FAQs
Straight answers to the questions we hear most often about brokers, fees, lenders and borrowing. If yours is not here, ask us directly and we will explain it in plain terms.
Mortgage brokers are qualified finance industry professionals. They work with you to determine your borrowing needs and objectives, and to help you determine how much you can borrow. Brokers help to ensure that you don’t take out a loan that is not right for you. Like your solicitor, accountant or financial planner, we are specialists in what we do and will provide you with a suitable finance solution to help you achieve your goals. With a mortgage broker, you can expect a more personalised level of service than you would usually receive directly from a lender. Additionally, Christian has access to finance products from a wide variety of lenders, so he can compare lending products from different lenders to find a loan that’s right for you.
We may charge a fee for our help. If we do, we tell you the amount in writing, in a Credit Quote, before your application goes in. Lenders pay us commission when a loan settles, and you don’t pay that commission. Our Credit Guide sets out exactly how we’re paid.
No. For home loans, brokers must act in your best interests, and put your interests first where there’s a conflict, under the National Consumer Credit Protection Act. Before you apply, our Credit Proposal shows the commission we expect to receive, so you can see it for yourself.
You don’t pay our commission; the lender does. If we charge a fee, you’ll know the amount in writing before you apply. For car, asset and personal loans, any origination fee (up to $2,500 plus GST) appears in your Credit Quote first. Lenders’ own fees depend on the loan you choose, and we can compare them for you.
There are specific factors that need to be considered when determining how much a customer can borrow, such as income, employment position, the deposit saved, current living expenses and any liabilities. Our borrowing capacity calculator gives an indicative range of what you may be able to borrow, not a lending decision. For a more accurate assessment, please give us a call and we can go into your options and discuss your circumstances in more detail.
A mortgage broker will recommend a product based on what you say is most important to you, for example paying your loan off quickly, guaranteed repayments or low cost. As a general guide, a variable rate usually offers more flexibility, such as extra repayments, redraw or an offset account, but your repayments can rise or fall. A fixed rate gives repayment certainty for the fixed term, but can limit extra repayments and may involve break costs if you change or repay the loan early. A split loan combines both. Which suits you depends on your circumstances and the lender's terms.
Yes. We help clients Australia-wide. Most of the process can be handled by phone, email and our secure online forms, so you don’t need to be near Brisbane to work with us.
We are Connective Brokers and we have access to many lenders. This means we can source you a loan from different lenders to provide you with a variety of options that are suitable for you and your situation.
Mortgage brokers don’t set interest rates. The Reserve Bank of Australia’s Monetary Policy Board sets the official cash rate at its scheduled meetings, held eight times a year. Lenders take the cash rate into account when they set their own rates, along with their funding costs, competition and other factors.
Each lender can only offer you its own products, and each has a wide range: variable and fixed rates, split loans, interest-only and principal-and-interest repayments, offset and redraw features, low-doc options and more. The question is which loan is right for you. If you go direct to a bank, you will only be offered the options available through that one lender. As your broker, we do the legwork across our panel of lenders, compare their products and recommend a loan that suits your circumstances and goals.