Frequently Asked Questions
How much deposit do I need?
Most lenders will require customers to have at minimum a 5% deposit, however there are always exceptions. When calculating how much this is, it is important to take into consideration transfer duty (previously called stamp duty) costs. Transfer duty is calculated by the State Government and some people are eligible for waivers or concessions. More information on Transfer Duty in New South Wales can be found here.
Do Brokers charge fees for their services?
Brokers receive commission from the financial institutions. The Royal Commission has heavily regulated this structure to ensure brokers are always working in your best interests. Financial institutions also pay commissions to lending specialists within the bank. Therefore it makes no difference to the customer if you use an independent broker or a bank lending specialist. All commissions are clearly identified on your mortgage paperwork to provide customers with transparency to help make informed decisions.
How much can I borrow?
Your borrowing capacity (ie how much you can borrow) is dependent on a number of factors including credit history, current liabilities and assets, your personal situation and the purpose of the loan. Obtaining pre-approval is the best no-obligation way to understand how much you may be able to borrow. A lending calculator can provide an indicative guide and can be found here. Contact us for more information on how to obtain pre-approval.
What is the difference between using a broker and a bank?
A broker works on your behalf to find the best solution for your personal situation. This involves researching a number of different products across several different financial institutions. Banks can only provide you with products that they offer, meaning you may get 'shoe-boxed' into a product not right for your situation. Loan options include features such as offset, low doc, principle and interest or interest only, fixed or variable, line of credit, redraw and family guarantor. Brokers help navigate this process for you ensuring you have access to the right product for you. There are thousands of different loan options available to customers so it's important to find the right option.
Why do I need pre-approval when buying a house?
The housing market is currently very competitive with the average house only on the market in Sydney for 17 days before selling. There are often numerous buyers interested. Having your pre-approval sorted shows the real estate agents you are a serious buyer and makes your application far more competitive than others looking to purchase a home.