Mortgage Choice

At Mortgage Choice, we don't charge to find the right home loan for you. Your broker will be paid by the lender once your loan settles.

This will depend on your individual financial situation and your goals. When you meet with a Mortgage Choice broker, they will ask questions to develop an in-depth understanding of your financial position to help you understand your borrowing capacity. You can use our borrowing calculator to get an initial idea of what you may be able to borrow. This calculator estimates your borrowing power based on details you enter, including your income, financial commitments and any current home loans or other debts. The calculator will also show you the effect different interest rates and loan periods can have on the amount you can borrow, the total interest you would pay and your estimated monthly loan repayments.

The list below provides a general guide on what to bring to your first home loan appointment. In some cases, your broker or your chosen lender may ask for additional information as you go through the home loan application process. • Personal identification This can include photo ID (e.g. your passport, driver’s licence or proof-of-age card) or other forms of identification (e.g. your birth certificate, Australian citizenship certification or Medicare card). • Information on your income While the documents you need to provide to prove your income will vary depending on your employment status, commonly requested documents include payslips, letters of employment and recent bank statements for employees, and tax returns, balance sheets and profit and loss statements for self-employed people. • Financial contribution details You will usually need to show evidence of three months of savings from bank account statements, term deposit statements or share transaction records. • Financial commitment details You will usually need to provide the most recent three months of statements for any existing loans or credit cards.

There are three main types of home loans - variable, fixed or split. The interest rate on a variable home loan fluctuates based on the RBA cash rate and reflects the current economic climate. Variable home loans tend to be more flexible and offer more features, like a linked offset account, redraw facility and the ability to make extra payments. The interest rate on a fixed-rate home loan is set for a fixed period (e.g. two years), which can help you to manage your costs. Some lenders also offer a split loan, where a portion of your loan is fixed, and a portion is variable.

Loan pre-approval, also known as conditional approval, is when a lender confirms the amount they are willing to lend you. But keep in mind that a pre-approval is conditional that there are no changes to your circumstances from those set out in the pre-approval application. Having a pre-approval can also help you define a purchase budget, negotiate and bid with confidence when you find the right property. A pre-approval is usually valid for a fixed period, typically between three to six months. The benefits of pre-approval include: • You can establish a spending limit when searching for a property, so you won’t waste time looking at properties you can’t afford. • You have extra negotiating power with real estate agents as you’re seen as a serious buyer with financial backing from a lender. • You can bid with confidence at auction knowing you have a set budget and can bid up to your approved limit.