Introduction

When it comes to buying your first home, refinancing, or investing in property, there’s no shortage of advice — but not all of it is accurate. Some myths stick around for years, stopping Australians from making smart choices about their home loans.

At HR Mortgage & Finance, we believe an informed borrower is a confident borrower. Let’s bust five common mortgage myths that could be costing you time, money, and peace of mind.

Myth 1: You Need a 20% Deposit to Get a Home Loan

One of the biggest myths is that you must save a full 20% deposit to get approved. While a larger deposit can help you avoid paying Lenders Mortgage Insurance (LMI) and secure better rates, many lenders accept as little as 5–10% deposit, especially for first-home buyers.

Tip: Talk to us about low-deposit home loan options, including the First Home Loan Deposit Scheme and how to budget for LMI if needed.

Myth 2: Pre-Approval Guarantees You’ll Get the Loan

Pre-approval is an important step — it shows how much you could borrow. But it’s not a promise. The lender will still fully assess your income, debts, and the property itself before giving final approval.

Tip: Always double-check your financial position and don’t make big changes (like switching jobs) before settlement.

Myth 3: The Lowest Interest Rate Is Always the Best Option

A super-low rate looks good, but the cheapest rate isn’t always the best loan. Some discount loans have hidden fees, inflexible features, or short fixed terms that may not suit your needs.

Tip: Work with an expert broker (like us) to compare the real cost of a loan — including fees, redraw, offset, and break costs.

Myth 4: You Can’t Get a Loan If You’re Self-Employe

Many self-employed Aussies think they won’t qualify without PAYG payslips. Not true. Specialist lenders offer Alt Doc loans, which use bank statements, BAS, or accountant letters to prove your income.

Tip: If you run your own business, talk to us about Alt Doc home loans and what documents you’ll need.

Myth 5: You’re Stuck With One Lender Forever

You’re not locked in for life! Refinancing could help you switch to a better rate, access equity, or restructure your loan for changing circumstances.

Tip: It’s wise to review your mortgage every 1–2 years. We can show you whether refinancing could save you money or help you reach your next goal.

How HR Mortgage & Finance Can Help

With so many myths floating around, it’s easy to feel overwhelmed. That’s where we come in. Our brokers take the guesswork out of finding the right loan — whether you’re a first-time buyer, self-employed, investor, or looking to refinance.

✔️ Access to leading Australian lenders
✔️ Personalised advice to suit your life stage
✔️ Transparent guidance every step of the way