Getting started
What does a mortgage broker do?
A mortgage broker compares loans across a panel of lenders, helps you work out what you may be able to borrow, prepares and lodges your application, and manages it through to settlement. We have access to 65+ lenders, so we aren't limited to one bank's products or policies.
How does a mortgage broker get paid?
Brokers are generally paid a commission by the lender once a loan settles. How this applies to you is set out in our Credit Guide and in the disclosure we provide before you proceed with any application.
How much can I borrow?
It depends on your income, expenses, debts and deposit, and each lender assesses these differently. Our Borrowing Power Calculator gives an indicative figure, and a broker can show how different lenders would assess you.
What's the difference between pre-approval and full approval?
Pre-approval (also called conditional approval) is a lender's indication of how much it may lend, based on your finances at the time – it isn't a guarantee. Full (unconditional) approval comes after you've signed a contract on a specific property and the lender has finished its assessment, including a valuation. Pre-approvals expire after a set period, so timing matters.
Loan basics
What is LVR (loan-to-value ratio)?
LVR is your loan amount as a percentage of the property's value. For example, borrowing $400,000 against a $500,000 property is an LVR of 80%. A lower LVR generally gives you more lender options and can avoid Lenders Mortgage Insurance. See our guide to understanding LVR.
What is Lenders Mortgage Insurance (LMI)?
LMI is a one-off premium that protects the lender – not you – if you can't repay. It commonly applies when you borrow more than 80% of a property's value, and the cost varies with the loan size, LVR and lender. Some lenders charge a similar fee instead, sometimes called a risk fee or low deposit premium. A guarantor can sometimes avoid it: try our Guarantor Calculator, or read LMI explained.
What is serviceability?
Serviceability is a lender's assessment of whether you can afford the repayments after your living expenses and other commitments. Lenders typically test your repayments at a higher rate than the one you'll actually pay, as a buffer – so your borrowing power can be lower than you expect. See how lenders assess serviceability.
What is equity, and how can I use it?
Equity is the difference between your property's value and what you owe on it. For example, a $900,000 property with a $500,000 loan has $400,000 in equity. Lenders generally let you borrow against only part of it – commonly up to 80% of the property's value in total – and that usable equity can help fund a deposit on another property or other purposes. See equity release explained.
What's the difference between an offset account and redraw?
An offset account is a separate transaction account linked to your loan – its balance reduces the interest you're charged while the money stays accessible. Redraw lets you withdraw extra repayments you've already made into the loan, subject to lender conditions. Both can reduce interest, and the difference can matter for investment properties, so check with your accountant. More in offset vs redraw.
Should I choose a fixed, variable or split loan?
A fixed rate locks in your repayments for a set period, a variable rate moves with the lender's rate and usually allows extra repayments more freely, and a split loan divides the balance between the two. The right choice depends on whether you value certainty, flexibility or both – not just today's rate. See fixed, variable or split.
What's the difference between interest-only and principal and interest repayments?
Principal and interest repayments reduce your loan balance over time. Interest-only repayments cover just the interest for a set period, so the balance doesn't fall, and repayments usually rise when the period ends. Interest-only is more common on investment loans.
Buying costs and schemes
What is stamp duty?
Stamp duty (transfer duty) is a state or territory government tax paid when you buy property. The amount depends on the purchase price, the state and whether concessions apply. Our Stamp Duty Calculator estimates NSW duty from current rates and links to the official calculators for other states.
What is a mortgage registration fee?
It's a state government fee charged to register your lender's mortgage on the property title. The amount is set by each state. It's one of several costs to budget for – see our Upfront Costs Calculator.
What does a conveyancer do?
A conveyancer (or solicitor) handles the legal side of buying or selling property: reviewing the contract, running searches, arranging the transfer of title and managing settlement. We work alongside your conveyancer or solicitor to coordinate the finance through to settlement. See what happens at settlement.
What costs should I budget for when buying a home?
Beyond your deposit, common costs include stamp duty, conveyancing or legal fees, building and pest inspections, lender or valuation fees, mortgage registration and possibly Lenders Mortgage Insurance. Our Upfront Costs Calculator puts these together.
What are 'genuine savings'?
Many lenders want to see that part of your deposit was built up over time through regular saving rather than appearing suddenly. What counts varies by lender, but it generally means savings held in your own name for a set period. See genuine savings explained, or work out your timeline with the Deposit Savings Calculator.
What is the First Home Super Saver Scheme?
It lets eligible first home buyers make voluntary contributions to super and later release them, plus associated earnings, towards a first home deposit, with concessional tax treatment. The contribution limits and eligibility rules are set by the ATO and can change, so check current details with the ATO and your adviser – we can explain how it fits with your loan.
What government schemes can help first home buyers?
Federal and state schemes can include guarantee schemes that reduce the deposit you need, grants and stamp duty concessions. Eligibility depends on factors like income, property price, location and whether you're a first home buyer, and the rules change from time to time. We check what currently applies to you – see our first home buyers page.
Self-employed and specialist lending
What do lenders need if I'm self-employed?
Lenders typically ask for tax returns and notices of assessment, financial statements, BAS and business bank statements, usually covering the last two years. If you can't provide full financials, some lenders offer low-doc options using alternative evidence such as BAS, an accountant's letter or bank statements. See self-employed home loans.
What is a low-doc loan?
A low-doc loan is designed for borrowers who can't provide full financials – for example, a newly established business. Instead of two years of tax returns, the lender accepts alternative evidence of income. The trade-offs often include a smaller pool of lenders, a larger deposit and different pricing, so it suits a narrower group. See low-doc loans.
What is a guarantor loan?
A guarantor – usually a parent – offers equity in their own property as additional security, which can let you buy with a smaller deposit and often avoid LMI. It's a serious commitment for the guarantor, and is generally designed to be released once you've built enough equity. Try the Guarantor Calculator or read how guarantor home loans work.
Do shift allowances and overtime count towards my borrowing power?
Often, at least in part. Many lenders will include a portion of regular shift allowances or overtime if you can evidence it, but policies differ a lot between lenders – which is where comparing a panel matters. See home loans for police and first responders.
How does my credit score affect a home loan?
Your credit file affects which lenders will consider your application and sometimes the terms you're offered. Defaults, missed payments and several recent credit applications can all matter, so it's worth checking your credit file before you apply. See credit score and your home loan.
Refinancing, investing and business finance
When is it worth refinancing?
It can be worth reviewing your loan when your circumstances or goals have changed, your structure no longer suits you, or you want to access equity or consolidate debts – not just to chase a lower rate. Weigh up discharge, application and other switching costs first. See our refinancing checklist or the refinance page.
Can I buy property through my SMSF?
In some cases, yes. Borrowing within a self-managed super fund must use a specific limited recourse borrowing arrangement and comply with superannuation law, so it needs to be set up correctly from the start alongside your fund's adviser. See SMSF property loans.
Do commercial property loans work like residential loans?
No. Commercial lending typically uses lower loan-to-value ratios than residential and assesses the strength of the lease and tenant as well as borrower income. See investment property loans and commercial property investment finance.
What is a chattel mortgage?
A chattel mortgage is a loan for business assets such as vehicles or equipment, where you own the asset from day one and the lender takes security over it until the loan is repaid. Whether it suits you depends on your business structure and tax position, so speak with your accountant. See our asset and business finance options.