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Fees can include application fees, valuation fees, settlement fees, and ongoing service fees. Additionally, there may be government charges such as stamp duty, mortgage registration fees, and Lender’s Mortgage Insurance if your deposit is less than 20%
To apply for a home loan, you need to gather necessary documents such as proof of income, identification, details of your assets and liabilities, and a summary of your living expenses. You can apply directly through a bank, a mortgage broker, or online via the lender's website.
The maximum loan amount depends on your income, expenses, existing debts, and the lender's policies. Generally, lenders cap the loan amount to 80% of the property’s value without requiring Lender’s Mortgage Insurance, though borrowing up to 95% is possible with LMI.
A fixed-rate home loan has a constant interest rate for a set period, offering predictability in repayments. A variable-rate home loan has an interest rate that can fluctuate with market changes, potentially offering lower initial rates but with the risk of increases over time.
Typically, you need to provide proof of identity (e.g., driver's license, passport), proof of income (e.g., payslips, tax returns), bank statements, details of current debts and liabilities, and information about the property you wish to purchase.