How long does a home loan process take?

This depends on lender to lender. Some lenders are incredibly fast and some are much slower. If you have a time sensitive settlement, we take this into consideration when choosing a lender and prioritising application. The single biggest factor that you can control in this process is providing all your documentation in a timely manner, and providing it as accurately as you can. Lenders love a quality application and that doesn't always mean the highest quality applicant, it means how well we put together your loan application and present it to the bank. As local mortgage brokers, located in Noosaville, Palm Beach, Marcus Beach, Yeppoon and Springwood, we know our surrounds like the back of our hands, but we need to get to know you. Telling us everything we need to know gets your application through faster and without surprises.

Do you get paid more by some banks than others?

Generally, no. Commission rates across most lenders are broadly similar. Where small differences exist, they are irrelevant to our recommendation. We are legally obligated to act in your best interests, regardless of what any lender pays us. At The Broker Society we take a broad approach to commissions. We do not pay commissions to people who refer you to us, and we do not accept payment for referrals we make to other businesses like accountants or financial planners. It is just how we choose to do business. We love connecting our clients with other great people we trust. Business owners we know personally who will take care of you. We do it because we genuinely want you to be looked after. Not for cash.

What do you do with our information?

Your information is handled with complete care and in accordance with our Privacy Policy, which you can read in full on our website. We only collect what is necessary to assess your situation and submit your application, and your data is never shared beyond what is required to progress your loan.

Why do you offer some lenders that we have never heard of?

This is one of the real advantages of working with a broker. The Australian lending market goes well beyond the Big 4 banks, and access to the full market is something you simply cannot get by walking into a branch. There are four main categories of lenders we work across: Big 4 (or the Big 5 now) — NAB, CBA, ANZ, Westpac, Macquarie. Second Tier — well known but smaller lenders such as ING, Suncorp and Bankwest. Non Conforming — lenders who specialise in unique situations such as low doc or alt doc loans, including Bluestone, Pepper Money and Resimac. White Label — lenders who source funds from major institutions and offer them under their own brand, often at more competitive rates because they have no branch network overhead.

How much deposit do I need to buy a home?

The standard deposit requirement is 20% of the purchase price, which avoids the need for Lenders Mortgage Insurance. However, there are pathways to purchase with as little as 5% deposit — including the Federal Government's Home Guarantee Scheme, which allows eligible buyers to purchase with a 5% deposit without paying LMI. We can assess which options you qualify for during your initial consultation. There are also other options for no LMI or lower deposits such as non conforming lenders which charge a Risk Fee, or LMI waivers for specialist industries like Dentists, Lawyers and Doctors.

What is the difference between pre-approval and full approval?

Pre-approval is a conditional assessment from a lender indicating how much they are willing to lend you, based on your financial position at a point in time. It gives you confidence to make offers on properties within your budget but is not yet formally approved. Full approval is issued once a specific property has been valued and all conditions have been satisfied — this is when the lender formally commits to funding your loan.

Can I get a home loan if I am self-employed?

Yes. Self-employed borrowers have strong options across our lender panel. Requirements differ from standard PAYG applications. Most lenders want to see two years of tax returns and financial statements, though we have access to many lenders that offer alternative documentation options for those whose financials don't reflect their true income position. We work with self-employed clients regularly and know which lenders assess this type of income most favourably. Truth be told, self-employed clients are where our speciality lays.

What is refinancing and when should I consider it?

Refinancing means replacing your existing home loan with a new one. Either with your current lender or a different one. People refinance for a range of reasons: to access a more competitive interest rate, release equity for renovations or investment, consolidate debt, or restructure a loan that no longer fits their circumstances. A good time to review your loan is every two to three years, or any time your situation changes significantly.

How many lenders do you have access to?

We work with a panel of over 40 lenders including major banks, second tier lenders, non-conforming specialists and white label products. This breadth of access means we can find solutions for a wide range of financial situations, not just straightforward applications.

What happens after my loan settles?

Our relationship does not end at settlement. We stay in touch with all of our clients to ensure your loan continues to work for you as your circumstances evolve. We conduct regular loan reviews, let you know when the market shifts in a way that may benefit you, and are always available when your situation changes and you need guidance.

What areas do you service?

We are an independent mortgage brokerage based in Noosaville with brokers across Queensland — meaning we have a genuine local presence in every market we serve. Kate Sadler is based in Noosaville and services clients across the Noosa region including Noosa, Noosaville, Tewantin, Noosa Heads, Sunshine Beach, Cooroibah, Weyba Downs, Noosa North Shore and the wider Noosa Shire. Kate and Jeane also cover the Noosa Hinterland including Cooroy, Cooroy Mountain, Doonan, Eumundi, Lake Macdonald, Pomona, Tinbeerwah and Verrierdale. Jeane Hofmeyr is based in Marcus Beach and services clients across Marcus Beach, Peregian Beach, Peregian Springs, Coolum Beach, Castaways Beach, Sunrise Beach and surrounding suburbs. Belinda Gough is based in Palm Beach and services clients across the Gold Coast including Palm Beach, Burleigh Heads, Nerang, Southport, Currumbin, Elanora, Miami, Mermaid Beach, Broadbeach, Robina and surrounds. Tyler Auld is based in Loganholme and services Brisbane Southside including Springwood, Daisy Hill, Underwood, Rochedale, Calamvale and surrounding suburbs. Talia Ryan services Yeppoon, Rockhampton and the wider Central Queensland region. The Broker Society also helps clients right across Queensland and Australia, working remotely with clients in every state and territory.

How Do I Know if Refinancing is Right for My Situation?

4 Aug

Written By Kate Sadler

Refinancing your home loan is one of the most common ways Australians save money but contrary to popular belief, it's not the right move for everyone. So how do you know if it actually makes sense for you?

Here's a simple breakdown to help you think it through.

What Does Refinancing Actually Mean?

Refinancing means switching your existing home loan, either to a different lender or to a new product with your current lender, usually to get a better deal. We can support all types of refinancing even for Commercial Lending, SMSF and Investment Home Loans for Salary or Self Employed Clients. If you have a home loan, we want to look at it.

That "better deal" might look like a lower interest rate, reduced fees, access to new features like an offset account, or simply a loan that better suits where you're at in life right now.

Nine times out of 10 it’s to lower the interest rate but keep in mind, this is not the only thing to consider when refinancing.

Signs Refinancing Could Be Right for You…

Your Interest Rate Hasn't Been Reviewed in a While

If it's been more than two years since you last looked at your rate, there's a good chance you're not on the most competitive product available. Lenders regularly offer better rates to new customers while existing customers quietly pay more in what we call “loyalty tax”. A quick review could reveal significant savings so it always pays to take the time to speak to your broker and have your interest rate reviewed regularly.

You're Paying LMI-Free Now

If your property has grown in value and you now have more than 20% equity, you've opened up access to a wider range of lenders and products, without the cost of Lenders Mortgage Insurance again. This is often a good trigger to review your options and see what might be available if you’ve been thinking about growing your wealth.

Your Fixed Rate is About to Expire

When a fixed rate period ends, most loans roll onto the lender's standard variable rate which is rarely their best rate. The months leading up to your fixed rate expiry are one of the best windows to refinance so you should speak to your broker.

Your Financial Situation Has Improved

If your income has increased, your credit profile has strengthened, or you've paid down a meaningful amount of your loan, you may now qualify for better products than when you first applied. Lenders reward lower-risk borrowers with better rates so reap the benefits of that reward (you deserve it).

You Want Features Your Current Loan Doesn't Have

An offset account, redraw facility, or the ability to make extra repayments without penalties can make a real difference over the life of a loan. If your current loan doesn't offer these and you'd benefit from them, it's worth exploring what else is out there. You never know the difference it could make unless you ask.

You Want to Access Your Equity

If your property has increased in value, refinancing can allow you to access that equity to renovate, invest, or consolidate debt. Your broker can help you understand how much equity you could access and what that would mean for your repayments.

When Refinancing Might NOT Make Sense

Refinancing isn't always the right answer. Here are some situations to consider where it may not be worth it:

● You're early in a fixed rate period: Breaking a fixed rate can come with significant break costs that outweigh any savings.

● You're close to paying off your loan: The savings on a smaller remaining balance may not justify the switching costs. The lower interest rate might look nice but you might be paying for it elsewhere if you switch.

● Your financial situation has changed negatively: If your income has dropped or your credit score has taken a hit, refinancing may be harder to qualify for or could result in a worse deal.

● The savings don't outweigh the costs: Refinancing isn't free. Discharge fees, application fees, and legal costs add up so always run the numbers and speak to your broker first.

The Numbers That Matter

Before refinancing, it helps to understand a few key figures:

● Your current interest rate: Do you actually know what it is right now?

● Your remaining loan balance: The higher the balance, the more a rate reduction saves you.

● How long you plan to stay in the property: Refinancing costs are easier to justify the longer you have left on your loan

● The comparison rate: This includes fees and gives a truer picture of the total cost of a loan

Even a 0.5% reduction in your interest rate on a $500,000 loan could save you over $2,500 per year. Over five years, that's a significant number. Imagine that back in your pocket.

A Simple Refinancing Checklist

Ask yourself these questions:

● When did I last review my home loan rate?

● Do I have at least 20% equity in my property?

● Is my fixed rate period ending in the next 6 months?

● Has my income or financial position improved since I took out my loan?

● Am I missing features like an offset account or redraw?

● Could I use my equity for a worthwhile purpose?

If you answered yes to one or more of these, it's probably worth having a conversation with your mortgage broker.

Your broker will compare your current loan against what's available in the market, calculate your potential savings, and factor in any switching costs so you can make an informed decision without the guesswork.

There's no obligation, and in most cases the review costs you nothing.

Thinking about refinancing? Get in touch and we'll take a look at your current loan together.