Overview
The Home Loan Readiness Review is a free, no-obligation service for people buying or refinancing a home in Hobart and around Tasmania. We help you understand where you stand on deposit, budget and credit history, organise the documents lenders typically request, and build a plan, so that when you do speak to a lender or broker you know what to ask.
Hobart Loans is not a lender and does not hold an Australian Credit Licence. We can't tell you how much you can borrow, which loan to choose or whether you will be approved; only a licensed lender can make a credit decision, and a licensed broker or lender is the right person for a recommendation. Our role is to help you prepare. If you want an introduction to an Australian Credit Licence holder, we will tell you first whether we receive a referral fee and how much, and you can decline.
Who it's for
- First home buyers in Hobart, Launceston and regional Tasmania who want to understand deposits, Lenders Mortgage Insurance (LMI) and government support before house hunting.
- Upgraders and downsizers who need to coordinate a sale and a purchase. If the timing overlaps, see also our Bridging & Short-Term Finance Guidance.
- Refinancers coming off a fixed rate or wondering whether their current loan still fits.
- Self-employed borrowers who expect to provide more paperwork, such as tax returns and BAS, than salaried applicants.
What we help with
Deposit, LVR and LMI
Your loan-to-value ratio (LVR) is the loan amount divided by the property value. Lenders commonly charge LMI when the LVR is above 80%. LMI protects the lender, not you, and can add thousands of dollars to the cost. We help you calculate your likely LVR at different purchase prices and understand whether options such as a larger deposit, a guarantor or a government scheme like the Home Guarantee Scheme might be worth exploring. Scheme eligibility and price caps change, so always check the current rules.
Upfront costs
Beyond the deposit, buyers usually face transfer duty, conveyancing or legal fees, building and pest inspections, loan fees and moving costs. Tasmanian duty concessions and first home grants change from time to time, so we point you to the State Revenue Office of Tasmania for current figures and help you add them to your plan.
Budget and serviceability
Lenders must make reasonable inquiries about your income and expenses under responsible lending obligations, and they typically assess repayments at a rate above the actual loan rate. APRA sets expectations for this serviceability buffer; see apra.gov.au for the current setting. We help you build an honest spending summary and test repayments at higher illustrative rates using the loan calculator.
Credit history
Under comprehensive credit reporting, your file shows repayment history as well as enquiries and defaults. We explain how to get your free reports from Equifax, Experian and illion, what to check for errors, and why unused credit card limits can reduce how much a lender is willing to offer.
Paperwork and pre-approval
We help you organise a document pack and explain what conditional pre-approval is, and isn't. Pre-approval is not a guarantee: it is usually time-limited and subject to valuation and final checks. Our guide to how lenders assess loan applications includes a 30-day preparation plan.
How it works
Send a short enquiry
Tell us through the contact form whether you're buying or refinancing, your rough timeframe and your deposit. We reply within one business day.
Readiness conversation
We walk through deposit, income, debts, spending and credit history. No credit check is run and nothing you share obliges you to anything.
Your readiness plan
You receive a written summary: illustrative LVR and repayment scenarios, a cost list, a document checklist and the questions to ask a lender or broker.
Optional referral
If you'd like to talk to a licensed mortgage broker or lender, we disclose any referral fee first and, with your consent, share only what you approve.
The lender decides
Any application, valuation and credit decision is handled by the licensed provider, on their own criteria and timeline.
What you'll need
- Photo ID (driver licence and/or passport) for each applicant
- Two to three recent payslips and your latest income statement
- Self-employed: two years of tax returns, notices of assessment and recent BAS
- Three to six months of transaction account statements
- Savings statements showing how your deposit was built up
- Statements for every credit card, car loan, personal loan, buy now pay later account and HECS-HELP debt
- A realistic monthly spending summary
- Your free credit reports from Equifax, Experian and illion
- Refinancing: your current loan statement and contract
- Gift letter or guarantor details, if a family member is helping
- Contract of sale or property details, once you have a property in mind
Options compared
| Loan type or feature | Typical purpose | Typical term | Security | Things to watch |
|---|---|---|---|---|
| Variable-rate principal and interest | Owner-occupied purchase or refinance | Commonly up to 30 years | The property | Repayments rise if rates rise; check offset and redraw terms |
| Fixed-rate loan | Repayment certainty for a set period | Fixed period often 1–5 years within a longer loan | The property | Break costs if you exit early; limits on extra repayments |
| Split loan | Part certainty, part flexibility | As for the underlying loan | The property | Two sets of terms to manage and compare |
| Low-deposit loan with LMI | Buying with less than a 20% deposit | Commonly up to 30 years | The property | LMI premium cost; higher LVR can mean a higher rate |
| Guarantor loan | Family property used to support the deposit | Commonly up to 30 years | Your property plus part of the guarantor's | Guarantor's home is at risk; they should get independent legal advice |
| Construction loan | Building or major renovation | Interest-only during the build, then standard term | The land and completed home | Progress payments, cost overruns and valuation on completion |
Advantages & watch-outs
Advantages
- Spot problems, such as credit report errors or unused limits, before a lender does
- Clear numbers on deposit, LVR and upfront costs
- Repayments stress-tested at higher illustrative rates
- Free, with no obligation and any referral fee disclosed first
Watch-outs
- We can't estimate your borrowing capacity for a specific lender or recommend a product
- Readiness doesn't guarantee approval, a particular rate or a quick decision
- Government schemes, duty concessions and lender policies change; always confirm current rules
- A referred broker's panel may not include every lender
Worked example: how a bigger deposit changes the numbers
Example (illustrative only): a couple is considering a $600,000 purchase (a round number for illustration, not a market estimate). We compare a $90,000 deposit with a $120,000 deposit, using an illustrative 6% p.a. variable rate over 30 years with monthly principal and interest repayments. Upfront costs and any LMI premium are excluded.
| Scenario | Loan amount | LVR | Monthly repayment | Total interest over 30 years |
|---|---|---|---|---|
| $90,000 deposit | $510,000 | 85% | $3,057.71 | $590,774.76 |
| $120,000 deposit | $480,000 | 80% | $2,877.84 | $556,023.31 |
The larger deposit brings the LVR to 80%, where LMI usually would not apply, and reduces both the repayment and the lifetime interest. Saving the extra $30,000 takes time, though, and the property market may move meanwhile; that trade-off is personal.
Now the stress test. If a lender assessed the $480,000 loan at an illustrative 9% p.a. (3 percentage points higher), the monthly repayment would be $3,862.19. If your budget can't comfortably absorb a figure like that, it's better to know before you start bidding. For more on how term length affects total cost, read Long-Term Loans Explained.
Buying or refinancing in Tasmania? Get a free home loan readiness review. We reply within one business day.
Request a free reviewFrequently asked questions
Can you tell me how much I can borrow?
No. Borrowing capacity depends on each lender's own assessment and policy. We can show illustrative repayment scenarios so you understand the numbers, but only a licensed lender or broker can assess what you may be able to borrow.
Does the review affect my credit score?
No. We don't make credit enquiries. Lenders will run their own checks if you apply, so it's worth avoiding several applications in a short period.
What is pre-approval and should I get it?
Conditional pre-approval is a lender's indication that it may lend up to a certain amount, subject to conditions such as a satisfactory valuation. It is not a final approval, it usually expires after a set period, and getting one may involve a credit enquiry. A licensed broker or lender can explain whether it makes sense for you.
Can you help if I'm self-employed?
Yes. We help you gather tax returns, notices of assessment, BAS and financial statements, and explain why lenders often average income over two years.
How do you get paid?
The review is free. If you choose a referral to a licensed broker or lender, we may receive a referral fee from them. We disclose whether we do, and the amount, before referring you.
Where can I check government home buyer support?
Start with Moneysmart for independent guidance, and check the State Revenue Office of Tasmania and the relevant federal scheme administrator for current eligibility and caps.
New to mortgage jargon? Our glossary explains LVR, LMI, offset accounts and more.
