Loan for a House? Here's How to Secure Yours (2026)

Are you dreaming of owning a home but worried about whether you can secure a loan in today's challenging market? Navigating the world of home loans can be daunting, especially with ever-changing interest rates and eligibility criteria. Fortunately, with the right guidance and resources, achieving your goal is within reach.

Understanding Home Loans in Australia

Home loans, or mortgages, are financial agreements between a borrower and a lender where the borrower receives funds to purchase property. In Australia, the market is diverse, with over 83 lenders available through Esteb and Co alone, offering a range of loan products tailored to different needs.

Typically, a home loan comprises the principal amount (the cost of the property minus your deposit) and the interest charged by the lender. The loan is secured against the property, meaning if repayments aren't met, the lender can repossess the home.

Current Interest Rates, Requirements, and Options

As of 2026, the Australian housing market remains competitive, and understanding current interest rates, eligibility criteria, and available loan options is crucial.

Interest rates for home loans in 2026 range from approximately 6.49% to 12%, influenced by factors such as the loan type, borrower's credit score, and deposit size. Here's a closer look at the current offerings:

Eligibility criteria typically include a stable income, a good credit score (usually above 650), and a sufficient deposit. Many lenders require a deposit of at least 20% of the property's value, though some may accept as low as 5% with lenders mortgage insurance (LMI).

Steps to Secure a Home Loan

Securing a home loan involves several critical steps:

1. Assess Your Financial Situation: Review your income, expenses, and savings to determine how much you can afford to borrow.
2. Check Your Credit Score: Obtain a copy of your credit report and address any issues that may affect your loan application.
3. Determine Your Budget: Use online calculators to estimate your borrowing capacity and monthly repayments.
4. Save for a Deposit: Aim for at least 20% of the property's value to avoid LMI and improve your loan terms.
5. Research and Compare Lenders: Consider different lenders and loan products, factoring in interest rates, fees, and features.
6. Get Pre-Approval: Apply for pre-approval to understand how much you can borrow and demonstrate your buying power to sellers.
7. Submit Your Loan Application: Once you've found a property, submit your loan application with all required documentation.
8. Settlement: Upon approval, work with your lender and conveyancer to finalise the purchase and transfer ownership.

Expert Tips and Considerations

Here are some expert tips to help you navigate the home loan process:

• Work with a Mortgage Broker: A broker from Esteb and Co can help you access a panel of over 83 lenders, ensuring you find the best loan for your situation.
• Consider Fixed vs. Variable Rates: Fixed rates offer stability, while variable rates can provide flexibility and potential cost savings if interest rates fall.
• Account for Additional Costs: Remember to budget for stamp duty, legal fees, and other associated costs of purchasing a home.
• Think Long-Term: Choose a loan that suits your long-term financial goals and lifestyle, not just the lowest interest rate.
• Stay Informed: Keep up-to-date with market trends and interest rate changes to make informed decisions about your loan.

Frequently Asked Questions

• What is the minimum deposit needed for a home loan? While a 20% deposit is ideal, some lenders may accept as low as 5% with LMI.
• How does my credit score affect my loan application? A higher credit score can improve your chances of approval and help you secure better interest rates.
• Can I get a loan with a variable interest rate? Yes, many lenders offer variable rate loans that can fluctuate with market changes, offering potential savings.
• What are the benefits of using a mortgage broker? Brokers can access a wide range of lenders, offering personalised advice and potentially better loan terms.
• How long does the loan approval process take? Approval times can vary, but pre-approval can take from a few days to a week, with full approval taking several weeks.
• Are there any government incentives for first-time buyers? Yes, the First Home Owner Grant and stamp duty concessions are available for eligible first-time buyers.
• What should I do if I'm struggling to meet repayments? Contact your lender or broker immediately to discuss options such as repayment holidays or restructuring your loan.