Mortgage finances you to purchase a house or lending money for your business. Our mortgage broker is experienced, and we have access to more than 40 lenders in Australia. We look beyond the mortgage interest rates and compare different repayment options. Our goal is to find the best plan to help you save money.
Welcome to Australia!
Buying your first home is a big deal. In fact, it’s one of the biggest investments most people will make in their lives.
The following guide will help you better understand what to expect when purchasing your first home and getting the mortgage to approve. You’ll also find fundamental tips that are applicable anywhere in Australia, along with state-specific information.
What We Can Do
•Liaise between clients and banks
•Do all the research and legwork (e.g. competitive interest rates, suitable product specifications and repayment options)
•Look at your financial position
Find the product that best suit your needs
Advantages of using a broker
•Save money - We will look beyond the mortgage interest rates to take into account all the other fees that will apply
•Save time -You only need to send us a few documents and provide a few signatures
•Speed things up - We have direct access to banks and lenders
How do we get paid?
•We offer home loan advice and recommendations to borrowers without charging anything.
•This is because we work on your behalf to negotiate the best deal, for example, lower interest rates, waived fees or extra bundled services for your mortgage.
•After settlement, the bank will pay commission to us as fee for introducing the customer.
Minimum Required Documents
•Personal Identification - Personal identification is required by every home loan lender in order to verify your identity.
•Proof of Income - Your proof of income will help to determine your home loan eligibility. The documents you provide will vary based on your conditions of employment.
•List of Expenses, Assets and Liabilities - Your spending and The value of assets and liabilities will be used to determine your loan serviceability.
•Property details - Financial institution requires the full details and valuation report of your new property.
Home loan requirements can vary from lender to lender, but you can generally bet that they’ll need some key information:
your personal details, details about the property, how much you need to borrow and your financial situation.
•PAYG - Applicant with PAYG income only have to provide 3 months payslips (6 months for casual job) and salary credit record
•OTHER INCOME - Some lenders might not accept 100% of following income as the amount is not fixed & guaranteed
•SELF EMPLOYED - If you are ABN sole trader, bank will require 2 NOA. For ACN applicant only 1 year financial statement required. Bank also accept Accountants Letter and Directors wages, please consult your broker on this issue.
•OVERSEAS INCOME - If you are Australia citizen and working overseas, the bank will still accept the foreign income as PAYG income. Some regions like Hong Kong and Singapore will be assessed at 100%
B. Expense and Liabilities
•MIN. EXPENSES - All lenders has a minimum expenses benchmark for household, based on number of member and income level.
•OTHER EXPENSES - Some expenses not included in min. expenses benchmark will lower borrowing power drastically, speak to your broker early for advice.
•CREDIT CARD - Bank does not focus on outstanding amount, they focus on three areas
•CAR LOAN - Many applicant fail to get home loan approval due to high amount of car loan repayment. Avoid purchase new and luxury car before application, or consider consolidate car loan into your home loan.
C. Your Maximum Borrowing Power
Your borrowing power is determined by number in your household, interest rate, income and expense level. Assume 70% LVR, Westpac figure used.
D. Credit Score
A number used to represent your reputation as a borrower. Calculated based on the information included in your credit report, this number helps lenders determine if they are willing to lend money to you.
Here are something you should do or avoid 2 years before your home loan application to improve your score:
Things you should do
•Pay your bills and credit cards on time and in full
•Check your credit score regularly to ensure accuracy
Things you should not do
•Late or missed payment
•High credit balance
•Multiple applications in a short period of time
•Pay in 4 service, e.g. Afterpay also affects your credit score
Consult your broker for credit report to ensure your score meet the lender's standard.
E. First Home Buyer Concession
First Home Owner Grant
•Provided by State government
•Different state, different criteria and grant amount
•Concession on stamp duty payable amount
•Has to be a new property (no one lived in before)
•Property price cap applied
First Home Buyer Guarantee
•Provided by Federal government
•Suitable for buyer without 20% deposit
•NHFIC will guarantee your home loan
•Buyer can save the mortgage insurance
•Property price cap applied