We work for you and not the bank. We get to know you personally to understand your unique circumstances. From our experience we know which lenders will have the product that will meet your needs. And we negotiate for what’s right for you, not what’s right for the lenders.
A broker will have access to a number of different banks. They will be able to do all the research and leg work to obtain the best deal for the client and a home loan that adequately services the client’s needs. The broker will deal with the bank on behalf of the customer saving them both time and money.
We help you navigate through the competitive and ever-changing mortgage landscape to find the right loan for you. We’ll go into bat and negotiate on your behalf, and we’ll make the process as simple as possible for you, geared up to deliver fast results. We’ll help you avoid the pitfalls, and we’ll find loan features to suit your personal circumstances.
A good broker should be able to detail all the fees that relate to the loan contract. These will range from the set up fees from the bank and the government, to ongoing fees and the then the discharge fees that the associated with leaving the loan.
Buying your first property is pretty daunting – after all, it’s probably the biggest investment you’ll make in your life. Our brokers are here to guide you through the process and get you into your first home.
1. Deciding to buy
2. Finding the right loan
3. The real cost of buying
4. Searching for a new home
5. Making an offer
6. The buying process
7. Moving in
Mortgage brokers get paid an upfront commission by the bank as a one off payment for the research and sourcing of the loan. The upfront commission is a pre-determined percentage of the loan amount and each bank will pay slightly differently. The broker is also paid a trail commission. This is an ongoing percentage of the remaining balance of the loan (less any amount in an offset account).
Usually up to 90 minutes but it depends on how long it takes for us to understand what’s important to and how we can help to activate the life you want to live today and into the future.
There are a number of fees involved when buying a property. To avoid any surprises, the list below sets out all 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 find out your total Stamp Duty charge, visit our Stamp Duty Calculator.
Legal/conveyancing fees — Generally around $1,000 – $1500, these fees cover all the legal rigour 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 choose 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 take out building insurance and contents insurance. Your lender will probably require a minimum sum insured for the building to cover the loan, but make sure you actually take out enough building insurance to cover what it would cost if you had to rebuild. Likewise, make sure you have enough contents cover should you need to replace everything if the worst happens.
Usually between 5% – 10% of the value of a property, which you pay when signing a Contract of Sale. Speak with us to discuss your options for a deposit. You may be able to borrow against the equity in your existing home or an investment property.
Go to our Repayment Calculator for an estimate. Because there so many different loan products, some with lower introductory rates, talk to us today about the deals currently available, we’ll find the right loan set-up for you
We recommend that you obtain a Pre Approval before looking for a property. This will give you peace of mind that you have a loan approved as well as knowing how much you need to spend without exceeding your budget
It really depends on the type of loan that you take out.
An establishment fee
An Annual Package Fee which is paid when the loan is established and at each anniversary.
A Settlement fee
Government Charges which vary from State to State
This is a grant available to Australian citizens or permanent residents who wish to buy or build their first home, which will be their principal place of residence within 12 months of settlement. Contact us directly to find out how much grant money you could receive.
This type of insurance protects the lender – not the borrower – in the event that the borrower can’t meet the loan repayments and the net proceeds of an enforced sale of the property would not be enough to cover the loan. While it may appear that there are no benefits to LMI for the borrower, the existence of LMI reduces the lender’s risk, which means that the lender can lend a larger amount or approve a home loan without the borrower having to provide the 20% deposit. Many people prefer to pay the LMI premium, rather than save for a few more years or pay higher interest rates.
Investing for your future should always be something that you are considering.
Buying an investment property has a lot of advantages (income, capital growth, security, tax deductible debt) as well as disadvantages (high setup costs, long time to get in and out of the investment, and high single investment risk) so it isn’t a decision to be made lightly.
The most important things to know before buying an investment property are:
1. Why do you want one in the first place? What is it really about?
2. What will it take to get into one and keep it for the long term?
3. How will owning it positively or negatively impact on my lifestyle?
Stamp Duty is payable on purchases of properties. There are two different types of Stamp Duty:
Stamp Duty on the Transfer of Title, which is charged by state governments and paid by the purchaser.
Stamp Duty on the Mortgage – this duty has been abolished for most owner occupied and investment property loans but you may be required to pay it on other types of loans e.g. Business Finance.
Stamp Duty varies by state. The information on Stamp Duty in NSW or eligibility for an exception is available on the following website www.osr.nsw.gov.au
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
Our guides to loan types and features will help you learn about the main options available. There are hundreds of different home loans available, so talk to us today.
Mortgage Lane will work with you to determine which facility is more suitable for your personal situation.
You may wish to purchase a property to live for the next two to three years and then convert it into an investment property loan. In this instance, we would recommend an Interest Only loan with an offset account.
If you plan to live in the property long term and aren’t looking to purchase another owner occupied property then either redraw or offset would be suitable.
Generally it is best to have saved a minimum of 10% of the purchase price. However, some options may be available for those that have not saved this amount. Contact us today if this applies to you to speak with a broker
This will depend on individual circumstances. If a client wants certainty of repayment then a fixed rate is a good option as they will be able to lock their repayments at a certain rate for a certain time frame. This can give comfort in knowing what the commitment will be and can be good in a rising interest rate market. Fixed rates are generally an inflexible product and will have restrictions on things like extra repayments on a home loan , ability to redraw or have an offset account against the fixed rate loan.
Variable rates will move with the fluctuations of the interest rate market, but you tend to have greater flexibility with these products, with the ability to have an offset account, make unlimited extra repayments and then redraw those extra repayments.
Borrowing capacity is determined by a number of different aspects. The bank will take into consideration the amount of income that is coming into the borrower’s household and then way that up against the financial commitments that the client has. Borrowing capacity will be affected by such things as number of dependents, the amount of existing debt or access to existing credit limits.
Yes, you can have a combination of fixed and variable rate facilities.
Not necessarily. The first consideration should be how appropriate each product is for the client’s situation now as well as in the future. Flexibility of the product to change with the changing circumstances in a client’s life need to be taken into consideration. The upfront, ongoing and discharge fees also need to the considered. This will give a well-rounded product and will serve the client’s best needs for the current position as well as the future.
You can use a guarantor provided they’re a Spouse or a Family Member. They can assist you with a Guarantee over Security or act as an income Guarantor. The rules for this do tend to vary according to the situation and the lender, it is best to check with a Mortgage Lane Consultant before making any decisions.
When you borrow more than 80% of the property value, the lender will seek mortgage insurance to protect the bank from losses. It is a one-off payment which can be included in your home loan.
You will only need mortgage insurance if you borrow more than 80% of the property value. Whether Mortgage insurance is required depends on your lender.
Depending on what the default is, who lodged it and how much it is for, you may be considered for home loan approval.
If you are Self-employed, you can still apply for a home loan:
To a full financial documentation loan, a self-employed person will need to supply the following to verify their income:
Full financial information for the past two years including Personal and Company Tax Returns, Profit & Loss Statements, Balance Sheets, ATO Assessments and Tax Portals.
A Low financial documentation loan, Self-employed person will need to supply the following to verify their income:
At least one Borrower must be Self Employed.
An Executed Declaration from all Borrowers.
BAS statement and/or bank statements may also be required.
Most financial institutions will grant you one of the following:
A pre-approval within two to three business days which will allow you to shop around for a property.
A conditional Approval within two to three business days.
A formal (unconditional) approval within two to seven business days depending on the valuation of the property.
To obtain a quick, easy and hassle free approval you will need to supply the following:
A copy of your Driver’s Licence, Passport and/or Birth Certificate and Medicare Number
A copy of your two most recent payslips (your last two years Group Certificates – now called Payment Summary or PAYG Summary may be required).
A copy of your savings account statement covering a 6 month period. This will confirm how much you wish to contribute.
For refinancing an existing loan a copy of your current loan statements for the past 6 months, and additional documentation may be required depending on your circumstances.
Further information will generally be required which depends on your personal circumstances. A Mortgage Lane specialist broker can step you through what is required for your particular situation.