FREQUENTLY ASKED QUESTIONS

A mortgage home loan is a type of loan provided by a lender to assist with purchasing or refinancing a property. The property acts as collateral for the loan, meaning if you fail to repay the loan, the lender has the right to sell the property to recover the amount owed. 

Mortgage brokers are typically paid through lender commission. Some brokers may charge borrowers a fee for their services or combination of lender commission borrower fees. In these cases, the broker will inform the borrower of any fees involved and provide a transparent breakdown of their compensation. It’s important for borrowers to discuss and understand the broker’s fee structure and how they are compensated before engaging their services. This ensures transparency and helps avoid any unexpected costs. 

Typically, the minimum deposit required is 5% of the purchase price. However, a deposit of 20% often offers more favorable rates and better loan options. If you have equity in another property, you may be able to use it to lower the amount of cash needed for your deposit.  

Lenders Mortgage Insurance (LMI) protects the lender in the event you default on your loan. It is typically required if your deposit is less than 20% of the property's value. The cost of LMI can usually be added to your loan amount.  

Typically, lenders require a deposit of at least 20% of the property’s purchase price to avoid Lender's Mortgage Insurance (LMI). However, some lenders may offer discounts or waivers on LMI for certain professions, such as doctors, nurses, lawyers, accountants, and others. Contact us to explore your eligibility and discover any available benefits. 

The amount you can borrow is influenced by factors such as your income, expenses, liabilities, credit history, and the property's value. Your maximum borrowing capacity can vary between lenders. For a free borrowing capacity assessment, please call us at 1300 903 233. 

Each loan situation is unique. Key factors that determine your interest rate include the loan amount, deposit size, credit score, income and employment status, Loan-to-Value Ratio (LVR), whether the property is owner-occupied or an investment, your repayment type choices, and your credit score.  

The time it takes to get approved for a home loan can vary depending on several factors, including the lender, the complexity of your application, and how quickly you provide the necessary documentation. Generally, it can take anywhere from a few days to several weeks for a home loan to be approved. 

This is typically valid for 3 to 6 months. If your approval is nearing expiration or has expired, it’s a good idea to check with your broker about the next steps and any potential need for renewal.  

Yes, some lenders offer home loans with fixed rates that also include offset facilities. An offset account is a savings or transaction account linked to your home loan, where the balance is used to reduce the amount of interest you pay on the loan. However, availability of this feature can vary between lenders and loan products, so it's best to check with your lender or broker for specific options. 

Yes, you can apply for a home loan if you are not an Australian citizen or permanent resident, but there are specific requirements and conditions. Non-residents and temporary residents may face different loan terms, higher deposit requirements, and may need to meet additional criteria. It's best to consult with us to understand the options available to you.  

If you have savings available, whether as a lump sum or accumulating over time, an offset account feature could be beneficial for you. 

Along with information about your current circumstances, you will need to supply documents to confirm your identity, income, expenses, assets, and existing liabilities. This may include driver's licenses, passports, loan statements, bank statements, pay slips, tax returns, and council rate notices. Please contact us to find out the exact documents required by the lender.