Frequently Asked Questions

Mortgage brokers are qualified finance industry professionals. They work with you to determine your borrowing needs and objectives, and to help you determine how much you can borrow. Brokers help to ensure that you don’t take out a loan that is not right for you.

Like your solicitor, accountant or financial planner, we are specialists in what we do and will provide you with a suitable finance solution to help you achieve your goals.

With a mortgage broker, you can expect a more personalised level of service than you would usually receive directly from a lender. Additionally, our brokers have access to finance products from a wide variety of lenders. This means your broker can compare lending products from different lenders to find a loan that’s just right for you.

Some mortgage brokers charge a fee for their services and some don’t. When you take out a loan via a mortgage broker, it does not cost you more in loan repayments. Brokers get paid a commission by the lender for bringing new business to them, but this does not impact your interest rate.

Some brokers charge a fee for their service. They must disclose this fee upfront to you so that you know what it will cost if you engage their services.

Absolutely not. First of all, there is very little difference between the commissions paid by the various lenders. There is also legislation in our industry called the National Consumer Credit Protection Act (or NCCP), that is designed to protect consumers and ensure ethical and professional standards in the finance industry. We tell you upfront what commission we will be getting from the lender. Our job, our only job, is to find a competitive loan for your needs and objectives.

Some brokers charge a fee for their service which they must disclose to you up-front before you engage their services. However, the costs of the loan are the same. These costs depend on the loan and lender you choose. If you want to save on loan costs, just tell us. We can locate loan products from the lenders with the lowest fees and charges.

There are specific factors that need to be considered when determining how much a customer can borrow, such as income, employment position, the deposit saved, current living expenses and any liabilities. Our borrowing calculator can give you a rough idea of how much you may be able to borrow. For a more accurate assessment, please give us a call and we can go into your options and discuss your circumstances in more detail.

A mortgage broker will recommend a product based on what you say is most important to you – for example, “pay my loan off quickly” or “guaranteed repayments” or “low cost”. We do however, live by the following; “if you want flexibility take a variable rate loan, if you want budget certainty, take a fixed rate loan, if you want both, then do a split loan.”

Sure thing! We are mobile brokers so we can come to you!

We are Connective Brokers and we have access to many lenders. This means we can source you a loan from different lenders to provide you with a variety of options that are suitable for you and your situation.

Mortgage brokers do not set rates. The Reserve Bank of Australia meet on the first Tuesday of every month to determine the official cash rate for the country. The lenders then use this information to set their own rates.  Lenders also adjust their rates according to their costs and other economic considerations.

Lenders will only sell you their own products. Each bank (or lender) has a variety of loan products on offer – low doc, package loans, loans with re-draw facilities, plant and equipment loans, fixed rate loans, interest only, interested in advance, variable, introductory variable… and so on. The issue you face as a consumer is ‘which loan is right for me?’ And that is where your mortgage broker becomes an invaluable resource! If you go direct to the bank, you will only be offered the loan options available through that one lender. As your mortgage broker, we do all the leg work to find the right loan for your needs. We are across many lenders and all of their loan products, and our sole purpose is to find a suitable loan to match your personal financial circumstances and goals.

Yes, you can get approved for a home loan with bad credit. There are specialist lenders that can help with different types of bad credit.

Have you missed a payment on your bill, credit card, mortgage or any other type of debt in the past?

Credit providers like lenders take note of any missed payments on your credit file, but that need not mean the end of your home loan dreams. The following is what lenders consider bad credit:

  • Bad credit history: Adverse listings like defaults, bankruptcy, judgements, court writs, or excessive credit enquiries can raise concerns, but they don’t automatically exclude you from getting a home loan.
  • Lender credit history: While your past credit history with a lender may be considered, a bad history does not necessarily mean you’re ineligible for a home loan.
  • Unpaid bills or taxes: Outstanding bills like council rates or tax bills may be considered but can be explained and resolved.
  • Mortgage arrears: Lenders may be cautious if you’ve missed any payments on your mortgagein the last six months.
  • Company in financial trouble: If you’re a director of a company experiencing financial difficulty, it doesn’t necessarily reflect poorly on your personal credit history.
  • Overcommitted: While having too many debts or a negative net worth may be concerning, options are still available to help you secure a home loan.

Did you know that some banks will only take into account some of your foreign income?

To allow for exchange rate movements, some lenders will only use 60% to 90% of your foreign income.

This means you may need to be earning some money in Australian dollars (AUD) or show rental income from an Australian property that you own.

Our best lenders will actually use 100% of your foreign income as long as you’re in a strong financial position.

Moreover, Australians earning a foreign income are often highly-skilled professionals that have stable employment and make a good living.

Because of this, you can get the same home loan features and interest rate discounts as if you were earning income in AUD.

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