A Mortgage Broker is an intermediary between the borrower and the lender who uses their knowledge to source competitive rates and most suitable lender for their customers. The Mortgage Broker acts in the borrower’s best interests at all times and handle the process throughout various stages from the initial interview to settlement.

Broker is accredited with many lenders therefore broker can access a wide range of mortgage products and source competitive rates for their customers. A Mortgage Broker will help navigate through the options by explaining the differences between products and help the borrower choose a loan that suits their specific needs. Once a product is chosen, a Mortgage Broker will prepare the loan application to be submitted to the lender and make sure things happen on time and the borrower is fully informed every step throughout the stages.

We do not charge a fee for our service. We are paid a commission by the lender when you settled the loan with lender. There are some rare circumstances where we may charge you a fee, however any applicable fees will be disclosed at the start of the process and we will send you the credit quote upfront.

There are 4 different stages

First is initial interview so that the broker can understand your home loan requirements

Pre-approval: once you confirmed to proceed with the recommended proposal, broker will apply for pre-approval for you. A pre-approval is confirmation from the lender they are happy with the scenario your broker has prepared and submitted, providing their conditions are met Once you have pre-approval then you can start to inspect the property and make an offer

Formal approval or unconditional approval: once you signed a contract of sale, you need to apply for formal approval to let the bank know the property address you are purchasing and reconfirm you loan structure and you need to address all the conditons on the pre-approval if any.

Settlement: once formal approval is granted, lender will prepare for the loan contract for you to sign. You will also need to provide a valid home insurance certificate in order for lender to get your application ready for settlement.

Full details of the purchase process can be found under “Purchase Process” tab

A pre-approval usually lasts for 90 days, if you haven’t made a purchase by the expiry date, contact your broker to renew

If you are purchasing an owner occupied property, you can borrow up to 95% the property value (this is called loan to value ratio, LVR) including LMI (lender mortgage insurance) means you need around 8% deposit as a minimum, the higher LVR the higher LMI cost.

LMI is applicable when you contribute less than 20% deposit. Some lenders currently offer LMI waiver for 85% LVR if you are a fist home buyer, speak to your broker for more options.

If your parents provide security guarantee, you can borrow up to 105% of the property price means you do not need to contribute any deposits, in fact you could borrow the extra 5% to cover stamp duty and other fees for your purchase, keep in mind your parents need to have available equity for their guarantee portion.

LMI (lender mortgage insurance) is applicable when you contribute less than 20% deposit. The higher LVR that is above 80%, the higher LMI cost you need to pay. Some lenders currently offer LMI waiver for 85% LVR if you are a fist home buyer, speak to your broker for more options.

You need to have a solicitor or conveyancer before signing the contract of sales. Contract of sales and section 32 need to be checked by the conveyancer since this is a legal document, your conveyancer will explain to you if any terms and conditions are unusual and you conveyancer will also assist you to negotiate special conditions with the vendor upon your request and subject to vendor’s agreement.

Broker will collect eh fully signed contract and section 32 along with any supporting documents if any, for example: your updated payslips and bank statements and will apply for formal approval for your purchasing property. A valuation is often ordered and the broker will inform you if there is any valuation fee.

Once the valuation is accepted and all other conditions are met, the lender issues an unconditional approval and a formal loan contract, your broker will arrange a meeting to assist you with the loan documents signing.

Once signed loan documents are returned to lender and once documents are verified, lender will prepare for the settlement

The repayment is usually direct debited from your nominated bank account. If you would like to change the repayment frequency, you can contact the lender to make the change over the phone or at a branch.

Your broker will also look after you after settlement such as fixing your loan or product switching and your broker can also provide pricing review to ensure you are paying the best interest rate. Broker can also give you further recommendations on purchasing your next properties.