When you need health advice, you go to a doctor. So when you need expert home loan advice, talk to Mortgage Lane. We’re 100% independent from the big banks. That means no hidden commissions. Our sole aim is to land you the best possible deal.
We take you through the home loan process from start to finish. But we don’t stop there. You also need a financial roadmap for your future. We create that plan with you, and we’re on hand to help as your finances evolve and grow.
You deserve more than a tick-a-box mortgage broker. We take the time to get to know your goals, personal and financial. And we work for you: meeting you for a coffee, or coming around after work — whatever suits you, just let us know
We take the mystery out of mortgages. That means walking you through it all, breaking it down, and making it simple. So when we recommend a mortgage, it’s clear as day that you’re making a sound decision.
There are hundreds of home loans available, with new products emerging all the time. We can help you do the homework when you’re on the hunt for a new property and break down the pros and cons associated with each loan option.
We ensure you choose a loan with the features and benefits that are right for you. Extra repayments? Redraw facility? Offset account? We can recommend a loan for your particular needs – and take care of all the paperwork.
Most lenders require the same documents to approve a loan. We’ll provide a checklist of the relevant documents needed for your type of loan, which will assist you in fast-tracking your loan application for approval.
Standard variable loans are the most popular home loan in Australia. Interest rates go up or down over the life off the loan depending on the official rate set by the Reserve Bank of Australia and funding costs. Your regular repayments pay off both the interest and some of the principal. You can also choose a basic variable loan, which offers a discounted interest rate but has fewer loan features, such as a redraw facility and repayment flexibility.
If interest rates fall, the size of your minimum repayments will too.
Standard variable loans allow you to make extra repayments. Even small extra payments can cut the length and cost of your mortgage.
Basic variable loans often don’t come with a redraw facility, removing the temptation to spend money you’ve already paid off your loan.
If interest rates rise, the size of your repayments will too.
Increased loan repayments due to rate rises could impact your household budget, so make sure you take potential interest rate hikes into account when working out how much money to borrow.
You need to be disciplined around the redraw facility on a standard variable loan. If you dip into it too often, it will take much longer and cost more to pay off your loan.
If you have a basic variable loan, you won’t be able to pay it off quicker or get access to money you have already repaid if you ever need it.
The interest rate is fixed for a certain period, usually the first one to five years of the loan. This means your regular repayments stay the same regardless of changes in interest rates. At the end of the fixed period you can decide whether to fix the rate again, at whatever rate lenders are offering, or move to a variable loan.
Your regular repayments are unaffected by increases in interest rates.
You can manage your household budget better during the fixed period, knowing exactly how much is needed to repay your home loan
If interest rates go down, you don’t benefit from the decrease. Your regular repayments stay the same.
You can end up paying more than someone with a variable loan if rates remain higher under your agreed fixed rate for a prolonged period.
There is very limited opportunity for additional repayments during the fixed rate period.
You may be penalised financially if you exit the loan before the end of the fixed rate period.
Your loan amount is split, so one part is variable, and the other is fixed. You decide on the proportion of variable and fixed. You enjoy some of the flexibility of a variable loan along with the certainty of a fixed rate loan.
Your regular repayments will vary less when interest rates change, making it easier to budget.
If interest rates fall, your regular repayments on the variable portion will too.
You can repay the variable part of the loan quicker if you wish.
If interest rates rise, your regular repayments on the variable portion will too.
Only limited additional repayments of the fixed rate portion are allowed.
You will be penalised financially if you exit the fixed portion of the loan early.
You repay only the interest on the amount borrowed usually for the first one to five years of the loan, although some lenders offer longer terms. Because you’re not also paying off the principal, your monthly repayments are lower. At the end of the interest-only period, you begin to pay off both interest and principal. These loans are especially popular with investors who plan to pay off the principal when the property is sold, having achieved capital growth.
Lower regular repayments during the interest only period.
If it is not a fixed rate loan, you have the flexibility to pay off, and often redraw, the principal at your convenience.
At the end of the interest only period you have the same level of debt as when you started.
If you’re not able to extend your interest-only period, you could face the possibility of increased repayments.
You could face a sudden increase in regular repayments at the end of the interest-only period.
You can pay into and withdraw from your home loan every month, so long as you keep up the regular required repayments. Many people choose to have their salary paid into their line of credit account. This type of loan is good for people who want to maximise their income to pay off their mortgage quickly and/or who want maximum flexibility in their access to funds.
You can use your income to help reduce interest charges and pay off your mortgage quicker.
Provides great flexibility for you to access available funds.
You can consolidate spending and debt management in a single account.
Without proper monitoring and discipline, you won’t pay off the principal and will continue to carry or increase your level of debt.
Line of credit loans usually carry slightly higher interest rates.
Originally designed for first-home buyers, but now available more widely, introductory loans offer a discounted interest rate for the first 6 to 12 months, before the rate reverts to the usual variable interest rate.
Lower regular repayments for an initial ‘honeymoon’ period.
Loans may have restrictions, such as no redraw facilities, for the entire length of the loan.
You may be locked into a period of higher interest rates at the expiry of the honeymoon period.
Popular with self-employed people, these loans require less documentation or proof of income than most, but often carry higher interest rates or require a larger deposit because of the perceived higher lender risk. In most cases you will be financially better off getting together full documentation for another type of loan. But if this isn’t possible, a low doc loan may be your best opportunity to borrow money.
Lower requirement for evidence of income. May overlook non-existent or poor credit rating.
You will probably pay higher interest than with other home loan types, or may need a larger deposit, or both.
… I cannot speak of the team and the service they provide highly enough. The Knowledge and attention to detail is outstanding. Being able to present information in a way that everyone can understand and I look forward to using your service as my financial portfolio continues to grow.
… they’ve helped with us buying our first home, sorting out our insurance and now to investing in property. Their experience and passion can be seen in the interactions and delivery of our desired outcomes. It is always a pleasure to meet the team and discuss ongoing strategy and financial goals. I highly recommend them.
… the whole team treated us exceptionally well. The options that were presented to us were clear and concise and the simple fact that you were able to help us when we thought we had no options made us very happy indeed. We felt we could trust you from our first meeting. Every aspect was fantastic.
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
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 Yellow Brick Road Wealth Manager 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.