Question 1

What is the repayment period for a home loan?

Danielle Ridley · Accepted Answer

Typically 30 years but depending on the lender it may be reduced.

Question 2

How long does it take to get a home loan approved?

Justin Purll · Accepted Answer

Once the application is submitted, anywhere from 2 hours to 4 weeks. It will depend on the lender you use and how accurate all of the information you supply to the lender is.

Question 3

Can I get a home loan if I am a single parent?

Justin Purll · Accepted Answer

Yes you can. If you qualify you can even get government support to purchase a home with a 2% deposit. Have a chat to your broker and they can see if you qualify.

Question 4

Can you use first home owners grant as deposit?

Justin Purll · Accepted Answer

Short answer is yes. Long answer is depends on your lender. Some will allow it for the deposit and some will not. You will need to ask your broker or lender if they will accept it.

Question 5

Why is comparison rate so much higher?

Justin Purll · Accepted Answer

Generally if the comparison rate is a lot higher is the product you are looking at has a higher upfront fees and usually a large annual fee.

Question 6

Can I get a home loan if I am a student?

Justin Purll · Accepted Answer

Yes you can as long as you have enough income to support the loan

Question 7

Can I change lender when I'm in the middle of my loan process?

Justin Purll · Accepted Answer

If you have plenty of time before settlement then there are no issues changing lenders in the middle of the process as long as you haven't already accepted the loan offer.

Question 8

Is it easier to get a home loan if I am single or married?

Justin Purll · Accepted Answer

It depends on your specific scenario but  in general two incomes are better than one.

Question 9

How much does a mortgage broker charge for their services?

Ibrahim Durur · Accepted Answer

Most brokers do not charge you for their service, they are paid by the bank in the form of a commision.

Question 10

How do I compare home loans and choose the best one for me?

Ibrahim Durur · Accepted Answer

This process can be rather involved and really depends on your financial position, location of property, type of property and several other factors. Speaking with a reputable mortgage broker is your best starting point - get in touch and lets have a chat.

Question 11

Can I make additional repayments on my home loan, and will this reduce the interest charged?

Ibrahim Durur · Accepted Answer

Yes and Yes - it's a good idea to make extra repayments toward your home loan. Even the smallest amount can make a huge difference over a 10 year period.

Question 12

Is there a rule on how frequently you should/can request a mortgage rate review?

Ibrahim Durur · Accepted Answer

Some banks may have restrictions eg: once every six months. However it's free to ask and you are entitled to ask as often as you like.

Question 13

Should I get a pre-approval before buying a property?

Ibrahim Durur · Accepted Answer

It is generally considered to be a good idea to have a pre approval prior to making a purchase.

Question 14

How do I ask my bank to lower my interest rate?

Ibrahim Durur · Accepted Answer

Best to contact your bank and ask to speak with the "retention team" regarding a rate review.

Question 15

What is the pre-approval process?

Duane Mengel · Accepted Answer

The pre-approval process, often referred to as conditional approval, is an initial step in the home buying journey where a lender evaluates your financial situation to estimate how much they might be willing to lend you. This process helps you understand your...

Question 16

How can I pay off my home loan quicker?

Duane Mengel · Accepted Answer

Paying off your home loan quicker can save you a significant amount in interest over the life of your loan. Here are some strategies to consider:

1. **Extra Repayments:** Any amount you pay above your regular repayment reduces the principal balance, which in...

Question 17

How much of a deposit do I need for a home loan?

Laura Shanahan · Accepted Answer

This will depend on your individual position and the location in which you purchase your home (i.e. how much stamp duty is charged which differs from State to State).

A simple rule I work by is at the base line minimum you will need roughly $ Stamp duty +...

Question 18

Can I get a home loan if I'm on maternity leave?

Rebecca Mitchell · Accepted Answer

Securing a home loan while on maternity leave is indeed possible, though it does come with its unique set of challenges and considerations. Lenders primarily look for stability in income and employment as part of their approval process, so being on maternity...

Question 19

What is the role of a mortgage broker, and should I use one?

Rebecca Mitchell · Accepted Answer

A mortgage broker acts as an intermediary between you and potential lenders. The primary role of a mortgage broker is to work on your behalf to find the best mortgage loans that fit your needs, considering your financial situation and goals. They have access...

Question 20

Can I make additional repayments on my home loan, and will this reduce the interest charged?

Rebecca Mitchell · Accepted Answer

Yes, you can make additional repayments on most home loans, and doing so can significantly reduce the interest charged over the life of the loan. By paying more than the minimum required amount, you decrease the principal balance faster, which in turn reduces...

Question 21

Can I get a home loan if I am on a temporary visa?

Rebecca Mitchell · Accepted Answer

Certainly! Getting a home loan on a temporary visa in Australia is possible, though it comes with its own set of challenges and requirements. The key factors that lenders consider include the type of visa you have, your employment status, and your financial...

Question 22

Is it better to use a mortgage broker or bank?

Ibrahim Durur · Accepted Answer

Being a full time career mortgage broker for over 15 years my opinion and answer is, naturally, going to be heavily biased toward using a broker!

Question 23

What should be considered when refinancing?

Ibrahim Durur · Accepted Answer

1) How much will you be saving
2) Can you current lender match or beat the offer of the new lender?
3) What is the cost of refinancing 
4) Is the proposed savings enough to warrant the cost?
5) How long will it take to recoup the cost of the transaction?
6)...

Question 24

Should I get a pre-approval before buying a property?

Ibrahim Durur · Accepted Answer

It's usually a good idea to do so as you will identify any potential road blocks that could hinder your chances of being approved.

Question 25

What is the difference between a pre-approved and an approved home loan?

Ibrahim Durur · Accepted Answer

A pre approval is a basic assessment of your financial position and basic determination of eligibility / credit worthiness. It is not an offer for finance or any type of guarantee that an offer will be made. An approved home loan is usually a commitment from...

Question 26

What are the fees and charges associated with a home loan in Australia?

Ibrahim Durur · Accepted Answer

This can change significantly from lender to lender - best to get in touch with a reputable broker and work through some options.

Question 27

Can I refinance my home loan to a longer term?

Ibrahim Durur · Accepted Answer

Yes you can, you may need to explain to the lender the reasons why you want to extend your loan term and if the lender deemed the purpose of the extension "suitable" they may approve the request /  application.

Question 28

How do I improve my chances of getting a home loan approved?

Ibrahim Durur · Accepted Answer

This is a really smart question and is very broad. There are several consideration on the lenders part, when assessing a borrowers eligibility. You mortgage broker will be able to walk through this with you, in detail and specific to your circumstances.

Question 29

Can I get a home loan if I have a low income?

Ibrahim Durur · Accepted Answer

As long as you are able to demonstrate ability and willingness to repay the proposed loan and your loan amount is within your capacity you should be able to obtain an approval - provided you are able to meet all of the lenders terms and conditions.

Question 30

What is the difference between a secured and an unsecured home loan?

Ibrahim Durur · Accepted Answer

Secured usually means that the loan is being secured by an asset, which the lender is using as collateral. Unsecured means that there is no security for the loan - so if the borrower is unable or unwilling to repay the loan, the lender does not have any asset...

Question 31

Can I make additional repayments on my home loan, and will this reduce the interest charged?

Ibrahim Durur · Accepted Answer

Simple answer is YES and YES! As long as you have a variable rate loan product. If you have a fixed loan it would be wise to check with you lender what the restrictions are. Repaying a fixed loan ahead of the scheduled term could constitute "breaking" the...

Question 32

What is the difference between a standard home loan and a low doc home loan?

Binod Khanal · Accepted Answer

A standard home loan is a traditional mortgage that requires comprehensive documentation to verify your income, assets, and other financial information. Lenders typically require proof of income, such as pay stubs, tax returns, and bank statements, as well as...

Question 33

How can I improve my credit score to increase my chances of getting a home loan?

Binod Khanal · Accepted Answer

Check your credit report: Obtain a copy of your credit report from a credit reporting agency. Look for any errors or discrepancies that could be negatively affecting your score.

Pay your bills on time: Ensure that you pay all your bills, including credit card...

Question 34

How do I shop for the lowest cost mortgage?

Binod Khanal · Accepted Answer

You can reach out to a mortgage broker who can assist you in finding the most suitable mortgage deal from multiple lenders based on your individual objectives and goals.
Or do your shopping for the lowest-cost mortgage involves comparing rates, fees, and...

Question 35

How do construction loan works?

Gary Yip · Accepted Answer

Construction loan usually works in progressive draw down arraangement by the lender. 
When construction starts, builder divides the whole building process into five stages. Bank will release the fund only when particlar stage is completed.  For example, if...

Question 36

Can art collections increase my chance getting the home loan approved?

Gary Yip · Accepted Answer

When come to home loan application, lenders are looking for three areas - income, expenses and liabilities. If art collections can generate repeat and stable income on regular basis, lenders may consider as other income source. However, evidence will need to...

Question 37

Should I get a pre-approval before buying a property?

Binod Khanal · Accepted Answer

Yes, getting pre-approved for a mortgage before buying a property is generally a good idea. Pre-approval can give you a clear understanding of how much you can borrow, which can help you narrow down your property search to homes that are within your budget. It...

Question 38

Should I get a pre-approval before buying a property?

Binod Khanal · Accepted Answer

Yes, getting pre-approved for a mortgage before buying a property is generally a good idea. Pre-approval can give you a clear understanding of how much you can borrow, which can help you narrow down your property search to homes that are within your budget. It...

Question 39

Is it better to use a mortgage broker or bank?

Hassan Talukder · Accepted Answer

Deciding whether to use a mortgage broker or a bank depends on your individual needs, preferences, and financial situation. Using a mortgage broker offers several benefits that can make the home loan process easier and potentially save you time and...

Question 40

Can mortgage brokers offer better interest rates than banks?

Hassan Talukder · Accepted Answer

Mortgage brokers can sometimes offer better interest rates than banks, but it's not always the case. Here are some factors to consider:

Advantages of Using a Mortgage Broker for Interest Rates:
Access to Multiple Lenders: Mortgage brokers have access to a...

Question 41

Can I get a home loan if I am a student?

Hassan Talukder · Accepted Answer

Yes, it is possible to get a home loan as a student, but there are several factors to consider:

Income: Lenders typically assess your ability to repay the loan based on your income. As a student, if you have a part-time job, scholarship income, or financial...

Question 42

What is an offset account and do I need an offset account?

Hassan Talukder · Accepted Answer

An offset account is a savings or transaction account linked to your home loan account. The balance in the offset account is "offset" against the balance in your home loan account. This means you're only charged interest on the difference between your home...

Question 43

Can I switch from a fixed to variable interest rate, or vice versa?

Hassan Talukder · Accepted Answer

Yes, you can switch from a fixed to a variable interest rate or vice versa, but there are several important considerations and potential costs involved in making such a change. Whether you're looking to take advantage of lower interest rates, require more...

Question 44

What is the downside of using a brand-name lender?

Hassan Talukder · Accepted Answer

Using a brand-name lender for a mortgage or any financial product can offer a sense of security and reliability due to their established reputation and widespread recognition. However, there are potential downsides to consider:

Higher Costs: Brand-name...

Question 45

It it easier to get a home loan with mortgage brokers or should I apply directly with banks?

Brij Panwar · Accepted Answer

Always go through a broker as they have access to many banks and hundreds of loan products. They work in your interest and not Bank's.

Question 46

When is a good time to buy a home?

Brij Panwar · Accepted Answer

Anytime is a good time. Depends when you are ready

Question 47

Can I switch from a fixed to variable interest rate, or vice versa?

Brij Panwar · Accepted Answer

Yes you can however if switching from fixed to variable, there could be a break cost involved. It depends on remaining length of fixed term, your fixed rate vs current fixed rate etc. Best to check from your lender before making a switch.

Question 48

How does my employment status affect my home loan approval?

Brij Panwar · Accepted Answer

Lenders prefer permanent employment. Having said that, casual employment is acceptable but you need to be in the role for a specific period of time(depends on the lender)

Question 49

Can you use first home owners grant as deposit?

Brij Panwar · Accepted Answer

Hi,
Yes it can be part of your deposit.

Question 50

How can I pay off my home loan quicker?

Hassan Talukder · Accepted Answer

Paying off your home loan quicker can save you a significant amount of money in interest over the life of the loan. Here are several strategies to consider:

1. Make Extra Payments
2. Increase Payment Frequency
3. Round Up Payments
4. Refinance to a Lower...

Question 51

Is it better to use a mortgage broker or bank?

Justin Purll · Accepted Answer

A broker will (or should) give you ongoing service (Bi-annual discount pricing requests to your lender etc) and have many more options available. A bank only has one product offering and they will not pro-actively do anything on your behalf because if you...

Question 52

What is the maximum loan-to-value ratio (LVR) for an SMSF home loan?

Justin Purll · Accepted Answer

Hi there,

There are a few mortgage managers that will go up to 90% LVR in an SMSF. The funding line comes through Origin.

Question 53

What is the difference between a standard home loan and a low doc home loan?

Ibrahim Durur · Accepted Answer

"Low Doc" stands for Low Documentation and is typically an assessment policy where lenders will utilise alternative methods to assess a self employed borrowers income.

Typically a self employed borrower, under a "Full Doc" assessment, would have to provide...

Question 54

How can I pay off my home loan quicker?

Ibrahim Durur · Accepted Answer

Here are some basic strategies:

* Set your repayments to "accelerated fortnightly" - which is the monthly payment divided by two and paid every fortnight

* Make extra payments, when possible

* Arrange for your salary to be deposited into an offset account...

Question 55

Can I switch from a fixed to variable interest rate, or vice versa?

Ibrahim Durur · Accepted Answer

You should be able to move from variable to fixed quite easily. Moving from fixed to variable, prior to the maturity of your fixed term could result in a substantial break cost - its best to obtain a quote from your lender prior to deciding if this is right...

Question 56

Will my credit score be impacted if I shop with many banks?

Ibrahim Durur · Accepted Answer

A large volume of enquires / applications could affect your credit score. It's best to speak with a broker prior to applying.

Question 57

How do I shop for the lowest cost mortgage?

Ibrahim Durur · Accepted Answer

There are several websites/comparison sites that you can visit to compare loan products. Alternatively a mortgage broker can help you shop for a range of loan products that suit your needs.

Question 58

Can I get a home loan if I'm on maternity leave?

Ibrahim Durur · Accepted Answer

There are some pathways to obtain approval while on maternity leave, however will largely depend on your personal circumstances. Your mortgage broker should be able to guide you through this.

Question 59

Can I take a “repayment pause” or switched to interest only payments due to maternity leave?

Ibrahim Durur · Accepted Answer

Your lender may have some options to assist you during maternity leave, it would be best to speak with them directly about your circumstances.

Question 60

What are the requirements to get a home loan approved in Australia?

Ibrahim Durur · Accepted Answer

Requirements can vary based on the lender, your own circumstances could also effect the requirements to obtain an approval. The basics of a home loan assessment include:
* Ability to service the proposed loan
* Ability to complete the proposed purchase (eg:...

Question 61

What should I consider before getting Home Loans?

Ibrahim Durur · Accepted Answer

There is lots to consider - might be best to start with a casual conversation with your mortgage broker to work through your goals, objectives and financial position to work out the best path forward.

Question 62

Can I use a personal loan to finance a home purchase, or should I use a home loan?

Ibrahim Durur · Accepted Answer

You could use a personal loan, if the lender deems "property purchase" as an acceptable purpose. Generally the maximum loan amounts available under a personal loan will be more modest relative to home loans. The interest rate on a personal loan could also be...

Question 63

What is the average time it takes to get a home loan approved?

Ibrahim Durur · Accepted Answer

This really depends on the lender / bank - they all have difference service level agreements at any give time and can change based on current application volumes. Best to check with your broker prior to selecting a lender. The quickest lenders can turn an...

Question 64

How much do I have to pay for the Lender Mortgage Insurance?

Ibrahim Durur · Accepted Answer

Lenders Mortgage Insurance premiums are calculated based on the loan amount and the overall Loan to Value Ratio. It's best to obtain a quote prior to applying. It's also wise to compare the LMI premium across different lenders as they can vary quite...

Ask mortgage experts

Answers by mortgage experts

What is the repayment period for a home loan?

Can you use first home owners grant as deposit?

Can I change lender when I'm in the middle of my loan process?

How do I compare home loans and choose the best one for me?

How long does it take to get a home loan approved?

Why is comparison rate so much higher?

Is it easier to get a home loan if I am single or married?

Can I get a home loan if I am a single parent?

Can I get a home loan if I am a student?

How much does a mortgage broker charge for their services?