Frequently Asked Questions

Think of us as your personal home loan concierge. Instead of you visiting multiple banks and comparing dozens of loan products, we do all the heavy lifting for you:

• Access 30+ lenders – We have relationships with major banks, credit unions, and specialist lenders you can’t access directly
• Find the best deal – We compare rates, features, and fees to match you with the perfect loan for your situation
• Handle all the paperwork – We manage applications, liaise with lenders, and chase approvals so you don’t have to
• Expert guidance – We explain everything in plain English and advocate on your behalf throughout the process
• Ongoing support – We’re here for the life of your loan, helping with rate checks, refinancing, or loan changes

For standard home loans: $0. That’s right—completely free!

Lenders pay us a commission when your loan settles (typically around 0.6% of the loan amount). This comes from the lender’s marketing budget, not from you. There are no hidden fees or markups on your interest rate.

For complex commercial or business loans: We may charge a fee for specialist advice, but we’ll always discuss this upfront before starting any work.

Here’s the honest truth:

Going direct to a bank means:

• You’re limited to ONE lender’s products (they can’t offer competitors’ loans)
• Bank staff work for the bank, not for you—their goal is to sell their products
• You’ll need to repeat the application process at each bank you approach
• No one is shopping around on your behalf or negotiating better rates

Using a broker means:

• Access to 30+ lenders from a single application
• We work for YOU—our reputation depends on finding you the best deal
• We can often negotiate better rates and fee waivers
• Faster approvals (we know each lender’s criteria and submit polished applications)
• Ongoing support even after settlement

Pre-approval: 2-5 business days (sometimes same day for simple scenarios)

Full loan approval: 5-10 business days after you’ve found a property

Settlement: Typically 30-60 days after contracts are signed (depends on your agreement with the seller)

What affects timing?

• How quickly you provide required documents
• Lender workload (busy periods can add 1-2 weeks)
• Property valuations (usually 2-3 days)
• Complexity of your situation (self-employed, multiple incomes, etc.)

Short answer: No! While 20% is ideal, many Perth buyers successfully purchase with much less.

What you CAN do:

• 5% deposit – Possible with Lenders Mortgage Insurance (LMI). Some lenders accept as low as 5% for first home buyers
• 10% deposit – Common for owner-occupiers. More lender options available
• 15% deposit – Sweet spot for many buyers—lower LMI costs, good loan options
• Genuine savings – Most lenders want at least 5% from your own savings (not gifts or bonuses)

What about first home buyers in WA?

• Keystart – Government-backed loans from 2% deposit (conditions apply)
• First Home Loan Deposit Scheme – Buy with just 5% deposit and avoid LMI (limited places)
• Family Guarantee – Parents can use their home equity to eliminate your LMI

What is LMI?

Lenders Mortgage Insurance protects the LENDER (not you) if you can’t repay your loan. It’s required when you borrow more than 80% of the property’s value.

Example:

• Property price: $650,000
• Your deposit: $65,000 (10%)
• Loan amount: $585,000 (90%)
• LMI cost: Approx. $18,000-$24,000 (varies by lender)

Do I need it?

Yes, if you’re borrowing more than 80%. But here’s the good news:

• It’s a one-time cost – Not an ongoing fee
• Can be added to your loan – You don’t need to pay it upfront
• Lets you buy sooner – Don’t wait years saving 20%
• Some ways to avoid it: Family guarantee, First Home Loan Deposit Scheme, or certain professions (doctors, lawyers, etc.) get LMI waivers

Yes! This is called a Family Guarantee or Family Pledge.

How it works:

• Your parents use the equity in their home as security for part of your loan
• You can borrow up to 100% of the property value (no deposit needed)
• You avoid paying LMI (saving $15,000-$30,000+)
• Your parents don’t need to give you cash—just use their property as additional security

Important considerations:

• Your parents are guaranteeing part of your loan (typically 20-25%)
• If you can’t pay, the lender can pursue your parents
• Once you reach 80% LVR, the guarantee can be removed
• Your parents need sufficient equity in their home
• All parties should get independent legal advice

Most lenders require genuine savings to prove you can manage money responsibly. Here’s what counts:

Genuine Savings (✓ Accepted):

• Regular savings built up over 3+ months
• Term deposits held for 3+ months
• Shares or managed funds held for 3+ months
• First Home Super Saver Scheme withdrawals
• Rental payment history (if you’ve been renting)

Non-Genuine Savings (✗ Usually Not Accepted):

• Recent cash gifts from family
• Tax refunds or work bonuses (if recent)
• Loan proceeds or credit
• Sudden lump sums with no history

How much genuine savings do I need?

• Most lenders want at least 5% genuine savings
• The remaining deposit can come from gifts or other sources
• Some lenders are more flexible if you have strong income/employment

Quick Rule of Thumb: Most lenders will lend 5-6 times your annual gross income, but this varies significantly based on your situation.

What lenders assess:

• Your income: Salary, rental income, investment income (different lenders treat these differently)
• Your expenses: Living costs, debt repayments, dependents
• Your credit history: Credit score, past loan conduct
• The loan structure: Interest rate buffer (usually 3%), loan term, loan type
• Your employment: Permanent, contract, casual, or self-employed (different rules apply)

Real Example (Perth):

• Income: $100,000 per year
• No dependents, minimal debts
• Estimated borrowing capacity: $550,000-$650,000

Yes—and this surprises many people!

Lenders assess your credit card at its full limit, not your current balance. Even if you pay it off monthly and never carry a balance, lenders assume you could max it out tomorrow.

The Impact:

• $10,000 credit card limit = reduces borrowing capacity by ~$50,000
• $20,000 credit card limit = reduces borrowing capacity by ~$100,000
• Multiple cards = effects compound significantly

What to do before applying:

• Cancel unused cards – Even if they have $0 balance
• Reduce limits – If you need to keep a card, lower the limit to what you actually use
• Wait 1 month – After cancelling, wait before applying (gives time for credit file to update)
• Avoid new credit – Don’t apply for store cards, Afterpay, or car loans before your home loan

Absolutely! Self-employed borrowers make up a huge portion of our clients.

What lenders need to see:

• ABN registered for 2+ years (some lenders accept 1 year for strong applicants)
• 2 years of tax returns showing consistent or growing income
• Recent financials: Profit & Loss, Balance Sheet
• Business is profitable (not just high turnover)
• Accountant’s letter (sometimes required)

Income Assessment:

Lenders typically average your last 2 years of taxable income. They look at the NET profit after business expenses, not your turnover.

Self-Employed Challenges & Solutions:

• Challenge: You claim lots of deductions → Low taxable income
  Solution: Some lenders use alternative income assessment methods (bank statements, BAS statements)
• Challenge: Recent business start-up
  Solution: Some lenders accept 1 year ABN if you have strong income history
• Challenge: Irregular income
  Solution: We focus on lenders who understand seasonal/contract businesses

Yes—but how much counts depends on your situation.

Married or De Facto (living together 6+ months):

• 100% of both incomes count toward borrowing capacity
• Both applicants are equally responsible for the loan
• Best borrowing capacity outcome

Not living together or casual relationship:

• Some lenders won’t combine incomes at all
• Others may accept but with restrictions
• Lower borrowing capacity than married/de facto couples

Parental Leave or Career Breaks:

• If one partner is on parental leave, lenders typically don’t count that income
• Once returning to work (with employer letter), income can be included
• Some lenders are more flexible than others

What if we’re both on the loan but only one is living in the property?

• Both incomes still count
• The non-occupier’s existing home costs are also factored in
• Can reduce borrowing capacity—we can work through scenarios with you

Standard Documents for All Applicants:

• ✓ Photo ID (Driver’s license or passport)
• ✓ Proof of income – Last 2 payslips (PAYG employees)
• ✓ Bank statements – Last 3 months for all accounts
• ✓ Savings evidence – Showing deposit build-up
• ✓ Rates notice – If you own other properties
• ✓ Credit card/loan statements – For all existing debts

Additional for Self-Employed:

• ✓ Last 2 years tax returns (full returns, not just notice of assessment)
• ✓ Recent Profit & Loss and Balance Sheet
• ✓ Accountant’s letter (sometimes)
• ✓ Business ABN registration

Additional for Investors:

• ✓ Rental statements for investment properties
• ✓ Current lease agreements
• ✓ Property management statements

Pre-Approval (also called Conditional Approval):

• Assessment of YOU as a borrower (income, expenses, credit)
• Tells you exactly how much you can borrow
• Valid for 3-6 months (varies by lender)
• Doesn’t require a specific property
• Gives you confidence and negotiating power when house hunting
• Takes 2-5 business days typically

Formal Approval (also called Unconditional Approval):

• Assessment of the PROPERTY you want to buy
• Lender orders valuation to confirm property is worth the purchase price
• Final loan documents prepared
• Ready for settlement
• Takes 5-10 business days after you’re under contract

Typical Timeline:

1. Get pre-approval (before house hunting)
2. Find your dream property
3. Make an offer and sign contract
4. We submit for formal approval
5. Lender orders valuation
6. Formal approval issued
7. Settlement (usually 30-60 days after contract)

First: Don’t panic. Declines happen—and they’re fixable.

Common reasons for decline:

• Credit history issues (late payments, defaults, too many inquiries)
• Income not verified properly or insufficient for the loan amount
• Employment type (casual, contract, probation)
• Property type (lender doesn’t like the property/location)
• Incorrect or incomplete documentation
• Recent job change or industry-specific restrictions

What we do next:

1. Understand why – Get detailed decline reasons from the lender
2. Fix the issue – Address specific concerns (more documents, paying off debt, etc.)
3. Choose a different lender – What one lender declines, another might approve. We know each lender’s “sweet spot”
4. Adjust the application – Lower loan amount, change loan structure, or add a guarantor
5. Reapply strategically – Only when we’re confident of approval

Important: Never apply to multiple lenders yourself if one declines. Each application creates a credit inquiry that other lenders see. Let us coordinate multiple applications strategically if needed.

Yes, but it depends on the lender and your situation.

Most lenders require:

• Completed probation period (3-6 months typically)
• Permanent employment contract (not casual or contract)
• Confirmation letter from employer stating you’ll pass probation

Some lenders ARE flexible with:

• Recent start if you’re in the same industry/role (e.g., accountant moving accounting firms)
• Professionals with in-demand skills (doctors, lawyers, engineers)
• Strong overall financial position (large deposit, no debts, high income)
• Promotion within the same company

What helps your application:

• Employer letter stating probation is a formality
• Evidence of job stability in your industry (previous employment history)
• Signing your permanent contract (even if probation hasn’t ended)
• Large deposit (20%+) reduces lender risk

There’s no “right” answer—it depends on your priorities.

Variable Rate:

• ✓ Rate can go up or down with market movements
• ✓ More flexibility (extra repayments, offset accounts, redraw)
• ✓ Can refinance anytime without break fees
• ✓ Usually lower rates right now (as of 2024-2025)
• ✗ Uncertainty—your repayments can increase

Fixed Rate:

• ✓ Locked rate for 1-5 years—certainty and budgeting peace
• ✓ Protected if rates rise
• ✓ Great for strict budgets or those who hate surprises
• ✗ Less flexibility (limited extra repayments, no offset usually)
• ✗ Locked in if rates fall—you miss out on decreases
• ✗ Break fees if you need to refinance or sell early

Split Loan (Hybrid):

• Best of both worlds—split your loan 50/50 (or any ratio)
• Fix half for certainty, keep half variable for flexibility
• Popular with Perth buyers who want protection but not total lock-in

Upfront Costs (When Buying):

• Application Fee: $0-$600 (many lenders waive this)
• Valuation Fee: $200-$400 (sometimes lender pays)
• Settlement Fee: $200-$600 (one-time at settlement)
• Legal/Conveyancing: $800-$1,500 (your conveyancer, not the lender)
• Lenders Mortgage Insurance (LMI): $0-$30,000+ (only if borrowing >80%)

Ongoing Costs:

• Annual Package Fee: $0-$395 (only if you choose a packaged loan)
• Monthly Account Keeping: $0-$10 (most home loans are $0)

Exit/Change Costs (Only If You…)

• Discharge Fee: $150-$400 (when paying off or refinancing)
• Fixed Rate Break Fee: Variable (can be $0 or $10,000s if breaking fixed early)

Government Costs (Separate from Lender):

• Stamp Duty (WA): $0-$30,000+ (depends on property price; first home buyers often get exemptions)
• Title Transfer: $200-$300

Absolutely! And this is where brokers shine.

What affects your negotiating power:

• Loan size: Larger loans ($500k+) have more negotiating room
• Deposit size: 20%+ deposit = lower lender risk = better rates
• Your income/credit: Strong financial profile gets better rates
• Loan structure: P&I loans get better rates than interest-only
• Relationship: Brokers with high lending volumes get better rates than individual customers

Typical Rate Discounts:

• Standard published rate: 6.50%
• After negotiation: 6.19-6.29% (0.20-0.30% discount)
• On a $500k loan, 0.25% discount saves $650/year or $19,500 over 30 years!

What we negotiate beyond rates:

• Fee waivers (application, annual fees)
• Offset accounts at no extra cost
• Higher redraw allowances
• Faster approval turnaround times

An offset account is a transaction account linked to your home loan that reduces the interest you pay.

How it works:

• You have a $500,000 home loan at 6.5% interest
• You keep $20,000 in your offset account
• You’re only charged interest on $480,000 ($500k – $20k)
• Your money is still 100% accessible—use it for bills, emergencies, whatever
• Every dollar in offset = one less dollar charged interest

The Benefit (Real Example):

• $500k loan without offset: $2,708/month interest
• Same loan with $20k offset: $2,600/month interest
• Savings: $108/month or $1,300/year
• Over 30 years: $38,880 interest saved (plus you still have the $20k!)

Should you get one?

• YES if: You keep savings/emergency fund, get paid into it, have irregular income
• NO if: You never have savings, prefer simplicity, or it costs extra (some do)