Home Loan FAQs

With you every step of the way
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 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!

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 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.

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 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 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.

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.

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.

 

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.

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!

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Disclaimer: The information on our website including this page is general in nature and should be solely relied upon. It does not take your personal circumstances. The credit license responsible for the mortgage service offered to clients is Mortgage Australia Group Pty Ltd, Australian Credit License (ACL) number 377294, Australian Business Number (ABN) 99 091 941 749. Mortgage Australia Group Pty Ltd is a member of the Mortgage & Finance Association of Australia (MFAA). FHBA Pty Ltd is an authorised credit representative of Mortgage Australia Group Pty Ltd.

First Home Buyers Australia - FHBA