Frequently asked questions.

A Finance / Mortgage Broker is a professional who specializes in connecting borrowers with lenders for home loans, commercial loans, car loans, personal loans and business loans. They offer services such as mortgage advice, lender comparisons, and application assistance.

The benefits of using a Mortgage Broker include access to a wider range of lenders and loan options, expert advice on the home loan process, and personalized assistance with the application process.

To be eligible for a home loan, you generally need to have a stable income, good credit history, and enough savings for a deposit or enough equity to refinance an existing loan. Your Mortgage Broker can help assess your eligibility and suggest ways to improve it if necessary. They can also work out your borrowing capacity.

Factors that affect the interest rate of a home loan include the loan to value ratio (LVR), loan amount, type of loan, borrower’s credit score, and the lender’s risk assessment.

To compare different home loan options, you should consider factors such as interest rate, loan fees, loan features, repayment options, and the total cost of the loan over its lifetime.

Yes, a Mortgage Broker can help you compare different refinancing options and find a new home loan that suits your needs.

As a general rule, Debt Consolidation is an excellent way to reduce the amount of interest payable across all debts. The savings in interest can then serve to reduce monthly commitments or enable the borrower to pay down their total debt much faster. Debt Consolidation may even be beneficial if it means paying a small amount of Lender’s Mortgage Insurance (LMI) but this calculation needs to be assessed on a case by case. Your Mortgage Broker can help you work out the cost benefit analysis.

The approval process for a home loan can take anywhere from a few days to a few weeks, depending on the lender and the complexity of the application.

The amount of deposit you need to buy a house in Australia depends on the lender’s requirements and the type of home loan you’re applying for. Generally, you’ll need to have at least 5% of the property’s value as a deposit. However, there are some lenders that will enable you to buy with less deposit and in the case of Guarantor Loans, there may not be a deposit required at all.

The First Home Owner’s Grant is a one-time payment provided by the government to first-time homebuyers to help them purchase or build a new home. The grant amount varies by state and territory, and may also depend on the value of the property. The FHOG payment is not available for existing property purchases but there are stamp duty concessions available under

To be eligible for the First Home Owner’s Grant, you must be a first-time homebuyer who is an Australian citizen or permanent resident. You must also meet certain residency and age requirements, and intend to live in the property as your principal place of residence for a specified period.

To apply for the First Home Owner’s Grant, you need to submit an application to the relevant state or territory government agency. You may need to provide proof of identity, income, and property purchase or construction details. As a mortgage broker, we can help guide you through the application process and provide information on any additional incentives or grants that may be available to you. Your Mortgage Broker can help you with the application process.

The First Home Loan Deposit Scheme is a government program that helps eligible first-time home buyers purchase a property with a deposit as low as 5%. Your Mortgage Broker can advise you on whether you’re eligible for the scheme and help you apply for it.

The Family Home Guarantee Scheme is a new government initiative that allows single parents with dependent children to buy a home with a deposit as little as 2%. This scheme aims to help single parents achieve home ownership and provide them with greater financial security. Your Mortgage Broker can advise you on whether you’re eligible for the scheme and help you apply for it.

To prepare for a meeting with a Mortgage Broker, you should gather information about your income, expenses, and credit history, and make a list of any questions you have about the home loan process.

Finance / Mortgage Brokers in nearly all circumstances obtain a commission from whichever lender they draft an application for. However, some brokers also charge a commission or a flat fee to the borrowers as well. For nearly all loans, Chesswork Finance Brokers do not charge a fee to borrowers but if there are fees associated with any loan comparison provided, they will be disclosed prior to the application process and will not be charged if the borrower does not proceed with the application.

Yes, a Mortgage Broker can use their industry knowledge and experience to negotiate a better interest rate on your behalf with the lender.

There are fewer lending options for borrowers with a bad credit history, but it’s not impossible. Your Mortgage Broker can help you explore options for improving your credit and finding a lender who is willing to work with you.

To improve your chances of getting approved for a home loan, you should maintain a good credit history, save a larger deposit, and minimize your existing debt. Having a work history with the same employer for 12 months or more or having an ABN for more than 2 years will also open up your lending options but there still options for borrowers with shorter lengths of employment history.

Yes, a Mortgage Broker can assist you in gathering and preparing the documentation required for a home loan application, such as payslips, tax returns, and bank statements.

Lender’s Mortgage Insurance is a type of insurance that protects the lender in case you default on your home loan. It is usually required when you have a deposit of less than 20% of the property’s value. However, we do have lenders to choose from that will allow for loan with no LMI with a 15% deposit and there options for professionals and medical staff that can be exempt from paying LMI with only 10% deposit. There are also additional schemes allowing for even less deposit with no LMI if you qualify. Your Mortgage Broker can help you find the best loan option available to you.

Generally speaking, you cannot borrow more than the value of the property. However, some lenders offer Guarantor Loans that allow you to borrow more than the value of the property to cover additional costs such as stamp duty and legal fees. Your Mortgage Broker can help you to find out if you are eligible for a Guarantor Loan.

A home loan is used to purchase an existing property, while a construction loan is used to finance the construction of a new property.

Yes, you can get a home loan to finance the purchase of an investment property, but the eligibility criteria and interest rates may be different from those of a home loan for a primary residence.

A principal and interest loan requires that you to make regular payments that cover both the principal amount and the interest charged, while an interest-only loan only requires you to pay the interest charges for a set period.

A pre-approval is a conditional approval from a lender, indicating the amount you may be able to borrow for a home loan. It typically lasts for 3-6 months.

Most home loans allow you to make extra repayments without penalties, but some loan products can restrict the amount of extra repayments and some may not offer redraw. It’s important to check the terms and conditions of your loan agreement.

A redraw facility allows you to withdraw any extra repayments you’ve made on your home loan, which can be useful in case of unexpected expenses or emergencies.

It’s a good idea to review your home loan every 1-2 years to make sure it still suits your needs and to compare it to other options in the market.

An Offset account is a savings or transaction account linked to your home loan, where the interest on your loan is calculated on the balance minus the amount in the Offset Account. Offset Loans can be a fantastic vehicle to reduce the amount of interest charged on the loan but generally come with higher rates and fees, so it is important to find out if an Offset Loan is right for your particular circumstance.

Yes, you can switch lenders for your home loan, but there may be costs involved such as exit fees, application fees, and valuation fees. On the flip side, some lenders are providing refinance cashback incentives that can cover these refinancing costs with money to spare.

If you miss a home loan repayment, you may be charged a late payment fee and your credit score may be affected. It’s important to contact your lender as soon as possible to discuss your options.

A Mortgage Broker is an independent professional who can offer a wider range of home loan options from multiple lenders, while a bank only offers home loans from their own institution. Lending policies vary widely from lender to lender and some lenders may decline your application whilst others will happily approve your loan based on their particular policies.

Yes, there a select number of lenders that offer Guarantor Loans. Your Mortgage Broker can help you find a lender that will approve a Guarantor Loan.

Yes, you can still get a home loan if you’re self-employed. Most lenders will require at least 2 years’ worth of tax returns and financials but there are a few lenders that will approve a loan based on 1 year worth of tax returns. There are also some other Alt Doc and Lo Doc options available for self employed people that don’t have up to date financial documentation.

A comparison rate is a percentage figure that includes the interest rate and some of the fees and charges associated with a home loan, providing a more accurate representation of the overall cost of the loan. It is different from an interest rate, which only reflects the cost of borrowing the principal amount.

A fixed-rate home loan has a set interest rate that remains the same for a specified period, usually between one and five years, providing greater certainty and predictability of repayments.

A variable-rate home loan has an interest rate that can fluctuate over the life of the loan, depending on market conditions and other factors.

A split-rate home loan allows you to split your loan into two or more portions, with one portion on a fixed rate and the other on a variable rate, providing a balance of stability and flexibility.

It may be more difficult to get a home loan with bad credit, but there are lenders that specialize in this area, and a Mortgage Broker can help you explore your options.

A deposit bond is a guarantee that the deposit required for a property purchase will be paid at settlement, without the need for cash upfront. It can be useful when you don’t have the full deposit amount available, or when you want to delay using your savings.

It’s possible to get a home loan if you’re on a visa or not an Australian citizen, but the eligibility criteria may be different, and you may need to provide additional documentation to prove your income and residency status. A Mortgage Broker can help you if you are not an Australian citizen or permanent resident and can work out what is possible for you based on your specific visa status.

The time it takes to get a home loan approved can vary depending on the lender and the complexity of your application, but it typically takes between 2-4 weeks.

Yes, you can refinance your home loan to get a better deal, reduce your repayments, access equity, or consolidate debt. Your Mortgage Broker can help you find the right refinance option for your needs.

The costs involved in buying a property include stamp duty, legal fees, valuation fees, and building and pest inspections, among others. These costs can vary depending on the property and location, but it’s important to budget for at least 5-10% of the purchase price.