Frequently Asked Questions
What does a mortgage broker do?
A mortgage broker acts on your behalf to arrange a home loan through an appropriate bank or lender. Australian banks and lenders have different policies and loan requirements, and it is a broker’s job to find a loan from one of these parties that fit with your individual situation.
How much can I borrow?
Your borrowing capacity is based on your income, financial position, number of dependants, your goals, loan features and preferences plus much more. We always prefer to meet with you face to face to gather this information during our discussion (which takes approximately an hour to an hour and a half), enabling Voltage Finance to then commence the process of finding a selection of banks or lenders that best fit your situation and requirements.
How much deposit do I need?
If you are a first home buyer, then you will generally need a 5% deposit. A minimum of 20% deposit is mostly required to avoid Lenders Mortgage Insurance, however your broker will explain the best path for your circumstances.
How long does the process states?
This can depend on a variety of factors however under normal circumstances generally the process can take 2-4 weeks. Unfortunately, currently due to COVID, the process with some mainstream lenders is taking a lot longer and in some instances 8+ weeks.
What’s the difference between a Standard and Variable Rate?
The variable rate loan offers more features and flexibility than the basic fixed rate loan, so the rate is usually slightly higher.
Fixed rate loans are set at a fixed rate for a specified period – usually one to five years. This gives you the advantage of knowing how much your repayments will be, allowing you to organise your finances without the risk of rising interest rates. However, this advantage is offset by the possibility of not benefiting from a drop in rates.
What are Honeymoon Loans?
A honeymoon loan (or introductory loan) is a loan with lower interest rates or lower repayments for the first six to twelve months. After the ‘honeymoon’ term, the loan becomes a standard variable rate loan and the repayments will change to include the current standard variable interest rate.
What are Bridging Loans?
A bridging loan may be necessary to cover the financial gap when buying one property before your existing one is sold. This finance is secured against the existing property utilising the equity available and the new property being purchased.