Choosing a Broker & Process
 

1. How do you get paid? The bank we choose for your new loan pays me a commission for referring you. If you opt out of your loan or sell your property within 2 years, I have to give back up to 100% of the commission earned due to the short time frame that the loan has been held. There is no cost for you to engage me as your mortgage broker.
    

2. How many lenders are on your panel? I am currently accredited with 44 bank and non-bank lenders.
    

3. Are you a member of MFAA or FBAA? I am a member of the FBAA and have been since 2016.
    

4. Why should I use a broker instead of going direct to a bank? A broker offers more options and finds the most suitable loan product and bank for you. I also speak directly with the bank to answer any of their questions during the assessment process.
    

5. What experience do you have with first-home buyers? I work with a lot of first home buyers, including those in the 5% First Home Scheme, the Family Pledge Scheme where a parent uses the equity in their home to assist with a first home purchase, and those who are doing it on their own, either with a small or large deposit. As part of my service I also educate on how to research for properties in your chosen location, what to ask the agents and every other question you may have as you navigate the first home journey. My aim is to empower my clients via learning about property and buying a home and to make the right choices for yourselves, rather than just being here to sign forms and find you a loan.
    

6. What experience do you have with investors? I am a multiple property investor myself and have been investing in property for over 20 years. I was a multiple property investor prior to becoming a mortgage broker so my service has a property-owner approach rather than as a banker. As part of my free service I can work with you to purchase your first investment property and put together a plan to buy multiple properties in the future.
   
   For those who are already property investors but have had trouble borrowing money for more properties, I work with non-banks who allow a larger borrowing power than the banks. So you may find that you can borrow more than you have previously been told by your bank.
   
   I also have small development experience, having completed two-lot subdivisions in Brisbane. I understand how to structure construction loans for a single property or a duplex, either via vacant land or a knockdown rebuild and how to structure small development deals.
    

7. What documentation do I need to prepare? I will provide you with a list of items, including your ID, payslips and current financial information. If you are a first home buyer, I will also require bank statements from the last 3 months showing evidence of your savings.
    

8. How long does loan approval take? Once I have all of the required documents to prepare the loan application, approval can be granted in a few days to a few weeks, depending on the bank chosen.
    

9. What is the difference between pre-approval and full approval?. Pre-approval is obtaining a loan before you find a property to purchase. The approval looks at your current income vs your current debts and living expenses and determines the loan amount that you can borrow. Some banks only provide a computer check which takes much less time but does not give you sureity of the loan approval.
   
   A full approval is obtained once you have signed a contract to purchase a property and you are proceeding with the purchase. Along with the approval of your income and liabilities, it also confirms that the property and its value being in an acceptable location and purchase price.
    

Borrowing Capacity & Deposit
 

1. How much can I actually borrow? This depends on the types of incomes that you receive, and the timeframe that you have been receiving these incomes. Each bank assesses income differently, so your borrowing power will be different with each bank. You may also wish to go with a non-bank and depending on your circumstances you may be able to borrow more than with a bank.
    

2. How much deposit do I need? As a general rule, 5–20%. The smaller the deposit, generally the higher the loan interest rate and the more fees you will be required to pay. There are exceptions to this with the current government schemes and some banks having special rules on lower deposit amounts.
    

3. How do my credit card limits affect my borrowing capacity? The limit of your card/s, regardless of how much you use them will reduce your borrowing capacity as the limit is considered a debt in the eyes of the bank. If you do have credit cards, we can calculate your borrowing capacity with the card and then without, to give you the option to either cancel or reduce your credit card limit prior to filing a loan application if a higher borrowing limit is important to you.
    

4. What is Lenders Mortgage Insurance (LMI) and how can I avoid it? LMI is an insurance that protects the bank, not you, when you have less than a 20% deposit. You can avoid it by purchasing under the Home Buyer Scheme if you qualify, or have at least a 20% deposit. There are a few banks who will consider less than a 20% deposit with no LMI but the do charge higher interest rates to cover this.
    

5. Do I qualify for any first-home buyer grants or schemes? Depending on your state, you may be eligible for stamp duty exemptions or reductions if your purchase price is within the policy limits. In NSW for example, there is no stamp duty payable on purchases up to 800K with some discounting for properties between 800k to 1mil.
    

6. How does the First Home Guarantee (formerly FHOG) 5% deposit scheme work?. The government is waiving the LMI if you can show evidence of a 5% deposit. Property price limits vary between states and regional/city locations.
    

7. Can I use my superannuation to buy my first home?. You cannot use your employer superannuation contributions toward the purchase of your home
    

Property Buying & Settlement
 

1. What is stamp duty and how do I pay it? Stamp duty is a government tax payable when you purchase a property. It is payable on or before settlement of your property purchase. Each state and territory calculates stamp duty differently and has different concessions for first home buyers. Look at my calculators page at “Property Fees” to enter your state and purchase price to determine the stamp duty payable.
    

2. Do I need a solicitor or conveyancer? Yes, they organise the legal side of your property purchase. The real estate agent will ask you who you wish to engage once your offer to buy a property is accepted. If you do not know a conveyancer I can provide recommendations.
    

3. What is a cooling off period? This is the timeframe after signing a contract to purchase a property to opt out of the purchase if there are building issues or if you cannot secure the loan. The cooling off rules vary in each state. In NSW, if you are not buying under auction conditions (which have no cooling off period), you pay a 0.25% deposit and have between 5-10 days to decide if you are going to proceed with the purchase. If you choose to opt out, you lose the 0.25% deposit you have paid but you are no longer obligated to buy the property and the contract is cancelled.
    

4. What is "rate lock" and should I get it?. If you would like a fixed rate home loan, the interest rate is set for a nominated period of time, regardless of the RBA announcements. If you Rate Lock, you are confirming the fixed interest rate to remain the same from the time of your application til the date that you settle on the property. Most banks charge a non-refundable fee to lock in the rate. If you choose not to lock the rate and the fixed rates increase between the time of the loan application being filed and the date of settlement, you will receive the fixed rate available at the date of settlement.
    

5. What is settling a loan?. The settlement date is the date that you are the official owner of the property. This is the date that the real estate agent provides you with the keys to the property, or you become the landlord of the property if there is already a tenant living in the property. The settlement period, the time between signing a contract to purchase a property and the date that you become the owner, is generally 6 weeks in NSW and 4 weeks in Queensland. These timeframes can be negotiable at the time of signing the contract if both the buyer and seller agree.
    

Refinancing & Long-Term Management of My Home Loan
 

1. Is my current interest rate still competitive? Before considering refinancing, ask your current bank if you are on their cheapest interest rate possible. Then provide that rate to your broker. If there is a difference between what your current bank is offering vs the rates of other banks, it may be worth refinancing. Budget approximately $1,000 to refinance from one standard bank to another.
    

2. Should I consolidate my debts into my mortgage?. If you are struggling to pay your mortgage and your other debts e.g. car or personal loans and credit cards each month, paying off the additional debts via an increase on your home loan may be recommended. Your total monthly repayments will be much cheaper than the minimum monthly repayments you would currently be paying for those other loans. Note that the interest payable over the home loan term may be more than if you paid each non-home loan off over their short loan period.
   
   It may also be beneficial to consolidate your debts if you are looking to increase your borrowing capacity for either a larger home or to buy an investment property due to the monthly repayment being lower than the sum of your current monthly loan repayments against each debt.
    

3. How often should I review my mortgage? Ideally annually. I conduct a yearly home loan check to determine if your home loan is still competitive or if there are cheaper options for you