A lender assessment and a household comfort limit are not necessarily the same. Consider living costs, other debts, income stability, expected property costs and the cash reserve you want to retain.

• Ask what assumptions sit behind an indicative borrowing amount.
• Understand which income sources and liabilities were included.
• Allow for purchase costs that may not be financed.
• Model repayment changes rather than relying on one rate.

Clarify how much cash is available for the deposit, duty where applicable, legal work, inspections, lender costs and post-settlement needs. A higher advertised deposit does not remove the need for a separate ownership buffer.

• Separate the contract deposit from the total contribution required at settlement.
• Confirm whether lender fees or mortgage insurance may apply.
• Identify any funds that must remain accessible.
• Avoid counting uncertain rebates or tax outcomes as available cash.

Interest-only and principal-and-interest repayments, fixed and variable rates, offset accounts, redraw and loan terms all have different implications. Product selection requires licensed advice based on the borrower’s position.

• Compare repayments and total interest under more than one scenario.
• Understand expiry or reversion points for fixed or interest-only periods.
• Ask about fees, break costs, offset conditions and redraw rules.
• Check how the structure supports record keeping and future plans.

Pre-approval may be conditional and does not guarantee final approval. For new builds and off-the-plan purchases, the lender may reassess closer to settlement and the valuation may differ from the contract price.

• Read all approval conditions and expiry dates.
• Avoid material financial changes without discussing them with the adviser or lender.
• Plan for updated documents and a settlement valuation.
• Understand the consequence if additional funds are required.