The Amato Property Blog

Demystifying Home Loans

Buying property—whether it’s your first home or your fifth investment—is one of the most significant financial commitments most Australians will ever make. Yet, navigating the complexities of home loans, loan structures, and lender expectations can often feel like stepping into unfamiliar territory.

We recently sat down with Shae Cameron of Mortgage Choice, whose mission is to demystify the home loan process and guide clients through the complexities of property finance.

In this article, we we unoack our recent interview with seasoned mortgage expert Shae Cameron of Mortgage Choice. Drawing on years of personal and professional experience, Shae shares practical tips, debunks myths, and offers insights to help buyers and investors make informed financing decisions.

Why Work with a Mortgage Broker?

When asked why borrowers should consider working with a broker rather than managing the process independently, Shae is clear: brokers bring efficiency, access, and strategic guidance.

“We’ve got access to a wide panel of lenders—many people have never heard of,” he explains. “That means we can tailor the loan to suit individual goals and streamline the process to save clients valuable time.”

More than just comparing rates, mortgage brokers help buyers understand their borrowing power, loan product features, fees, and how these align with short- and long-term goals.

Common Challenges in the Loan Process

From unrealistic budgets to underestimating hidden costs, Shae sees a pattern of avoidable mistakes among borrowers.

“Many people jump into house hunting without understanding their true borrowing capacity or factoring in things like transfer duty or Lenders Mortgage Insurance (LMI),” he says. “It’s important to set a realistic budget early and stick to it.”

Another trap? Lifestyle creep. Some borrowers secure pre-approval, then make large purchases before settlement—new cars, furniture, or even holidays. These changes can negatively impact loan approval and delay or derail the process.

Fixed vs. Variable: What’s the Right Fit?

The debate between fixed and variable interest rates is ongoing. For Shae, it all comes down to the buyer’s risk profile.

Fixed Rates offer stability—your repayments won’t change, making it easier to budget. But flexibility is limited, and breaking a fixed loan can incur penalties.

Variable Rates, while fluctuating with the market, often come with more flexibility, including features like offset accounts and unlimited extra repayments.

“There’s no right or wrong answer,” Shae says. “First-time buyers often choose fixed for peace of mind, while experienced investors may opt for variable to ride interest rate changes.”

Loan Features Worth Considering

Shae encourages borrowers to look beyond interest rates and examine loan features that support their broader financial strategy. Key features to explore include:

• Offset accounts, which reduce interest paid over the loan’s life.
• Redraw facilities for accessing extra repayments when needed.
• Flexible repayment options, such as fortnightly or lump-sum repayments.
• Loan portability and early repayment terms.

These tools can provide both flexibility and cost savings—but come with associated fees that should be weighed carefully.

Top Advice for First-Home Buyers

Shae’s number one piece of advice? Start saving early and minimise personal debt.

“Your deposit size significantly affects your loan options,” he notes. “The bigger the deposit and the cleaner your credit profile, the more lenders will be open to working with you.”

He also stresses the importance of understanding government schemes. Options like the First Home Guarantee Scheme or state-based concessions can reduce the upfront cost of buying, but they come with eligibility criteria that borrowers need to meet.

Smart Loan Structuring for Investors

For property investors, the focus shifts to leveraging equity and minimising costs like LMI.

“If you have equity in an existing property, you can use it as a deposit for your next purchase—often without cross-collateralising assets,” Shae explains.

Having a separate loan facility for each property allows for better tax treatment and greater flexibility when refinancing or selling down assets.

Avoiding Mortgage Myths and Missteps

One common myth Shae addresses is the idea that using a mortgage broker adds cost. “We’re paid by the lender after settlement, not by the borrower,” he clarifies.

Another misconception? That refinancing is too costly or complicated. “In many cases, refinancing might cost $500 to $700 but can save hundreds per month in repayments,” he adds. “That’s money better in your pocket.”

He also highlights the importance of credit scores, noting that ‘buy now, pay later’ services and multiple credit enquiries can negatively impact borrowing capacity. “Some lenders have auto-decline rules based on low credit scores,” he warns.

Pre-Approval: The Key to Confidence

When it comes to making offers—especially at auction—Shae stresses the value of a fully assessed pre-approval.

“There’s a big difference between indicative and fully assessed pre-approvals,” he says. “The latter involves submitting documents to a credit assessor, giving you confidence that your borrowing capacity is accurate and that your offer is solid.”

Timing is crucial. With cooling-off periods as short as five days, borrowers need to move quickly. But that’s where service levels—or SLAs—come into play.

“Some lenders take over two weeks to assess files, while others move in 24 hours,” Shae notes. “That’s why planning finance early, before signing a contract, is essential.”

Post-Settlement: Managing Your Mortgage

Once the loan is settled, the journey doesn’t end. Shae advises borrowers to review their interest rate every 6 to 12 months.

“If your rate is higher than what’s available on the market and your lender won’t match it, it’s time to refinance,” he says. “That extra saving each month can add up significantly over time.”

Living within your means, maintaining a buffer, and understanding your cost of living all contribute to managing your mortgage successfully.

Success Story: Breaking Out of Mortgage Jail

One of Shae’s most memorable cases involved a client stuck in a high-rate loan—what he refers to as “mortgage jail.” The client couldn’t refinance under standard policies due to household expense assessments.

Using a lender with an apportioned household expense policy, Shae was able to secure a refinance that saved the client around $400 a month.

“Each lender has different policies,” he explains. “Sometimes it’s not about getting the lowest rate—it’s about finding a lender whose policy fits the borrower’s situation.”

Looking Ahead: Trends in Lending

As property prices rise and affordability becomes a growing issue, some lenders are introducing 35-year loan terms to increase borrowing capacity for first-home buyers. While longer terms reduce monthly repayments, borrowers should be aware of the increased interest paid over the life of the loan.

Cashback offers have also been used to attract borrowers, though fewer lenders are offering them in 2025. As always, Shae encourages borrowers to stay informed—particularly by tracking Reserve Bank decisions and economic indicators like inflation.

Final Thoughts

In a dynamic market, preparation can mean the difference between securing your dream property or missing out. Shae’s parting advice is clear:

“Understand your borrowing power, minimise your debt, get a fully assessed pre-approval, and stay proactive. The earlier you involve a mortgage broker, the better the outcome.”

Whether you’re stepping into the market for the first time or building your investment portfolio, partnering with a knowledgeable mortgage broker can provide the clarity, structure, and confidence needed to succeed.

For more information about Shae Cameron and Mortgage Choice, visit his website at https://www.mortgagechoice.com.au/shae.cameron/ , call 0473 328 212 or follow him on Facebook and Instagram.

For a deeper dive into this topic, check out the full discussion with Shae Cameron HERE.

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Amato Property, together with their directors, officers, employees and agents have used their best endeavours to ensure the information passed on in this document is accurate. However, you must make your own enquiries in relation to the information contained in this document and seek advice from your financial advisor, broker or accountant to ascertain its application to your circumstances.