For many Australians, the dream of home ownership feels just out of reach – not because of actual financial barriers, but because of long-standing myths that hold people back. At Clear Path, we’ve helped hundreds of clients break through these misconceptions and confidently enter the market sooner than they thought possible.
Here are the top 3 myths stopping potential homeowners, and how we help you overcome them.
Myth 1: You Need a 20% Deposit to Buy a Home
This is one of the most common (and frustrating) myths out there. While a 20% deposit may help you avoid Lenders Mortgage Insurance (LMI), it is not a requirement for getting a home loan.
In reality, many lenders allow deposits as low as 5% or 10%, particularly for first-home buyers. Plus, government-backed programs like the First Home Loan Deposit Scheme (FHLDS) can help you secure a loan with a smaller deposit and no LMI, making it even more affordable to get started.
How Clear Path helps:
We assess your current financial situation, explain your eligibility for deposit schemes, and find lenders who support low-deposit loans—so you don’t have to wait years to save up 20%.
Myth 2: Bad Credit or Existing Debt Means You Can’t Get a Home Loan
Think you can’t get a home loan because of a low credit score or a few existing debts? Think again.
While a poor credit history might limit your options slightly, it doesn’t disqualify you from borrowing. In fact, many lenders are willing to look at your full financial picture—including your income, debt-to-income ratio, and current repayment behaviour.
Likewise, debts like HECS-HELP loans or credit cards are factored into your borrowing capacity, but they’re not deal breakers. Specialist lenders exist to support borrowers with unique financial histories.
How Clear Path helps:
We work with a wide panel of lenders, including those who cater to borrowers with non-perfect credit. We also guide you on improving your borrowing profile and positioning yourself for a successful loan application.
Myth 3: The Lowest Interest Rate Means the Best Home Loan
It’s easy to get caught up in the appeal of the lowest advertised interest rate—but that number alone doesn’t tell the full story.
Some low-rate loans come with hidden fees, restrictive terms, or fewer features—like offset accounts or redraw facilities—which could cost you more over time. The best home loan is the one that fits your needs and goals, not just the one with the lowest rate.
How Clear Path helps:
We compare the true cost of each loan, not just the interest rate. Our brokers assess fees, flexibility, features, and your long-term financial goals to help you choose the best overall solution.
Myth vs. Reality: A Quick Summary
| Myth | Reality |
| You need a 20% deposit | Deposits as low as 5–10% accepted with LMI or government support |
| Bad credit or debt means no home loan | Many lenders work with imperfect credit and factor in manageable debts |
| Lowest interest rate = best loan | Features, fees, and flexibility often matter more than the rate alone |
Don’t Let Misconceptions Hold You Back
Many of these myths persist due to outdated advice or fear of the unknown. The truth is, with the right guidance, homeownership may be more achievable than you think.
At Clear Path, we simplify the home loan process with honest advice, tailored loan solutions, and support every step of the way—so you can step into the market with clarity and confidence.
Explore your options with Clear Path or contact us today for a no-obligation chat about how we can help you overcome the myths and find a first home loan that suit you sooner.