, frame up, lock-up, and final completion. 

With most lenders, you only pay monthly interest on the loan amounts drawn and released, making it easier to budget and reducing costs during the early stages. 

Once construction is complete, the loan usually transitions to a normal home loan with principal and interest repayments, allowing you to pay down the mortgage over the next 30 years. 

Types of renovation projects

Non-Structural Improvements: These are considered cosmetic upgrades such as replacing fixtures, new kitchen, repainting, or updating floors. 

Structural Improvements: Typically requires a licenced builder to complete and included everything from extensions, removing walls, or adding new rooms to a complete property redesigns involving multiple trades.

Renovation home loan options

Choosing the right loan option depends on two key factors: whether your renovation is structural or non-structural and the amount of equity available in your property. 

Below, we've outlined both loan options to help you determine which one suits your situation:

Non-Structural Changes (Equity Top-Up)

If you’re updating a kitchen, repainting, or making other cosmetic improvements—and there’s enough equity in your home—an equity top-up may be the ideal choice. 

Lenders can typically release up to 90% of your property’s value, giving you direct cash to manage the works independently.

Structural Changes (Construction Loan) 

If your plans involve a licensed builder or rely on the property’s future value (for instance, post-renovation), you’ll likely need a construction loan. In this scenario, lenders consider both your current equity and the anticipated higher valuation once work is finished. 

Funds are then released in stages directly to the builder as each construction milestone is completed. 

Summary: Construction and renovation finance

Not all lenders offer construction finance, and those that do may have varying approval credit criteria. 

Some lenders can finance up to 98% of the property’s security price, including lenders mortgage insurance (LMI). 

Our mortgage brokers are experts in construction finance and work closely with some of Australia’s largest building companies. To find the best lender for your unique situation, we recommend booking a phone call with one of our brokers for tailored advice and guidance.

Whether you’re subdividing one block or planning multiple dwellings, development finance provides the capital to transform property visions into profitable ventures. 

It delivers structured lending designed for larger-scale projects and more complex builds. 

Vacant Land Purchases

Bridging loans provide short-term funding, covering the gap between buying a new property and selling your existing one. 

They offer flexibility, allowing you to secure your next home without pressure the sale of your current property first. 

Development Finance

Navigating the home loan process with a challenging credit history can be difficult.

Solutions are available for borrowers with credit impairments, including missed payments, defaults, and discharged bankruptcy, offering opportunities to move forward with your property goals. 

Renovation Finance