FAQs

Below are some of the most common questions our clients ask. View the general FAQs at the top or use the links below for service specific FAQs.

General FAQs

What is a mortgage?

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A mortgage is not the same as a home loan. A mortgage is a legal agreement that conveys the conditional right of ownership on a real estate property by its owner (the mortgagor) to a lender (the mortgagee) as security for a home loan.

When you purchase a real estate property using a home loan, the property is placed in your name and is owned by you. However, the security (Mortgage) means that if you (the Mortgagor) breach the home loan contract terms set by the lender (the Mortgagee), then they have a right to collect their interest.

What is a mortgage broker?

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Mortgage brokers are independent advisors who are here to help you with your long-term home buying financial goals and offer you a variety of solutions that suit your specific needs and circumstances.

What does a mortgage broker do?

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With over 50+ lenders in the Australian marketplace all with different lending criteria and a range of different products with different features, finding the right lender and the right loan can be a daunting process. A mortgage broker learns about you and your circumstances and then selects the best option that suit your needs, taking the stress and hassle away from you. They then run the application process for you and deal with the bank and settlements agents all the way through to settlement. After final settlement, brokers will be your home loan partner for life and will keep you updated on the market and make sure your loan is still the best fit for you.

How does a mortgage broker get paid?

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For the most part mortgage brokers are paid via a upfront and trail commission based on the loan balance introduced to the lender. The amount of commission can vary across each lender. It is a cost incurred by the lender and does not impact the interest rate or repayments on your loan.

Why use a broker instead of a bank?

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Banks only have a limited number of home loan options they can offer. Brokers work with a variety of different lenders and at Beyond Broking we have over 30 available lenders. This ensures you get the absolute best home loan suited to your individual needs.

What is Loan to Value (LVR) ratio?

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When establishing the amount you can borrow to purchase a property, the size of deposit you need to save and whether you are eligible for a particular mortgage product, the Loan to Value Ratio (LVR) is one of the most important factors.

LVR is the percentage of the property’s value that your loan equates to. So, if the property you want to purchase is valued at $500,000, and you need to borrow $400,000 to pay for it, the loan is 80% of the property's value, making your LVR 80%.

LVR is important because different lenders and their respective loan products have different maximum LVRs, based on lots of different criteria.

LVR is also a magic number when it comes to mortgage insurance with the rule of thumb generally being anything with an LVR above 80% will attract mortgage insurance.

What is LMI?

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Lenders Mortgage Insurance (LMI) is a one-off, non-refundable, non-transferrable premium that's added to your home loan. The amount you pay in LMI is calculated relative to the size of your deposit and respective loan amount. The more you contribute to the purchase price of your property, the lower the cost will be. LMI protects the bank against any loss we may incur if you are unable to repay your loan and will generally apply to you if you are unable to contribute a 20% deposit or are not eligible for a waiver because of your profession.


Homebuyer FAQs

Why use a mortgage broker?

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Beyond Broking mortgage brokers are experts in residential and commercial property loans. Lending is all we do! We organise your finances and provide professional advice to match your needs with a suitable lending solution.rnrnWe talk to the lenders for you, negotiate better deals than what’s being offered, do all the paperwork and help you avoid taking out a loan you might later regret.rnrnWe save you hours of time, as for us, it’s about knowing the industry, planning a better mortgage for you, and regularly monitoring your loans in the proceeding years to ensure they still align with your lifestyle and current market condition. Best of all the bank pays us so you don’t have to.

What do I need to help the process?

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Generally the banks and lenders ask for the following items however when we first talk to you, we’ll ask you to provide these items and maybe a few other things to ensure our first meeting gets your application started promptly:rnrnProof of income (pay slips and bank statements)rnA deposit backed by a proven savings historyrnA good credit history (we can still help if you don’t)

How much do I need for a deposit?

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Most lenders ask for 5% of the property value as a deposit but you need to factor in purchase costs like stamp duty, conveyancing and the impacts of lenders mortgage insurance (LMI). In general, the more you have saved, the more options you have and the easier the approval process becomes. If you don’t have 5% we do have lower deposit options available.


Refinancing FAQs

Why should I refinance?

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You could save thousands of dollars. The home loan rates you originally signed up for may be higher than what’s currently available and you have probably built up some additional equity that will give you access to more options. We suggest a quick interest rate and home product check to see where you are placed and if we think you can do better we will find you the right option.

What's involved in refinancing?

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We do it pretty much all for you! It begins with an assessment of your financial situation, a review of your current loan, a valuation of your existing property and the submission of some forms. Just like a home loan application, we manage the whole process from start to finish, keeping you informed along the way.

How much does refinancing cost?

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This varies depending on the lender and the type of loan you have but it is reasonable to expect a charge of approximately $700. This covers settlement and registration fees while application and valuation fees are typically waived by the new lender. Spending a few hundred to save thousands makes “cents” doesn’t it!

I have credit card and personal loan debt. Can I consolidate this into my home loan?

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Yes you may be able to! This is “Debt Consolidation” and is something we can help you with. Some lenders have restrictions on what you can consolidate so we’ll need to find the right solution based on your circumstances. Debt consolidation can be a great way to simplify repayments and potentially benefit from lower interest rates associated with your home loan. Credit card and personal loan interest rates are generally much higher than home loan rates.

What’s the difference between variable and fixed rates?

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A variable rate is where the interest rate on your loan changes, generally in line with market conditions and the index rate set by the Reserve Bank of Australia (RBA). This is beneficial when interest rates are going down or you need flexibility in your home loan.. Fixed rate means the interest rate on your loan is set at the time of signing your home loan application and does not change over the life of your loan. This is beneficial when interest rates are going up as it holds your interest rates at a lower rate or want certainty in repayments.


Investment FAQs

What is equity?

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Equity is the difference between the market value of your home and the amount you owe on its home loan. Equity increases as you pay off the home loan and/or as the property value appreciates (increases!). Market conditions can favourably increase your property value quite quickly, opening up new options for you to invest or refinance at a better rate.

Can I use equity from another property?

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Yes, and investment property loans are often structured around using home equity. Many factors contribute to equity loans and will depend on the lender, the type of property and availability of that equity. We can do a quick assessment and valuation to see if you qualify for this option.

Will rental income help me buy?

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Rental income will be taken into account when analysing your ability to service the debt. In general, it is not usually the full 100% figure but more around the 80% mark, however each lenders policy is different, and we will find the best loan fit for you.

Should I have an offset account when investing?

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This really depends how you intend to use the property in your long-term financial strategy, but it is a great way to minimise interest repayments and avoid diluting your tax benefits. There are lots of options available, but our advice is to speak to an accountant to find out any tax implications before you start the process.

What is a cash out?

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This is an option for people looking to increase their loan amount by drawing on existing equity in the property. This type of feature is often utilised by people looking to fund a renovation or buy another property.

What is negative gearing?

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Negative gearing refers to the loss associated with property ownership relative to the income earned. For example, if the interest expense on your investment property is higher than the income produced in rent, your property would be considered negatively geared.

Is there a difference between my existing home loan and an investment loan?

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In terms of its functionality, not really. Investment loans can be equipped with the same features as your normal home loan. Investment loans tend to have higher interest rates and larger upfront deposit or equity requirements.

Can I invest anywhere in Australia?

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Australian’s can invest anywhere in Australia. Different state government rules and regulations apply in each state however we assist you throughout the process to make sure everything is completed correctly.

I'm an Australian living overseas, Can I still invest in Australia?

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We’ve helped many Australian’s abroad invest in Australia, no matter if you’re living in London, Dubai, Singapore or Hong Kong, location is no barrier for us to help Australian expats invest in their homeland. See our [Australian Expat Investors] page for more information.

Why should I use a mortgage broker for my investment property?

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Lending and mortgage broking is all we do! As experts in residential and commercial property loans, Beyond Broking organises your finances and provides professional finance advice, matching your needs with the most suitable lending solutions.

We talk to the lenders for you, negotiate better deals than what’s being offered, do all the paperwork for you and help you avoid taking out a loan you might later regret.

And it doesn’t stop there. We know the ins and outs of the industry and regularly monitor your loans to make sure you’re on the most suitable deal, now and in the years ahead too.


Construction FAQs

What do I need to help the process?

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Generally the lenders will ask us for the following items however before our first meeting, we’ll talk you through everything that is required so you have plenty of time to get organised:

Proof of income (pay slips)
A deposit backed by a proven savings history.
A good credit history (we can still help if you don’t)

How much do I need for a deposit?

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Most lenders ask for a 5% deposit of the property value but if you have saved more that’s great as it makes borrowing from the banks and lenders even easier. You also need to factor in purchase costs such as stamp duty, conveyancing and the potential impacts of lenders mortgage insurance (LMI). In general, the more you have saved, the more options you have and the easier the approval process becomes.

How much can I borrow?

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We have a calculator to help indicate how much the lenders will likely lend you however we will personally assess your situation and be able to provide you with a more exact figure. General speaking, the more money you earn and the less debt you have, the more your capacity to borrow will be. Each lender will be slightly different.

Can I get the first home buyers grant?

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If you’re building or buying a new or substantially renovated home, you may be eligible for the first home buyer grant. There are several factors that determine your eligibility and each Australian state and territory can be different. See our first home buyers page for additional information.

Do I qualify for a stamp duty waiver of concessional rate?

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The purchase price of your home or vacant land will dictate whether you qualify for the stamp duty waiver or concessional rate. See our useful links and blog section for more information.

How much do I need for fees and charges?

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This will vary depending on the lender you choose, the purchase price of the property, the deposit you contribute and so on. Once we have more information about your loan requirements and intended property purchase, we’ll be able to provide a realistic figure for expected fees and charges.

What is lenders mortgage insurance?

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Lenders Mortgage Insurance (also known as LMI) is a fee charged by lenders, when your deposit is below 20% of your property’s value. It can be a big hurdle, but most lenders will add it to your loan, so you don’t have to save up for it and we may be able to help you avoid this cost altogether.

What is a loan to value ratio?

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Loan to Value Ratio (LVR) is the amount of money you wish to borrow in comparison to the value of your property. So, if you want to buy a house valued at $500,000 and you a have a $100,000 deposit, your LVR would be 80%. Most lenders adjust their interest rates relative to the LVR and have specific ratios to which they will lend to.

What's the difference between variable and fixed rates?

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A variable interest rate is a changing loan interest rate that fluctuates at the banks discretion usually in line with market interest rates. As a result, your payments will vary as well. Fixed interest rate means the interest rate will stays the same for the period of the loan – and so will your repayments. You can fix your rate for a particular period of time, normally between 1 and 5 years, and is beneficial when interest rates are on the increase or want certainty over repayments.


Self-Employed FAQs

What to bring to us if you’re self-employed?

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We’ll need a few items from you to start the process which may include but are not limited to:

Provide your most recent personal and business tax returns including business financial statements
Most recent ATO Notice of Assessment


Business Loan FAQs

What do I need to help the process?

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We’ll need a few items from you to start the process which may include but are not limited to:

Proof of income (pay slips and bank statements)
A deposit backed by a proven savings history
A good credit history (we can still help if you don’t)

How much do I need for a deposit?

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Commercial lending is typically more restrictive to residential lending and that is reflected in a higher deposit requirement. At least 20% plus purchase costs will be required for purchase but in some cases utilising residential property as security for the purchase can reduce this.

How much can I borrow?

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The assessment of this is generally different to a residential loan. In order for us to be able to calculate this we would need to assess your full financial situation.

How much money do I need for fees and charges?

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As well as the normal fees associated with the purchase of property like stamp duty and conveyancing you will need to plan for more expensive lender related costs including valuations, application and settlement fees. It is also worth noting that given the inherent risk in commercial property ownership you should expect to pay a higher rate of interest and a reduced loan term relative to residential property.

What’s the difference between variable and fixed rates?

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Variable interest rates move up and down and normally relate to changes in official interest rates set by the Reserve Bank of Australia (RBA). A variable rate loan is beneficial when rates are on the decline.

Fixed interest rates don’t move. You can set (fix!) your rate for a particular period of time, normally between one and five years, and is most beneficial when interest rates are on the rise.

What term loans are offered for commercial property?

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You should expect 15 to 20 years in repayment terms. This can be increased in some cases when utilising residential security to facilitate the purchase.


Expat Home Loan FAQs

What documentation is required?

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This can vary depending on your situation, but we need to validate your income and debts to determine your loan eligibility. You should expect to provide at least the following:

  • Payslips and transaction account statements to verify income
  • Bank statements for debts, savings and transaction
  • Verification of Visa or work permit
  • dentification – Drivers licence and passport (in come cases certified by Australian Consulate office)
  • Evidence of available funds for purchase

How much can I borrow?

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There is no quick and easy answer for this as it’s determined by your current income and debt position. Once you have provided us with sufficient supporting documentation, we can provide a reliable estimate and context over your borrowing capacity.

Are interest rates competitive for expats?

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While some lenders charge a higher interest rate for expat lending we are fortunate to have access to very competitive rates that closely align with domestic lending rates.

Do I need approval from the Foreign Investment Review Board to purchase property?

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No, this is not a requirement unless you are a non-resident.

How is foreign income assessed by lenders?

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Your income is converted to Australian dollars and then shaded by at least 10% depending on the currency you earn.

Is the first home buyers grant and rate of duty available for expats?

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You are eligible for the first homeowners grant and rate of duty, however you must comply with the qualification criteria set out by each state revenue office. Investment purchases will not qualify for first home buyer benefits.

How much do I need for a deposit?

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In most cases you will need at least 20% for the Australian mortgage lender loan plus purchase costs (stamp duty, conveyancing, etc). In some instances, a lower deposit may be available and we will test you for this and provide estimates.

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