How Much Can I Borrow?
How much you can borrow will vary depending on the lender and your individual circumstances, including your income, expenses, assets, and existing commitments.
At Goodrich Home Loans, we take the time to assess your situation and provide a tailored borrowing estimate, helping you understand your options with confidence.
I am buying my first home, what do I need to know?
Buying your first home is an exciting milestone—but it can also feel overwhelming without the right guidance.
At Goodrich Home Loans, we’ve helped hundreds of individuals, couples, and families take that first step with confidence. One of the most important things to understand early on is the difference between how much you can borrow and what you can comfortably afford. We’ll work with you to determine a borrowing range that suits your lifestyle and financial goals.
The next step is saving your deposit, which is typically around 0% to 20% of the property’s value, depending on your situation and the loan structure.
From there, we’ll guide you through selecting the right lender and loan product tailored to your needs. When you’re ready to purchase, you can make an offer with confidence, knowing your finances are in place. Once your offer is accepted, you can proceed to signing the contract and paying your deposit.
If you’d like personalised advice or want to get started, we’re here to help.
What is Lenders Mortgage Insurance (LMI)?
Lenders Mortgage Insurance (LMI) protects the lender in the event that a borrower is unable to meet their loan repayments.
While it safeguards the lender, the cost of LMI is typically paid by the borrower. It’s a one-off fee that can either be added to your loan or paid upfront.
LMI generally applies when you’re borrowing more than 80% of a property’s value, helping you enter the market sooner with a smaller deposit.
Don't brokers simply recommend the lender who pays them the best commission?
No, this isn’t how we operate at Goodrich Home Loans.
For most standard home and investment loans, the difference in commission between lenders is minimal. Our focus is on finding a loan and structure that genuinely suits your individual circumstances and helps you achieve the best possible financial outcome.
We prioritise long-term relationships and positive client experiences over short-term gains, ensuring the advice you receive is always in your best interest.
How does a construction loan work?
With a standard home loan, the full loan amount is provided at settlement. Construction loans work a little differently.
Instead of receiving all funds upfront, the total amount needed to build your home is approved and set aside. These funds are then released in stages as construction progresses, known as **progress payments**.
Each progress payment is made directly to your builder at key milestones (such as slab, frame, and completion). This means you’re only charged interest on the funds that have been drawn down at each stage, rather than the full loan amount from the beginning.
If you’re only borrowing part of the construction cost, you’ll generally need to contribute your own funds first before accessing the loan funds.
It’s also important to note that funds allocated for construction can’t be used toward the purchase of the land—they are specifically reserved for the building component only.