FAQs

We specialize in providing comprehensive solutions to effectively manage property portfolios, helping our clients maximize their returns on real estate investments. Our focus is on educating and supporting our clients throughout the home loan application process, addressing any concerns or uncertainties they may have. Our dedicated team will guide you through each step, working closely with your solicitor and real estate agent to facilitate a seamless settlement. We go beyond the settlement phase, offering ongoing assistance and an alternative to traditional bank call centers for personalized advice and support. Our commitment extends beyond loan approval, as we conduct regular reviews to ensure your loan remains aligned with your changing needs while keeping you informed of any interest rate changes. Furthermore, we collaborate with financial planners, accountants, buyer's agents, renovation specialists, and building inspectors, ensuring comprehensive support and in-depth expertise throughout your mortgage journey.

The quality of a property as an investment depends on your investment stage and specific requirements. Factors such as location, the potential for appreciation, positive cash flow, low vacancy rates, favorable financing, strong rental market, property maintenance, diversification, realistic risk assessment, and long-term investment perspective determine a profitable property investment. For first-time home buyers, transitioning from renting to paying your mortgage is a significant step, and any property you can afford becomes a good investment.

When choosing between an established property and an off-the-plan property, consider factors like possession needs, customization preferences, capital growth potential, rental income prospects, market conditions, location desirability, financing options, and risk tolerance. However, it is worth noting that established properties generally offer more practicality compared to off-the-plan purchases or home and land packages, which often involve long wait times that can be affected by changes in the lending environment and may result in stressful settlement processes. Evaluating these factors in light of your specific circumstances and goals can help you determine which option is most suitable for you.

Typically, when buying a property, a deposit of 20% of the purchase price is generally required. However, it is possible to secure a property with as little as a 10% deposit. In addition, there are government initiatives such as the FHLDS (First Home Loan Deposit Scheme) that enable eligible buyers to borrow with a deposit as low as 5%. These initiatives aim to assist individuals in entering the property market with a reduced upfront payment.

The costs of buying a property can vary depending on various factors, but here are some common costs to consider: Lender's Fees: These include application fees, loan origination fees, and valuation fees charged by the lender for processing and approving your mortgage loan. Conveyancing or Legal Fees: These are the fees paid to a solicitor or conveyancer who handles the legal aspects of the property purchase, including title searches, contract review, and transfer of ownership. Stamp Duty: Stamp duty is a tax imposed by the government on property transactions. The amount varies depending on the property value, location, and whether you are a first-time buyer or not. Building and Pest Inspections: It is advisable to get a professional inspection done to assess the condition of the property for any structural or pest-related issues. These inspections come with a cost. Mortgage Insurance: If your deposit is less than 20% of the property value, lenders may require you to pay mortgage insurance, which protects the lender in case of default. The cost of mortgage insurance depends on the loan amount and the loan-to-value ratio. Property Valuation: Lenders often require a professional valuation to determine the property's market value. Some lenders may pass the valuation fees to the clients. This cost is usually borne by the buyer. Home and Contents Insurance: You will need to arrange insurance coverage for your new property to protect against potential damages, theft, or other risks. Moving Costs: These include the cost of hiring professional movers, transportation, and any storage fees if needed. It's important to note that these costs can vary depending on factors such as location, property type, and individual circumstances. It is recommended to consult with professionals such as mortgage brokers, solicitors, and real estate agents to get a clear understanding of the specific costs involved in your property purchase.

The choice between a fixed-rate or variable-rate loan depends on individual circumstances. A fixed-rate loan offers stability with a set interest rate for consistent payments, suitable for those who prefer a predictable budget. A variable-rate loan provides flexibility with rates that can change based on market conditions, beneficial for individuals comfortable with potential fluctuations. Factors such as available savings for repayments or keeping in an offset account, as well as the need for payment security over a fixed period, also influence the decision. Consider factors like risk tolerance, future plans, and consult a mortgage professional to determine the best loan option.

The speed of loan approval can vary, but typically it takes a few days to a few weeks. The timeline depends on factors such as the lender's processes, the complexity of your financial situation, and the completeness of your application. To expedite the process, provide all necessary documents promptly, respond quickly to any lender inquiries, and ensure your financial information is accurate. Working with a mortgage broker can also help streamline the approval process and provide guidance on speeding up the timeline.

Lenders’ Mortgage Insurance (LMI) is incurred when you do not have the full 20% deposit. LMI is one way of purchasing a property without having the 20% deposit and is typically required by most banks and financial institutions. LMI can be waived for clients in certain professions such as accountants, lawyers, or medical professionals. With LMI, lenders may allow you to capitalise this onto your loan amount to a certain limit. It may also enable you to borrow at an interest rate that is comparable to a borrower who has a larger deposit.

Whether it is beneficial to pay Lenders Mortgage Insurance (LMI) depends on your individual circumstances. LMI is typically required by lenders when the borrower has a deposit of less than 20% of the property value. Paying LMI allows you to obtain a loan with a smaller deposit, enabling you to enter the property market sooner. It can be a viable option if you are unable to save a larger deposit in the near term or if property prices are rising rapidly. Also, If you are a first home buyer, it is wise to pay LMI if the LMI is less than your annual rent. However, it's important to consider the additional cost of LMI. It is typically added to your loan amount and accrues interest over time. To determine if paying LMI is beneficial for you, you should weigh the cost of the premium against the benefits of entering the property market sooner. We as a mortgage broker assess your specific situation and provide personalized advice.

The difference between an owner-occupier home loan and an investment loan lies in the purpose of the property being financed: Owner-Occupier Home Loan: This type of loan is used when purchasing a property that will be occupied by the borrower as their primary residence. The borrower intends to live in the property and it is not being acquired for investment purposes. Owner-occupier home loans typically have lower interest rates compared to investment loans and may offer additional features such as offset accounts or flexible repayment options. Lenders may also require a lower deposit for owner-occupier loans. Investment Loan: An investment loan is used when purchasing a property with the intention of generating rental income or capital growth. The borrower does not intend to live in the property but rather seeks to earn returns through rental income or potential appreciation in property value. Investment loans generally have higher interest rates compared to owner-occupier loans due to the higher perceived risk associated with investment properties. Lenders may also require a higher deposit for investment loans. As investment loan can be set to Interest Only, which helps investors repay only the interest – which assists with cash flow. It's important to note that eligibility criteria, interest rates, and loan features can vary among lenders, so it's advisable to compare different loan options and seek professional advice to determine the most suitable loan type for your specific circumstances and financial goals.

An offset account is a type of transactional bank account linked to a home loan or mortgage. It allows you to reduce the interest payable on your loan by offsetting the balance of the account against the outstanding loan amount. By utilizing an offset account effectively, you can potentially save on interest costs and shorten the term of your loan. Here's how it works: Let's say you have a home loan of $200,000 and an offset account with a balance of $20,000. Instead of earning interest on the balance of the offset account, the lender calculates interest on your loan based on the reduced loan amount of $180,000 ($200,000 - $20,000). This effectively reduces the interest charged on your home loan. The offset account operates like a regular transactional account, providing you with the ability to deposit and withdraw funds as needed. Some lenders may charge fees for maintaining an offset account. We as a mortgage broker help you understand the features and benefits of an offset account in relation to your specific loan.

A Self Managed Superannuation Fund (SMSF) is a type of superannuation fund that allows individuals to take control of their retirement savings and make investment decisions on their own. With an SMSF, individuals can borrow money to invest in residential or commercial property through a Limited Recourse Borrowing Arrangement (LRBA). This allows the SMSF to take out a loan to purchase a property, with the property itself serving as security for the loan. However, there are strict rules and regulations surrounding SMSF loans, and it is important to seek professional advice your accountant or financial planner (or both) to ensure compliance with the applicable laws before considering this option.

Yes! You can use the equity in your home as a deposit for an investment property. By refinancing your home loan or obtaining a line of credit, you can access the accumulated equity and reduce the additional funds required for the investment. However, it's important to carefully consider the risks and benefits associated with leveraging your home equity for investments. Seeking guidance from a financial professional is recommended to ensure it aligns with your financial goals and circumstances. Assessing your equity and borrowing capacity is essential. We can provide advice on tax-efficient structuring and protecting your home's equity position, while also keeping home loans and investment loans separate to avoid cross collateralization.

The frequency of your home loan repayments can be weekly, fortnightly, or monthly. The choice depends on personal preference and financial circumstances. Weekly or fortnightly repayments can help pay off the loan faster and reduce overall interest paid. Monthly repayments are more common and convenient. We help you to determine the best option for your financial goals and circumstances.

We recommend that clients provide comprehensive documentation when completing a loan application form. This typically involves providing a detailed history of residence and employment over the past three years. Our responsibility is to ensure that all sections of the form are properly filled out, as more information can help improve your credit score when the loan is submitted. We help clients to check unpaid defaults that allows us to address any credit-related issues with the lender and proactively work towards resolving or even removing them from your credit record.

While a bad credit history can impact your ability to obtain a loan, there are avenues to explore. Some lenders recognize that life circumstances can contribute to a less-than-perfect credit rating and are open to lending to individuals in such situations, although they may impose risk fees and higher interest rates. As mortgage brokers, we collaborate with lenders who specialize in assisting clients facing credit challenges. It is essential to prepare a strong loan application to maximise your chances of approval.