Frequently Asked Questions

TLDR: This comprehensive FAQ covers everything you need to know about getting a home loan in Gladstone, from current market conditions to lending requirements. Whether you’re a first home buyer, looking to refinance, or investing in property, find quick answers to the most common mortgage questions specific to our local market.

General Home Loan Questions

What are current interest rates in 2025?

Interest rates are currently averaging around 6.29% for owner-occupier variable home loans in the Gladstone market*, though your specific rate depends on several factors including your deposit size, credit history, and chosen lender. As your local mortgage broker in Gladstone, I work with multiple lenders to help you find competitive rates that suit your circumstances.

Key point: Don’t just focus on the interest rate—ask about the comparison rate, which includes all fees and gives you the true cost of borrowing.

*Interest rates are subject to change, lender approval, and individual circumstances. The rate you receive may differ based on your application and lender criteria. Rates vary between lenders and loan products.

How much deposit do I need?

The standard answer: While it’s possible to purchase with deposits as low as 5%, the amount you need depends on your specific circumstances and lender requirements:

20% deposit: No Lenders Mortgage Insurance (LMI) required
10-19% deposit: LMI applies but many home loan options available (subject to approval)
5-9% deposit: Higher LMI costs and stricter lending criteria apply

Important considerations:

Lower deposits require stronger income and credit profiles
Some lenders have minimum deposit requirements above 5%
LMI can add thousands to your loan costs
Always budget an extra 5% of the property value for stamp duty, legal fees, building inspections, and moving costs

Note: Loan approval depends on your individual circumstances, including income, expenses, credit history, and lender criteria. Not all borrowers will qualify for low deposit loans.

How much can I borrow?

Your borrowing capacity depends on:

Your income (including overtime, bonuses, rental income)
Your expenses (living costs, existing debts, dependents)
The property location (some lenders have postcode restrictions)
Your employment type (permanent, casual, self-employed, FIFO)

I can provide a detailed borrowing capacity assessment within 24 hours of receiving your financial information. You can also use our Gladstone home loan calculator for an initial estimate.

What documents do I need for a home loan application?

Essential documents include:

Photo ID (driver’s licence, passport)
3 months recent payslips or BAS statements (if self-employed)
6 months bank statements
Recent tax returns (2 years for self-employed)
Employment contract or letter
Details of any existing debts or commitments

For Gladstone workers: If you’re in mining, port operations, or shift work, I understand how to present your income in the best light to lenders.

First Home Buyer Questions

Am I eligible for first home buyer grants in Queensland?

Yes! Queensland offers several incentives for first home buyers in Gladstone:

First Home Owner Grant: Up to $15,000 for new homes (conditions apply)
Stamp duty concessions: Significant savings on established homes under $500,000
First Home Guarantee Scheme: Federal scheme allowing 5% deposits without LMI. (We also have the Regional First home guarantee which is the same 5%)
Family Home Guarantee 2% deposit for single parents

Gladstone advantage: With median house prices around $530,000, many properties still qualify for stamp duty concessions.

What credit score do I need?

Most lenders require a credit score of 620 or higher. However, I work with specialist lenders who may consider applications with lower scores if you have:

A solid savings history
Stable employment
A reasonable explanation for any credit issues

Free service: I can check your credit score and suggest improvements before we apply.

How long does the home loan process take?

Typical timeline:

Pre-approval: 3-5 business days
Property purchase: 30-42 days settlement period
Formal approval: 10-14 business days
Settlement: Handled by solicitors
Property purchase: 30-42 days settlement period

Gladstone specific: I’m available 7am-7pm daily to keep your application moving quickly, which is crucial in our competitive market.

Should I buy an established home or build new in Gladstone?

Both have advantages:

Established homes:

Move in immediately
Established neighbourhoods
No construction delays
Better for first home buyers (wider loan options)

Building new:

Higher First Home Owner Grant eligibility
Modern energy efficiency
Choose your own finishes
Longer settlement periods (good for saving)

Current market insight: With Gladstone’s median house prices rising 15.2% in late 2024, established homes under $600,000 are becoming scarce in premium suburbs like Glen Eden and Clinton.

If you’re considering building, our construction loan specialists can guide you through the unique requirements of building finance.

Refinancing Questions

When should I consider refinancing?

Home loan refinancing in Gladstone may be worth considering if:

Your current rate appears significantly above current market rates
Your financial situation has improved and you may qualify for better terms
You want to access equity for suitable purposes (subject to approval)
You’re seeking to consolidate debts (where appropriate for your situation)
Your current lender’s service doesn’t meet your needs

Important considerations:

Refinancing involves costs that must be weighed against potential benefits
You’ll need to meet current lending criteria, which may have changed since your original loan
Breaking fixed rate loans may involve additional costs
Your new loan terms and features may differ from your current loan

Professional assessment: I always calculate whether the potential benefits outweigh the costs and whether refinancing suits your individual circumstances before making any recommendations.

How much equity do I need to refinance?

Generally, you need at least 20% equity to refinance without paying LMI. However, if you’re currently paying a high interest rate, it might still be worthwhile to refinance with less equity.

Gladstone property owners: With recent property price increases, many homeowners now have more equity than they realise—I can provide a current market valuation estimate.

If you have significant equity, you might also consider our equity release loan options to fund other goals.

Investment Property Questions

What deposit do I need for an investment property?

Investment property loans typically require:

Minimum 5% with LMI. 20% deposit (to avoid LMI)
Higher interest rates than owner-occupier loans (usually 0.2-0.4% more)
Different lending criteria (rental income calculated at 75-80% of market rent)

What are rental yields like in Gladstone?

Recent market data suggests rental yields in the range of 5-7% across various Gladstone areas, which compares favourably to many capital city markets. Areas that have shown rental demand include:

Tannum Sands: Popular with families
Gladstone Central: Convenient for workers
New Auckland: Entry-level market segment

Investment property warning: Property investment carries significant risks including potential for capital loss, vacancy periods, maintenance costs, interest rate changes, and market downturns. Rental yields can vary significantly and past performance doesn’t guarantee future returns. You should seek independent financial and taxation advice before making investment property decisions.

Can I use equity from my home to buy an investment property?

Yes! If you have sufficient equity in your current home, you can potentially purchase an investment property without using cash savings. This strategy requires careful planning around:

Debt-to-income ratios
Interest rate buffers
Rental income assessments

Our investment loan specialists can help you structure this type of strategy safely.

Gladstone Market Specific Questions

Which suburbs offer the best value in Gladstone?

Premium growth suburbs:

Glen Eden, Clinton, South Gladstone: Quality family homes, $600,000-$700,000 range
Tannum Sands: Popular with families, strong rental demand
West Gladstone: Emerging area with good value

Entry-level opportunities:

New Auckland: More affordable, good for first buyers
Calliope: Growing area, good infrastructure
Sun Valley: Family-friendly, established area

I provide mortgage broker services across all Gladstone locations and can offer specific suburb insights based on current market conditions.

Do all lenders lend in Gladstone?

Not all major banks lend in every Gladstone postcode. Some lenders have postcode restrictions for certain loan products. This is where having a local mortgage broker is crucial—I know exactly which lenders are active in each area and can match you with the right one.

How does FIFO work affect my home loan application?

FIFO income is generally accepted, but presentation is key:

Lenders want to see consistent roster patterns
Some lenders specialise in mining/resource sector lending

My experience: Having worked with many FIFO clients in Gladstone, I know how to structure applications to maximise approval chances.

Is the Gladstone property market still affordable?

Compared to Southeast Queensland, yes—but conditions are changing.

Current market observations:

Median house price: ~$530,000 (increased 15.2% in late 2024)
Quality family homes in premium areas: $600,000-$750,000 range
Strong competition from interstate investors
Limited stock in popular suburbs

Market considerations: Based on current infrastructure investment, population trends, and supply levels, some market analysts suggest potential for continued growth. However, property markets can be unpredictable and past performance doesn’t guarantee future results.

Important disclaimer: Property investment carries risks including potential for capital loss, market downturns, and changes in interest rates. You should consider your own financial situation and seek independent financial advice before making property investment decisions.

Working with AJ Home Loans

What makes AJ Home Loans different?

Personal service advantages:

Female broker (unique in Gladstone’s mortgage industry)
Available 7am-7pm daily (including weekends)
Completely remote service (no office appointments needed)
Local market expertise (I live and work in Gladstone)
Commission-based service (no upfront fees to clients)

Learn more about my background and approach on our About page.

How quickly can you get me a pre-approval?

Typically 3-5 business days for straightforward applications. However, I often provide indicative approval within 24 hours, which can be crucial when you find the right property in our competitive market.

Do you charge fees?

I don’t charge upfront fees to my clients. I’m paid a commission by the lenders once your loan settles, so my mortgage broking service comes at no direct cost to you. This means you get professional mortgage advice and application support without paying broker fees.

Important: While my service is included at no cost to you, your loan will still have standard costs such as application fees, valuation fees, and legal costs as set by your chosen lender. I’ll always provide a clear breakdown of all costs before you proceed.

I’m also available for ongoing support throughout the life of your loan at no additional charge.

Can you help if I’ve been rejected by other lenders?

Absolutely. Previous rejections don’t mean you can’t get a loan—it often means the application wasn’t presented correctly or went to the wrong lender. I specialise in:

Complex income situations
Credit repair strategies
Specialist lending solutions
Self-employed applications

Getting Started

Ready to discuss your home loan needs? I’m available 7 days a week and can meet you virtually or at a location convenient to you.

Contact me today:

Phone: 0409 311 985
Available: 7am-7pm daily
Service area: Gladstone and surrounding regions
Initial consultation: Free, no obligation

Follow market updates:

Facebook: @AJHomeLoansGladstone
Instagram: @ajhomeloansgladstone
LinkedIn: AJ Home Loans Gladstone

Important Disclaimers

General Advice Warning: The information provided in this FAQ is general in nature and does not take into account your personal financial situation, needs, or objectives. You should consider whether this information is appropriate for your circumstances and seek professional financial advice before making any decisions.

Credit Licensing: AJ Home Loans operates under Australian Credit Licence requirements. We are obligated to act in your best interests and provide credit assistance that is suitable for your circumstances.

Rate and Market Information: Interest rates, property prices, and market conditions mentioned are current at the time of publication but subject to change. All loan applications are subject to lender approval and individual circumstances.

No Guarantee: While we aim to help you find suitable finance solutions, we cannot guarantee loan approval, specific interest rates, or property market outcomes.

This FAQ is updated regularly to reflect current market conditions and lending changes. Last updated: January 2025.