Frequently asked questions

A mortgage broker works with you to understand your needs, compares suitable loans from a range of lenders, and manages the application on your behalf. We explain your options in plain English and stay involved through to settlement.

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In most cases a broker is paid a commission by the lender once your loan settles. We will tell you how we are paid, and about any fee that might apply to your situation, before you decide to go ahead.

It is a legal obligation that requires mortgage brokers to act in the best interests of their customers when providing credit assistance, and to put the customer's interests first if there is a conflict.

It depends on the lender, the property and your circumstances. Many lenders prefer a deposit of 20 per cent of the purchase price, but loans with a smaller deposit are available and usually involve lenders mortgage insurance. We can talk you through what may suit your situation.

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Timeframes vary between lenders and depend on how complex your application is and how quickly documents can be provided. We will give you a realistic expectation for your situation and keep you updated at each stage.

Lenders generally ask for identification, proof of income such as payslips or tax returns, bank statements, and details of your assets, debts and living expenses. We will give you a checklist tailored to your application.

Pre-approval is an indication from a lender of how much it may be willing to lend you, subject to conditions. It is not a guarantee of final approval, but it helps you understand your price range before you make an offer.

A fixed rate gives you certainty over repayments for a set period but usually less flexibility. A variable rate can move up or down and often comes with features such as offset accounts and extra repayments. Some borrowers split their loan between the two. The right choice depends on your priorities.

An offset account is a transaction account linked to your loan: the balance is offset against the loan when interest is calculated. Redraw lets you take back extra repayments you have made on the loan itself. Both can reduce interest, but they work differently and not every loan offers both.

Yes, many lenders offer loans to self-employed borrowers. They usually want to see tax returns and financial statements, and some have options for borrowers with less traditional income records. A broker can explain which documents each lender is likely to need.

Pre-approval gives you an indication of how much a lender may be willing to lend, subject to conditions, so you can search within a realistic price range. It is not a guarantee of final approval and it usually expires after a set period.

It depends on the scheme, the state you are buying in, the property price and your circumstances. The rules change from time to time, so we check the current criteria with you when you are ready to apply.

Yes. Lenders will assess everyone on the loan, and each borrower is usually responsible for the whole debt. It is sensible to agree in writing how ownership, repayments and a future sale would work.

There is no fixed period. What lenders generally look for is a deposit you can show you have saved or otherwise hold, and a stable pattern of income and spending. We can review your position at any stage and tell you what is still needed.

Most lenders include only a portion of the expected rent when calculating what you can afford, to allow for vacancies and costs. The portion varies between lenders.

Often, yes. A lender will value your home and assess how much equity is usable alongside your income and commitments. Borrowing against your home increases the debt secured on it, so it is worth understanding the risks first.

It can suit some investors and not others. Repayments are lower during the interest-only period, but you do not reduce the loan and usually pay more interest overall. We can show you both options side by side.

The lender pays your builder at agreed stages, such as the slab, frame, lock-up, fixing and completion. You or the lender normally confirm each stage is finished before payment is released.

Usually you pay interest only on the amount drawn so far, so repayments start small and grow as the build progresses. Once construction is complete, the loan typically moves to normal repayments.

Some lenders will consider owner-builder loans, but fewer offer them and the requirements are stricter. It is worth discussing early, before plans are finalised.

They compare your income with your living expenses and existing debts, allow for dependants, and test whether you could still afford the repayments if interest rates were higher. Each lender does this in its own way, so results differ between lenders.

No. An estimate is a general guide based on the figures you provide. Pre-approval comes from a lender after it has assessed your application and documents, and even then it is conditional and has an expiry date.

Common factors are credit card limits, personal and car loans, buy now pay later accounts, higher living expenses and irregular income. Reducing unused credit limits before you apply can make a difference.

Your deposit mainly affects the price you can pay and whether lenders mortgage insurance applies. Borrowing capacity itself is driven by income and commitments, but lenders consider both together.

It is worth reviewing your loan when your circumstances change, when a fixed-rate period is ending, or if you have not compared your loan for a few years. A review will show whether switching is likely to be worthwhile once the costs are taken into account.

About refinancing

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A loan application is recorded on your credit file. One application is unlikely to matter much on its own, but several in a short time can. A broker can help you choose a suitable lender before you apply.

It varies with the lender, how complex your situation is and how quickly documents and valuations are completed. We will give you a realistic expectation at the start and keep you updated.

Possibly, but a lower valuation changes how much of the property's value you owe, which can affect the options available and whether lenders mortgage insurance applies. We can look at this before you commit to anything.

It is a review of your existing home loan. A broker looks at your rate, fees, features and remaining term and compares them with other suitable loans, so you can see whether your current loan still suits you.

No. The review is there to help you decide, and staying with your current loan is a perfectly good outcome. We will tell you how we are paid, and about any fee that might apply to your situation, before you decide to go ahead with anything.

A recent home loan statement is the most useful starting point, as it shows your balance, rate and fees. It also helps to know roughly what your property is worth and whether any part of the loan is on a fixed rate.

Talking to a broker and comparing options does not. A credit enquiry is recorded only if you decide to apply for a new loan, and we will ask for your consent before that happens.

Yes. As well as residential lending, we help with business loans, commercial property loans and equipment finance.

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This varies with the type and size of the loan, but lenders commonly ask for business financial statements, tax returns, business activity statements and details of existing debts. We will let you know what applies to your application.

It can be harder for a new business because there is little trading history to assess. Some lenders will consider start-ups, often relying more on the owner's position, security or a clear business plan.

Not always. Some business loans are unsecured or secured against business assets, though this usually affects the cost and the amount available.

It is a promise by an individual, usually a director, to repay the business debt personally if the business does not. It is a serious commitment, and we recommend getting independent legal advice before signing one.

It varies by lender, property type and the strength of the application, and is generally higher than for a home. We can give you an indication once we know the property and your position.

Yes, commercial property is often held by a company or trust. Lenders will assess the entity and usually ask the people behind it for guarantees. Your accountant can advise on the most suitable structure.

Some borrowers do. It may improve the terms available, but it also puts your home at risk if the loan is not repaid, so it deserves careful thought and independent advice.

Often, yes. It depends on the lender, the type of asset and its age and condition. Older assets may attract shorter terms.

It is a lump sum owed at the end of the term. It reduces the regular payments, but you need to plan how you will pay it, whether from cash, by refinancing or by selling the asset.

Yes. Equipment finance commonly covers work vehicles, trucks, trailers, machinery, tools and technology used in a business.

Generally a fund cannot buy residential property from a member or a related party. There is an exception for business real property, which has its own conditions. Please confirm your situation with your adviser.

No. Residential property held by the fund cannot be lived in or rented by fund members or their relatives.

Yes. We arrange the loan, but the decision to invest through super, and to borrow to do it, should be made with a licensed financial adviser and your accountant. Many lenders ask for confirmation that you have received advice.