Home Loan FAQs

With you every step of the way
I’m currently saving a deposit. How can you help me?

In 2017 we will be launching a comprehensive Deposit Plan service to assist Australians saving a deposit for their first home.

In the meantime please visit our Savings Home to see how else you can give your deposit savings efforts a boost!

Visit Savings Home

Do I get to meet an FHBA Coach in my local area?

Our FHBA Coaches are located in our head office in Sydney CBD and run meetings with clients over phone and video conferencing (including outside of typical office hours).

If you would like to meet an expert in your local area in person we do have a network of FHBA Broker’s (Home Loan Experts) located around Australia, including every capital city who can assist you with your finance queries while your FHBA Coach assists you with the other steps of buying your first home over the phone.

I know someone else who can help me. How do I decide whether to use you or them?

We are very proud of the services we offer first home buyers across Australia.

Our services are designed specifically to assist all first home buyers in Australia, no matter your budget is or property preferences are.

You can use FHBA services for all steps of buying your first home or you can use us for only some of the steps that you are not using someone else.

At the end of the day it is your choice who you use to help you achieve your goal of property ownership.

All we can do is tell you that we are Australia’s leading first home buyer specialist organisation and we would love to help you achieve your dream first home.

How do I get started?

No matter what stage you are at we’d love to help.

To get started simply complete a Speak To A Coach enquiry now and one of our friendly Coaches will be in touch.

Speak To A Coach

Using FHBA for your Mortgage Broking?

We specialise in helping first home buyers with their first home loan needs.  We also specialise in helping people in tricky situations. If your situation is unusual then we know exactly which lenders can help and how to best present your scenario to them. You’re our customer and we will work with you to make sure your first home loan experience is one that you will never forget, in a good way!

 

Why a Mortgage Broker and not a bank?

Simply, there are 4 great reasons why you should trust a broker over a bank:

  • Choice – We have access to over 1,300 different home loan products
  • Personalised Service – We work for you, not the bank
  • Experts – We know which lender is more suited to your circumstance / scenario
  • Unbiased – We don’t have bias towards any one lender
Does the home loan service cost me anything?

This service is 100% complimentary and is at no extra cost to you. Your FHBA Broker/Coach is paid by the lender you choose to proceed with for your first home loan.

Do I have to meet a FHBA Broker/Coach?

We understand everyone is busy with their day to day life nowadays. Therefore, our home loan service doesn’t require you to meet your FHBA Broker/Coach.

We believe we can reach optimal results by having one head office where our skilled Brokers/Coaches operate from. You don’t necessarily need a local mortgage broker, you need a broker that is an expert in providing home loan advice.

 

Is FHBA Mortgages aligned to a particular lender?

FHBA Mortgages, powered by Mortgage Australia Group is 100% privately owned and is not owned by any financial institutions. It is important to note that some other powerful Mortgage Broking Aggregators are either owned by a particular lender or are listed on the Stock Exchange. E.g. Aussie Home Loans is owned by CBA, Choice/Fast/Plan are owned by NAB, Rams is owned by Westpac, and Mortgage Choice & Yellow Brick Road are publicly listed companies

We are 100% independent of all the banks and don’t have any direct relationships with the lenders, providing you with peace of mind that we will not select a loan that is unsuitable for you.

How do I apply for my First Home Loan?

Your FHBA Broker/Coach will do all the work for you. Your Broker will collect the documents we require from you and complete the application for your review and signature. This allows your Broker to prepare a preliminary assessment and give you a range of options to choose from, the number of options will depend on your financial situation and needs.

Once we know which lender you would like to proceed with then we will lodge the loan online into our advanced online application system and provide the lender with the supporting documentation.

It isn’t that hard to apply for a loan with FHBA Mortgages!

What are the minimum requirements to apply?

This varies depending on your situation and on each lender’s policy. We know banks that will only require a 5% deposit, however you can even apply if you have less than 5% if your parents are willing to assist you in purchasing your first home. However, you will still be required to show you can service the loan based on your current income, expenses & liabilities.

Lenders mortgage insurance (LMI) applies to loans for more than 80% of the property value. If you want to avoid paying LMI, you will need a 20% deposit, although some exceptions may apply where some applicants may be eligible to borrow up to 90% without paying any LMI.

What documents will I need to supply?

Document requirements will depend on what type of loan you are looking to apply for. Generally speaking we will require the following documents from most applicants:

  • Income verification documents: Recent payslips for employees or last 2 financial year tax returns for self-employed applicants
  • Identification documents: For 100 point ID requirements, typically a copy of your Drivers License & Passport will be sufficient
  • Contract of Sale / Building Contract: If you have already found a property we would require a copy of the front page of contract or the building contract & loan contract of sale if you are looking to build or buy a brand new home
  • Living Expenses: An accurate assessment of your current living expenses and current credit card limits
  • Assets: A listing of your current assets and their estimated value

We make the job of providing the documents easier, by providing you access to a portal which allows you to upload the documents online and by providing templates allowing to provide us with figures on things such as your expenses and assets.

 

How long will the application process take?

Our first job is to give you a preliminary assessment which we can undertake within 48 hours provided we have all the necessary information from the fact find.

Following the preliminary assessment, we will require you to provide us with supporting documentation which will then allow us to give you some loan options that are not unsuitable for you.

If you are looking for a quick turnaround (as you may have already found your dream home) we know exactly which lenders will provide a timely approval, therefore we will recommend applying with those lenders.

Generally speaking, most lenders will take 2 weeks to process an application, pre-approvals can usually be granted with 5 days.

What if I don’t have a very good credit history?

This is where Mortgage Brokers, especially first home buyer specialists are of great assistance. We have almost every unique situation covered with our 40+ panel of lenders, who offer over 1,300 different products, that is a lot of options!

It is usually a matter for your Mortgage Broker to assess your situation and give you the most flexible options with the best possible features, such as low-interest rates.

We also help with non-conforming and low doc loans.

Can I still get approved if I haven’t found my home?

The short answer is, Yes, of course, you can. In fact, we would encourage you to contact us prior to finding your first home as this would give you greater confidence when searching for your first home, ensuring it is within your budget.

Pre-approvals are usually valid for 90 days. If your pre-approval expires before you find a property then we can obtain an extension, provided your lenders accepts it.

 

 

Which bank should I get approved with?

FHBA Brokers work with over 40 lenders every day. This means that if you have a situation that is a little different there will still be a few lenders that can consider your situation or scenario.

Having so many options available allows us to choose a bank that suits your needs and offers an attractive deal for you.

We have strong relationships with Australia’s big four banks – ANZ, Commonwealth Bank, NAB & Westpac, and also a variety of medium sized banks and non-bank lenders. Hence, we have almost every scenario covered!

When we send you some comparisons, we will usually include a range of lenders from big banks to non-bank lenders.

What is a Pre-Approval?

You don’t need to find your new home before you can apply for a loan.

Some lenders provide a loan pre-approval which is usually subject to meeting required terms and conditions, such as the property valuation. This is where your loan limit is approved for a certain time (usually around 3-6 months), and providing your circumstances have not changed you’ll know exactly how much you can afford to pay for a property, and you’ll have the freedom to make an offer on a property knowing that your finance is already organised. This will ensure you only focus on properties within your price range and takes the hassle away from having to apply for a full approval in one go.

Important Note: A pre-approval does not necessarily mean you have a guaranteed loan approval.

What is an Unconditional Approval?

An Unconditional Approval is granted when your loan application has been fully approved and is not subject to any terms and conditions – this is the stage where you can breathe easy knowing your loan is formally approved! The main difference between a conditional and unconditional approval is that a satisfactory valuation figure has come back from the lender’s valuer, i.e. as your lender needs to ensure they have lent money on the fair market value of your property.  Your loans offer documents are generally distributed at this point. Once these documents are signed, returned and checked by the lender, your application will be moved to settlement.

What is a Conditional approval?

conditional approval is granted (before being formally/unconditionally approved) when the lender has looked at the loan documents and the signed application form, and done a full assessment on the loan and issued an approval in principle letter. A conditional approval means that your loan has been assessed and approved subject to a few outstanding items, with the main item usually being the valuation report.

The lender will usually issue a written letter stating that your loan is conditionally approved and formally list each of the conditions that need to be met before Unconditional approval is issued.

What happens after settlement?

So you have secured the property and settlement has just occurred! The property and the loan are now in your name. If you have used one of our team, then it’s fair to say your loan is going to be appropriately based on your current and future plans. This may include interest only, offset, split accounts, primary and lifestyle accounts, linked credit and debit cards.

As we have helped you get your first home loan, we don’t plan to end our relationship there – we will maintain the relationship to ensure you are always on a suitable deal for your circumstance. We will do consistent reviews and are developing unique and innovative programs designed to assist you.

Will my loan be reviewed post-settlement?

As part of our services, we will conduct an annual review for all FHBA Mortgage clients (or more frequently if you choose to). We do this because you have more important things to do than to worry about your home loan!

Banks (and other lenders) can change rates at their discretion, therefore it is hard to predict when they will move rates. Lenders tend to move together, however, there may be some lenders that may not move their rates as sharply as other lenders, therefore, the importance of an ongoing review program

We also may find that some clients are not using all of the important features of their mortgage, hence it is our job to show the benefits of using some of them, as most will likely result in lower costs for you.

What if I need some assistance now?

Simple answer is: Don’t worry you can contact us anytime!

If you need our help between your reviews we can still help you. Feel free to contact your FHBA Coach to discuss any questions or concerns that you may have.

It is important to remember we will help you for the life of your mortgage, unlike a lender we won’t treat you like a ‘number’ we treat all our clients equally regardless of how much you borrow and we don’t just assist when you are applying for your loan.

If you are not the best deal it is likely the bank won’t contact you to get you on a better deal, bet we can guarantee you that we will, because we represent you!

First home buying made easy

Talk to an FHBA Broker

Do you have a specific home loan related question that you want answered now? We specialise in the FHB space. Get in touch with us now and we will contact you within 24 hours!

Speak to an FHBA Coach

Did you know that your FHBA Coach is also a qualified Mortgage Broker? They can provide guidance on many first home steps, so why not get in touch with a Coach to discuss ALL your first home needs!

TESTIMONIALS

  • A very late, belated “thankyou” for all your assistance to Brendan and me in getting our mortgage organized. For first-home buyers, it’s quite a daunting experience, but your assistance made it relatively simple. So a big ‘thankyou’ from us and we’ll be in touch soon as we’re contemplating purchasing some more property.

    Michell & Brendan Kosmer South Lake WA
  • Paul was fantastic at organising a great loan for my first home. He made the extra effort to teach me everything I needed to know and provided great customer service and I would definitely recommend his services.

    Benjamin Scanlan Gold Coast
  • As newcomers to the minefield of buying land and building Don glided us thru the process with painless ease. The service was impeccable and I have no problems in recommending him to friends needing advice and use of broking services.

    Jeremy P Sydney NSW
  • Thanks for your email and the sincere advice. Indeed we will persevere with our dream of owning a home in Australia. We will work towards our little goal and would not hesitate to contact good guys like you should we have questions on the way. Thank you so much Cheers

    Alf
  • Peter offered my partner and I service beyond our expectations. Nothing was a problem and everything was taken care of with incredible timing.A settlement in under 4 weeks did not seem possible, but Peter made it happen. We now have a beautiful home we love to live in. It all fell into place. Thank you.

    Timothy Bentley SA
  • Ray helped our family acquire the funds needed to build our dream home at a time when we had started to believe it was never going to happen. Ray was professional and had a wealth of knowledge, Ray was able to do the work behind the scenes that meant we only had to worry about the big stuff and could leave the rest to him. We are now in the middle of seeing our dream home built, Thanks Ray!

    Cath Fairs NSW
  • Finding Guido was a Bless! As a first home buyer I had so many questions not only related to banks loans but Government grant, Stamp duty, etc. He was always there to clarify all my doubts and to give me a clear picture of the most convenient options form my personal circumstances. His advice was excellent!! I highly recommend Guido for his professionalism and charisma to deal with people My rating to Guido is 5 Star!!

    Abner Montiel Roleystone WA
  • I couldn't have done it without First Home Buyers Australia- FHBA.

    I really appreciated the FHBA team's efforts through the whole process. And particularly appreciated you keeping me in the loop throughout. FHBA also helped me negotiate a better deal with the real estate agent, saving me thousands of dollars!

    I've just finished moving everything in now and was very happy with the outcome of the whole process.

    If you are looking for a loan and need to make sure you have the appropriate insurance cover, definitely check FHBA out they are lifesavers!

    Kane Newham - Blackwall NSW
    Kane Newham - Blackwall NSW
  • When we started looking for our first property over a year ago we were so overwhelmed with all the information on the "current market", auctions, negotiations and week after week inspections that we nearly gave up our search until we came across FHBA.

    The guidance given to us by Taj along with his passion of helping young families like us buy our first property was extremely comforting knowing that we always had someone working on our side, who would consider our needs and work within our budget.

    We are finally in the "market" and we can't thank Taj enough for the speed and efficiency in which he responded to our endless emails, phone calls, questions we threw at him and the recommendations of solicitors, insurance companies etc to ensure we had covered all aspects of purchasing our first home.

    We have no hesitation recommending Taj and FHBA to family, friends and anyone needing any information or looking to buy a property!

    Shaun, Jessica and Noah W - Central Coast (NSW)
    Shaun, Jessica and Noah W - Central Coast (NSW)