Loan Market Victor Kwong

31/03/2026

I deal with people who are with non-bank lenders paying high rates every day. If you’re not that great at managing your mortgage repayments, always stick to monthly repayments.

Some lenders offer special refinance policies, provided that you have 12 months of good repayment history and a reasonable credit score. That means no arrears or late repayments.

If you switch to monthly, you only have 12 chances of missing a repayment, compared to 52 chances if you pay weekly and 26 chances if you pay fortnightly.

It also matters to your current lender — if you have 6–12 months of good repayment history, they could potentially lower your rate. But if you have late repayments, sorry, there’s nothing we can do.

So if you’re with a non-bank lender, switch your repayments to monthly. It could potentially save you much more down the track.

09/01/2026

If you’re a contractor (or about to become one), timing matters when it comes to getting a mortgage.

A lot of people move into contracting because the pay is better.
On paper, your income goes up. But from a bank’s point of view, it’s not that simple.

For assessment purposes, contractors are often treated very similarly to casual employees:

- You only get paid when you work
- There’s no annual or sick leave

Because of this, banks tend to assess contractor income more conservatively.

Depending on the lender, they might:

- Want to see you in your current contract for at least 6 months
- Annualise your year-to-date income
- discount your income to 46–48 weeks a year

Some lenders are more contractor-friendly, but your options can still narrow, especially if you have other complexities.

Why timing makes a big difference

One thing many people don’t realise is when you move into contracting can affect your borrowing power.

From experience, switching around the end or start of a financial year often works better.

If you start contracting in October, and a lender annualises your income after 6 months, your income can look lower than it really is, simply because you didn’t work July to September in that role.

Your income hasn’t dropped, but on paper, it looks like it has.

That can lead to:

- Lower borrowing power
- Fewer lender options
- A loan outcome that doesn’t truly reflect your real situation

If you’re thinking about becoming a contractor and may buy or refinance in the next 6–12 months, it’s worth having a chat before making the switch.

28/11/2025

Help to Buy Scheme (Shared Equity ) Launching 5 December

Hey everyone, exciting news for first home buyers! From 5 December, the government will officially launch a shared equity scheme to help people like you get into your first home faster.

Here’s what it means for you:

- You could buy your first home with just a 2% deposit

- Income cap: $100,000 for singles, $160,000 for couples or single parents (based on your ATO Notice of Assessment for last financial year)

- Property price cap: $1.3m for NSW capital areas, $950k for Victoria capital area, $1m for QLD & ACT capital areas, $900k for SA capital areas & $850k for WA capital areas

The government will co-own part of your home until you buy out their share or sell

This scheme could let you:

- Afford a higher-priced property than you thought possible

- Reduce your monthly mortgage repayments

If you’ve been waiting for the right time to get into the market, this could be it. I’d be happy to walk you through exactly how the scheme works and what it means for your situation.

Message me anytime. I’m available 7 days a week, and when you reach out, you’ll also get my Free 50+ page First Home Buyer Guide to guide you step by step.

More details about the scheme can be found on
https://firsthomebuyers.gov.au/australian-government-help-buy-scheme

03/11/2025

Ubank just announced out a 90% LVR, no LMI option for both owner-occupied and investment loans.

This means you can now borrow more than 80% without paying Lenders Mortgage Insurance (LMI). And it’s no longer exclusive to just healthcare, legal or finance professionals. It’s available to everyone.

This change could help if you are:
• a first home buyers whose price range sits above the 5% deposit scheme cap
• a non–first home buyers looking to get back into the market
• a rentvestors wanting to buy your first investment with a smaller deposit & maximize leverage
• Property investors who don’t have quite enough equity in their portfolio for a 20% deposit

LMI waivers aren’t new, but they’ve mostly been limited to certain professionals or offered by non-bank lenders (often without an offset account, often a problem for first time investors).

This is the first time a bank has made something like this available to the general public.
If you’ve got around 10% deposit, this could be a great option to explore.

And if you’ve got less than 10%, there are still other options that may help you get into the market.

If you’d like to have a chat about your borrowing options, feel free to reach out.

06/10/2025

Online Home Loan Lenders - What’s the Catch?

If you’ve ever compared home loans online, you’ve probably noticed that online lenders often come out on top with low rates, no annual fees, which looks like a no-brainer deal.

These products are usually great for simple situations, like first home buyers planning to live in the property long-term.

But they may not suit you if you’re investment savvy or want flexibility in your finances.

Here’s why:

- No loan splitting – Some online lenders don’t allow you to split your loan into separate portions (for example, one for your home and one for investment). Without this, you could end up with a mixed-purpose loan, part owner-occupied and part investment. This can make it harder to separate the interest expenses and dilute the amount of tax deduction you can claim.

- No fixed rate - Some only offer variable rates. Even if fixed is available, you might have to fix the entire loan, limiting how much extra you can repay during the fixed term

- No offset account – Without an offset account, any savings you put into your loan reduce the loan balance directly. But if you later withdraw those funds for personal use, it can affect your future tax deductions, especially if you turn your home into an investment property later on.

- Not a bank (non-ADI lender) – ADI stands for Authorised Deposit-taking Institution. Banks and ADIs are covered by the government guarantee of up to $250,000 on deposits. Many online lenders aren’t ADIs, meaning if they collapse, your money in an “offset-style” account might not be protected.

In short:
- Great if you have a straightforward situation and plan to stay in your home for a long time.
- Not ideal if you value flexibility, plan to invest, or want to implement tax strategies later on.

If you’re unsure whether an online lender suits your situation or have any questions in general, feel free to reach out for a quick chat.

This is general information only and not taxation advice.

10/09/2025

The 4 Types of First Home Buyers

I would generally categorize First Home Buyers into 4 categories

1. Strong Income, Low Deposit

Challenge - You can afford repayments, but struggle to save a big deposit.

Solutions:

- Some lenders now offer loans up to 98–100% of the property value.

- Government schemes may allow you to buy with as little as 5% deposit.

- If purchasing above the price cap, parents can act as guarantors.

This type of buyers are often the easiest to resolve with the right guidance.

2. Strong Deposit, Smaller or Unstable Income

Challenge - You have savings for a deposit but may not meet borrowing requirements for a higher-value property.

Solutions:

- The government’s upcoming Help to Buy scheme may assist in boosting your borrowing power.

- Careful planning and advice are often required to achieve your goals.

3. Low Deposit & Smaller/Unstable Income

Challenge: Both your savings and borrowing power are limited, making it harder to enter the market.

Solutions:

- Requires upfront planning and realistic expectations about what you can afford.

- Government schemes like the upcoming Help to Buy scheme can help greatly

This group needs the most preparation, but it’s still possible with the right strategy.

4. Strong Income & Strong Deposit

Challenge: You have both the deposit and income, why are you waiting?

Solutions:

Don’t wait too long. Time is also a valuable commodity in property markets.

Get pre-approval and start looking.

Which type of first home buyer are you? Very often, you won't know until you meet a mortgage broker or go to the bank, so it is quite essential to identify your circumstances asap.

If you’d like to explore your borrowing options, understand more about first home buyer schemes you may qualify or get a copy of my 50+ page FREE First Home Buyer Guide, please reach out to me directly.

04/09/2025

Top 5 Questions about Labor's Updated 5% Deposit Scheme

I have received a lot of questions since the updated 5% deposit scheme (aka First Home Guarantee Scheme)

Here are some answers to the top 5 questions

1. Will the government own part of my property?

Absolutely not. The government will have no interest in the property. They are just acting as your guarantor.

2. I have less than 20% deposit, will I be charged a higher interest rate?

No, lenders will provide you a competitive interest rate as if you are borrowing just 80%.

3. Is a 5% deposit all I need?

Yes & no. You still need savings for stamp duty (if applicable) & pass the lender’s borrowing power. For example:

Buying a $500,000 property with a 5% deposit → you need to borrow $475,000.

If your income only allows you to borrow $450,000 → you’ll realistically need a $50,000 deposit.

4. Can I convert the property to investment use in the future?

The property must remain owner-occupied until your loan reaches 80% of the property’s value. At that point, you can remove the guarantee and convert it to an investment property if you wish.

5. Where & how can I apply?

Not all lenders participate in the scheme. Out of the big 4 banks, ANZ actually doesn't offer the scheme. You apply for the scheme when in the pre-approval process. The scheme requires a few additional documents & a signature. Your lender or broker will assist you in applying for the scheme.

If you’d like to explore your borrowing options, understand more about first home buyer schemes you may qualify or get a copy of my 50+ page FREE First Home Buyer Guide, please reach out to me directly.

25/08/2025

5% Deposit for All First Home Buyers

The Labor Government has just announced an accelerated reform of the First Home Buyer Scheme, starting 1 October 2025.

Under the current policy, buyers without a 20% deposit can avoid paying Lenders Mortgage Insurance (LMI) and don’t need to take on higher interest rates. However, there are income caps and property price caps in place.

What’s changing from 1 October 2025?

- Income caps removed → Any PR or Citizen can apply
- Property price caps increased → (see image for details)

Who benefits the most?

- Buyers who previously earned too much to qualify
- Buyers who want a better property but were restricted by the current price caps

Whilst the minimum requirement is just a 5% deposit, you’ll still need to have sufficient income to borrow the remaining 95%. If your borrowing power is limited, you may need to either buy a lower priced property or save up a bigger deposit.

For singles earning

19/08/2025

Borrow 98% –100% for Owner-Occupied & 98% for Investment Properties – What’s the Catch?

I’ve recently partnered with two lenders designed to solve one of the biggest challenges for property buyers: saving for a deposit.

The good news is these products aren’t just for first home buyers. You may think that the interest rate must be significantly higher but I can assure you that this is not the case.

Of course, these products aren’t for everyone. They may suit you if you:

- Are a high-income earner and borrowing power isn’t an issue

- Don’t qualify for first home buyer government schemes

- Want to buy an investment property as your first purchase

- Don’t have family support for a deposit/guarantor

These products also come with stringent requirements:

- Limited appetite for high-density apartments

- Mostly available in metropolitan areas

- Require a good credit score

Have restrictions for self-employed borrowers

Provided that you fit all the criterias, what you really need to come up with is the stamp duty, legal fees & other miscellaneous fees.

If this sounds like you and you want to see if it’s the right fit, please get it touch & I can help you work out your options.

Send a message to learn more

04/08/2025

Should You Use ALL Your Deposit for Your Home Purchase?

Imagine you’re buying a $1 million property with a $300,000 deposit. You have two options:
Borrow 70% ($700,000) — put in the full $300,000 upfront
Pros:
✅ Usually better interest rates
✅ Lower repayments
✅ Less debt from day one (Theoretically)
Cons:
❌ Most of your cash is tied up in the property
❌ Little liquidity for emergencies or renovations
❌ Applying for extra borrowing later means more paperwork, waiting. and the biggest risk — most often, the moment you actually need the money is exactly when you have trouble passing the borrowing power test, so your loan increase may get declined right when you need it most

Borrow 80% ($800,000) — use $200,000 upfront, keep $100,000 cash
Pros:
✅ Extra cash available for renovations, emergencies, or other opportunities
✅ $100k Cash in an offset account reduces interest, so you’re not necessarily paying more
✅ More financial flexibility
✅ More tax deductions if the property is switched to investment use in the future
Cons:
❌ Slightly higher interest rates and repayments
❌ More debt from day one (Theoretically)

There’s no right or wrong answer — it really comes down to personal preference.

Some people are happy to pay a slightly higher premium to maintain liquidity and flexibility. Others prefer the comfort of lower monthly repayments and less debt from the start.

Me personally? I’d pay the slightly higher interest rate and get more borrowing because my mind changes all the time — I never know when a big purchase might come up, or when I might want to borrow to invest elsewhere. Having cash ready gives me the freedom to take action straightaway.

25/07/2025

100 Ways to Die in the West: Off-the-Plan Edition

Buying off-the-plan has always had the usual risks:
• Valuation comes in low
• Developer goes broke
• Sunset clauses
• Price hikes mid-build
• Personal circumstances change
• Sudden rate hikes

And now we can add a new one to the list:
Bad-mouthing your developer online.

A family in Queensland lost $45,000 of their deposit after the developer cancelled their contract and blamed their Facebook post.

Developers are often the ones dictating the terms and conditions, and buyers usually have little to no bargaining power. It’s not hard to work out why their contracts are terminated in this case 😉

If you’re thinking about buying off-the-plan, make sure you know the risks before you sign anything… and maybe save the ranting for the group chat, not the public group.

https://www.abc.net.au/news/2025-07-25/qld-family-face-loss-of-45-000-home-deposit-to-kinslake/105545628?utm_medium=social&utm_content=sf278036602&utm_campaign=abc_news&utm_source=m.facebook.com&fbclid=IwY2xjawLv1xZleHRuA2FlbQIxMQABHg2SwUNasjvYAGlb3aIui-V1Gm4YcsAeThDPoYTubVSUjSAAKbpz1QFKQYJa_aem_K0VBTre04jtU2GWlFzyMlA

A Facebook group with only five members criticising developer Kinslake could be enough for this family to lose thousands of dollars.