Home loan myths for first home buyers | Home loan guidance - NAB

Myth#1: You need a 20% deposit to buy a home

Reality

Your New Year home goals don’t have to wait for a massive deposit. While 20% can help you avoid Lenders Mortgage Insurance (LMI), it’s not a hard rule. Lenders may offer options with deposits as low as 5 to 10%, and government schemes can make it easier to buy sooner.

Tip: Make your new year resolution a reality. Start by checking what you can afford and exploring government programs and schemes designed to help eligible home buyers and single parents.

Explore government schemes

Myth #2: January isn’t a good time to apply

Reality

January can be one of the best times to start your home loan journey. Fresh budgets, financial resolutions, and lender campaigns can make this the perfect month to take action.

Tip: Use the momentum of the New Year to book an appointment and get pre-approval early.

Talk to an expert

Myth#3: Pre-approval guarantees a home loan

Reality

Pre-approval is only an initial check based on your current financial snapshot. Final approval depends on a full review of your finances and the property’s valuation. Changes in your circumstances or the property can derail approval.

Tip: Keep your finances stable between pre-approval and settlement. Avoid new debts, credit cards, or job changes if possible.

Learn how pre-approval works

Myth #4: You must have the perfect credit score

Reality

A strong credit score helps, but it’s not the only factor lenders consider. Even if your score isn’t flawless, you may still be able to qualify for a home loan with the right preparation.

Tip: Start the year by paying bills on time, reducing credit card debt, and checking your credit report early.

Improve your creditworthiness

Myth #5: Refinancing is too complicated

Reality

The new year is all about fresh starts and refinancing can be one of the easiest ways to save thousands. We make the process fast, simple and hassle-free, helping you switch with support every step of the way.

Tip: Add ‘review my home loan’ to your financial checklist and start the year smarter. Markets shift, and you may find better deals as your financial profile strengthens.

Get refinancing support

Myth #6 Home loans are only for couples or families

Reality

Your New Year resolution to buy a home doesn’t require a partner. Singles can absolutely qualify for a home loan. It’s all about your financial position and ability to meet repayments.

Tip: Make 2026 your year by focusing on budgeting and saving for your deposit.

Check your borrowing capacity

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Explore other home and property guides

Government home loan grants and schemes

Government schemes and grants for homebuyers.

How to get a home loan

See a full list of the information we'll request here.

How much do you need for a house deposit

Tips to help you save a deposit for a home loan.

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Compare your loan amount with other factors to estimate your minimum loan repayments.

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Terms and Conditions

The information contained in this article is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, NAB recommends that you consider whether it is appropriate for your circumstances. NAB recommends that you seek independent legal, financial and taxation advice before acting on any information in this article.

Target Market Determinations for these products are available at nab.com.au/TMD.