Frequently asked questions
We get asked a number of questions on how everything works so we’ve complied some FAQs for your convenience. If you have any more questions feel free to get in touch with us and ask away!
How much will I need for a deposit?
This varies depending on your specific situation and how each lender assesses your borrowing power.
We deal with a number of banks that will only require a minimum 5% deposit for first home buyers or people employed within certain occupations.
Generally banks do require a 20% deposit of the property value however this is not always the case.
When the deposit is less than 20% often Lenders Mortgage Insurance (LMI) is required, however we’ll work with you to discuss your options and determine if there are alternative structures.
There are a number of Government Schemes in place that can also help avoid paying LMI for first home buyers – subject to eligibility.
With the support of a ‘family security guarantee’ you might not need a deposit and can also avoid LMI, provided you have stable employment, good credit score and your income is sufficient to cover loan repayments.
The short story is to reach out and we’ll work with you to determine the minimum deposit required.
What do I bring to the first meeting?
We’re best to kick off with a casual 5-10 minute phone call to gauge how we can best assist you.
During this phone call we’ll grab a few basic details and approx figures from you in a low stress manner.
We’ll often then schedule in a first meeting and also send you a concise list of information required from you to provide the best advice.
The list comes from a document portal we use outlining all information and supporting documents typically required when submitting an application to a bank.
By providing the information upfront it ensures you get the most out of our first meeting. That said, to give you an idea on the minimum information needed it involves at least:
• Last 3 payslips (or latest business financial statements if self-employed)
• Latest loan and credit card statements if applicable
• Latest council rates notice if applicable.
How do Finance Brokers get paid?
There are no fees paid by the customer for most of the loans we deal with.
The banks pay us for introducing new customers and for us doing much of the work that would otherwise be done by bank staff.
We are paid between 0.55% and 0.715% of the loan amount as an upfront commission and an ongoing trail of 0% to 0.285% per annum of the loan balance. This is paid by the lender, not the customer.
Can you provide home insurance?
Yes, through our relationships we are able to arrange competitive insurance options for your needs.
Why use a Finance Broker instead of applying directly with bank?
We help assess all your banking options, whereas the bank is restricted by being only able to present one view and a relatively small amount of products. It is unlikely the cheapest or even the most suited – we open up the very competitive finance market to you.