Frequently Asked Questions
Best Mortgage Offers
Your questions about home loans, refinancing, investment property finance and mortgage broking — answered clearly and simply.
All information provided here is general in nature and does not constitute personal financial advice. Always consider your own circumstances before making credit decisions.
General Mortgage Questions
What does a mortgage broker do?
A mortgage broker acts as an intermediary between borrowers and lenders. They compare home loans from banks, credit unions and non-bank lenders, helping you find the right loan structure for your situation.
Brokers assist with loan applications, explain rates and fees, and manage communication between you and the lender through to settlement.
Do mortgage brokers charge fees?
Most brokers, including Best Mortgage Offers, receive payment from the lender after settlement, meaning there’s no direct cost to you.
If a fee applies for a specialised or complex loan (such as a company or SMSF structure), your broker will disclose it in writing before you proceed.
Are mortgage brokers regulated in Australia?
Yes. All brokers must either hold an Australian Credit Licence or operate under one, and comply with the National Consumer Credit Protection Act 2009 (Cth) and ASIC’s Best Interests Duty.
This ensures brokers act in your best interests rather than those of the lender.
Is it better to use a mortgage broker or go to a bank?
A bank can only offer its own products, whereas a mortgage broker compares multiple lenders and products to find a solution that suits your financial goals.
Using a broker can save you time, help you understand complex terms, and provide access to loan options you might not find directly.
Do mortgage brokers get better rates?
Brokers can often access competitive interest rates due to their relationships with multiple lenders, but the exact rate you’re offered depends on your credit history, loan type, and lender criteria.
A broker’s role is to ensure the rate and loan structure are appropriate for your goals — not simply to find the lowest advertised rate.
Home Loan Basics
What is a home loan pre-approval?
Pre-approval (or conditional approval) is when a lender reviews your financial situation and gives an indicative borrowing limit. It helps you shop for property confidently, knowing how much you can afford.
Pre-approvals usually last 90 days and are subject to final verification of income, credit checks, and property valuation.
How much deposit do I need for a home loan?
Most Australian lenders require a 10–20% deposit, but government schemes such as the First Home Guarantee can help eligible borrowers buy with as little as 5%.
If your deposit is below 20%, you may need to pay Lenders Mortgage Insurance (LMI).
What is Lenders Mortgage Insurance (LMI)?
LMI protects the lender, not the borrower, if you default on your loan. It’s usually added to the loan balance and applies when borrowing more than 80% of the property value.
Your broker will explain whether LMI applies and if there are ways to reduce or avoid it.
What is the difference between fixed, variable, and split loans?
- Fixed rate: The interest rate stays the same for a set period (e.g. 2–5 years).
- Variable rate: The interest rate moves with the market, which can increase or reduce repayments.
- Split loan: Combines both — offering repayment stability on one portion and flexibility on the other.
Can I pay off my mortgage early?
Yes, but check your loan terms first. Some fixed-rate loans have break costs if you repay early, while variable loans often allow extra repayments without penalty.
Your broker can help you understand how to make additional repayments effectively.
Borrowing & Financial Capacity
How is borrowing capacity calculated?
Your borrowing capacity depends on your income, expenses, existing debts, and credit score.
Lenders also factor in the number of dependants, other financial commitments, and apply a buffer rate to ensure you can manage repayments even if rates rise.
Can I use a borrowing calculator to estimate my loan amount?
Yes. Our home loan calculators estimate your potential borrowing power, repayments, and loan term.
However, these are guides only — your actual borrowing capacity will depend on verified financial details and lender criteria.
Does my credit score affect my loan approval?
Yes. A higher credit score generally helps demonstrate responsible financial behaviour.
If your score is lower, your broker can help identify lenders who consider your overall circumstances rather than just the score.
Refinancing & Loan Reviews
What is refinancing?
Refinancing means switching your current home loan to another product or lender, usually to get a better rate, access features like offset accounts, or consolidate debt.
It’s important to consider all fees, costs, and benefits before refinancing — not just the interest rate.
How often should I review my mortgage?
Most experts recommend reviewing your mortgage every 2–3 years, or when your circumstances change (e.g. salary, family, or property value).
A broker can perform a loan health check to determine if your current loan is still the right fit.
Can I refinance if my property has dropped in value?
Yes, but your options may be limited if your loan-to-value ratio (LVR) has increased.
A broker can help assess current valuations and explain whether refinancing or restructuring is in your best interests.
First-Home Buyer Questions
What grants are available for first-home buyers?
Available grants and schemes differ by state. Examples include:
- First Home Owner Grant (FHOG) for new homes
- First Home Guarantee (federal scheme) with 5% deposit options
- Stamp duty concessions or waivers for eligible buyers
Your broker will outline which programs apply in your state or territory.
Can parents help with a home loan?
Yes — through a family guarantee or gifted deposit, subject to lender approval.
A family-guaranteed loan uses part of a parent’s property equity to reduce or remove the need for LMI.
Investment & Business Loans
Can I get a loan for an investment property?
Yes. Investment property loans can be structured as interest-only or principal and interest, depending on your goals.
Tax treatment, rental income, and property type will affect borrowing capacity, so seek professional advice before committing.
What are the benefits of using a broker for investment loans?
Brokers understand lender policies around rental income, negative gearing, and portfolio growth.
They help you compare rates, loan features, and refinancing options as your portfolio expands.
Do you provide business and commercial loans?
Yes. We assist sole traders, companies, and trusts with commercial property purchases, equipment finance, and cash-flow lending.
Your broker will coordinate with your accountant to ensure the loan structure complements your business strategy.
Loan Process & Settlement
How long does loan approval take?
Timeframes vary by lender and complexity:
- Pre-approval: 3–5 business days
- Full approval: 2–3 weeks on average
Delays can occur if documents are missing or valuations are required, so providing complete information helps speed up the process.
What documents are needed for a home loan application?
Typically:
- Proof of identity
- Recent payslips or tax returns (for self-employed)
- Bank statements
- Details of assets and debts
- Contract of sale (if applicable)
Your broker will give you a tailored checklist.
What happens at settlement?
Settlement is when funds are transferred to complete the property purchase, and your lender registers a mortgage on the title.
Your solicitor or conveyancer manages the legal paperwork, and your broker ensures all lender documents are in order.
Rates, Fees, and Costs
What is a comparison rate?
A comparison rate combines the interest rate and most fees associated with the loan, giving you a clearer picture of the true cost of borrowing.
It’s expressed as a single percentage, assuming a specific loan size and term.
Are there hidden costs when getting a mortgage?
All fees — such as application, valuation, or settlement fees — must be disclosed by the lender before you proceed.
Your broker will explain each cost so you can budget accurately.
Can I negotiate with lenders?
Yes. Your broker negotiates on your behalf and can sometimes request rate reviews, fee waivers, or cashback offers.
However, lenders decide eligibility based on policy and your overall financial profile.
Regulations & Consumer Protections
What is the Best Interests Duty?
The Best Interests Duty requires brokers to act in the best interests of the client when providing credit assistance.
This means your broker must prioritise your needs, disclose any conflicts, and justify all loan recommendations.
What if I want to make a complaint?
If you’re not satisfied, you can first contact your broker directly.
If unresolved, you can escalate to an External Dispute Resolution (EDR) scheme such as the Australian Financial Complaints Authority (AFCA) — free for consumers.
Tools & Support
Do you offer calculators?
Yes — our repayment, borrowing power, and extra repayments calculators help estimate loan options and affordability.
Results are illustrative only and not credit approval.
Do you help after settlement?
Absolutely. Our brokers offer ongoing support, reviewing your loan over time to ensure it still meets your needs.
We can also assist if you plan to refinance, purchase an investment property, or upgrade your home.
Can I meet my broker online?
Yes. We offer in-person, phone, or video consultations, making it easy to connect wherever you are in Australia.
Disclaimer
Best Mortgage Offers Pty Ltd (ABN [insert]) holds Australian Credit Licence [insert number].
We operate under the National Consumer Credit Protection Act 2009 (Cth) and comply with ASIC’s Best Interests Duty.
All information here is general in nature and not personal financial advice.
Always consider your own circumstances or seek independent legal, tax, or financial advice before making credit decisions.