How Does It Work?
Mortgage FAQs
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How much does a mortgage adviser cost?
My service is completely free to you!
I’m paid a commission by the lender once your loan is settled, so there’s no cost for you to get expert advice, support, and personalised recommendations.
If there’s ever a situation where a fee might apply, I’ll explain it clearly upfront before anything goes ahead.
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How much deposit do I need?
The amount you need depends on the type of property you're buying and your personal situation.
Generally, most banks require at least a 10% deposit, but there are options available with as little as 5% through schemes like the First Home Loan or with strong supporting factors such as stable income and good credit.
I can help you explore what’s possible based on your circumstances and guide you through any low-deposit options that may be available to you.
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How do I get a loan?
Getting a home loan starts with understanding your financial position and what you can afford to borrow.
I’ll help you with every step, including checking your eligibility, reviewing your income and deposit, and preparing a strong application. Once we’ve selected the right lender, I’ll submit your application and manage the process through to approval.
From there, you can go house hunting with confidence, knowing exactly what your budget is and what your repayments will look like. It’s a straightforward process when you’ve got the right support.
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How much can I borrow?
The amount you can borrow depends on your income, expenses, existing debts, credit history, and the size of your deposit.
Every lender has slightly different criteria, so borrowing limits can vary from one bank to another.
I’ll work with you to assess your financial situation, calculate your borrowing power, and match you with lenders that best suit your goals. This helps ensure you get the most out of your loan without overextending yourself.
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How do you save me money?
I help you save money by finding the most competitive loan for your needs, negotiating better interest rates, and structuring your mortgage to reduce the total interest you pay over time.
I also keep an eye out for bank cashback offers, fee waivers, and opportunities to refinance when rates or your situation change.
A well-structured loan can shave years off your mortgage and save you thousands, if not hundreds of thousands, over its lifetime.
My advice is always tailored to help you get ahead faster.
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What type of loan should I get?
The right loan depends on your goals, financial situation, and how you plan to manage your repayments.
You might choose a fixed rate for certainty, a floating rate for flexibility, or a mix of both. Some clients benefit from features like offset accounts or revolving credit, while others prefer a straightforward structure.
I’ll take the time to understand your needs and recommend a loan type that suits your situation now and into the future.
With the right advice, you can avoid costly mistakes and set your mortgage up for long-term success.
Common Mortgage Terms Explained
Understanding the language used by banks and lenders can make a big difference when making financial decisions. This section breaks down the most common mortgage terms in plain English, so you can feel more confident, informed, and in control throughout your home loan journey.
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This refers to the amount you’re borrowing compared to the value of the property.
For example, if you're buying a home worth $800,000 and borrowing $640,000, your LVR is 80%.
Most banks prefer an LVR of 80% or less, which means you have a 20% deposit. However, most lenders will accept 10% or even 5% deposits under certain conditions, particularly for first home buyers.
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This is an indication from a lender of how much you can borrow, based on your financial position.
It gives you confidence when house hunting and allows you to make a move on properties much faster and easier.
Pre-approval usually lasts for 60 to 90 days and are subject to conditions like property approval, insurance and other bank-imposed conditions.
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This means your loan is fully approved with all lender requirements met.
It typically happens after you’ve signed a sale and purchase agreement and the bank has assessed the property.
Once you have unconditional approval, you can move forward with settlement and finalise the purchase.
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Some banks offer a lump-sum cash incentive when you take out or refinance a mortgage with them.
This is often calculated as a percentage of the loan amount and can help cover legal fees or other setup costs.
Cashbacks usually come with a clawback period, meaning if you refinance away from the bank within a set time (usually 2 to 4 years), you may have to repay the cashback.
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This is a lending measure used by some banks and regulators. It compares your total debt (including the proposed mortgage) to your gross income.
For example, a DTI of 6 means your total debt is six times your annual income.
The RBNZ has set maximum limits for DTIs than banks can lend to, which may restrict you borrowing capacity.
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If you repay or refinance a fixed-rate mortgage before the end of the fixed term, your lender may charge a break fee.
This compensates the bank for the interest they lose due to the early repayment. The fee can be significant, so it’s important to calculate the costs and weigh them against the potential benefits of refinancing.
Getting good advice with forward planning is crucial to avoiding break fees!
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Refinancing means switching your mortgage to a new lender, usually to get a better interest rate, cashback, or more suitable loan structure.
It can help you save on repayments, access equity, or consolidate debt.
I’ll compare options across multiple banks to help you find the best deal for your goals.
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Restructuring involves changing the setup of your existing mortgage without changing lenders.
This could include breaking a fixed rate, switching to floating, splitting the loan, or increasing repayments.
It’s a great way to reduce interest costs or improve cash flow depending on your needs, and the correct structure can shave years off your mortgage.
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Equity is the difference between your property's market value and the amount you still owe on your mortgage.
For example, if your home is worth $900,000 and your mortgage is $600,000, you have $300,000 in equity.
You can use equity as a deposit to buy another property, renovate, or purchase other assets such as cars or boats.
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The principal is the amount of money you borrow from the bank to buy your home. For example, if you're purchasing a property for $700,000 and have a $140,000 deposit, your loan principal would be $560,000.
Each mortgage repayment typically includes a portion that goes toward reducing the principal, along with interest charged on the remaining loan balance.
Reducing the principal faster means you’ll pay less interest overall and become mortgage-free sooner.
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The total time you have to repay your mortgage, usually between 25 and 30 years.
A longer term means lower repayments but more interest paid over time.
A shorter term means higher repayments but significant interest savings and faster loan payoff.
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This is when your mortgage is divided into multiple parts, usually with a mix of fixed and floating rates.
For example, part of your loan might be on a fixed rate for stability, while the rest is floating so you can make extra repayments.
It gives you the benefits of both structures and can be tailored to your financial goals.
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A fixed rate is locked in for a specific term (usually between 6 months and 5 years).
Your repayments stay the same during this period, which provides certainty and helps with budgeting.
However, you won't benefit if interest rates drop, and there are often limits or penalties if you want to make extra repayments or break the loan early.
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This rate can move up or down at any time, usually in line with changes to the Official Cash Rate (OCR).
While your repayments might fluctuate, floating loans offer flexibility, such as the ability to make lump sum payments, increase repayments, or pay off the loan early without penalties.
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An offset account is a savings or transaction account linked to your mortgage.
The balance in your offset account reduces the loan balance used to calculate interest.
For example, if your mortgage is $500,000 and you have $20,000 in an offset account, you’ll only be charged interest on $480,000.
When used well, it’s a great way to use your savings to reduce interest costs.
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This is a flexible mortgage structure that works like a large overdraft.
Your income goes directly into the account, and your expenses are paid from it. Because your balance is kept as low as possible, you pay less interest.
Revolving credit loans are ideal for disciplined borrowers who manage cash flow well and want to pay down their loan faster.
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This is the most common repayment type, where your regular payments cover both the interest charged and a portion of the loan amount (principal).
Over time, you pay off more of the principal and less interest, gradually reducing the loan balance until it’s fully repaid.
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With this repayment structure, you only pay the interest on your loan for a set period (usually 1 to 5 years).
Your loan balance doesn’t reduce during this time, meaning your repayments will be higher once the interest-only period ends.
It's often used for investment properties to improve cash flow, but the total interest paid over the life of the loan will be higher.