Our Lenders

Frequently Asked Questions

  • How are brokers are paid?

    Mortgage brokers are typically paid for introducing home loans to banks and mortgage lenders. In most cases a broker will be paid an upfront remuneration of between 0.5% to 0.75% of the loan amount. This is usually paid thirty to sixty days after the loan settles. In addition to this brokers are usually also paid (but no always) a trailing commission of between 0.1 to 0.4% of the loan amount, whilst the loan remains in place with the lender. This is usually paid on a monthly basis. For example, on a $400,000 loan, a broker may receive an upfront payment of 0.6%, which would equate to $2,400 and trailing remuneration of 0.25%, which would be $83 per month. There are no additional fees for borrowers to pay to cover this remuneration and as such they are not disadvantaged by engaging a broker as opposed to dealing direct with a bank.

  • What are documents you will require for approval?

    In most circumstances you will require the following documents to obtain finance approval

    • Copy of 100 points ID (passport, Drivers license, Medicare card)
    • Last 3 months bank statements showing your savings history, and also your account that receives your wages/income
    • Most recent statement for any personal/car loans and credit cards you currently hold
    • Copy rates notice for any other property you own, rental income statement/lease agreement and latest home loan statements associated with that property
    If you are a “pay as you go wage earner” (PAYG) then you will require
    • Your most recent two payslips
    • Your latest PAYG/group certificate
    • Copy of your employment contract
    If you are self-employed, you will require
    • Last two years tax return for you, your company/trust and associated entities
    • Last 2 years profit and loss and balance sheet for you company/trust
    • Your last 2 years notice of assessments from the Australian Tax Office
    Depending on your individual situation the following may also be required
    • If a permanent resident or on a temporary visa, a copy of your passport page identifying this document
    • A copy of your marriage certificate if you have statements or assets in a previous name
    • Copy of the contract of sale for the new property you are purchasing, if you have signed a contract
    • A copy of your building contact you have signed if applicable
    • Centrelink notice for any family assistance or other government income received
    • A copy of your industry membership if working in the medical, legal or accounting professions
    • Letter from any individuals gifting you funds for the purchase of your new home
    Please note whilst we have attempted to include all possible information that may be required, in some instances there may be other documents that the lender requires than what is listed from the above.

  • What is an offset account and how do they work?

    An offset account is an everyday bank account that sits next to your home loan and reduces the amount of interest you pay on your home loan, by the amount sitting in your offset account. For example if your home loan balance was $500,000 and you had $10,000 in your offset account, you would only pay interest on $490,000. If you removed $5,000 from your offset account, and your balance was now $5,000, you would pay interest on $495,000. Because interest is calculated daily, everyday you can leave funds in your offset account, will reduce the amount of interest you pay and assist you with paying off your home loan faster.

  • Is a fixed or variable rate home loan best and what is the difference?

    Just as it sounds, a fixed rate home loan involves locking in a certain interest rate for a fixed period of time, usually 1 to 5 years. The advantages of a fixed rate are

    • Provides you with certainty of exactly what your repayments will be for the fixed rate period
    • Your home loan rate is locked in the agreed interest rate even if interest rates increase
    The disadvantages to a fixed rate home loan are
    • You are usually limited in paying off extra during the fixed rate period (often $10,000 extra per year) and charges may apply if you exceed this amount
    • Offset accounts, are usually not available
    • Large break/exit fees can apply if you end the loan within the fixed period
    A variable rate home loan, is based on an interest rate that can move up or down, which is at the banks discretion and often follows movements of the Reserve Bank of Australia. Advantages
    • Variable rates are usually quite flexible, allowing you to pay extra at any time and redraw on extra funds you have paid
    • Often an offset account is available
    • Only limited fees apply if you pay the home loan out early and ahead of time (often between $300 to $400)
    Disadvantages
    • If interest rates go up, you interest rate will likely go up and as will your repayments
    • There is no certainty as to what your repayments will be in the future

  • How long does it take it get pre-approved

    Getting pre approval on your finance involves the bank assessing your borrowing power and how much you can afford to borrow and repay each month. Once submitted, pre-approval is usually received in 3 to 5 business days

  • Once I purchase a property how long until my repayments start?

    Typically your first repayment will be one month after settlement of your property. Your repayments will then be weekly, fortnightly or monthly depending on what you have chosen in your loan documents.

  • What is mortgage insurance?

    Mortgage insurance is cover taking out by the lender/bank when they are approving a client who has less than 20% of the purchase price of the property. Typically this can be added onto the loan.

  • When do I receive the First Home Owners Grant?

    Typically if you have your bank/broker organize the forms the funds will be paid on settlement of your property

  • How do banks calculate how much you can borrow?

    Quite simply by looking at your income vs your expenses. Income can include items such as wages, rental income from investment properties, dividends from shares, family allowance and various forms of pensions.

Testimonials

Thanks to the Lion Financial team for your help and support through the purchase of the property. Big thanks to Robyn for answering all my questions, regardless of how silly they were. Really appreciate it. David Ross
Richard was professional and very helpful throughout this process. He kept us informed and helped to smooth over issues that arose. Richard has followed through and helped us to navigate through changing banks and setting up accounts. After being with the one bank for 37 years we would never have undertaken this without his expert help. We would have no hesitation in recommending Richard to family and friends. Annette and Matthew Hoger.
Very professional. Thanks for the help. Ben Davidson
We would like to add, that our advisor Richard Jefferies has been of great value and shown us interest and kindness with all our dealings with him over many years and have no qualms in referring him to friend and colleagues, he is one great and trustworthy advisor and we think greatly of him. Marie and Stephen Goodwin.
Hi Richard and Robyn. We are really grateful for the hard work and responsibilities taken over by your team during our mortgage process. We also highly recommended Lion Financial to our friends and families. We will contact you all for our future financial interactions. Thanking you Shibu Moothedan and Celine Shiby.
Richard was fantastic to deal with, explained and answered all of our questions to our understanding. Robyn was lovely, very helpful especially when it came to settlement day and we had a few minor issues with the bank. Great service, highly recommended. Monique and Josh.
Once again, we were very happy with the service. The whole process was made hassle free thanks to Robyn and Richard. We will continue spreading the word to everyone we know. Jacinta and Greg.
We would like to thank everyone involved in this transaction in their hard work and communication throughout the whole process. Phil and Helen.
Richard Jefferies and Robyn Yould have been great. We have trusted them along the way and they have provided great service. As new home owners we appreciate the service we received. Richard was always available to attend to our requests and questions. We are recommending Lion Financial to friends and family. Fatima Naim and Ehsan Eftekhari.
A very big thank you to Lion Financial especially Richard J. for organising our loan finance and doing all the hard work which we would never have done without him, despite plenty drawbacks obstructing our finance, he finally made it happened. Thanks Richard and his team again, highly recommended. Cheers Sashi and Raj
Richard Jefferies was very courteous, professional and efficient throughout the transaction. Wouldn't hesitate to refer family and friends to him as he did a great job. Ronnie and Fiona.
It was a pleasure dealing with Richard Jefferies and I would definitely recommend his business to others. Lorraine.
All in all, both Kristy and I couldn't be happier with the service that was and is provided. I will have no hesitations recommending Richard's services to any friends or family. Thank you for your support and I look forward to the next level of financial assistance we receive from you. Cheers Shayne Mayers.
Was a struggle at times (and frustrating) but I knew that wasn't Richard's fault so overall, I am happy. I am in my new home and that's all that matters. I would definitely go through Lion again for my next loan. Cheers Aimee.
I would like to take this opportunity to say a big thanks for Richard for making an effort to see us at our home throughout the loan application. Chan Kim.
Thanks Richard! All in all you did a great job and were very contactable at any time of the day and on weekends when I was stressing about finance for properties. You made the whole process very smooth and easy. Cheers Paul.
We found the level of communication from your representative to be of a very high level of professional and very helpful throughout the process. Nothing was a problem. A very good experience overall. Thank you. Meg and Stewart Burnside.
Richard, you have been fabulous as you could see, this was way out of my field and I so, so much appreciate your hard work. No doubt I was one of your more "awkward" clients. Thank you for setting me up, setting me straight, and organising the part of my life I didn't want to handle. Love your work. Helen.
Thanks Richard. All your help has been much appreciated. Kate and Kane.
Richard met and exceeded all expectations would highly recommend him, and we are grateful and happy in our new home. Thankyou Richard. Marcus and Ruth.
Our consultant was Richard Jefferies, and his service was fantastic. He was very professional and supportive considering the length and complexity of our finance application. We look forward to dealing with Richard again in the future, and will be referring friends and family to Lion Financial. Thank you again Jenna and David.
Richard provided an excellent service making his self-available outside normal hours to ease our angst. Cheers Ed.
We were extremely impressed with the service that Richard Jefferies provided to us. Helping us gather the right information we required for our home loan. He went out of his way many a time to make sure we have everything signed and we had all the right documents required. Overall outstanding service. Carols and Sharon.
The whole experience was stress free and efficient. Richard is very pleasant to conduct business with. Karen.
Richard thank you for coming to see me at 8:30pm to help set up a loan. You were very professional and helpful. Great communication skills and follow up service, have a great rest of year. Miriam and Brian.
We would like to thank Richard for the professional help he has extended to us. Even though the process was a bit stressful, he was able to acquire a loan for us and we were able to buy the property that we wanted, which is what matters most. Nelson and Johanna.
Thank you for your help in setting up our home loan and your willingness to make yourself available at all times. Dallas and Kirsty.
My husband and I recently engaged Richard and his team at Lion Financial to help us find a home loan. I had my concerns about our eligibility for a home loan with me being self employed for less than two years. I had enquired with two other mortgage brokers who both told me it would be impossible. Richards attitude was completely different. He did everything he could to find a product that suited us and our situation and was completely open and honest throughout the process. His communication was second to none and he ensured the process was as stress free and convenient for us as possible. We ended up being able to buy a house that we absolutely love, which never would have been possible had we not asked Richard for help. I can't recommend Richard and his team highly enough!Libby.

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