Home loans can be confusing, and unfortunately, myths often make things even harder to understand. At Loan WA, we’re here to set the record straight! Here are seven of the biggest home loan misconceptions and the truth behind them.

Myth 1: You need a 20% deposit to get a home loan
Reality: Many lenders allow you to borrow up to 95% of a property’s value, meaning you may only need a 5% deposit. Plus, if you qualify for a First Home Owner Grant (FHOG), it can go towards your home purchase.

Myth 2: Lenders Mortgage Insurance (LMI) protects you if you default
Reality: LMI protects the lender—not you. If you borrow more than 80% of a property’s value, LMI is usually required to cover the lender in case of default.

Myth 3: Refinancing is too much hassle
Reality: Refinancing is now easier than ever, and in many cases, it can save you thousands. A mortgage broker (like us!) can take care of the process for you.

Myth 4: Interest rates are set by the RBA
Reality: While the Reserve Bank influences rates, your lender ultimately sets them based on multiple factors. That’s why comparing lenders is crucial!

Myth 5: Conditional approval means you’re fully approved
Reality: Conditional or pre-approval is a great first step, but final approval requires full verification of your financial details.

Myth 6: You can’t get a home loan if you’re single
Reality: Single borrowers can absolutely get approved! The key is showing a solid savings history and borrowing within your means.

Myth 7: It’s impossible to get a home loan in today’s market
Reality: Lenders are still approving loans, each one just has different criteria. That’s where we come in! As mortgage experts, we help match you with the right lender for your situation.

At Loan WA, our expert team is here to make the home loan process simple and stress free. If these myths have been holding you back, let’s have a chat and find the right solution for you!