Frequently Asked Questions

A mortgage broker acts as an intermediary between you and potential lenders. Unlike a bank employee who can only offer their own products, we have access to over 60 lenders including major banks, credit unions, and specialist lenders.

Think of us as your personal finance advocate. We work for you, not the banks.

• Choice: Access to 60+ lenders versus just one bank's products
• Expertise: We know each lender's credit appetite and policy nuances
• Time savings: We do the research, paperwork, and negotiations
• Better rates: Competition between lenders often results in better deals
• No cost to you: In most cases, our service is completely free

Our 12+ years of commercial banking experience across NAB, ANZ, Westpac, and CBA sets us apart. We've sat on the other side of the desk, assessing applications and making credit decisions.

We specialise in complex lending scenarios that other brokers struggle with. We're also boutique – you'll work directly with Melanie from start to finish.

Book a free discovery call – a 15-30 minute conversation where we learn about your goals. No paperwork required, no obligation.

Call us on 03 9020 2699 or email hello@mortgagefinanceadvisory.com.au

While we're based in Torquay on Victoria's Surf Coast, we service clients Australia-wide. Most of our work is done via phone, email, and video calls.

• Home loans: First home, upgrader, investment, construction
• Commercial: Business premises, commercial investment up to $100M
• Business finance: Working capital, expansion, equipment
• Development finance: Residential and commercial projects
• SMSF lending: Property through self-managed super
• Complex scenarios: Credit impaired, expats, trusts

• First Home Guarantee (FHBG): Buy with 5% deposit, no LMI – government guarantees the difference
• Regional First Home Buyer Guarantee: Same as above but for regional properties
• Family Home Guarantee: Single parents can buy with 2% deposit
• First Home Owner Grant (FHOG): $10,000-$20,000 depending on state for new homes
• Stamp Duty Concessions: Reduced or waived (varies by state)
• First Home Super Saver Scheme (FHSSS): Withdraw voluntary super contributions

• 5% deposit: Possible with government guarantees (no LMI) or by paying LMI
• 10% deposit: Lower LMI costs than 5%
• 20% deposit: No LMI required – ideal but not always necessary
• 2% deposit: Available for single parents under Family Home Guarantee

Remember to budget 5-7% extra for stamp duty, legal fees, and inspections.

The First Home Guarantee allows eligible first home buyers to purchase with just 5% deposit without paying LMI. The government guarantees up to 15% of the loan.

Eligibility: Australian citizen/PR, income up to $125,000 (single) or $200,000 (couple), never owned property, property price caps apply. As an accredited broker, we can apply on your behalf.

• Gifted deposit: Parents gift you money (lender may require statutory declaration)
• Family guarantee: Parents use equity in their home as security, avoiding LMI
• Joint application: Parents go on the loan with you

We'll structure the arrangement to maximise benefits for everyone.

The FHSSS allows you to save for your first home inside your super, enjoying tax benefits. Contributions are taxed at 15% instead of your marginal rate. You can withdraw up to $50,000 plus deemed earnings when ready to buy.

Stamp duty is a state government tax on property purchases. First home buyers often receive significant concessions.

Victoria: Full exemption on properties up to $600,000, concession on $600,001-$750,000. We'll calculate your exact stamp duty obligation.

"Rentvesting" means buying an investment property while continuing to rent where you want to live. Good when you can't afford to buy where you want to live, but want to get into the market.

Note: You may miss out on first home buyer benefits if you buy an investment first.

Not necessarily. In a rising market, the cost of waiting can exceed the cost of LMI. If property prices rise 5% while you save, you may be worse off. Government guarantees can eliminate LMI with just 5% deposit.

LMI protects the lender (not you) if you default. Required when borrowing more than 80% of property value. Costs $2,000 to $30,000+ depending on loan size. Some professionals (doctors, lawyers) can get LMI waivers.

Variable: Rate moves with market, more flexibility, no break costs, unlimited extra repayments.

Fixed: Rate locked 1-5 years, payment certainty, break costs if exiting early, limited extra repayments.

Many choose a split loan – part fixed, part variable.

A transaction account linked to your loan. The balance is subtracted when calculating interest. $500,000 loan + $50,000 offset = interest on only $450,000. Money remains accessible, interest saved is tax-free. Make sure it's properly linked!

Depends on income, expenses, deposit, credit history, and employment. Different lenders assess very differently – we've seen $100,000+ variance between lenders for the same client. HECS debt, credit cards, and Buy Now Pay Later all reduce capacity.

Pre-approval is when a lender agrees to lend you an amount before you find a property. Know your budget, bid at auction confidently, faster settlement. Typically lasts 3-6 months. Strongly recommended before house hunting.

P&I: Repayments cover interest AND reduce the loan. Lower rates, standard for owner-occupied.

Interest Only: Only pay interest, loan balance stays same. Lower repayments during IO period, higher rates. Common for investors to maximise tax deductions.

Loan amount as a percentage of property value. $400,000 loan on $500,000 property = 80% LVR. Below 80% = no LMI. Lower LVR = better rates and more flexibility.

Variable: Unlimited extra repayments, no penalties.

Fixed: Usually limited to $10,000-$30,000/year. Extra $100/week on $500,000 loan can save $100,000+ in interest.

When property expenses exceed rental income, the "loss" offsets your other income, reducing tax. While negative gearing reduces tax, you're still out of pocket – the strategy relies on capital growth over time.

Minimum: 10% deposit (with LMI). Ideal: 20% (avoids LMI). Using equity: If you own your home, you may use equity as deposit – no cash required. Investment rates are typically 0.2-0.5% higher than owner-occupied.

Usable equity = 80% of property value minus current loan. Example: $800,000 home, 80% = $640,000, loan = $400,000, usable equity = $240,000. This could fund the deposit for an investment property.

When you sell an investment property for profit, the gain is added to your income and taxed. 50% CGT discount: If held 12+ months, only half the gain is taxable. CGT doesn't apply to your principal residence.

Personal: Simplest, full negative gearing, 50% CGT discount. Trust: Flexible distribution, asset protection, fewer lender options. Company: Asset protection, flat tax rate, no CGT discount. Discuss with an accountant before purchasing.

A non-cash tax deduction for wear and tear on your investment. Building structure (2.5%/year for 40 years) and plant/equipment (carpet, appliances, etc.). A depreciation schedule ($400-$700) can identify $5,000-$15,000+ in annual deductions.

• Your rate isn't competitive (check every 12-18 months)
• Your fixed rate is ending
• Your circumstances have improved
• You want to access equity
• You need better features

Rule of thumb: If you can save 0.5%+, refinancing is usually worthwhile.

Typically $500-$1,500: discharge fee ($150-$400), settlement fee ($0-$300), government fees ($150-$300). Break costs apply if exiting fixed rate early. Many lenders offer $2,000-$4,000+ cashback to offset costs.

Typically 2-4 weeks from application to settlement. We manage the entire process including coordinating with your current lender.

Minimal impact – just a small temporary dip. Using a broker means we submit to one chosen lender, avoiding multiple enquiries.

Break costs apply when paying out a fixed rate early. Based on the difference between your rate and current wholesale rates × remaining term. Can be $5,000-$50,000+ if rates have dropped. We can request an indicative figure before proceeding.

Negotiate: Fastest, no paperwork, banks often match competitors. Refinance: May get better rate, cashback offers, better features. We typically try negotiation first, then refinance if not competitive.

Full-doc: 2 years tax returns, best rates, most options. Low-doc/alt-doc: BAS statements, bank statements, or accountant's letter. Slightly higher rates (0.2-0.5% premium). We know how to structure self-employed applications for success.

Low-doc loans verify income through alternative documents instead of tax returns: BAS statements (6-24 months), bank statements (6-12 months), or accountant's declaration. Designed for business owners who legitimately minimise taxable income.

Standard: 2 years ABN. Exceptions: 1 year with some lenders, same industry experience helps (e.g., electrician employee → self-employed electrician).

Yes! Options include add-backs (depreciation, one-off expenses), BAS-based lending (GST turnover), and bank statement loans (actual cash flow). Our banking background means we know how to present your income for maximum capacity.

Yes! Residential: Can't live in it yourself. Commercial: Can lease to your own business at market rent. Requires 20-30% deposit from super balance. SMSF lending is a specialty of ours.

We have access to lenders covering up to $100M for commercial transactions. Our banking background includes deals of this scale.

Yes! We specialise in imperfect credit. Options include specialist lenders (1-3% above prime), non-bank lenders, and private lending. We can work with paid/unpaid defaults, bankruptcy, Part IX agreements, and ATO debt. Everyone deserves a second chance.

Yes! Fewer lender options, higher deposits (20-30%), foreign income may be shaded. Country of residence matters. We have specific lender relationships for expats.

A guarantor (usually parent) uses their property equity as additional security. Buy with little/no deposit, avoid LMI. Guarantor doesn't make repayments unless you default. Once you have 20% equity, guarantee can be released.

Generally accepted: Permanent residency, partner visa, some skilled work visas. More restrictive: Student visas, working holiday visas. Visa type, time remaining, and pathway to PR all matter. We know which lenders are visa-friendly.

Often, yes! Declines happen due to wrong lender, poor presentation, or policy mismatch. Different lenders have different appetites. We understand why banks decline (we used to make those decisions) and can often find solutions elsewhere.

Bridging finance "bridges" when buying a new property before selling your existing one. Borrow against both temporarily. Typically 6-12 month period. Some lenders offer "no repayment" bridging. We'll model scenarios to ensure it's manageable.

For most residential loans, our service is free. Lenders pay us commission at settlement. Fees may apply for complex commercial or private lending – we'll always be upfront.

Budget 5-7% of purchase price in addition to deposit: stamp duty (varies), legal/conveyancing ($1,000-$3,000), inspections ($400-$800), loan fees (often waived), LMI if applicable.

PAYG: ID, 2 payslips, tax return/PAYG summary, 2-3 months bank statements. Self-employed: 2 years tax returns & financials, Notices of Assessment, 6 months business bank statements. We provide a tailored checklist.

Pre-approval: 1-3 days. Full approval: 3-10 days. Settlement: Per contract (typically 30-90 days). For auctions, we can fast-track with select lenders.

Funds transfer, title transfers, keys released. You don't attend – your conveyancer handles everything electronically. You'll get a call when it's done (usually early afternoon).

Post-settlement check-in: Ensure offset linked, repayments correct. Annual review: Compare your rate to market. Ongoing: Available for questions and future lending. We're your broker for life.