Frequently Asked Questions

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.

Typically what sort of paperwork will a bank require to obtain a loan?

Usually the bank will first want to verify your income. They will do this by looking at your Paylips, bank statements, group certificate and possibly a letter from your employer. The bank will then also want to check your current liabillites and will usually want bank statements for any other home loans, personal loans, car loans and credit cards.

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 much do mortgage brokers typically charge?

Most mortgage brokers offer a free service as they are paid by the bank for introducing the loan. Most lenders will pay a very similar amount but the commissions do vary slightly.

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 should I think about insurance for myself in case I am unable to work?

This should be looked at time of application. This way you have your insurance in place by settlement and have comfort in knowing that if you are injured and unable to work you have funds coming in to cover your mortgage and assist with living expenses.

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.

How much can you borrow?

You borrowing power will be dependent on your income vs your expenses. So the bank will look at how much money you have left at the end of every month to pay for a mortgage. To find out how much you can borrow simply complete our qualification form and we will provide you with your borrowing power against our panel of lenders. Link to qualification form