What is a Mortgage Broker?

A mortgage broker is a licensed professional dedicated to helping you find the most suitable mortgage product, tailored to your unique needs. Essentially, your broker serves as the bridge between you and the lenders. They review a wide range of lenders to compare interest rates and terms, guiding you through the entire loan application process and finding you the best deal.

What size deposit do I need?

You'll typically need a minimum deposit of 5-10% of the property’s value to secure funding. If you already own property, you can often use home equity instead of savings.

A 20% deposit helps you avoid Lenders Mortgage Insurance (LMI). if you haven't saved that much, don’t worry—options like First Home and Family Guarantees, LMI Waivers, and low-deposit loans are available.

Regardless of your savings, speak with our team to explore your options now and for the future.

How long does it take to obtain approval?

Lender processing times can vary significantly based on their current workload and the number of applications they’re handling. Generally, approval can take anywhere from 3 to 15 business days. It’s essential to confirm the finance and settlement deadlines to ensure your chosen lender can meet these timeframes. At Headland Finance, we work closely with both your solicitor and the lender, to streamline the process and keep everything on track.

What is Pre-Approval and How Long Does it Last?

A pre-approval is a conditional approval from a lender for your loan, typically pending two key factors: a signed contract of sale and a satisfactory property valuation. Generally, a pre-approval remains valid for up to 90 days. If necessary, it can usually be extended by providing updated financial information, if there are no significant changes to your financial situation.

Why Should I Use a Broker, and What Do They Do?

The primary advantage of working with a mortgage broker is the access to choice. Unlike banks that offer a limited selection of products, brokers connect you with a diverse range of lenders and loan options. Brokers represent your interests, not the banks, and are legally obligated to act in your best interests, ensuring that your needs come first.

With their extensive industry knowledge, brokers negotiate with lenders to secure a loan that aligns with your financial goals. They manage the entire application process, handling paperwork and saving you valuable time. Even after your loan settles, brokers continue to support you by regularly reviewing your loan to ensure it continues to meet your evolving needs.

How Do Brokers Get Paid?

Brokers earn a commission from the lender after your loan settles, which is typically based on the loan size. Importantly, this commission does not impact your loan terms or interest rate; you’ll receive the same rates or even better than if you went directly to the bank.

If your loan is refinanced or fully repaid within 1 to 24 months of settlement, the lender will reclaim some or all of the broker's initial upfront commission through a process known as ‘Clawback.’