Frequently Asked Questions — Mortgage Broker Melbourne
Answers to the most common questions Melbourne borrowers ask about home loans, refinancing, investment property, grants, broker services and lending structures. Every answer is written by Preeti Sidhu at Clarity Financial Solutions (ACL 475676) and links to the relevant service page for detailed guidance.
First Home Buyer Questions Melbourne
Most lenders require a minimum 5% to 20% deposit. At 5% you need the First Home Guarantee to avoid LMI. At 10% you pay LMI. At 20% you avoid LMI entirely. On a $700,000 Melbourne property, 20% is $140,000 plus approximately $25,000 in stamp duty and costs. A first home buyer mortgage broker Melbourne calculates the minimum deposit for your situation across 40+ lenders.
The $10,000 First Home Owner Grant applies to new builds under $750,000. Stamp duty exemption applies to properties under $600,000 and a concession up to $750,000. The First Home Guarantee allows purchase with 5% deposit and no LMI. The First Home Super Saver Scheme allows withdrawal of up to $50,000 in voluntary super contributions. Clarity Financial Solutions checks your eligibility for all schemes during your pre-approval consultation.
A first home buyer mortgage broker Melbourne compares home loans across 40+ lenders, identifies the best rate and features for your situation, checks grant eligibility, arranges pre-approval, coordinates with your conveyancer and manages the application through to settlement. This service is free — the lender pays the broker fee.
Pre-approval is a conditional commitment from a lender confirming how much you can borrow, subject to property valuation and final verification. It typically lasts 90 days and gives you confidence to make offers or bid at auction. Conditional vs unconditional approval explained.
Yes. A guarantor home loan Melbourne allows a family member to provide their property as additional security, reducing or eliminating your deposit requirement and avoiding LMI. The guarantor does not make repayments — they provide security only. The guarantee can be released once your LVR reaches 80%.
Refinancing Questions Melbourne
Consider refinancing when your interest rate is 0.30% or more above the best market rate, your fixed rate period has expired, your financial situation has changed, or you need to access equity. A refinance mortgage broker Melbourne runs a free rate comparison to confirm whether switching saves you money after accounting for discharge and establishment fees.
Typical refinancing costs include a discharge fee from your current lender ($150 to $400), government registration fees ($150 to $300) and potentially a new lender establishment fee ($0 to $600). Total switching cost is usually $500 to $1,200 — often recovered within 2 to 4 months through lower repayments. Learn more about discharge fees when switching lenders.
Repricing is negotiating a better rate with your current lender — no switching, no fees. Refinancing is moving to a new lender for a better rate or features. We always check repricing first because it is faster and cheaper. If your current lender will not match the market, we recommend switching.
Refinancing typically takes 2 to 6 weeks from application to settlement, depending on the lender and complexity. Some lenders offer fast-track refinancing in 10 business days. Clarity Financial Solutions manages the full process including your annual loan review.
Investment Property Lending Questions Melbourne
Most lenders require a minimum 10% deposit for investment properties, with 20% recommended to avoid LMI. Investment loan interest rates are typically 0.15% to 0.55% higher than owner-occupier rates. A investment property mortgage broker Melbourne compares the total cost across 40+ lenders.
Negative gearing is when your investment property costs more to hold than the rent it earns — the loss reduces your taxable income. The 2026-27 Budget limits salary-offset negative gearing on established properties purchased after 7:30pm on 12 May 2026 from 1 July 2027. New builds remain fully exempt. Learn more about investment property tax benefits.
Interest-only repayments maximise cash flow and tax deductibility for investors because the full interest amount is deductible. However, you are not reducing the loan balance during the IO period. Most IO terms are 1 to 5 years before converting to principal and interest.
Yes. An equity release home loan Melbourne allows you to access the equity in your property as a deposit for a new investment purchase — without selling. The equity release must be structured as a separate loan split to preserve tax deductibility.
Self-Employed and Business Lending Questions
Yes. Several non-bank lenders accept ABN holders with 12 months or even 6 months of trading history using BAS statements and accountant letters. The rate is typically 0.25% to 0.75% higher than prime. A mortgage broker for self-employed Melbourne identifies which lender fits your trading history.
A low-doc loan verifies income through BAS statements, bank statements and accountant letters instead of standard tax returns. It is designed for self-employed borrowers who may not have traditional payslips. Rates are slightly higher but approval criteria are more flexible.
Options include working capital loans, business expansion finance, equipment and asset finance, invoice factoring, business overdrafts and business loans secured against property or business assets. Rates range from 5.5% (secured) to 15% (unsecured) depending on the facility.
Yes. Clarity Financial Solutions arranges commercial property finance Melbourne for office, retail, warehouse, industrial and mixed-use properties. Commercial loans require 20-35% deposit with terms of 15-20 years. Income is assessed on the property rental yield as well as borrower serviceability.
Loan Structure and Features Questions
An offset account is a separate transaction account linked to your loan — your balance reduces the interest charged daily. A redraw facility lets you access extra repayments you have made. For investors, the offset is safer because redrawing from an investment loan can create mixed-purpose tax issues.
It depends on your risk tolerance and financial buffer. A fixed rate provides certainty but removes flexibility. A variable rate allows extra repayments and offset access. A split loan hedges both. Clarity Financial Solutions models the total cost of each option at your loan amount.
LMI is a one-off premium charged when you borrow more than 80% of the property value. You can avoid it by saving a 20% deposit, using a guarantor, qualifying for the First Home Guarantee, or accessing a professional LMI waiver if you are a doctor, lawyer or accountant.
Cross-collateralisation links multiple properties as combined security for one or more loans. This restricts your ability to sell, refinance or restructure individual properties independently. Clarity Financial Solutions structures every investment on standalone security as standard.
Upgrading, Renovating and Bridging Finance Questions
Selling first gives certainty on sale proceeds but risks losing your next property. Buying first secures the home but requires bridging finance or simultaneous settlement. A next home buyer mortgage broker Melbourne models both scenarios for your situation.
Bridging finance covers the gap between purchasing your next property and selling your current one. The lender provides a short-term facility combining both mortgages. Once your existing property sells, the proceeds pay down the bridge to the residual loan on the new property.
Options include equity release for smaller projects, staged drawdown renovation loans for major structural work, or refinancing to a lower rate while releasing equity simultaneously. The right approach depends on the project scope, expected value uplift and your current equity position.
Yes. An equity release home loan Melbourne lets you access the equity in your property through a lender top-up, full refinance or separate line of credit — without selling. Usable equity is typically 80% of property value minus your outstanding balance.
Mortgage Broker Service Questions
No. Clarity Financial Solutions provides a free service for all borrowers. The lender pays the broker an upfront commission and a trailing commission on settlement. This means you receive independent lending advice across 40+ lenders at no cost to you.
A mortgage broker holds an Australian Credit Licence and arranges home loans. A financial planner holds an Australian Financial Services Licence and advises on investments, super and insurance. They are different licences covering different services. Clarity Financial Solutions provides lending services only (ACL 475676).
Clarity Financial Solutions compares 40+ lenders including major banks (CBA, ANZ, Westpac, NAB), non-bank lenders (Pepper, Liberty, La Trobe, Firstmac) and specialist lenders for self-employed, commercial and professional borrowers. The full panel is available at consultation.
Book a free consultation at clarityfs.com.au/contact-us or call 0429 533 236. We start with a borrowing capacity assessment, check grant eligibility (for first home buyers), compare rates across 40+ lenders and recommend the best structure for your situation. No obligation, no cost.
Preeti Sidhu
This page was prepared by Preeti Sidhu, Mortgage Broker at Clarity Financial Solutions (ACL 475676). Information is general in nature and does not constitute financial advice.
This FAQ page is maintained by Clarity Financial Solutions (ACL 475676), 31 Peakview Dr, Viewbank VIC 3084. For personalised lending advice, book a free consultation with Preeti Sidhu.