Question 1

What if I’ve been told I’m not eligible for a loan?

Accepted Answer

Being told “no”, and even getting declined by a bank, does not mean you’re ineligible. Your position is unique, and every bank has different lending policies. What sets us apart is our ability to find the right lender for your position.

Question 2

How long does the home buying process take?

Accepted Answer

It depends if we need to use a specific bank for you, then how long that bank takes to approve applications. If you’re under contract to buy, we’ll usually get you approved in 1-7 days and settled when your contract requires it. Our goal is to make home buying smooth and stress free, the sooner we start, the better.

Question 3

What costs are involved in buying a home?

Accepted Answer

The standard costs are Gov. Fees (incl. Stamp Duty), Legal Fees and bank fees, and these will vary depending on if you’re a First Home Buyer or not, investing or buying your own home etc.. A simple estimation of the costs to buy your home in QLD is this: Gov. Fees 3.9% of purchase price, Legal & Miscellaneous Fees $5,000, Bank Fees $500.

Question 4

What deposit will I need?

Accepted Answer

Generally a deposit of 20%+ of the purchase price is recommended, however eligible First Home Buyers can buy with just 5% without paying Lenders Mortgage Insurance (LMI). If you are taking on LMI, you’ll need a deposit between 8%-12%.

Question 5

What is ‘servicing’ and ‘borrowing capacity’?

Accepted Answer

Servicing is bank terminology for the repayments they deem you can make each month. Borrowing capacity is the maximum loan a bank will lend to you based on your servicing.

We can improve your servicing in a number ways - closing credit cards, paying out and closing personal, car and HELP loans, getting you a lower interest rate, borrowing over a longer period of time.

Your position is unique, and the best strategy for you should be created in context to your position and your future goals.

Question 6

Does it cost money to use a Mortgage Broker? How are you paid?

Accepted Answer

Mortgage Brokers are paid a bigger upfront and smaller recurring commission by the bank for writing your loan. The bank pays this to brokers instead of employing their own sales rep and paying for their laptop, office, wages and commissions.

Some brokers charge a fee for their service. This is usually because they invest a large amount of time researching and finding the right solution for you, then their team makes your whole application a breeze.

This stands in contrast to brokers who focus on ‘the cheapest interest rates’ - all brokers have access to all the same products. 
At the Home Buyers Club, we’ve found our clients care more about getting approved to buy their dream home, than missing out to save 0.1% on their rate.

Question 7

Why should I use a broker instead of going straight to the bank?

Accepted Answer

A good broker will give you solutions and create opportunities and freedom for you. You might only be buying today, but your loan will be structured toward your future goals - i.e. maybe buying an investment property.

A good broker will find the best lenders to meet your current circumstances; the right lender today might differ in 6 months.

After finding the right lenders and right loan structures for your current and future goals, a broker will find you the best product to meet your goals - competitive interest rates/fees, quick approval/settlements.

The Big 4 banks have all announced that brokers are costing them profit, therefore they are now focussing on direct sales. If a bank meets your needs, there’s nothing wrong with going to them directly, however they will make more money off you.

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