Frequently Asked Questions
Why should I use a mortgage broker?
A mortgage broker acts on your behalf to compare loan options from a broad panel of lenders across Australia.
Rather than approaching banks individually, we assess your circumstances and recommend solutions aligned with your financial goals. We manage the process from application through to settlement — saving you time and providing clarity at every stage.
What happens at the first appointment?
During your initial consultation, we discuss your financial position, objectives and timeframe.
We review your income, expenses, assets and liabilities to assess borrowing capacity and outline suitable lending options. Providing identification, income documents and details of existing debts will allow us to give you more accurate guidance.
How long does loan approval take?
Approval timeframes vary depending on the lender, application complexity and current processing volumes.
As a general guide:
- Pre-approval may take several business days to a few weeks
- Formal approval is issued once the property and supporting documents are assessed
We monitor the process closely and keep you informed throughout.
What is Loan to Value Ratio (LVR)?
Loan to Value Ratio (LVR) represents the percentage of the property’s value that you are borrowing.
For example, borrowing $800,000 against a $1,000,000 property equates to an 80% LVR. Loans above 80% LVR may require Lenders Mortgage Insurance (LMI), depending on lender policy.
What is Lenders Mortgage Insurance (LMI)?
LMI is insurance that protects the lender in the event of loan default. It does not protect the borrower.
It is generally applicable when borrowing more than 80% of the property value and may be capitalised into the loan, subject to lender approval.
What is a mortgage assessment rate?
When assessing your borrowing capacity, lenders apply an assessment rate that is higher than the actual interest rate.
This built-in buffer ensures borrowers can manage repayments if interest rates increase. Assessment rates vary between lenders and loan products.
Should I choose a fixed or variable interest rate?
Fixed-rate loans provide certainty of repayments for a set period.
Variable-rate loans offer greater flexibility and may include features such as additional repayments or offset accounts.
The appropriate structure depends on your financial objectives, risk tolerance and need for flexibility. We guide you through these considerations before you decide.
Do I need building insurance before settlement?
For established properties, lenders require evidence of building insurance prior to settlement.
For construction loans, insurance requirements differ depending on the stage of the build and lender policy.
Can I change employment during my loan application?
It is generally advisable not to change employment or significantly alter your financial position while your application is under assessment.
If your circumstances change, please notify us promptly so we can advise on the appropriate course of action.
How can I improve my borrowing capacity?
Borrowing capacity may be improved by:
- Reducing unsecured debts
- Lowering credit card limits
- Maintaining stable and consistent income
- Reviewing loan structure
- Managing existing liabilities effectively
We can assess your individual position and provide tailored guidance.
What documents are typically required for a home loan application?
Common documentation includes:
- Identification
- Recent payslips or tax returns
- Bank statements
- Details of existing loans or credit facilities
- Contract of sale (once a property is secured)
Additional documentation may be required depending on your employment type and the lender’s criteria.