Frequently Asked Questions
Ready to provide you with advice and support We’ve answered the most common questions people ask us.
With over 70% of all home loan borrowers now using mortgage brokers you’re certainly not alone when it comes to needing advice and support.
Buying a home is a huge financial commitment – probably one of the most significant purchases you’re ever likely to make. To do this, you’ll need a mortgage.
The process of applying for a mortgage involves lots of parties; from mortgage brokers, to solicitors, to the lenders themselves. The time involved in getting a mortgage very much depends on your circumstances and can take anything from weeks to months. We’d generally recommend allowing yourself 30 to 45 days to complete the process.
To avoid any difficulties, it helps to do your homework and familiarise yourself with the factors that could affect your eligibility for a suitable mortgage deal, which will include:
- your employment status and salary
- how long you’ve been employed
- how much you spend each month (it’s advisable to have a record of your expenditure over the last few months)
- whether you’ve saved a large enough deposit (lenders normally require a minimum deposit of 5%)
- if you have any existing debts
- the strength of your credit rating
There is no magic number when it comes to a deposit, however in Australia most lenders require you to show a minimum of 5% – 10% of the purchase price plus enough in savings to cover your purchasing costs like stamp duty and conveyancing.
This means if you’re looking to buy a residential property with a value of $600,000, you’ll need a deposit somewhere between $30,000 (5% of $600,000) and $60,000 (10%). If you only have 5% we will need to show the bank that you have saved this cash over a 3 month period. There are exceptions to this so please contact us if you have circumstances that may be a bit different.
If you haven’t saved a deposit but are otherwise in a good financial position, you’ll need to qualify for what’s known as a guarantor or family pledge loan. A guarantor is usually a family member who is legally responsible for paying a limited amount of the loan, this is usually 20% percent, if you fail to keep up with your repayments. Guarantor loans come with a significant amount of risk and obligation to the guarantor so please contact us if you need help or have questions about these types of loans.
When a bank or lender is assessing your borrowing power, they consider how much income you earn, what your current credit commitments are, how much you spend each month on living expenses like food and transport and how many children you have.
Today Australian households typically have a mix of casual and permanent employment which will all be considered by most lenders. As each lender has different parameters, we recommend you have a chat with one of our brokers so we can help. If, however, you are looking for some basic information as a guide please check out our mortgage calculators.
You can see how much your approximate home loan repayment will be here at our mortgage calculators.
At the Sunshine Coast BrokerCo we have access to over 40 lenders with 100’s of products.
All lenders will base their credit decision on several variables, this always includes your credit score. If you are concerned about what your credit score is you can get a free report from Equifax.
Did you know that credit enquiries will impact on your credit score? Please be very careful when enquiring online for credit card balance transfers, interest free offers, ZipMoney or AfterPay and similar as all of those enquires will impact your credit score.
As part of the credit assessment process the bank wants to know that the property you are offering them as security is suitable. Sometimes this means that the bank will pay for an independent valuer to have a look at the property.
A valuation is not always required, and this will depend on the overall strength of the application. As we have been dealing with banks and valuers for years please give us a call about any valuation questions or concerns.
Yes, we are a paid commission from your lender after the successful settlement of your new loan. This commission will be disclosed to you before you apply and is not paid by you. All our support staff are permanently employed and are not offered any incentive to recommend one bank over another.
Brokers bring competition to the banks, to deliver you better savings.
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Let’s see how we can help find the right solution for you!
info@brokerco.com.au
Maroochydore Homemaker Centre, Level 1/11/55 Maroochy Blvd, Maroochydore QLD 4558, Australia
+61 7 5370 8333