Home Loan Broker Sydney

Equity is the price of your home subtracted by the amount you still owe the bank. For example, if your price is worth $700,000, and you have $350,000 to pay off on your loan, your equity is $350,000 ($700,000 – $350,000).

A grant is a non-repayable fund given by a particular party, often a nonprofit organization or government institution.Accordion Content

There are benefits to both renting or buying a home. Renting offers flexibility to relocate and frees up your savings. Buying provides stability and equity. A broker can help navigate this decision with you by looking at your financial situation and dreams for the future.

Timing will pay a big part in this decision and there are pros and cons either way. It’s best to get advice from a professional. Get in touch to chat about your options.

A deposit bond is a document that promises the seller that the deposit will be exchanged during settlement rather than the contract exchange. A company will cover the deposit cost, leaving the buyer to pay back the company, generally when their property has sold. This is a good alternative to a short-term credit.

A redraw facility is attached to your home loan and acts as a place for you to store your savings you’re planning to use to pay off your mortgage. The benefit? It has the ability to save you interest on your home loan.

It depends on several factors, including your current income and the amount you have saved. To get an estimated result you can use our borrowing power calculator or give us a call.

Genuine savings are funds that you have saved over a certain period of time (typically 3 months) as opposed to money that has been gifted to you.

An offset account is a transaction account linked to your home loan where you are free to make deposits or withdrawals at any time. There can be benefits to holding money in that account as it might help reduce the amount of interest charged on your loan. Give us a call to chat through any questions.

A residual amount (sometimes referred to as a balloon payment) is a one-off payment at the end of the loan term. This is factored into the total cost of your loan at the beginning of the term.

Each interest rate depends on loan type, repayment plan and several other factors. This means a good interest rate for you may not be a good interest rate for someone else. Speak with a broker to find out which loan type, repayment plan and lender will give you a competitive interest rate for your needs.

As the name suggests, you only pay the interest on the principal balance for a set term, with the principal balance unchanged.

A bank will offer you their product; whether that is fitted to your needs or not. A broker (like me) will scour the market, comparing various products from many banks or lenders to find the right loan for you. With Best Interest Duty (BID) brokers have to work in your best interest. There is no similar requirement for banks. Check out more benefits of using a broker here.

A bridging loan helps you purchase a new home whilst you wait for a buyer to purchase your current one. The loan works by covering the cost of your new property with the idea that this debt will be paid off when your old property sells.

Best Interest Duty (BID) is a legal duty that means your mortgage broker is legally required to act in your best interest. This duty does not apply to banks. It is yet another reason to work with a broker over a bank.

A mortgage broker (like me) helps borrowers (like you) find a loan that is well suited to their needs. Mortgage brokers have access to a range of products and lenders, giving their clients more choice than going directly to a bank or lender. They also work with borrowers throughout the duration of their loan, to help them save money in the long term as the market and personal situations change. 

LMI protects your lender if you can’t pay your loan. It’s an additional fee and is only applicable if your loan poses a higher risk to the bank – typically when borrowing more than 80% of the purchase price.

A conditional pre-approval is an indication from a lender that you’re eligible to apply for a home loan up to a certain limit. It is important to be aware you’re under no obligation to take the loan, and the lender has no obligation to lend you that amount. Depending on the lender, further conditions will have to be met including verification of the information you have provided and confirmation on the suitability of the property prior to formal approval being issued.

Stamp duty is a state government tax (including transfer and mortgage duty, mortgage registration and transfer fees) on your property. How much you have to shell out depends on which state you live in and the price of your property. Use our stamp duty calculator to find out an estimate of how much it would cost and get in touch with any questions.

Generally you have two options for switching your current loan. You can refinance with the same lender (or a new lender) or pay out the existing loan and take out a new one with your new property. We can help you determine what you can afford and which option may be right for you.

With over 60 lenders, you and I are spoiled for choice. I narrow my search down through talking to you about your wants and needs. I will show you your options, listing the pros and cons of each loan and ultimately we will come to a decision together.

Whilst they both have the ability to save interest on your home loan the key difference lies in their flexibility. An offset account allows you to withdraw money at ATMs and set up a debit card for your own use. A redraw facility acts as a storage unit for your savings meaning you can’t access your money with as much ease.

Typically, variable rate home loans offer flexibility as the interest rate you pay will fluctuate with the market. Fixed rate loans offer predictability as the interest rate will be locked for an agreed amount of time. Our brokers can explain the pros and cons of each. Give us a call.