Frequently Asked Questions

Mortgage brokers are qualified finance industry professionals. They work with you to determine your borrowing needs and objectives, and to help you determine how much you can borrow. Brokers help to ensure that you don't take out a loan that is not right for you. Like your solicitor, accountant or financial planner, we are specialists in what we do and will provide you with a suitable finance solution to help you achieve your goals.

With a mortgage broker, you can expect a more personalised level of service than you would usually receive directly from a lender. Additionally, our brokers have access to finance products from a wide variety of lenders. This means your broker can compare lending products from different lenders to find a loan that's just right for you.

Some mortgage brokers charge a fee for their services and some don't. When you take out a loan via a mortgage broker, it does not cost you more in loan repayments. Brokers get paid a commission by the lender for bringing new business to them, but this does not impact your interest rate.

Some brokers charge a fee for their service. They must disclose this fee upfront to you so that you know what it will cost if you engage their services.

Absolutely not. First of all, there is very little difference between the commissions paid by the various lenders. There is also legislation in our industry called the National Consumer Credit Protection Act (or NCCP), that is designed to protect consumers and ensure ethical and professional standards in the finance industry. We tell you upfront what commission we will be getting from the lender. Our job, our only job, is to find a competitive loan for your needs and objectives.

Some brokers charge a fee for their service which they must disclose to you up-front before you engage their services. However, the costs of the loan are the same. These costs depend on the loan and lender you choose. If you want to save on loan costs, just tell us. We can locate loan products from the lenders with the lowest fees and charges.

There are specific factors that need to be considered when determining how much a customer can borrow, such as income, employment position, the deposit saved, current living expenses and any liabilities. Our borrowing calculator can give you a rough idea of how much you may be able to borrow. For a more accurate assessment, please give us a call and we can go into your options and discuss your circumstances in more detail.

A mortgage broker will recommend a product based on what you say is most important to you, for example, "pay my loan off quickly" or "guaranteed repayments" or "low cost". We do however, live by the following; "if you want flexibility take a variable rate loan, if you want budget certainty, take a fixed rate loan, if you want both, then do a split loan."

Sure thing! We work with clients all over the country. We are able to run appointments via video conference or simply over the phone.

We are Connective Brokers and we have access to many lenders. This means we can source you a loan from different lenders to provide you with a variety of options that are suitable for you and your situation.

Mortgage brokers do not set rates. The Reserve Bank of Australia meets 8 times throughout the year to determine the official cash rate for the country. The lenders then use this information to set their own rates. Lenders also adjust their rates according to their costs and other economic considerations.

Lenders will only sell you their own products. Each bank (or lender) has a variety of loan products on offer: low doc, package loans, loans with re-draw facilities, plant and equipment loans, fixed rate loans, interest only, interest in advance, variable, introductory variable and so on. The issue you face as a consumer is 'which loan is right for me?' And that is where your mortgage broker becomes an invaluable resource!

If you go direct to the bank, you will only be offered the loan options available through that one lender. As your mortgage broker, we do all the leg work to find the right loan for your needs. We are across many lenders and all of their loan products, and our sole purpose is to find a suitable loan to match your personal financial circumstances and goals.

We are typically paid a commission by the lender once your loan is settled. This means you won't pay any fees for our service unless explicitly stated, and our focus remains on finding the right loan for you.

A fixed-rate loan locks in your interest rate for a set period, typically 1 to 5 years, meaning your repayments won't change during that time. A variable-rate loan means your interest rate can change, affecting your repayments. We can help you determine which option suits your circumstances.

A pre-approval, also known as conditional approval, is an indication from a lender of how much they may be willing to lend you, based on your financial situation. While it's not a guarantee, it gives you confidence when making offers on properties.

Yes, most lenders require a deposit, typically 10% to 20% of the property's purchase price. However, there are some low-deposit loan options, and we can guide you through these if you qualify.

The time frame can vary. On average, it takes about 4-6 weeks from applying for a loan to getting approval and settlement. However, this can depend on the lender, your financial situation, and the complexity of your loan.

To apply for a mortgage, you'll generally need:

• Proof of identity (driver's license, passport)
• Proof of income (pay slips, tax returns)
• Details of your assets and liabilities
• Bank statements and any other financial documentation required by the lender

We will guide you through the documentation process to ensure everything is in order.

Loan settlement is the final stage of the home loan process. It's when the lender transfers the loan amount to the seller, and you officially take ownership of the property.

In Australia, first home buyers may be eligible for several incentives, such as:

• The First Home Owner Grant (FHOG)
• Stamp duty concessions
• First Home Guarantee Scheme (FHLDS)

We'll help you understand which of these incentives apply to you and guide you through the application process.

Lenders Mortgage Insurance (LMI) protects the lender if you default on your loan. It is usually required if your deposit is less than 20% of the property's value. We can advise you on strategies to avoid or reduce LMI.

Most lenders require a deposit of 10% to 20%. However, if you're eligible for the First Home Loan Deposit Scheme, you may be able to secure a loan with as little as a 5% deposit.

Refinancing may be a good idea if:

• You want a lower interest rate
• You're looking for better loan features (offset accounts, redraw facilities)
• You want to consolidate debt
• Your financial situation has changed

We can review your current loan and determine if refinancing is the right option for you.

Refinancing itself doesn't hurt your credit score, but multiple credit inquiries in a short time can have an impact. We work with you to strategically refinance and ensure minimal impact on your credit score.

Yes, but switching from a fixed-rate to a variable-rate loan may incur break costs. We can help you calculate whether switching loans is financially beneficial based on your circumstances.

An owner-occupier loan is for people who intend to live in the property. An investment loan is for those purchasing a property to rent out or sell. Investment loans often have different interest rates and criteria. We can help you choose the right loan for your investment goals.

Yes, many people use the equity in their current home to purchase an investment property. Equity is the difference between your property's current value and the remaining balance on your mortgage. We'll help you assess your equity and explore your options.

There are several tax benefits to owning an investment property, including:

• Deducting interest on your investment loan
• Depreciation claims
• Negative gearing benefits

We recommend consulting a tax professional to understand the full extent of your benefits.

A split loan allows you to divide your mortgage between a fixed-rate and a variable-rate portion. This means you can enjoy the stability of fixed repayments on part of your loan while taking advantage of possible interest rate drops on the variable portion.

An offset account is a savings or transaction account linked to your mortgage. The balance in this account offsets your loan balance, reducing the amount of interest you're charged.

A redraw facility allows you to make extra repayments on your home loan and then withdraw those additional payments if needed. It's a great way to save on interest while maintaining access to funds.

Fees can include:

• Loan application fees
• Valuation fees
• Settlement fees
• Lenders Mortgage Insurance (if applicable)
• Break costs (if you exit a fixed-rate loan early)

We will outline all potential costs upfront so there are no surprises.

You can pay off your mortgage faster by making extra repayments, choosing a loan with an offset account, or switching to accelerated fortnightly/weekly repayments. We'll work with you to explore strategies for paying off your loan sooner.