Generally, yes. You can add the stamp duty expense on to the principal amount of your loan. The stamp duty will be paid out of the cash you use as a down-payment on your loan. The amount of stamp duty you owe varies by state and by the value of your home.

Yes. You can use the equity in your current property to help you purchase an investment property. Even if you have a mortgage on the property, you will likely have enough equity to purchase an investment property. Equity is the value of the difference between what your property is worth and what your mortgage loan is. For example, if you have a property valued at $900,000 with a mortgage of $700,000, you have $200,000 worth of equity. You may be able to borrow up to a certain percent of the equity to use toward investing in another property. Your home equity and anticipated rental income can help you buy another investment property sooner. Below is an example of how an equity home loan with an interest-only line of credit facility uses capitalised interest as an investment strategy: If you currently have a home loan for $300,000 and your house is worth $550,000 you will have equity of $250,000 which you can use toward the purchase of your investment property. To avoid Lenders Mortgage Insurance (LMI) you will want to keep your Loan to Value Ratio below 80%. Therefore 80% of $550,000 equates to $440,000, less the $300,000 you currently owe leaves you with $140,000 to put toward your investment property.

Generally speaking, a deposit of 20% of the value of the property will save you from incurring additional fees such as Lenders Mortgage Insurance. Some lenders will let you borrow up to 95% of the purchase price and then let you borrow the cost of the Lenders Mortgage Insurance on top of that. Alternatively, if you don’t have a deposit, you can borrow up to 100% of the property’s purchase price, in two ways:

• Family Pledge: which means that a family member offers their property as security for you to purchase your property.
• 100% House and Land packages: allow you to borrow up to 100% of the price of the brand new home and land.

The mortgage registration fee varies from state to state. Generally, mortgage registration fees can be found on each state’s or territory’s website.  If I am unemployed but have rental income is there any way to get a home loan? If rental income is your only source of income, it is likely that a lender will require an additional source of income. Simply being unemployed does not disqualify you from obtaining a mortgage. Having income from rental property will help make qualifying for a mortgage a bit easier.

This means that a quick check on your serviceability of a loan has been done and it is calculated that you should be able to make mortgage repayments on the amount you have been pre approved for. However, it is not binding and cannot be used to make an offer on a property. It is important to get a full or unconditional approval before proceeding with any property purchase. This involves completing a home loan application and providing all the necessary supporting documentation.

We will review your situation and talk with you about why you’ve missed making payments. Generally, having one or two missed payments won’t prevent you from getting refinancing. It will likely keep you from qualifying for the most favourable rates and terms though.

You can view and print off your Loan Application Documentation Checklist here.

A bridging loan is a shorter-term loan. It is typically needed when you are selling one property and purchasing another one. It is also used when you are waiting for the arrangement of longer term financing.

Lender’s Mortgage Insurance, as the name states, protects the Lender not you as the borrower. Lender’s Mortgage Insurance (LMI) is a once off fee that normally applies to loans where the customer is borrowing more than 80% of the purchase price. LMI is scaled depending on the percentage you need to borrow (between 80 – 100%) and the amount of the loan (ie, $650,000). LMI can start from $800 and range up to nearly 4% of the loan amount. You have two options to pay this fee.

1. You can pay it upfront on settlement of the loan.
2. Some lenders allow you to capitalise the cost of your LMI, meaning that they will add this figure to your loan amount. For example, if you are borrowing $650,000, your LMI may work out to be $7000. You would actually increase your loan amount to now borrow $657,000 ($650,000 + $7,000).

A mortgage offset account can reduce interest on your loan. Your mortgage is linked to an account into which your salary and other cash can be deposited. You can then withdraw the funds to pay your bills. For example, if you have a loan of $300,000 and have $10,000 in your offset account, the amount of interest you pay will be calculated on only $290,000 ($300,000 – $10,000). Use these savings for another deposit instead of paying off your current mortgage. Extra Repayments/Redraw Facility You can make extra repayments and create a ‘kitty’ for times when you have unexpected expenses such as plumbing or electrical repairs or for when you’re not receiving a rental income. Some loans with this feature allow you to skip a mortgage repayment as long as you have enough funds in credit to cover that mortgage repayment.

We require every applicant to pay their application fee, but some of our loans include a refund of this fee upon settlement.

Finding the loan amount you want when you are refinancing can come down to the equity you have in your existing home. If you are looking to refinance to find a lower rate or better features, then the process is relatively simple. If you are looking to borrow more money, there are a few other things to think about, most importantly, the equity in your property.

1. Once you apply online, you’ll speak with your dedicated Lending Specialist and review what home loan will be best suited to you
2. Your Lending Specialist will submit your application for approval, where you will be required to pay an application fee (depending on your loan, this may be refunded to you!)
3. We make various assessments and orders, including a credit assessment, LMI order, valuation and loan assessment
4. If your home loan and credit are approved, our legal representatives will compile the relevant legal documents and send them to you to sign
5. You will read through and sign all legal documentation, then return it to our legal representatives to review
6. Once the legal team is happy all documents are correctly signed, they’ll notify us to begin the settlement process
7. The settlement day will be booked and we will ensure everything is prepared for the big day!

As always, doing research is important: by keeping an eye on current market loans, the economic environment and your family’s needs, you can determine whether your current loan is doing right by you. You could always request a free home loan health check to see if we can offer you a better loan.

Applying for multiple conditional or pre-approvals can harm your credit score. One enquiry in itself is not a bad thing, but numerous enquiries over a short period can be – multiple hard enquiries may suggest financial stress to a lender. Conditional approvals should not form part of your research and comparison. Instead, you should only apply for a home loan conditional or pre-approval once you have done your research and decided on a suitable lender.

Conditional approvals are offered before you begin looking for a property, giving you a good idea of how much you can afford. You can then put a conditional offer on a property to secure it, before moving forward with your application with credit checks, valuations and other assessments. To be offered pre-approval, you will have already found the property you want to purchase, and have had it valued. Pre-approval is based on both your finances and the property itself, showing the lender is happy to finance the loan amount on the particular property.

As soon as you have correctly signed all legal documents and send them back, we can begin your settlement process. During the settlement process, your legal representatives will ensure all clauses in your contracts are being met and get all required documents ready to close the sale. On your agreed settlement date, your legal representative and the legal representative of the seller will take care of all matters relating to settlement, such as registering the title of the property and paying stamp duty. After this is taken care of, you are now able to move into your new home, start your new build process, cash out equity from your loan, or benefit from a lower rate home loan – whatever your reason for your home loan, it’s now complete and ready to enjoy.

Conditional approval is a confirmation from Mortgage House that, on the basis that all required information provided is factually correct, you will be given approval subject to various conditions like successful credit checks. With conditional approval, you’ll be ready to put an offer on a property as soon as you find the perfect match.

Pre-approval is the confirmation from Mortgage House that, now that you have had a valuation on the property you wish to purchase, and we have all required information from you, provided final checks are successful, you can proceed with making an offer with our financial backing.

We send your loan contract, mortgage document, repayment form, certificate of witness form, borrower certificate and warranty. To learn more about the documentation required for settlement, click here.

1. You will have a chat with your dedicated Lending Specialist, where you will discuss what home loan will be best-suited to you.
2. Your Lending Specialist will submit your application for approval, where you will be required to pay the relevant application fee.
3. Our Lending Team makes various assessments and orders, including (where needed) a credit assessment, LMI order, valuation and a loan assessment.
4. If your home loan and credit are approved, our legal representatives will compile the relevant legal documents and send them to you to sign.
5. You will need to read through and sign all legal documentation, then return it to our legal representatives to review.
6. Once the legal team are happy that all documents are signed correctly, they’ll notify us to start the settlement process
7. The settlement date will be booked, and we will ensure everything is ready for the big day!

Generally speaking, a deposit of 20% of the value of the property will save you from incurring additional fees such as Lenders Mortgage Insurance. Some lenders will let you borrow up to 95% of the purchase price and then let you borrow the cost of the Lenders Mortgage Insurance on top of that. Alternatively, if you don’t have a deposit, you can borrow up to 100% of the property’s purchase price, in two ways:

• Family Pledge: which means that a family member offers their property as security for you to purchase your property.
• 100% House and Land packages: allow you to borrow up to 100% of the price of the brand new home and land.

You purchase the land before the house is built When buying the land first you will generally have to pay a deposit of 10% of the purchase price, with the balance being payable on settlement. This way you will only pay stamp duty on the land, rather than on the construction cost of the house. In this situation, you will need two home loans – one for the land and one for the construction. Progress payments on the mortgage will need to be made at different stages of construction. You buy the house already completed on the developer’s land If you decide on this option, all you need to do is give a 5% deposit, with the rest being payable once the home is completed. There are no progress payments with this option, which you can use to your advantage for either renting whilst the home is being built, or saving a larger deposit for the home loan. Research your location and developer.

Getting an idea of the following will help:

• What experience have they got and how long have they been in business
• How many packaged homes have they sold?
• Get referrals, and ask the owners if they were satisfied with the workmanship.
• Check on appropriate builder’s warranty and insurance cover.
• Check if they offer a fixed price building contract, so you aren’t left with unexpected fees.

1. Generally, yes. You can add the stamp duty expense on to the principal amount of your loan. The stamp duty will be paid out of the cash you use as a down-payment on your loan. The amount of stamp duty you owe varies by state and by the value of your home.

You purchase the land before the house is built When buying the land first you will generally have to pay a deposit of 10% of the purchase price, with the balance being payable on settlement. This way you will only pay stamp duty on the land, rather than on the construction cost of the house. In this situation, you will need two home loans – one for the land and one for the construction. Progress payments on the mortgage will need to be made at different stages of construction. You buy the house already completed on the developer’s land If you decide on this option, all you need to do is give a 5% deposit, with the rest being payable once the home is completed. There are no progress payments with this option, which you can use to your advantage for either renting whilst the home is being built, or saving a larger deposit for the home loan. Research your location and developer.

The most obvious, tried and test method is write a budget and stick to it. Using a Budget Planner is a great place to start.

• Family Pledge: where an immediate family members puts up their property as security against your home loan. Note: if you default on your loan, you could put their property at risk of being repossessed.
• 100% House and Land Packages: this allows you to borrow up to 100% of the purchase price of a brand new home located at a selected residential estate.

Your friendly Lending Specialist can assist you with this at the time of your home loan application. Call 02 9299 2263 to discuss your options.

A comparison rate is a rate that all lenders by law must display next to their advertised interest rates. It is a rate which takes into account some of the fees and charges of a home loan to give you a more accurate representation of a loan’s interest rate once the costs are taken into account. A comparison rate is usually worked out using the example loan of $150,000 over 25 years. This is an overt attempt to stop lenders from advertising incredibly low interest rates that lure unsuspecting borrowers into home loans that actually cost them far more than they expected. AAPR stands for ‘Average Annual Percentage Rate’. This is very similar to a Comparison Rate and provides the true cost of your loan over time.

This means that a quick check on your serviceability of a loan has been done and it is calculated that you should be able to make mortgage repayments on the amount you have been pre approved for. However, it is not binding and cannot be used to make an offer on a property. It is important to get a full or unconditional approval before proceeding with any property purchase. This involves completing a home loan application and providing all the necessary supporting documentation. (See our home loan application checklist)

You purchase the land before the house is built When buying the land first you will generally have to pay a deposit of 10% of the purchase price, with the balance being payable on settlement. This way you will only pay stamp duty on the land, rather than on the construction cost of the house. In this situation, you will need two home loans – one for the land and one for the construction. Progress payments on the mortgage will need to be made at different stages of construction. You buy the house already completed on the developer’s land If you decide on this option, all you need to do is give a 5% deposit, with the rest being payable once the home is completed. There are no progress payments with this option, which you can use to your advantage for either renting whilst the home is being built, or saving a larger deposit for the home loan. Research your location and developer.

You can view and print off your Loan Application Documentation Checklist here.

A disability pension is a valid income source for the purpose of making a loan application. As with any loan application the amount of income from a disability pension, or from any other source, factors into the amount you can borrow and affects eventual the terms of the loan.

Your entitlements will vary depending on:

• Which state or territory you live in
• Whether you are buying a an existing dwelling or will be building your home

Under the First Home Owner Grant (FHOG), a once-off payment of up to $7000 is payable to first home owners that satisfy all the eligibility criteria. Note: some states/territories have introduced a cap where first home buyers purchasing a property above this will not qualify to receive the grant. In NSW, this is currently $835,000. The government has established a website with all the relevant grants and schemes http://www.firsthome.gov.au/

Yes. We can help you choose the right loan product for the kind of property you are looking to buy. There are different options available for hobby farms, rural farms or vineyards with homes. Purchasing a rural home is no more difficult that purchasing a city home. We are here to support you. We offer innovative financing to help make your dream of owning a home in the countryside a reality.

Lender’s Mortgage Insurance, as the name states, protects the Lender not you as the borrower. Lender’s Mortgage Insurance (LMI) is a once off fee that normally applies to loans where the customer is borrowing more than 80% of the purchase price. LMI is scaled depending on the percentage you need to borrow (between 80 – 100%) and the amount of the loan (ie, $650,000). LMI can start from $800 and range up to nearly 4% of the loan amount. You have two options to pay this fee.

1. You can pay it upfront on settlement of the loan.
2. Some lenders allow you to capitalise the cost of your LMI, meaning that they will add this figure to your loan amount. For example, if you are borrowing $650,000, your LMI may work out to be $7000. You would actually increase your loan amount to now borrow $657,000 ($650,000 + $7,000).

We don’t charge any mandates or fees. You will need to allocated to pay for valuation and application fees.

A mortgage offset account can reduce interest on your loan. Your mortgage is linked to an account into which your salary and other cash can be deposited. You can then withdraw the funds to pay your bills. For example, if you have a loan of $300,000 and have $10,000 in your offset account, the amount of interest you pay will be calculated on only $290,000 ($300,000 – $10,000). Use these savings for another deposit instead of paying off your current mortgage. Extra Repayments/Redraw Facility You can make extra repayments and create a ‘kitty’ for times when you have unexpected expenses such as plumbing or electrical repairs or for when you’re not receiving a rental income. Some loans with this feature allow you to skip a mortgage repayment as long as you have enough funds in credit to cover that mortgage repayment.

The mortgage registration fee varies from state to state. Generally, mortgage registration fees can be found on each state’s or territory’s website.  If I am unemployed but have rental income is there any way to get a home loan? If rental income is your only source of income, it is likely that a lender will require an additional source of income. Simply being unemployed does not disqualify you from obtaining a mortgage. Having income from rental property will help make qualifying for a mortgage a bit easier.

Pre-approval is the confirmation from Mortgage House that, now that the property you wish to purchase has been valued and we have all required information from you, provided final checks are completed successfully, you can proceed with our financial backing. Conditional approval means a lender has assessed your financial situation and the estimated loan amount they propose for you could be formally approved once you find a property.

We will actively monitor your loan as our client to ensure you are always on the best possible product.

Before making a move to another lender, check the terms and conditions of your present mortgage to see what exit fees might apply if you discharge or break your existing mortgage before its term is up. It is a good idea to look at what features your mortgage has and which of them you really use. Refinancing can be very expensive, but can work in your favour and provide you with many benefits if you do your sums correctly.

We help research types of mortgages and home loan features It is good to understand what type of home loans are on offer and which features you are really looking for in a mortgage.

Exit fees can apply if you decide to refinance with a new lender, swap from a fixed to variable loan or repay your mortgage before it is due. These early repayment fees vary widely according to the lender. It is a good idea to read your loan contract terms and conditions carefully to understand which fees will apply. If the mortgage you are exiting has no break costs, then you will recoup the cost of refinancing much quicker. Some loans (with very low rates of interest) still carry substantial and hidden discharge fees. In these cases, the borrower may see a lower mortgage payments by switching to a loan with a lower interest rate. But if hidden fees and costs are built into the refinance contract, it can take months or years to recoup the discharge cost. The exit fees can be calculated in two ways; either as a percentage-based fee or a flat fee. Percentage based fees are either equivalent to 1-2 months interest charges or a percentage of the original loan amount or loan top-up amount (whichever is greater). The flat fee is a straight dollar figure applied to the mortgage loan amount.

• Registration of the mortgage
• Stamp Duty on the mortgage
• Registration of transfer
• Stamp Duty on the property purchase
• Land tax

We will review your situation and talk with you about why you’ve missed making payments. Generally, having one or two missed payments won’t prevent you from getting refinancing. It will likely keep you from qualifying for the most favourable rates and terms though.

A bridging loan is a shorter-term loan. It is typically needed when you are selling one property and purchasing another one. It is also used when you are waiting for the arrangement of longer term financing.

Bridging loans can fall into two categories: open and closed. We will explain which is best for your financial and housing situation. Basically, the difference between the two is whether you have financing arranged for when the bridge loan payment is due. The rates, fees and costs will vary depending upon which option you use.

While you are waiting for your existing home to sell, you will be required to make interest-only payments on the bridging loan. If you are able to make payments toward reducing the principal balance in addition to making the interest payments, you will help lower the amount that will be added to your mortgage on the new home. We can help you calculate what your interest payments will be and help you budget principal payments. Bridging loans are typically more expensive than conventional financing, which offsets the increased risk of the home loan. Additional fees and costs can occur with a bridging loan which may increase the monthly payments.

Ideally, you will be able to sell your current property close to the time when you purchase a second home. Bridging loans are intended to be short term solutions to get you through that period in between buying and selling. Typically, bridging loans are six-month loans. For new construction, loans may extend to twelve months.

Bridging loans can, generally, be arranged in a short period of time. They also require relatively little documentation to set up. This is the perfect solution when you are in the process of purchasing your next home whilst waiting for your current home to sell or settle. Bridging loans generally carry higher fees and costs than conventional financing. These loans are a bit riskier so the costs offset this increased risk. Additionally, the loan fees and costs are amortised over a shorter period of time and can increase the monthly payment obligation.

Stamp duty charges upon which state or territory you live in.

In some circumstances we can assist you with a Construction Loan if you an owner builder. To see if you qualify, please contact our office on 02-9299 2263

Yes, we have a number of Low Doc Construction Loans available. Call us on 02-9299 2263 to discuss options.

You are able to make Interest Only mortgage repayments during the construction process (up to 24 months). After this time, your loan will revert to a standard variable rate home loan with principal and interest repayments.

Yes, you can use a Construction Loan to make major renovations to your home or investment property. You will require a fixed price contract from a builder.

The lender will arrange to pay the builder directly, upon confirmation that one of the five predetermined stages of construction (such as slab down) has been completed.

The Construction loan allows interest only mortgage repayments for the land portion prior to construction and interest only repayments during the construction process

• The funds will be paid to your builder in draw downs, after a body of work has been completed, ensuring you only pay interest on the portion of the construction loan you have drawn down rather than on the entire loan amount
• Upon completion of construction, your construction loan will automatically revert to a standard variable rate home loan with repayments based on both principal and interest
• You have up to 24 months to complete construction and draw down all funds from the loan.
• The total construction loan may be split between two accounts after construction is complete to assist in managing both personal and investment debt.

Construction Loans normally allow up to 2 years to complete the construction of the dwelling after the purchase of the land has settled.

As part of your agreement with the builder and a term of accepting a Construction Loan, you are required to get a Fixed Price Contract with your builder; therefore any changes in construction will need to be borne by the builder.

Builders are required to have insurance. You will be able to appoint another builder subject to your lender’s approval to complete the work. In normal circumstances, the insurance company normally pays any difference in costs.

Your construction project is normally divided into 5 stages from slab down to lock up stage. A draw down is a payment made to the builder after each predetermined stage of construction is complete. This will be outlined in your contract with the builder. The advantage of having a draw down payment is that you will only be charged interest on the amount that you have drawn down (paid out to the builder), rather than the full loan amount.

We have a range of lenders offering construction loans which allow you to borrow up to 95% of the value of the property plus additional funds to cover the total cost of Lender’s Mortgage Insurance, if required.

Of course. We offer a broad range of home loans that cater to many different needs, including those who are self-employed.

Low Doc stands for Low Documentation, and these loans can benefit those who don’t have access to the typical level of information banks and lenders require. If you are a business owner, freelancer or contractor, you may not be able to provide the proof of income or employment history requested. Your income may be irregular, but it may still be high and stable enough to make the required repayments. Find out more about Low Doc home loans here.

What information and documentation do I need to provide when applying for a home loan?

If you are self-employed, you will need to provide the following information when you apply online:

• The name of your business
• How long you have been self-employed in this business
• Whether your business is your current income
• Your net profit for the last two financial years

You may also be required to provide:

• Bank statements
• Personal Declaration stating how much you earn and whether you believe you can repay the loan
• Accountant’s letter confirming the validity of your Personal Declaration
• Business details, such as ABN number
• Business Activity Statements (BAS). If you are a small business owner, freelancer or contractor, lenders may ask for up to 12 months of BAS information, or two years of tax returns
• Guarantor – you may need to think about seeking a guarantor, or someone who will give your bank or lender a guarantee that the home loan will be repaid

Low doc loans can sometimes attract higher interest rates, given the potentially higher risks to banks and lenders. While interest rates can be higher at the beginning, banks and lenders may reduce the rate once you have shown over a certain period that you are able to successfully and consistently make repayments.

Depending on how much your guarantor is prepared to pledge, you may be able to borrow 100% of the purchase price of your property, or even 110% to help you cover the associated costs of buying a home.

Family Pledge mortgages allow you to borrow the full value of your desired property, using a percentage of the value of the residential real estate of an immediate family member.

Yes, with a guarantor to back you, you won’t need to save for a deposit, something most banks or lenders require with modern mortgages.

There are a few restrictions on who can be your guarantor. To help you in buying your first home, your guarantor must be:

• An Australian resident aged between 18-65
• Have strong equity in their property and a good credit rating
• Be a close family member e.g. siblings, parents or children

A close relative with enough equity in their home can pledge a percentage of the value of your new home to act as your deposit. While this means you don’t need to save for the initial lump sum or pay LMI if the guarantee is above 20%, it does mean your relative’s home is put up as collateral should you default on your loan.

Once you have paid at least 20% of your loan, you are able to refinance your home loan and remove your relative from your loan.

Our borrowing calculator allows you to get an indication of how much you may be able to borrow if your home loan is approved. All you need to do is enter all the information as accurately as you can and include the amount your family member is prepared to guarantee.