Buying a home is a major financial commitment. The right home loan is not necessarily the one with the lowest advertised interest rate. It should also reflect your deposit, income, repayment preferences, future plans and the features you are likely to use.
An experienced mortgage broker can help you understand your borrowing position, compare suitable options from the lenders available to them and manage the loan application from the initial assessment through to settlement.
Home loan options for different buyers
A broker may be able to assist with finance for:
Your circumstances will influence which lenders and loan structures may be suitable. Relevant factors can include your income, employment type, living expenses, existing debts, credit history, available deposit and the property being purchased.
- Buying a first home
- Moving or upgrading to another home
- Buying a new home before selling an existing property
- Building a new home
- Purchasing a house-and-land package
- Renovating or extending an existing home
- Refinancing an existing home loan
- Consolidating eligible debts where appropriate
Choosing an appropriate home loan structure
Home loans can include different rates, repayment arrangements and account features, including:
A loan with more features may also carry a higher interest rate or additional fees. It is important to consider the total cost and practical value of those features rather than selecting a product based on one headline number.
- Variable or fixed interest rates
- Principal and interest or interest-only repayments
- Offset accounts
- Redraw facilities
- Split loans
- Additional repayment options
- Package and basic home loan products
Understanding your borrowing position
Before recommending a loan, a broker will generally discuss:
A borrowing estimate is not an approval. The lender will complete its own assessment and may require supporting documents, a property valuation and further information before deciding whether to approve the application.
- Your income and employment
- Regular living expenses
- Existing loans, credit cards and other financial commitments
- Your available deposit or equity
- The type and location of the property
- Your preferred repayments and loan term
- Changes you reasonably expect in the future
How a mortgage broker can help
A mortgage broker acts as an intermediary between you and potential lenders. For regulated home lending, mortgage brokers must act in the consumer's best interests when providing credit assistance.
Your broker can:
- Assess your needs and objectives.
- Explain relevant loan structures and features.
- Compare suitable options from their lender panel.
- Explain rates, fees, repayments and material risks.
- Prepare and lodge the application.
- Liaise with the lender and other parties during the process.
- Assist through approval and settlement.
Start your home loan conversation
Whether you are purchasing your first home, moving to your next property or building, finweb can connect you with an experienced mortgage broker who can assess your circumstances and explain available options.
Speak with a home loan broker
Speak with an experienced broker about your circumstances, available options and the next steps.
FAQs
How much can I borrow?
Your borrowing capacity depends on the lender's assessment of your income, expenses, liabilities, credit history and the proposed loan. Online calculators provide estimates only.
How much deposit do I need?
Deposit requirements vary. A smaller deposit may limit lender choices and could result in lenders mortgage insurance or other costs.
Should I choose a fixed or variable rate?
Both have advantages and limitations. The appropriate choice depends on your need for repayment certainty, flexibility and tolerance for interest-rate changes.
Does pre-approval guarantee my loan?
No. Pre-approval is generally conditional and remains subject to the lender's requirements, including verification of your circumstances and acceptance of the property.