Frequently Asked Questions

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- Our services are completely free of charge. We are paid a fixed commission fee by the lender of your choice, fully disclosed to you.

 - Refinancing is the process of replacing an existing mortgage with a new one, usually with better terms, such as a lower interest rate, shorter loan term, or different type of mortgage.

Refinancing can be a good idea in several situations, including:

1. Lowering your interest rate: If current interest rates are lower than what you're currently paying, refinancing could save you money in the long run by reducing your monthly mortgage payment and overall interest paid over the life of the loan.
2. Shortening the loan term: Refinancing from a 30-year to a 15-year mortgage can save you a lot of money on interest and help you pay off your mortgage faster.
3. Switching from a variable rate to a fixed-rate mortgage: If you have a variable rate mortgage and interest rates are rising, refinancing to a fixed-rate mortgage could provide stability and protect you from future rate hikes.
4. Getting rid of mortgage insurance: If you have enough equity in your home, refinancing to a conventional loan could allow you to eliminate mortgage insurance payments.
5. Consolidating debt: Refinancing can be a good way to consolidate high-interest debt, such as credit card balances or personal loans, into your mortgage payment, which typically has a lower interest rate.

However, it's important to note that refinancing does come with costs, such as closing costs, so it's important to weigh the potential savings against the upfront costs before deciding if refinancing is right for you.

- There are several benefits to using a mortgage broker when shopping for a mortgage:

1. Access to multiple lenders: A mortgage broker has access to a network of lenders and can help you find the best mortgage rates and terms to fit your individual financial situation and goals.
2. Expertise and guidance: A mortgage broker can provide expert guidance throughout the entire mortgage process, from pre-approval to closing, and can help you navigate any challenges that may arise.
3. Saves time and effort: Instead of shopping around to multiple lenders yourself, a mortgage broker can do the legwork for you and present you with several options to choose from.
4. Potentially better rates: Because mortgage brokers work with multiple lenders, they may be able to negotiate better rates and terms on your behalf.
5. More options for unique situations: If you have a unique financial situation, such as being self-employed or having a lower credit score, a mortgage broker may be able to help you find lenders that specialize in these types of situations.
6. More flexibility in the mortgage process: Mortgage brokers can offer a wider variety of mortgage products than traditional lenders, which can provide more flexibility in terms of payment options, down payment requirements, and other factors.

Overall, using a mortgage broker can help simplify the mortgage process, save you time and effort, and potentially save you money by finding you the best mortgage rates and terms for your specific needs.

 - The requirements for getting a mortgage in Australia can vary depending on the lender and the type of mortgage you are applying for, but here are some common requirements:

1. Good credit score: Lenders in Australia typically look for a credit score of at least 620 for a conventional mortgage, but some lenders may require a higher score. A good credit score can also help you secure a lower interest rate on your mortgage.
2. Stable income: Lenders want to see that you have a stable income and that you can afford to make your monthly mortgage payments. You'll typically need to provide documentation of your income, such as pay stubs, tax returns, and bank statements.
3. Low debt-to-income ratio: Lenders will look at your debt-to-income ratio (DTI), which is the percentage of your monthly income that goes towards debt payments. A DTI of 43% or lower is generally required for a conventional mortgage, but some lenders may allow for higher DTIs.
4. Down payment: Most lenders in Australia require a down payment, typically ranging from 5-20% of the home's purchase price. Some loans, such as the First Home Loan Deposit Scheme, may allow for a smaller down payment.
5. Property valuation: Before approving a mortgage, lenders will require a property valuation to determine the value of the home. This helps ensure that the property is worth the amount you're borrowing.
6. Lenders mortgage insurance (LMI): If you make a down payment of less than 20%, you may be required to pay for lenders mortgage insurance to protect the lender in case you default on the loan.
7. Other costs: You'll also need to pay for other costs associated with buying a home in Australia, such as stamp duty, conveyancing fees, and building and pest inspections.

Overall, getting approved for a mortgage in Australia requires a combination of good credit, stable income, and financial readiness. It's important to work with a reputable lender or mortgage broker who can guide you through the process and help you understand the requirements for the specific mortgage product you're interested in.

- There is no difference between the service times. However, different banks/lenders may have different processing times; once a particular lender and product are selected, there is no difference between going directly to the bank/branch or a Mortgage Broker processing your loan application.  this item.

- In Australia, the maximum amount you can borrow for a mortgage is determined by several factors, including:

1. Income: Your income will play a significant role in how much you can borrow. Lenders will assess your income and employment status to determine whether you can afford the repayments on the loan. In general, lenders prefer borrowers to have a stable and consistent income source.
2. Loan-to-value ratio (LVR): The LVR is the amount of the loan compared to the value of the property. In Australia, most lenders will not lend more than 80% of the property's value without requiring Lenders Mortgage Insurance (LMI).
3. Credit history: Lenders will assess your credit history and credit score to determine your ability to make loan repayments. A good credit score will increase your chances of being approved for a larger loan amount.
4. Expenses: Lenders will also take into account your expenses, including any other debts you may have, to determine how much you can afford to borrow.
5. Property type: The type of property you are purchasing may also affect the amount you can borrow. Some lenders may not lend for certain types of properties, such as apartments or units in high-rise buildings.

It's important to keep in mind that while you may be able to borrow a large amount, it's important to consider whether you can comfortably afford the repayments. You should also factor in any associated costs, such as stamp duty and conveyancing fees, when determining how much you can borrow.

 - Stamp duty is a tax that is imposed by the Australian state and territory governments on certain transactions, including the purchase of property. In Australia, stamp duty is a one-time tax that is payable by the buyer of a property, and the amount of the tax varies depending on the state or territory where the property is located.

The amount of stamp duty payable is usually calculated based on the purchase price of the property, although there may be additional factors that affect the amount of tax payable, such as the type of property, whether the property is being purchased as an investment or as a primary residence, and the buyer's residency status.

Stamp duty rates and thresholds can vary between different states and territories in Australia. Some states and territories may offer exemptions or concessions for certain types of buyers or properties, such as first-home buyers or properties purchased for investment purposes.

It's important to factor in stamp duty when calculating the total cost of purchasing a property in Australia, as it can be a significant expense. The exact amount of stamp duty payable can be calculated using online stamp duty calculators provided by each state and territory government.

- Lenders have implemented online verification since Coivd-19, however, we do prefer face-to-face. If this is not possible, video meetings are available