You have worked hard, saved money and started thinking about your future. In this lesson, you will learn the English and financial skills needed to speak with banks, mortgage brokers and real estate agents in Australia.
Beginner - Intermediate
75-100 Minutes
First Home Buying
Mortgages and Property
By the end of this lesson, you should be able to understand and use these ideas in English.
You have now worked in Australia for two years as a meat processing worker.
You have saved money every payday. You no longer want to rent forever. You want to buy your first home.
Today you are meeting a mortgage broker. The broker will ask about your income, your deposit, your expenses and your borrowing capacity.
"Buying a home is a big step, but you can learn the language one question at a time."
Most first-home buyers move through these steps. The exact timing can change, but the order is a useful guide.
Build savings before speaking with lenders.
Estimate how much a bank may lend you.
Ask a bank or broker for early loan approval before making offers.
Use property websites and visit inspections.
Tell the agent the price you are willing to pay.
Pay the agreed deposit after the seller accepts the offer.
The lender checks the property and confirms the loan.
Money is transferred and ownership changes to the buyer.
Collect the keys and move in after settlement.
These words are common when Australians talk about buying property and applying for a home loan.
/ˈmɔːgɪdʒ/
A legal loan agreement used to buy a property.
"I have a mortgage with an Australian bank."
/həʊm ləʊn/
Money borrowed from a bank to buy a home.
"I want to apply for a home loan."
/dɪˈpɒzɪt/
Money you pay first when buying a house.
"I saved a 10% deposit."
/ˈɪntrəst reɪt/
The percentage the bank charges you to borrow money.
"What is the current interest rate?"
/fɪkst reɪt/
An interest rate that stays the same for a set time.
"We chose a fixed rate for two years."
/ˈveəriəbəl reɪt/
An interest rate that can go up or down.
"A variable rate can change with the market."
/rɪˈpeɪmənt/
Money you pay back to the bank regularly.
"My monthly repayment is about $2,400."
/ˈbɒrəʊɪŋ kəˈpæsəti/
The amount a bank may allow you to borrow.
"My borrowing capacity depends on my income."
/priː əˈpruːvəl/
A bank's early agreement that you may be able to borrow a certain amount.
"I got pre-approval before looking at houses."
/ˈmɔːgɪdʒ ˈbrəʊkə/
A person who helps you compare home loans.
"The mortgage broker explained my options."
/ˈprɒpəti/
Land, a house or an apartment that someone owns.
"We found a property in Wagga Wagga."
/rɪəl ɪˈsteɪt ˈeɪdʒənt/
A person who sells or rents properties.
"I asked the real estate agent about the inspection."
/ˈekwəti/
The part of the home value that you own after subtracting the loan.
"My equity increased after the house price rose."
/stæmp ˈdjuːti/
A government tax that may be paid when buying property.
"How much stamp duty do I need to pay?"
/ˈsetlmənt/
The final step when ownership of the property transfers to the buyer.
"Settlement is next Friday."
/fɜːst həʊm ˈbaɪə/
A person buying their first home.
"First home buyers may receive government support."
/ləʊn tɜːm/
The length of time you have to repay a loan.
"The loan term is 30 years."
/ˈɒfset əˈkaʊnt/
A bank account linked to your home loan that can reduce interest charged.
"My salary goes into my offset account."
/riːˈdrɔː/
A loan feature that may let you take back extra repayments you have made.
"This loan has a redraw facility."
/kənˈveɪənsɪŋ/
The legal work required to transfer property ownership.
"We paid a solicitor for conveyancing."
/kəmˈpærəsən reɪt/
A rate that includes the interest rate plus some standard fees and charges.
"The comparison rate is higher than the advertised rate."
/ˈprɪnsəpəl/
The original amount of money borrowed, not including interest.
"Extra repayments can reduce the principal."
/ˈlendə/
A bank or financial company that lends money.
"We compared lenders before choosing a loan."
/həʊm ˈekwəti/
The value of the part of your home that you own.
"Home equity can grow as the loan gets smaller."
In everyday English, Australians often use these words together. They are connected, but they are not exactly the same.
| Home Loan | Mortgage |
|---|---|
| Money borrowed from the bank | Legal agreement securing the loan |
| Used to buy the house | Gives the bank security if repayments stop |
| Financial debt | Legal claim on the property |
These words can be confusing because people use them differently. In this lesson, use deposit for the smaller amount paid after an accepted offer, and down payment for the larger savings contribution used at settlement.
| Deposit | Down Payment |
|---|---|
| Small amount paid after the seller accepts your offer | Larger payment made on settlement day |
| Usually paid within 24-48 hours | Comes from your own savings |
| Held in a trust or escrow account | Reduces the amount borrowed from the bank |
| Shows the seller you are serious | Helps decide the final loan amount |
Watch once for the main idea. Then watch again and listen for useful words about buying a home.
Discuss your answer first. Click to reveal the suggested answer.
A mortgage is a loan used to buy a property.
The deposit shows the buyer has saved money and reduces the amount they need to borrow.
A mortgage broker helps people compare loan options from different lenders.
Borrowing capacity is the amount a bank may allow someone to borrow based on income, expenses and debts.
Different banks may offer different interest rates, fees and loan features.
They should research property prices, loan repayments, borrowing capacity and government support.
Use realestate.com.au and domain.com.au. These are Australia's equivalent of Zillow. Search for houses in realistic regional cities where food manufacturing and meat processing jobs can be found.
| City | House Price | Address | Beds | Baths | Land Size | Weekly Mortgage Estimate |
|---|---|---|---|---|---|---|
| Wagga Wagga NSW | ||||||
| Toowoomba QLD | ||||||
| Ballarat VIC | ||||||
| Shepparton VIC |
Compare real home loans from major Australian banks. Do not choose only by the lowest interest rate. Look at the comparison rate, fees and features too.
Use Canstar Home Loans or Canstar online home loan comparison to compare many lenders.
Find the comparison rate and explain why it may be different from the interest rate.
Which lender has the lowest rate today?
Which loan seems best value after fees and features?
Canstar compares more than 75 lenders. Why is this useful?
A low interest rate may still have higher fees or fewer useful features. The comparison rate can show more of the real cost of the loan.
Use the Australian Government MoneySmart mortgage calculator. Enter your house price, deposit, interest rate and loan term.
Questions: Can you afford this house? Would you buy it?
Use the Commonwealth Bank borrowing calculator. Estimate borrowing power at different salary levels.
| Annual Salary | Estimated Borrowing Power | Is it enough for your chosen home? |
|---|---|---|
| $75,000 | ||
| $85,000 | ||
| $95,000 |
Discussion: Is this enough to buy your dream home?
Use Housing Australia to research support for buying a home.
What does this scheme help first-home buyers do?
How can some eligible buyers buy with a smaller deposit?
What income, citizenship or property rules do you need to check?
Would you qualify? How much money could you save?
Many first-home buyers think they only need a deposit. Research the extra costs before you decide.
| Cost | What It Means | Estimated Amount | Source |
|---|---|---|---|
| Deposit | Money paid upfront by the buyer. | ||
| Stamp Duty | State or territory property tax. | ||
| Conveyancing | Legal work for the property transfer. | ||
| Building Inspection | Inspection for structural problems. | ||
| Pest Inspection | Inspection for pests such as termites. | ||
| Loan Fees | Bank or lender fees for the loan. | ||
| Moving Costs | Transport, removalists and setup costs. | ||
| Home Insurance | Insurance for the building and belongings. |
Discussion: What extra costs surprised you?
Use real Australian websites. Record your answers and explain them to your teacher in English.
Open realestate.com.au or domain.com.au. Find a house in Wagga Wagga NSW, Toowoomba QLD, Ballarat VIC or Shepparton VIC.
Questions: Which house would you buy? Why?
Open the MoneySmart mortgage calculator. Calculate the deposit, loan amount and monthly repayment for the house you found.
Open the CommBank borrowing calculator. Estimate how much you may be able to borrow.
Compare Commonwealth Bank, ANZ, NAB and Westpac. Record the interest rate, comparison rate, fixed or variable option, offset account and redraw facility.
Open Canstar Home Loans. Which lender has the lowest interest rate? What is the comparison rate? Which loan offers the best value?
Open Housing Australia support to buy a home. Research the Home Guarantee Scheme, 5% deposit option, eligibility and benefits.
Type a house price and calculate 5%, 10% and 20% deposits.
| Deposit Percentage | Deposit Amount |
|---|---|
| 5% | $0 |
| 10% | $0 |
| 20% | $0 |
Use this simple estimate before checking a bank or government calculator.
| Result | Amount |
|---|---|
| Deposit amount | $0 |
| Loan amount | $0 |
| Estimated monthly repayment | $0 |
| Estimated total interest | $0 |
| Estimated total loan cost | $0 |
This is an estimate only. Real loans may include fees, insurance and rate changes.
Read the Vietnamese question first. Try to say it in English before opening the answer.
You: First home buyer
Teacher: Mortgage Broker
I'd like to buy my first home.
I'd like to apply for a home loan.
How much can I borrow?
How much deposit do I need?
What's the current interest rate?
Am I eligible for a home loan?
Should I choose a fixed or variable interest rate?
What is an offset account?
What is the comparison rate?
I think __________ because __________. For example, __________. Overall, __________.
Would you like to buy a home in the future?
Yes, I would. I would like to buy a small home in Australia because renting can be expensive. I think owning a home would make me feel more secure.
Is it difficult to save for a house?
Yes, it is difficult because house prices are high and living costs are also expensive. However, a clear budget can help people save slowly.
What kind of home would you like to buy?
I would like to buy a small three-bedroom house. It does not need to be fancy, but it should be safe, clean and close to work.
Describe a home you would like to buy in the future.
I'd like to talk about __________. It would be located in __________. I would choose it because __________. To save for it, I would __________. I think this home would __________.
I'd like to buy a three-bedroom house in a regional city such as Wagga Wagga. It would be close to my workplace and not too expensive. To save for it, I would make a budget and put money into my savings account every payday. I think this home would give me stability in Australia.
In my opinion, __________. One reason is __________. For example, __________. However, __________. Overall, __________.
Why are houses expensive in many countries?
Houses are expensive because land is limited and many people want to live near jobs, schools and transport. Construction costs and interest rates can also affect prices.
Should governments help first home buyers?
Yes, I think governments should help first home buyers because buying a first home is very difficult. Support can help hardworking people enter the property market.
Is it better to rent or buy?
It depends on the person's situation. Renting is flexible, but buying can build long-term security. People should compare their income, savings and future plans before deciding.
You can now search for homes in Australia, compare property prices, understand deposits and mortgages, compare banks, calculate repayments, research first-home buyer support and discuss buying a house confidently in English.