Let's talk mortgages

There is a wide range of mortgage products available, and comparing them all can be overwhelming. At AV Mortgage Firm, our team members will guide you through the options, clearly explaining the differences between products and helping you select a loan that fits your specific needs. Once a product is chosen, we ensure everything stays on track and keep you fully informed at every step of the process.

At AV Mortgage Firm, we understand that the loan application process can be complex and time-consuming. You might feel unsure about the required documentation or whether your credit history is strong enough to qualify for a loan. That’s why we’re here to support you every step of the way until your loan is settled.

• Eligibility - Do I qualify for a loan?
• Credit Checks - Why are they needed, and how are they carried out?
• Interest Rates - Should I choose a fixed or variable rate home loan?
• Fees and charges - What are the upfront and ongoing costs?

We’re here to make the process clear and straightforward. To discuss further, please don’t hesitate to contact us.

No, we do not charge a fee for our service. Instead, we are paid a commission by the lender you choose, which is fully disclosed to you upfront. At the start, we provide you with our Credit Guide, outlining how we are generally remunerated. Once you choose us to arrange your finance, we will provide a Credit Proposal Disclosure document detailing the exact amount the lender will pay us after your loan is settled.

Our recommendation is always based on what’s best for you, not on how we are compensated. Ensuring our clients are happy is our top priority, as we rely on their reviews and referrals to sustain our business.

Note: Third-party and government fees, such as title fees and stamp duty, are unavoidable. Additionally, some lenders may charge fees, such as application fees. If any loan option we present includes such fees, we will inform you upfront.

We don’t just stop at settlement—we’re committed to providing ongoing support well beyond that point. We’re always here to answer any questions you may have about your current loan or future borrowing needs.

Additionally, we review your loan periodically to ensure it continues to meet your needs. We compare it with other options available in the market and negotiate with your current lender on your behalf to try and secure a better rate or improved terms for you.

With us, you’re not just another client—you’re a valued partner in your financial journey.

A loan pre-approval is a preliminary evaluation by a lender to determine your eligibility for a loan and the amount you can potentially borrow. This process involves reviewing your financial details, including credit history, income, debts, and assets.

For instance, in the case of a mortgage pre-approval, the lender assesses your financial situation and provides a written statement indicating the loan amount you’re likely to be approved for. This not only helps you understand your budget but also strengthens your position when making an offer on a property.

While pre-approvals are typically subject to conditions, standard requirements may include a satisfactory property valuation and formal acceptance by a mortgage insurer (if applicable).

Pre-approvals usually remain valid for 90 days. If you haven’t made a purchase by then, one of our team members will get in touch to assist you with renewing it.

If you’d like to learn more about obtaining a pre-approval, please don’t hesitate to contact us.

In Australia, the amount you need to save for a deposit depends on the property value and the type of loan you’re applying for. Typically, a 20% deposit is recommended to avoid paying Lender’s Mortgage Insurance (LMI). However, some lenders accept lower deposits, such as 5% or 10%, though this often requires paying LMI—unless you qualify for the First Home Guarantee scheme.

For instance, if you’re purchasing a property valued at $800,000, a 20% deposit would be $160,000, a 10% deposit would be $80,000, and a 5% deposit would require $40,000.

You may also be able to avoid paying LMI through options like a Parental Guarantee or by accessing several Australian Government support programs for first home buyers. Details about these options are provided below.

Mortgage insurance is typically required when a lender provides a loan covering more than 80% of the property’s purchase price or valuation (whichever is lower). It is designed to protect the lender by covering their risk in case the property needs to be sold.

If the lender incurs a loss on the sale, they claim the shortfall from the mortgage insurance company. The insurer may then pursue the borrower for repayment of that amount. Importantly, this insurance provides no protection for the borrower.

Mortgage insurance is a one-time charge that, in some cases, can be added to the loan amount. The cost of the premium depends on the loan-to-value ratio (LVR) of the property being purchased.

The Australian Government offers several support programs for first home buyers, which can significantly reduce the financial burden of purchasing your first home. Whether it’s a cash grant like the First Home Owner Grant, reduced deposit requirements under the Home Guarantee Scheme, or stamp duty concessions, these initiatives can help make your first home dream more achievable.

You can also navigate these websites to explore more about first home buyer offers:

• First Home Owner Grant
• First Home Guarantee | Housing Australia
• First home super saver scheme | Australian Taxation Office
• Buying your first home | myGov

These programs aim to make it easier for first home buyers to enter the property market.

Yes, you can combine the First Home Owner Grant (FHOG), First Home Loan Deposit Scheme (FHLDS), and First Home Super Saver Scheme (FHSSS) to reduce the amount you need to save upfront and potentially avoid additional costs like LMI.

At AV Mortgage Firm, we can help you explore all available options among these schemes and find the right home loan for your needs, as eligibility for these programs can vary by state and personal circumstances.

A parent can help their child avoid the cost of lenders’ mortgage insurance by offering a portion of their home equity to reduce the lender’s risk. The standard comfort zone is when your loan does not exceed 80% of the property value, so your deposit is combined with equity from the parent’s home or investment property (your broker will explain how it all works!). Mum and Dad must seek independent legal advice to ensure their rights and responsibilities as guarantors are fully explained.

Every lender has its own formula for calculating your borrowing power. Generally, there are six main factors:

• Credit Rating: A sound credit rating is one of the first things lenders assess, as it reflects your borrowing and repayment history.

• Deposit: The larger your deposit, the more you can borrow, and the less interest you’ll pay on your loan.

• Income: This considers not just how much your household earns, but also how much remains for home loan repayments after bills and day-to-day expenses are covered.

• Level of Debt: How much you owe on other loans, along with your credit card limits, also influences your available income.

• Savings History: A savings history of at least three months demonstrates to lenders that you can manage repayments.

• Home Loan Term: A lender may look more favorably at a longer loan term, though it means paying more interest over the life of the loan.

• Property Value: A lender may conduct a valuation of your chosen property to determine how much they’re willing to lend.

To get an estimate of your borrowing capacity, please get in touch with us.