Frequently Asked Questions

A home loan broker is an expert who acts as an intermediary between you and various lenders (banks and financial institutions). We save you time and stress by: Comparing loans: We assess hundreds of loan options from multiple lenders to find the best fit for your needs and financial situation. Negotiating rates: We can often negotiate better interest rates and loan features than you might be able to get on your own. Simplifying the process: We handle the paperwork, application process, and communication with lenders, making the process smoother and less overwhelming. Expert advice: We provide unbiased advice and guidance throughout the entire home loan journey.

Generally, lenders prefer a deposit of at least 20% of the property value to avoid Lenders Mortgage Insurance (LMI). However, it's possible to get a home loan with a smaller deposit (e.g., 5% or 10%). Smaller deposits may require LMI and might have slightly higher interest rates. We can explore low deposit options and government schemes that may be available to you.

LMI is insurance that protects the lender, not you, if you are unable to repay your home loan and the property needs to be sold for less than what is owed. It's usually required when your deposit is less than 20% of the property value. The cost of LMI is typically added to your loan amount.

Pre-approval (or conditional approval) is a statement from a lender indicating how much they are willing to lend you, based on an initial assessment of your financial situation. Getting pre-approved is highly recommended because it: Shows sellers you're a serious buyer: It strengthens your position when making an offer on a property. Gives you a clear budget: You know exactly how much you can borrow, helping you search for properties within your price range. Speeds up the process: It streamlines the full loan application process once you find a property.

Typically, you'll need to provide: Identification: Passport, Driver's Licence Proof of Income: Payslips (recent), Tax Returns (if self-employed), Centrelink statements if applicable. Bank Statements: Statements showing savings, debts, and transaction history. Asset and Liability Statements: Details of other assets (e.g., shares, investments) and liabilities (e.g., car loans, credit cards). Property Details (if known): Sales contract, property address. Depending on your situation, other documents might be required. We will provide you with a comprehensive document checklist tailored to your specific needs.

There are several common types of home loans: Fixed Rate Loan: The interest rate is fixed for a set period (e.g., 1-5 years), providing certainty in repayments. After the fixed period, it usually reverts to a variable rate. Variable Rate Loan: The interest rate fluctuates with market conditions. Repayments can increase or decrease. Split Loan: A combination of fixed and variable rate portions, allowing you to benefit from the stability of a fixed rate and potentially lower rates of a variable rate. Interest Only Loan: You only pay the interest portion of the loan for a set period, resulting in lower repayments initially. Suitable for investors in some cases, but principal is not reduced during this period. Principal and Interest Loan: You pay both the principal (loan amount) and interest, gradually reducing the loan balance over time. We can help you understand the pros and cons of each type and determine which best suits your financial goals and risk tolerance.

The timeline can vary, but generally, from initial application to settlement, it can take anywhere from 4 to 8 weeks. Factors influencing the timeframe include: Complexity of your financial situation. Lender processing times. Valuation and property checks. Solicitor/conveyancer efficiency. We will keep you informed at every stage and work to expedite the process as much as possible.

Yes, in most cases, you can use the FHOG as part of your deposit. The FHOG is a government initiative to assist eligible first home buyers. Eligibility criteria and grant amounts vary by state/territory. We can help you determine your eligibility and navigate the FHOG application process.

An investment loan is specifically designed to finance the purchase of a property that you intend to rent out and generate income from, rather than live in yourself. While the application process is similar to a home loan, lenders may consider factors like rental income potential, loan-to-value ratio (LVR), and your existing property portfolio. Interest rates and fees might also differ slightly.

Potentially, yes. In many jurisdictions, interest paid on investment property loans can be tax-deductible against your rental income. This is often referred to as negative gearing. It's crucial to consult with a qualified tax advisor or accountant to understand the specific tax implications in your location and how they apply to your individual circumstances. We can work with your financial team or recommend professionals.

LVR requirements for investment loans can sometimes be stricter than for owner-occupied home loans. Lenders may prefer LVRs of 80% or even 70% for investment properties, meaning a larger deposit might be needed. This can depend on the lender, property type, and your overall financial profile. We can explore lenders with flexible LVR options.

Both options have pros and cons for investment properties: Interest-Only: Lower repayments initially, maximising cash flow in the short term and potentially increasing tax-deductible interest payments. However, you are not reducing the loan principal during this period, and total interest paid over the loan term will be higher. Principal and Interest: Higher repayments initially, but you are gradually reducing the loan principal, building equity over time, and paying less interest overall in the long run. The best option depends on your investment strategy, cash flow needs, and tax situation. We can help you weigh the benefits and risks of each structure.

Lenders will assess the potential rental income of the property to ensure it can contribute to loan repayments and improve your borrowing capacity. They may use: Rental appraisals: Independent valuations of the expected rental income. Market data: Comparable rental rates for similar properties in the area. Discounted income: Lenders often apply a discount (e.g., 20-30%) to the appraised rental income to account for vacancies and expenses. We can help you understand how rental income will be considered and ensure you present your investment property in the best light to lenders.

Yes, in many cases, you can leverage equity from your existing home or other properties to fund the deposit or purchase costs for an investment property. This involves refinancing your existing loan or taking out a new loan secured against your existing property. This can be a powerful strategy for building your investment portfolio. We can assess your equity position and explore leveraging options.

Commercial loans are versatile and can finance various business purposes, including: Purchasing commercial property: Offices, retail spaces, warehouses, industrial buildings, land for development. Business expansion: Renovations, new equipment, working capital, acquisitions. Refinancing existing commercial debt.

We can assist with financing for a wide range of commercial property types, such as: Retail: Shops, restaurants, cafes, showrooms. Office: Office buildings, strata offices, co-working spaces. Industrial: Warehouses, factories, workshops, storage facilities. Specialised: Hotels, motels, childcare centres, medical practices (subject to lender appetite and valuation). Land: For commercial or industrial development. Lender appetite and specific criteria will apply to each property type. We can assess your specific property and identify suitable lenders.

Commercial loans are typically secured against the commercial property being purchased or other business assets. Security requirements can vary depending on the loan amount, LVR, lender policies, and the strength of your business. Security might include: First mortgage over the commercial property. Second mortgage over other property. General Security Agreement (GSA) over business assets. Personal or company guarantees. We will work with you to understand security requirements and structure your loan application appropriately.

Commercial loan interest rates are generally higher than home loan rates due to the increased risk perceived by lenders. Rates are influenced by: Lender: Each lender has its own pricing policies. Loan amount and LVR. Property type and location. Borrower's financial strength and business history. Market conditions and economic outlook. We will negotiate with lenders to secure the most competitive interest rate possible for your commercial loan.

Expect to provide comprehensive financial information, including: Business Financial Statements: Profit and Loss statements, Balance Sheets, Cash Flow projections (for the past 2-3 years). Personal Financial Statements: For business owners/directors. Business Plan: Detailed overview of your business, industry, management team, and financial projections. Property Valuation: Independent valuation of the commercial property (arranged by the lender). Lease Agreements (if applicable): For tenanted properties. We will guide you on preparing the necessary documentation and presenting your business in a compelling manner to lenders.

Generally, yes. Commercial loans often involve more complex assessments due to the higher loan amounts, business risk factors, and property valuations. Lender scrutiny is typically greater, and documentation requirements are more extensive. However, our expertise in commercial finance can significantly increase your chances of approval and streamline the process.

Owner-builder construction loans are generally more complex and harder to obtain than loans for projects with licensed builders. Lenders perceive higher risk. Some lenders may consider owner-builder loans if you have significant construction experience, strong financial backing, and detailed project management plans. We can assess your situation and explore available options, but owner-builder finance is often more limited.

Cost overruns are a risk in construction. It's crucial to have contingency funds and a well-managed budget. If cost overruns occur: You may need to contribute additional funds from your own savings. In some cases, you might be able to increase the loan amount, subject to lender approval and valuation. We can help you structure your loan to include a contingency buffer and discuss strategies for managing potential cost variations.

The loan amount is typically based on the "on-completion" value of the property (the estimated value once built), not just the land value. Lenders will consider: Valuation of the land. Cost of construction as per the building contract. Borrower's financial capacity. Maximum LVR guidelines for construction loans.

In addition to standard loan documentation, you'll likely need: Building Plans and Specifications. Fixed Price Building Contract with a licensed builder. Council Approved Plans and Permits. Quantity Surveyor Report (sometimes required for larger projects). Builders Insurance and Licences. We will provide a detailed document checklist specific to construction loans

Progress payments are instalments released by the lender at pre-determined stages of construction, such as slab pour, frame stage, lock-up, and completion. To claim a progress payment, you'll typically need to provide: Invoice from your builder. Valuer's report: Confirming the stage completion and value of work done. We will assist you in understanding the progress payment schedule and managing the documentation required for each stage.

During the construction phase, you typically make interest-only repayments on the drawn-down loan amount. Once construction is complete and the loan converts to a standard mortgage, repayments will switch to principal and interest. Some lenders may offer variations. We will clarify the repayment structure for your chosen loan.

A construction loan provides staged funding to cover the costs of building a new home or commercial property. Unlike a standard home loan, funds are released in instalments (progress payments) throughout the construction process, as different stages are completed and verified by a valuer. This minimises risk for the lender.

Debt consolidation involves combining multiple existing debts (e.g., credit cards, personal loans, car loans) into a single new loan, often a personal loan or a home loan refinance. Benefits include: Simplified repayments: Instead of managing multiple repayments, you have just one. Potentially lower interest rates: Debt consolidation loans may offer lower interest rates than some of your existing debts, especially credit cards. Reduced repayments: Depending on the loan term and interest rate, your overall monthly repayments might be lower. Improved credit score (potentially): Managing one loan effectively can be easier and positively impact your credit history over time.

Common debts consolidated include: Credit card debt. Personal loans. Car loans. Store cards. Payday loans. Sometimes, smaller mortgages can be consolidated into a larger home loan refinance. We can assess your specific debt profile and advise on which debts are suitable for consolidation.

Potentially yes, but not always guaranteed. Whether your repayments decrease depends on factors like: Interest rates: If the consolidation loan interest rate is significantly lower than your existing average interest rate, repayments may decrease. Loan term: Extending the loan term can reduce monthly repayments, but you'll pay more interest overall in the long run. Fees and charges: Factor in any fees associated with the consolidation loan. We will carefully analyse your current debts and calculate potential repayment savings with debt consolidation.

In the short term, applying for a new loan and closing old accounts can have a minor temporary dip in your credit score. However, in the long term, if you manage the consolidation loan responsibly and avoid accumulating new debt, it can improve your credit score by demonstrating effective debt management and reducing your credit utilisation ratio (amount of credit used vs. credit available).

Debt consolidation can be beneficial if you are struggling to manage multiple debts, are paying high interest rates, and are committed to responsible financial habits. However, it's not a quick fix if you don't address the underlying spending habits that led to debt accumulation. We can help you assess if debt consolidation aligns with your financial goals and provide personalised advice.

It can be more challenging to get approved for debt consolidation with bad credit, as lenders may perceive higher risk. However, options may still exist, such as secured debt consolidation loans (using an asset as security) or working with lenders specialising in bad credit loans. Interest rates will likely be higher. We can explore available options and help you present the strongest possible application based on your credit profile.

Private finance is subject to regulatory frameworks, although the specific regulations may differ from traditional bank lending. Lenders still need to comply with consumer protection laws and responsible lending practices. We work with reputable and compliant private lenders.

Yes, generally, private finance is more expensive. The higher cost reflects the increased risk taken by private lenders, the speed and flexibility offered, and often shorter loan terms. It's crucial to weigh the cost against the benefits of speed, flexibility, and access to funding in your specific situation. We will provide full transparency on all costs and help you assess if private finance is the right solution, considering the cost-benefit analysis.

Common uses include: Bridging finance: Short-term loans to "bridge" the gap between buying and selling properties, or while waiting for long-term finance to be approved. Urgent property purchases: Taking advantage of time-sensitive property opportunities. Business funding gaps: Quickly securing funds for urgent business needs, inventory, or short-term projects. Development finance: In some cases, private finance can be used for initial stages of development projects. Debt refinancing or restructuring in urgent situations.

Key disadvantages include: Higher interest rates: Private finance typically comes with higher interest rates and fees compared to bank loans due to the increased risk and speed. Shorter loan terms: Private loans are often for shorter terms (e.g., 6-24 months). Higher fees and charges: Establishment fees, brokerage fees, and other charges may be higher. Important to understand all costs and terms thoroughly before proceeding.

Key advantages include: Speed: Rapid approvals and settlements, often within days or weeks. Flexibility: More tailored loan structures and less rigid lending criteria. Accessibility: May be available to borrowers who don't qualify for bank finance due to credit history, complex situations, or urgent timelines. Creative solutions: Private lenders may be more willing to consider unique or complex property and business deals.

Private finance, also known as private lending or non-bank lending, is funding provided by individuals, private companies, or investment funds, rather than traditional banks. It's often used for situations requiring: Fast access to funds: Quicker approval and settlement times compared to banks. Flexible lending criteria: May be more lenient than banks for borrowers with non-traditional situations or urgent needs. Short-term funding needs: Bridging finance, short-term business opportunities. Complex or unique property deals. Situations where bank finance is not readily available.

The refinancing process is generally quicker than getting a new home loan, as much of the initial documentation may already be in place. It typically takes 2-4 weeks from application to settlement. Factors like lender processing times and property valuation can affect the timeline. We will manage the process efficiently for you.

Yes, you can refinance during a fixed rate period, but you may incur break costs or early repayment fees. These fees compensate the lender for the loss of future interest income they were expecting from your fixed rate loan. We will investigate and calculate potential break costs and factor them into the refinancing analysis to determine if refinancing is still worthwhile. Sometimes the long-term savings outweigh the short-term break costs.

We will conduct a thorough refinancing analysis for you, comparing your current loan with potential new loan options. This analysis will consider: Interest rate savings. Repayment reductions. Total interest savings over the loan term. Refinancing costs. Break-even point (how long it takes to recoup refinancing costs through savings). We will provide you with a clear picture of the financial benefits (or lack thereof) of refinancing before you make any decisions.

Refinancing can involve costs, such as: Discharge fees from your existing lender. Establishment fees for the new loan. Valuation fees. Legal/conveyancing fees. Lenders Mortgage Insurance (LMI) – if your LVR increases significantly. We will help you calculate all potential costs and savings to determine if refinancing is financially beneficial in your specific situation. We will also look for lenders offering cashback incentives to offset refinancing costs.

Good times to consider refinancing include: When interest rates have fallen: You may be able to secure a lower rate than your current loan. When your financial situation has improved: You might qualify for better rates or loan features. When your current fixed rate period is ending: Avoid reverting to a potentially higher variable rate by refinancing to a new fixed or variable option. If you want to access equity in your property. Regularly reviewing your loan (every 2-3 years) is a good practice to ensure it still meets your needs and is competitive.

Refinancing involves replacing your existing loan with a new loan, ideally with better terms or features. Common reasons to refinance include: Securing a lower interest rate: To reduce repayments and save money over the loan term. Changing loan features: Switching from variable to fixed rate, or vice-versa. Accessing equity: Borrowing against the increased value of your property for renovations, investments, or debt consolidation. Consolidating debts: Including other debts (like credit cards or personal loans) into your home loan. Switching lenders: If you are unhappy with your current lender's service or features.