Frequently Asked Questions

For most home loans a broker costs you nothing out of pocket. The lender pays the broker a commission after your loan settles, so the service is free to the borrower in the vast majority of cases. A small number of brokers charge a fee for complex or commercial scenarios, and if they do they must disclose it to you in writing before you proceed.

Lenders pay brokers two types of commission. An upfront commission of roughly 0.6 to 0.7 percent of the loan amount is paid when the loan settles, and a trail commission of around 0.15 to 0.2 percent of the outstanding balance is paid each year while the loan runs. These payments come from the lender, not from you.

No. The rate you get through a broker is the same rate the lender offers directly, and brokers can often access sharper pricing because of their lender panel and volume. The commission the lender pays the broker does not get added to your rate or your loan balance.

Typically you will need photo ID, recent payslips and a PAYG summary or tax return, three to six months of bank and savings statements, and details of any debts such as credit cards or car loans. You will also need evidence of your deposit and, if buying, the contract of sale once you have one. Self-employed applicants usually need two years of tax returns and notices of assessment.

Pre-approval (also called conditional approval) is the lender's indication of how much it is likely to lend you, subject to conditions and a property valuation. Unconditional or formal approval is the final yes, given once the lender has assessed the specific property and all conditions are met. You should not bid unconditionally or go to auction relying only on pre-approval.

Most brokers have an accredited panel of 20 to 40 or more lenders, including the major banks, smaller banks, credit unions, and non-bank lenders. They cannot access every lender in the market, but the panel is far wider than the single brand a bank branch can offer. Ask your broker how many lenders are on their panel and how they shortlist.

A broker compares lenders before lodging anything, which helps avoid multiple formal credit enquiries on your file. A hard enquiry is only recorded when an actual application is submitted to a lender, so a single well-targeted application has a far smaller impact than applying to several banks yourself. Multiple enquiries in a short period can lower your score.

Once you have supplied your documents, a broker can often have a pre-approval back within a few business days, though it depends on the lender's current turnaround times. A full unconditional approval usually takes longer because it includes a property valuation. Pre-approvals generally last around three months before they need to be refreshed.

In NSW the standard settlement period is commonly around 42 days (six weeks) from exchange of contracts, though this is negotiable. The loan itself can be formally approved well inside that window if your documents are in order. Delays usually come from valuations, missing paperwork, or the other party's conveyancing.

Your borrowing power depends on your income, living expenses, existing debts, the number of dependants, and the deposit you have. Lenders must also assess you at your actual interest rate plus an APRA buffer of 3 percentage points, and most apply a debt-to-income cap of around six times gross income. A broker can run your numbers across several lenders, as borrowing capacity varies between them.

Regulator APRA (the Australian Prudential Regulation Authority) requires lenders to add a serviceability buffer of 3 percentage points to your actual rate when testing whether you can afford the loan. This is to make sure you could still cope if rates rose. The buffer was confirmed at 3 percentage points again in 2026, and it reduces how much you can borrow by roughly 15 to 20 percent.

Lenders Mortgage Insurance (LMI) is a one-off cost the lender charges when you borrow more than 80 percent of a property's value, and it protects the lender, not you. You can avoid it by saving a 20 percent deposit, using the First Home Guarantee (which removes LMI for eligible first home buyers with a 5 percent deposit), or having an eligible guarantor. A broker can tell you which path costs you least.

First home buyers in NSW can stack federal and state support. The NSW First Home Buyers Assistance Scheme removes stamp duty on homes up to $800,000 and discounts it up to $1 million, and the $10,000 First Home Owner Grant applies to new homes up to $600,000. Federally, the First Home Guarantee allows a 5 percent deposit with no LMI on Sydney homes up to $1.5 million, and the Help to Buy shared equity scheme allows a 2 percent deposit.

Under the NSW First Home Buyers Assistance Scheme you pay no transfer (stamp) duty on a new or existing home valued at $800,000 or less, and a reduced rate on homes valued above $800,000 and under $1 million. Above $1 million the full duty applies. Vacant land you intend to build on is exempt up to $350,000 and discounted up to $450,000.

Yes. The First Home Guarantee is delivered through a panel of participating lenders, and a broker can check your eligibility, confirm the property is within the $1.5 million Sydney price cap, and lodge your application with a participating lender. Since October 2025 there are no income caps and unlimited places, so timing is far less of a scramble than it used to be.

A full deposit is 20 percent of the price, which on Sydney's median house of around $1.6 million is roughly $320,000. However eligible first home buyers can use the federal First Home Guarantee to buy with just a 5 percent deposit and no Lenders Mortgage Insurance, which brings the figure down to around $80,000 on the same price. The Help to Buy shared equity scheme can lower it further to a 2 percent deposit.

It depends on your deposit and debts, but with Sydney's median house around $1.6 million, buyers typically need a strong combined income and a sizeable deposit to pass serviceability once the 3 percent APRA buffer is applied. Many Sydney first home buyers use the First Home Guarantee or Help to Buy to bridge the deposit gap. A broker can calculate the income required for the specific suburb and price you are targeting.

When you refinance, a broker reviews your current loan, compares rates and features across lenders, and arranges to move your loan to a better deal if one stacks up after costs. They factor in discharge fees from your old lender, any new application or valuation costs, and whether a cashback offer applies. The goal is a genuine saving over time, not just a lower headline rate.

It can be worth it if your current rate is well above what is available, you want to access equity, or you need different features such as an offset account. Because lenders still assess refinances at your rate plus the 3 percent APRA buffer, some borrowers find they cannot move as easily as expected, so it pays to check serviceability first. A broker can model the break-even point including switching costs.

Yes. Brokers regularly arrange investment loans and can compare interest-only versus principal-and-interest options, fixed versus variable, and how different lenders treat rental income and negative gearing in their serviceability calculations. Lender policies vary widely for investors, so comparing the panel often makes a meaningful difference to borrowing power and rate.

Yes, though self-employed applicants usually need to show two years of tax returns and ATO notices of assessment to verify income. Some lenders offer alt-doc or low-doc options for those who cannot meet the standard paperwork, often at a slightly higher rate. A broker is useful here because lender appetite for self-employed income differs significantly.

A bank can only offer its own products, while a broker compares loans across many lenders and is legally bound to act in your best interests. A broker can be useful if you want choice, have a non-standard situation, or want help with the paperwork. Going direct can suit you if you already bank somewhere you are happy with and your situation is simple.

Since January 2021 all Australian mortgage brokers must comply with a legal best interests duty regulated by ASIC. It requires the broker to put your interests ahead of their own and not recommend a loan simply because it pays them more. They must also document why a loan was recommended and disclose all commission arrangements in writing.

All licensed brokers must have an internal complaints process and must be members of the Australian Financial Complaints Authority (AFCA), which provides free, independent dispute resolution. If you cannot resolve an issue with the broker directly, you can escalate it to AFCA at no cost. Brokers are also overseen by ASIC under the best interests duty.