A mortgage broker acts as an intermediary between you and potential lenders. We work on your behalf to find the most suitable home loan for your needs. Our services include:

• Assessing your financial situation and borrowing capacity
• Comparing loan options from multiple lenders
• Explaining different loan features and helping you understand the fine print
• Managing paperwork and the application process
• Providing ongoing support throughout the life of your loan

Unlike bank loan officers who can only offer products from their institution, we have access to loan products from numerous lenders, giving you more options.

In most cases, our services are free to you as a borrower. Mortgage brokers typically receive a commission from the lender when your loan settles. This commission is paid by the lender and doesn't affect your interest rate or loan terms.

In some specialized cases involving complex commercial loans or difficult lending situations, a fee may apply. However, we'll always disclose any fees upfront before proceeding with your application.

Your borrowing capacity depends on several factors including:

• Your income and employment status
• Existing debts and financial commitments
• Credit history
• Savings and deposit amount
• The type of property you're looking to purchase
• Current interest rates and lending criteria

As a general rule, lenders typically allow borrowing up to 6-7 times your annual income, subject to serviceability assessments. We can provide a more accurate assessment based on your specific financial situation during our initial consultation.

Most lenders prefer a minimum deposit of 20% of the property's value. This allows you to avoid Lenders Mortgage Insurance (LMI), which protects the lender if you default on your loan.

However, many lenders offer loans with deposits as low as 5-10%, though this will incur LMI costs. First home buyers may also access government schemes allowing purchases with deposits as low as 5% without LMI.

Remember that your deposit is just one cost – you'll also need to budget for stamp duty, legal fees, building inspections, and moving costs.

There are several types of home loans available:

• Variable rate loans: Interest rates can fluctuate with market conditions, offering flexibility and typically no early repayment penalties.
• Fixed rate loans: Interest rates are locked in for a set period (typically 1-5 years), providing certainty for budgeting.
• Split loans: Part fixed, part variable, offering a balance between stability and flexibility.
• Interest-only loans: You pay only the interest for a period, often used for investment properties.
• Offset accounts: Your savings offset your loan balance, reducing interest paid.
• Line of credit: Flexible access to equity in your property.
• Low-doc loans: For self-employed borrowers with non-standard documentation.

We can help you understand which type best suits your financial situation and goals.

This depends on your personal circumstances and the current economic climate:

Fixed rates provide certainty – your repayments won't change during the fixed period, making budgeting easier. This can be advantageous if interest rates are expected to rise. However, fixed loans typically have less flexibility, may have break costs for early repayment, and you won't benefit if rates fall.

Variable rates can go up or down, meaning your repayments might change. They typically offer more flexibility with features like offset accounts and redraw facilities, and allow extra repayments without penalties. If rates fall, you'll benefit from lower repayments.

Many borrowers choose a split loan to get the benefits of both. We can discuss current market conditions and your personal situation to help you decide.

From application to settlement, the home loan process typically takes 4-6 weeks, but this can vary based on several factors:

• The lender's current processing times (which can vary significantly)
• The complexity of your financial situation
• How quickly you can provide required documentation
• Property valuation timeframes
• Settlement periods negotiated with the seller

Pre-approval can typically be obtained within a few days to a week, which allows you to house-hunt with confidence. We can provide more specific timeframes based on current lender processing times and your particular circumstances.

You'll generally need to provide:

• Identification: Driver's license, passport, birth certificate
• Income verification: Recent payslips, tax returns, group certificates
• Employment details: Employer contact information, length of employment
• Financial information: Bank statements, information on assets and liabilities
• Existing loans and credit card details: Statements for the last 3-6 months
• Property details: Contract of sale, property address (if already selected)

Self-employed borrowers may need to provide additional documentation such as business financial statements and tax returns. We'll provide you with a specific checklist based on your situation and chosen lender's requirements.

Lenders Mortgage Insurance (LMI) is an insurance policy that protects the lender if you default on your home loan. It's typically required when you borrow more than 80% of the property's value (i.e., have a deposit less than 20%).

While you pay the premium, LMI protects the lender, not you. The cost varies based on your loan-to-value ratio and loan amount, and can range from a few thousand to tens of thousands of dollars. This cost can usually be added to your loan amount.

LMI enables borrowers to enter the property market sooner with a smaller deposit, but increases the overall cost of your loan. We can help you calculate potential LMI costs and explore options to reduce or avoid it.

While having credit issues makes obtaining a home loan more challenging, it's not necessarily impossible. Options depend on the severity of your credit issues, how recent they were, and your current financial situation.

Some lenders specialize in bad credit loans, but these typically come with higher interest rates and fees. If your credit issues are minor or older (more than 2 years), some mainstream lenders may still consider your application, especially if you have a substantial deposit and strong current income.

We specialize in finding solutions for clients with complicated credit histories by identifying lenders with more flexible criteria and presenting your application in the most favorable light, explaining any mitigating circumstances.

To maximize your chances of home loan approval:

• Save a larger deposit (aim for at least 20% if possible)
• Reduce existing debts by paying down credit cards and personal loans
• Maintain a clean credit history by paying bills on time
• Establish stable employment (lenders typically prefer borrowers who have been in their current job for at least 6-12 months)
• Reduce credit card limits (even unused limits count against your borrowing capacity)
• Maintain consistent savings habits
• Limit new credit applications before applying for your home loan
• Prepare thorough and accurate documentation

Working with us gives you the benefit of our experience in presenting your application in the best light and matching you with lenders whose criteria best align with your situation.

A pre-approval (also called conditional approval or approval in principle) is a lender's indication that they're willing to lend you a certain amount, subject to conditions like property valuation.

Getting pre-approved is important because it:

• Gives you a clear budget when house hunting
• Helps you act quickly when you find the right property
• Strengthens your negotiating position with sellers
• Identifies any potential issues before you find a property
• Streamlines the formal approval process

Pre-approvals typically last for 3-6 months. While not a guarantee of final approval, a proper pre-approval significantly increases your confidence when making offers.

When budgeting for property purchase, consider these additional costs:

• Stamp duty: A state government tax that varies by location, property value, and buyer status (first home buyers may receive concessions)
• Lenders Mortgage Insurance (LMI): Required if your deposit is less than 20%
• Legal/conveyancing fees: For handling the legal aspects of the transfer (typically $1,000-$2,500)
• Building and pest inspections: Highly recommended before purchase ($300-$800)
• Loan application/establishment fees: Charged by some lenders ($0-$1,000)
• Mortgage registration fee: Government charge to register the mortgage ($200-$400)
• Property transfer fee: Government charge to transfer the title ($200-$400)
• Council and water rates adjustments: Prepaid rates that are adjusted at settlement
• Moving costs: Including removalists, connection of utilities, etc.

We can help you calculate these costs accurately for your specific situation so you can budget appropriately.

Refinancing might be beneficial if:

• You can secure a significantly lower interest rate (typically at least 0.5% lower)
• You need to access equity for renovations, investment, or other major expenses
• Your financial situation has changed (income increase, debt reduction)
• You want to consolidate debts
• You're unhappy with your current lender's service
• Your fixed rate period is ending
• You want different loan features (offset account, redraw facility)

However, refinancing involves costs such as discharge fees from your current lender, application fees with the new lender, and possibly LMI if your equity is below 20%. We can help analyze whether the long-term savings outweigh these costs based on your specific situation and goals.

An offset account is a transaction account linked to your home loan. The balance in this account is 'offset' against your loan balance when calculating interest charges.

For example, if you have a $500,000 loan and $50,000 in your offset account, you'll only pay interest on $450,000. This can save substantial interest over the life of your loan while allowing you to maintain access to your funds.

Offset accounts are typically available with variable rate loans and sometimes with fixed loans (although often with partial offset functionality). They're particularly beneficial for borrowers who maintain substantial cash reserves or receive large periodic payments like bonuses.

The alternative to an offset account is making extra repayments directly into your loan, which also reduces interest but may limit access to those funds depending on your loan's redraw facility.

Investment property loans differ from owner-occupier loans in several key ways:

• Interest rates: Typically higher by 0.2-0.6% for investment loans
• Borrowing capacity: Lenders may apply more stringent serviceability assessments
• Loan-to-value ratios: May be capped at lower levels (often 80-90%)
• Tax treatment: Interest and expenses on investment loans may be tax-deductible
• Interest-only options: More commonly used for investment loans for tax and cash flow reasons
• Assessment of rental income: Lenders typically consider only 70-80% of rental income to account for vacancies and expenses

Investment loan structures often prioritize tax efficiency and maximizing cash flow, whereas owner-occupier loans typically focus on minimizing total interest paid. We can help structure your investment loan to align with your overall investment strategy and tax situation.

A guarantor loan allows a family member (typically parents) to provide additional security for your loan using equity in their own property. This can help you:

• Enter the property market with a smaller deposit or no deposit
• Avoid Lenders Mortgage Insurance (LMI)
• Potentially borrow up to 100-105% of the property's value
• Access better interest rates

The guarantor is not responsible for your regular loan repayments but agrees to cover the debt if you default. Their liability is typically limited to the guaranteed portion of the loan.

This arrangement involves significant obligations for guarantors. Both you and potential guarantors should obtain independent legal and financial advice before proceeding. Most lenders offer mechanisms to release the guarantor once sufficient equity has been built in your property (typically when your loan-to-value ratio reaches 80%).

Various government assistance programs exist for home buyers, particularly first home buyers. These may include:

• First Home Owner Grants (FHOG): One-off payments to assist first home buyers, typically for new construction or newly built homes
• First Home Loan Deposit Scheme (FHLDS): Allows eligible first home buyers to purchase with a deposit as low as 5% without paying LMI
• Stamp duty concessions: Reduced or waived stamp duty for first home buyers up to certain property values
• First Home Super Saver Scheme: Allows first home buyers to save for a deposit through their superannuation
• Family Home Guarantee: Helps eligible single parents buy a home with a deposit as low as 2%
• Regional grants: Additional assistance for those purchasing in regional areas

These programs have specific eligibility criteria, property value caps, and may vary by state and territory. We stay up-to-date with current schemes and can help identify which ones you might qualify for.

For most variable rate loans, you can make unlimited additional repayments without penalty. This can significantly reduce your interest costs and loan term.

For fixed-rate loans, many lenders impose limits on extra repayments (typically $10,000-$30,000 per year) and may charge break fees for amounts exceeding this limit.

Making additional repayments offers several benefits:

• Reducing the principal faster, which decreases the interest charged
• Building a buffer that can be accessed via redraw if needed
• Potentially shortening your loan term by years
• Creating additional equity that could be used for future investments

Even small extra payments can make a significant difference over time. For example, paying an extra $100 per week on a $500,000 loan could save over $100,000 in interest and reduce the loan term by several years.

Rising interest rates can significantly impact your mortgage repayments. To protect yourself:

• Build a buffer: Make extra repayments when rates are lower
• Consider fixing your rate: Lock in current rates for 1-5 years
• Split your loan: Fix a portion and keep part variable for flexibility
• Budget conservatively: When calculating affordability, add 2-3% to current rates
• Use an offset account: Reduce your effective loan balance while maintaining access to funds
• Review regularly: Schedule annual reviews with us to ensure your loan remains competitive

We can stress-test your budget against potential rate increases and help implement strategies to minimize the impact. Remember that even small changes in interest rates can significantly affect repayments over the life of your loan.