Frequently Asked Questions

Most lenders will require customers to have at minimum a 5% deposit, but a larger deposit is better and avoids needing to pay Lenders Mortgage Insurance  (unless you are purchasing under the 5% Deposit Scheme for first home buyers). The bank policies on deposits are always changing so get in touch and we can assess your situation. 

Remember, when calculating how much deposit you will need, it is important to take into consideration transfer/stamp duty costs which you'll need on top of your 5%+ deposit. Transfer/stamp duty is calculated by the State Government and some people are eligible for waivers or concessions (for example first home buyers). More information on Transfer/Stamp Duty in New South Wales can be found here.

Brokers receive commission from the financial institutions that the loans are placed with. The Royal Commission has heavily regulated this structure to ensure brokers are always working in your best interests and commissions paid by the banks are typically pretty similar, meaning we are always working to find you the best loan.  All commissions are clearly identified on your mortgage paperwork to provide customers with transparency to help make informed decisions.

In some instances a broker can have their commission 'clawed back' by the bank (for example if a client sold their property within 12-24 months of settling the loan) - in unique cases where it is known the property will be sold/paid down prior to the 24 month period (for example property developers/flippers) then a small upfront fee would be quoted.

Your borrowing capacity (ie how much you can borrow) is dependent on a number of factors including credit history, current liabilities and assets, your personal situation and the purpose of the loan. Obtaining pre-approval is the best no-obligation way to understand how much you may be able to borrow and gives you confidence entering property negotiations.  Contact us if you would like us to assess your borrowing power and for more information on how to obtain pre-approval.

A broker works on your behalf to find the best solution for your personal situation, across a large range of lenders. This involves researching a number of different products and policies across various different financial institutions to find the right fit and the most competitive rate. 

In comparison, banks can only provide you with products that they offer, meaning you may get 'shoe-boxed' into a product not right for your situation or more expensive than a competitor. 

Loan options include features such as offset, redraw, low doc, principle and interest or  interest only repayments, fixed or variable, line of credit,  and family guarantor. Brokers help navigate this process for you ensuring you have access to the right product for you. There are thousands of different loan options available to customers so it's important to find the right option.

The housing market is currently very competitive with the average house only on the market in Sydney for 17 days before selling. There are often numerous buyers interested. Having your pre-approval sorted shows the real estate agents you are a serious buyer and makes your application far more competitive than others looking to purchase a home.

It also gives you peace of mind before you make an offer on a property that the bank has already assessed your financial situation and is comfortable with the loan, so there is a lower chance of there being issues securing finance.