HELPING YOU BUY YOUR HOME

Imagine making an offer on a property without having a clear understanding of your financial boundaries. Sounds risky, doesn’t it? By involving a Finance Broker early on, we help you understand your borrowing capacity and financial standing, therefore giving you the best possible chance to make informed financial decisions. Simply put, the offer you make on a property will then be backed by a solid understanding of what you can afford.

When you then eventually find your dream home and it comes time to organise your finance, the process can sometimes feel quite overwhelming. However as your dedicated Finance Brokers, we are here to guide you through every step of the journey.

Our role extends beyond simply finding a suitable loan. We will assist you in completing all necessary paperwork, handle the submission of your loan application, and oversee the entire process until settlement. Rest assured, we are committed to providing you with expert support and ensuring a smooth and efficient experience during a very exciting time in your life.

Whatever stage of the home buying journey you’re at, we are always here to help. Feel free to give us a call or email us and we’ll do everything to assist you.

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HOME BUYERS — COMMON QUESTIONS

What does a Mortgage Broker do?

A Mortgage Broker (also known as a Finance Broker) is essentially the “middle-man” between yourself and the bank. We deal with banks or other lenders on your behalf to to arrange your home loan.

Mortgage Brokers must act in your best interests when suggesting a loan for you.

A good Broker works with you to:

  • Understand your needs and goals.
  • Work out how much you can afford to borrow.
  • Find options to suit your situation.
  • Explain how each loan works and what it costs (for example – interest rate, repayments, features, fees and so forth).
  • Manage the entire process for you through to settlement.

How much money can I borrow?

There are many factors that impacts your borrowing capacity, including income, expenses, liabilities and more. As part of the process of working with us, this is something we discuss with you in depth.

How do I choose a loan that’s right for me?

That’s where we come in. It’s our job to find you the most suitable loan based on your needs and circumstances. There are hundreds of different home loans available, it’s just about finding the right one for you.

How much deposit do I need?

Lenders usually like seeing a 20% deposit for a home loan. This amount signifies the borrower’s financial commitment and responsibility. Without a 20% deposit, borrowers may need to borrow more than 80% of the property’s value, leading to additional costs such as Lenders Mortgage Insurance (LMI). However if you don’t have a 20% deposit, there is no need to worry; We will work with you and discuss your options.

How often do I make home loan repayments — weekly, fortnightly or monthly?

Most lenders offer flexible repayment options to suit your pay cycle. Aim for weekly or fortnightly repayments, instead of monthly, as you will make more payments in a year, which will shave dollars and time off your loan.

What fees/costs should I budget for?

There are a number of fees and costs involved when buying a property. To help avoid any surprises, the list below sets out many of the usual costs:

  • Stamp duty — This is the big one. All other costs are relatively small by comparison. Stamp duty rates vary between state and territory governments and also depend on the value of the property you buy. You may also have to pay stamp duty on the mortgage itself. To estimate your possible stamp duty charge, visit our Stamp Duty Calculator.
  • Legal/conveyancing fees — Generally around $1,000 – $1500, these fees cover all the legal requirements around your property purchase, including title searches.
  • Building inspection — This should be carried out by a qualified expert, such as a structural engineer, before you purchase the property. Your Contract of Sale should be subject to the building inspection, so if there are any structural problems you have the option to withdraw from the purchase without any significant financial penalties. A building inspection and report can cost up to $1,000, depending on the size of the property. Your conveyancer will usually arrange this inspection, and you will usually pay for it as part of their total invoice at settlement (in addition to the conveyancing fees).
  • Pest inspection — Also to be carried out before purchase to ensure the property is free of problems, such as white ants. Your Contract of Sale should be subject to the pest inspection, so if any unwanted crawlies are found you may have the option to withdraw from the purchase without any significant financial penalties. Allow up to $500 depending on the size of the property. Your real estate agent or conveyancer may arrange this inspection, and you will usually pay for it as part of their total invoice at settlement (in addition to the conveyancing fees).
  • Lender costs — Most lenders charge establishment fees to help cover the costs of their own valuation as well as administration fees. We will let you know what your lender charges but allow about $600 to $800.
  • Moving costs — Don’t forget to factor in the cost of a removalist if you plan on using one.
  • Mortgage Insurance costs — If you borrow more than 80% of the purchase price of the property, you’ll also need to pay Lender Mortgage Insurance. You may also consider whether to take out Mortgage Protection Insurance. If you buy a strata title, regular strata fees are payable.
  • Ongoing costs — You will need to include council and water rates along with regular loan repayments. It is important to also consider building insurance and contents insurance. Your lender will probably require a minimum sum insured for the building to cover the loan.

 

LET'S GET STARTED

Whatever your circumstances, we will look for a loan that’s right for you, not the bank. Send through a quick enquiry and we will be in touch.