Why these questions matter: A great broker doesn’t just get you a rate—they protect your long-term finances. These 20+ questions help you spot hidden fees, verify your borrowing power, and choose the right lender for your goals.
Quick Navigation:
- Borrowing Power & Deposits: Questions 1-5
- Loans, Fees & Offsets: Questions 6-10
- Process & Timelines: Questions 11-15
- Special Scenarios: Questions 16-20
Before you apply for a home loan in Australia, ask your mortgage broker about your borrowing power, your deposit and LMI position, government schemes, lender panel size, fixed versus variable rates, fees, offset accounts, timelines, documents, pre-approval and ongoing loan reviews. A good broker answers every one of these questions clearly and in writing. This guide gives you all 20+ questions, and the answers Laxmi Home Loans gives clients every week.
Buying a home is one of the biggest financial decisions you will ever make. Yet most borrowers walk into their first broker meeting without a single prepared question. They leave with a rate quote and little else.
The right questions protect you. They reveal whether your broker understands your situation, compares enough lenders, and acts in your best interests. Laxmi Home Loans has helped more than 1,000 Australian families since 2015. These are the 20 questions our best-prepared clients ask, with honest answers to each one.
Strategy and Borrowing Power
See This In Action: The Nurse’s Advantage
- Scenario: A registered nurse in Liverpool, NSW, needed an owner-occupied loan but lacked a 20% deposit.
- Outcome: By asking the right questions, they utilised a professional LMI waiver scheme. This saved them thousands in Lenders Mortgage Insurance fees and allowed them to settle in just 6 weeks with a significantly lower deposit.
1. How much can I comfortably borrow? Your borrowing power depends on income, expenses, debts and dependants. Lenders test you at a buffer around 3 per cent above the actual rate. Results vary widely between lenders, so never rely on one bank’s number. Check yours with our How Much Can I Borrow guide.
2. How do different banks calculate borrowing power? Every lender treats overtime, bonuses, HECS and rental income differently. The gap between the most and least generous lender can exceed $150,000 for the same applicant. Laxmi Home Loans runs your numbers across many banks & lenders to find your strongest fit.
3. What deposit avoids LMI? You generally need 20 per cent plus costs, which means 80 per cent LVR or below. Nurses, midwives, doctors, dentists, accountants and legal professionals can access LMI waivers at higher LVRs. Check your position with the LVR calculator.
4. Do I qualify for government schemes? The First Home Guarantee allows 5 per cent deposits with no LMI. The Family Home Guarantee allows 2 per cent for eligible single parents. Eligibility depends on income caps, price caps and residency. Get checked in writing on our first home buyers page.
5. How much cash for upfront costs? Budget for stamp duty, conveyancing of $1,500 to $3,000, inspections and lender fees on top of your deposit. Eligible NSW first home buyers pay no stamp duty up to $800,000. Get your full breakdown with the Buying and Selling Cost Estimator.
Book a Free Appointment with Laxmi Home Loans
Loans and Lenders
6. How many lenders are on your panel? Laxmi Home Loans compares more than 50 banks and lenders, including CBA, Westpac, NAB, ANZ, Macquarie and specialist lenders. A wide panel matters most for low deposits, new jobs and self-employed income.
7. Fixed or variable rate? Fixed gives repayment certainty but limits flexibility. Variable offers offset, unlimited extra repayments and moves with the market. Many borrowers split to get both. Compare real scenarios in our fixed vs variable vs split guide.
8. Are there hidden fees? Watch for application fees up to $800, annual package fees around $395, monthly account fees and discharge fees of $300 to $500. Always compare the comparison rate, not just the headline rate. We disclose every fee in writing before you commit.
9. Should I use an offset account? An offset reduces the interest you pay. $30,000 in offset against a $600,000 loan means you pay interest on $570,000 only. It suits borrowers who hold savings. Run your numbers with the offset vs redraw calculator.
10. Principal and interest or interest only? Principal and interest reduces debt from day one and gets lower rates. Interest only improves cash flow but costs more overall. Owner occupiers usually choose P&I. Investors should also read the negative gearing and CGT changes and speak with their accountant.
Process and Timelines
11. How long does the process take? Pre-approval takes 2 to 10 business days. Formal approval takes 5 to 15 business days after signing a contract. Settlement is usually 4 to 6 weeks after exchange. Lender speed changes weekly, and we match urgent files to the fastest lenders.
12. What documents do I need? PAYG: two recent payslips, latest tax return or group certificate, ID, three months of bank statements and debt statements. Self-employed: two years of tax returns and financials. Clean statements matter because lenders assess your spending under the 5 Cs of credit.
13. Should I get pre-approval first? Yes. Pre-approval confirms your budget, strengthens your offer and lasts about 90 days. Never bid at auction without one. Start on our pre-approval page.
14. How do you communicate during the process? We manage the lender end to end, chase assessors, order valuations early and update you at every stage of the 14-step journey. We work directly with your agent and conveyancer, and serve clients in English, Nepali and Hindi.
15. What if the valuation comes in low? Lenders lend against the lower of price and valuation. Options include challenging with comparable sales, trying a different lender’s valuer, adding deposit or renegotiating. With 50+ lenders, a second valuation opinion is often days away.
Special Circumstances
16. Can I get a loan if self-employed? Yes. Most lenders want two years of history, but several accept one year, and low doc options exist. The key is matching your income type to the right lender policy. See the self-employed home loan guide.
17. How are land and build loans structured? A land loan settles first, then a construction loan draws down in stages as your builder completes each phase. You pay interest only on funds drawn during the build. Plan with the construction cost calculator and our construction loans page.
18. Are there packages for my profession? Yes. Eligible health, accounting and legal professionals can borrow up to 90 to 95 per cent LVR with no LMI, saving tens of thousands. See our guide for registered nurses and other professions.
19. Can I consolidate debts into my mortgage? Often yes. Rolling car loans and credit cards into your mortgage cuts monthly repayments because home loan rates are lower. Make extra repayments so short-term debt does not stretch over 30 years. Details on our debt consolidation page.
20. Do you review my loan after settlement? Yes. We run scheduled annual reviews, request repricing from your lender, and alert you before fixed rates expire. When switching makes sense, we compare the full market again. See our refinance page.
GET IN TOUCH
Ready to check your eligibility and compare lenders?
Bonus Section: Frequently Asked Questions
Ready to Take the Next Step?
At Laxmi Home Loans, we guide home buyers from initial pre-approval through to settlement with minimal stress. Our experienced team offers no-obligation consultations and expert lender matching for clients across Sydney and Australia.
Book your free consultation today. We make the move from pre-approval to settled home simple and reliable.
This information is general in nature and does not take into account your personal objectives, financial situation or needs. Lenders assess each application individually and results vary. All loans are subject to lender approval and eligibility criteria. Laxmi Home Loans is the trading name of Mero Chino Groups Pty Ltd, ABN 76 169 013 012, Credit Representative No. 476974 under Australian Credit Licence 383640.
