Answers to some of our most commonly asked questions!
If you have any questions that have not been answered below, please contact our friendly team for more advice.
The discovery call is a relaxed, no pressure conversation, usually around 15 minutes. We’ll talk about where you’re at, what you’re working with, and what you’re hoping to achieve. You don’t need to have everything figured out before you call. Most people don’t.
We won’t be providing formal credit advice or crunching specific numbers at this stage. It’s just an honest chat to help us understand your situation and give you a clearer idea of what your next steps might look like.
It varies depending on your situation and the lender, but as a general guide most people go from initial conversation to formal approval somewhere between four to eight weeks. Settlement timing is then usually set by your contract with the vendor.
Some applications move faster, some take longer, particularly if documentation takes time to gather or if the lender has a longer assessment queue. We’ll give you a realistic picture of timeframes once we know more about your situation
Most lenders will want to see evidence of your identity, income, savings, and any existing debts or liabilities. In practice that usually means things like payslips, bank statements, tax returns if you’re self-employed, and a copy of your ID.
The exact requirements vary depending on your employment type and the lender. Once we understand your situation we’ll give you a clear list of what you’ll need so there are no surprises.
Pre-approval is an indication from a lender of how much they may be willing to lend you, based on an assessment of your financial situation. It’s not a guarantee of formal approval, but it gives you a working budget and can help you search with more confidence.
You don’t strictly need pre-approval before you start looking at properties, but it’s generally a good idea. It helps you understand what’s realistic, avoid falling in love with something out of reach, and can strengthen your position when you do find the right place.
Existing debt doesn’t automatically rule you out, but it does affect your borrowing capacity. Lenders look at your overall financial position, including any personal loans, car loans, credit cards, or HECS debt when assessing what they’re willing to lend.
In some cases it’s worth paying down certain debts before applying. In others it makes more sense to proceed as is. It really depends on the full picture.
A less than perfect credit history doesn’t necessarily mean you can’t get a home loan, but it does affect your options. Some lenders are more flexible than others when it comes to credit history, and part of our job is knowing which lenders are likely to look at your situation more favourably.
What matters is the full picture. How old any issues are, what they relate to, and what your financial position looks like now. If this applies to you, be upfront about it in your discovery call. The earlier we understand your situation, the better we can help you plan your next steps.
It depends on the scheme. The First Home Guarantee, for example, does allow joint applications, but both applicants generally need to meet the eligibility criteria, and the requirement that neither applicant has previously owned property in Australia.
Eligibility rules vary between schemes and can change over time. If you’re looking to buy with a partner, friend, or family member, book a call and we’ll walk you through which schemes you may both be eligible for and what the options look like.
A guarantor is typically a parent or close family member who uses the equity in their own property to support your home loan. This can reduce, and in some cases eliminate, the deposit you need to purchase. It’s one of the more powerful options available to first home buyers, but it’s important to understand what it means for the person going guarantor.
The guarantor is putting their own property up as security. If the borrower is unable to meet their repayments, the lender can make a claim against the guarantor’s property. It’s a significant financial commitment and not a decision to be made lightly.
We always recommend that anyone considering going guarantor seeks independent legal and financial advice before proceeding. It needs to be the right fit for everyone involved, not just the buyer.
Lenders Mortgage Insurance is a cost that some lenders require when a borrower has a deposit below 20%. Despite the name, it protects the lender, not you, in the event that you’re unable to repay the loan.
The cost varies depending on the loan amount and the size of your deposit, and it can range from a few thousand dollars to significantly more. It can sometimes be added to your loan rather than paid upfront, though this means you pay interest on it over the life of the loan.
For some buyers LMI is worth paying to get into the market sooner. For others there are alternative pathways worth exploring first. We’ll help you weigh up what makes sense for your situation.
Stamp duty is a state government tax applied to property purchases. In NSW, the amount varies depending on the purchase price of the property.
The good news for first home buyers is that the NSW government offers stamp duty exemptions and concessions for eligible purchases. As a general guide, eligible first home buyers purchasing below certain price thresholds may pay no stamp duty at all, while those purchasing above that threshold may be eligible for a partial concession.
Eligibility criteria and thresholds can change, so it’s worth checking the current rules before you start budgeting. We can help you understand what might apply to your situation and factor it into your overall planning.
A fixed rate home loan locks in your interest rate for a set period, usually between one and five years. This means your repayments stay the same regardless of what happens to interest rates in the market, which can be helpful for budgeting.
A variable rate home loan moves with the market. If rates go down, your repayments may decrease. If rates go up, they may increase. Variable loans often come with more flexibility such as the ability to make extra repayments or access an offset account.
Some borrowers choose to split their loan between fixed and variable to get a bit of both. There’s no universally right answer, it depends on your priorities, your financial situation, and what’s happening in the market at the time. We’ll help you understand the trade-offs so you can make an informed decision.
Borrowing capacity refers to the maximum amount a lender may be willing to lend you based on your financial situation. Lenders assess things like your income, living expenses, existing debts, and the number of dependants you have when working out how much they’re comfortable lending.
It’s worth noting that your maximum borrowing capacity and the right amount to borrow aren’t always the same thing. Borrowing to your absolute limit can leave very little room for life to happen – rate changes, unexpected expenses, changes in income. Part of our job is helping you understand both what a lender may approve and what feels genuinely comfortable for your lifestyle.
Our service doesn’t cost you anything directly. Mortgage brokers are paid by the lender once your loan settles, through two types of commission – an upfront commission based on your loan amount, and a trail commission paid monthly based on your remaining loan balance for as long as the loan stays with that lender.
These commissions are paid by the lender and don’t affect the interest rate or features you receive. We’re required to act in your best interests and disclose our commissions to you, which we do as part of the process.
Absolutely! And honestly, the earlier you talk to us the better. A lot of people wait until they feel “ready” before reaching out, but that first conversation is often the most valuable one.
If you’re 6, 12, or even 24 months away from buying, we can help you understand what you’re working toward, how to structure your savings, and what steps to take in the meantime to put yourself in the best possible position when the time comes.
There’s no obligation and no pressure. If you’re thinking about buying your first home, even if it feels a long way off, book a call and let’s have a chat.