5 Myths About Getting a Home Loan—Busted.

Buying your first home? Let’s clear up the confusion. For most people, getting a home loan is the biggest financial commitment they’ll ever make. So it makes sense that the process can feel overwhelming—and full of half-truths or flat-out myths. At Home Sweet Home Finance, we believe everyone deserves to understand their options with clarity and confidence.

We’re in the business of simplifying finance. And that starts with the truth.

Here are five of the most common home loan myths we hear—and what’s actually true:

Myth 1: You need a 20% deposit to get a home loan.

This is one of the biggest misconceptions out there. While a 20% deposit may help you avoid lenders mortgage insurance (LMI), it’s not a requirement. In fact, many lenders offer competitive loans with deposits as low as 5%—especially for first-time buyers.

The real question is: What works best for your situation? At HSH, we’ll explore all your options and help you understand the trade-offs so you can make an informed, empowered decision.

Myth 2: If you’re self-employed, you can’t get a home loan.

Self-employed? You’ve probably heard that your chances of getting a home loan are slim. Not true.

Yes, the process might look a little different. But that’s where we come in. We work with lenders who understand alternative income structures—whether you’re running your own business, freelancing, or working across contracts. We’ll help you present your financials clearly and advocate for the best deal.

Myth 3: Pre-approval guarantees loan approval.

Pre-approval is a great start—but it’s not a guarantee. It simply means a lender has reviewed your situation and is likely to lend you a certain amount, subject to final checks.

Things like changes in your employment status, credit score, or property valuation can still impact final approval. At HSH, we guide you through the process from start to settlement—so nothing falls through the cracks.

Myth 4: All loans are basically the same.

Definitely not. From fixed-rate to variable, offset accounts to redraw facilities, every loan product has its own features—and not all of them will suit you.

We don’t do one-size-fits-all. Our job is to compare lenders, explain your options, and find the right fit for your life and goals. Whether you're after flexibility, lower fees, or faster repayments, we’ve got your back.

Myth 5: It’s easier (and cheaper) to go directly to the bank.

You can go it alone—but you don’t have to. And in most cases, working with a broker costs you nothing.

With HSH, you get access to a broad panel of lenders, honest advice, and full transparency on fees, rates, and terms. We work for you—not the banks. And we’ll save you time, stress, and potentially a lot of money along the way.

The takeaway? You’ve got more options than you think.

Let’s cut through the noise and find a path forward that makes sense for you. Whether you’re ready to take the next step or just starting to explore, we’re here to help.

👉 Ready to bust a few more myths? [Let’s talk.]