Frequently Asked Questions

How do I contact Reliant Mortgage & Finance?

  • The easiest way to get in touch is to call on 0448 563 951 or via email steve@reliantmortgage.com.au or admin@reliantmortgage.com.au. You can also use our contact system on this website.


Why use a mortgage broker?

  • It is really about saving you time and providing options. Whereas you may approach one or two lending institutions we have a large number of banks and lenders on our panel that we can offer you in one sitting. With the myriad of loans out there we can provide options that suit your situation. Even after reviewing options should you choose to go with your current bank, we can still help you with processing paperwork and getting that all important approval for your loan. There is no charge for residential lending so our service is free to you.


What types of loans can you help me with?

  • We have lenders on our panel that cover almost all forms of finance including mortgage loans, commercial finance, asset finance, car loans and personal loans. Let us help you with a solution for all your financing needs. Even if you have credit defaults or had a refusal for finance, let us see if we can find a responsible lender that will provide you with your needs.


Do you charge fees for your service?

  • We believe that every client should have the opportunity to obtain personal or business financial choices to improve their lives regardless of current financial situation and in a residual situation we do not charge fees for this and you are under no obligation. There are certain circumstances however in commercial lending where fees may be payable.


How much can I afford to pay for a property?

  • The dollar value that you can afford to spend on a house or property is an extremely important and personal decision and is the primary fact that you should know before you start your search for a home. There are many factors that must be considered such as:

  • How much can I borrow?

  • What will be the monthly payments and can I afford them?

  • How big a deposit do I need?

  • What factors do I need to consider when buying?            

  • All factors must be considered and the information provided to you will support your decision, remember after all it is a decision that only you can make and it will likely be the greatest investment in your life to date.

  • Once you have answers to these questions you will be better prepared to start your search and look for properties in your price range and understand of the questions

  • We can help with answering all these questions.


How much can I borrow?

  • This is the first question that you will want to know before you start your home search. The amount you can borrow is a function of many things, such as your income, the amount of savings, your credit rating, existing financial commitments etc. and these functions can vary from one lender to another, your broker will be able to help you understand these and what you can borrow. Of course, you should always consider borrowing the least amount possible and paying it off faster to increase your wealth and security.


What will the monthly payments be on a loan?

  • When your broker visits you, you will be advised what the payments will be and how the estimated monthly payments will change if interest rates increase. This information will allow you to have comfort on affordability of the loan.

  • Remember it is ultimately your decision to progress to apply for a loan. You should consider your level of comfort with the monthly payment in combination with all the other expenses you have in the month. Also, when you purchase a property you will have other expenses such as rates, utilities, home maintenance and other expenses such as car payments, food, travel, child care etc. that combined you must also be able to cover as well as your mortgage payment.


How much of a deposit do I need?

  • Having a large deposit to reduce the size of a loan is good practice. There are differences between what you must pay as a deposit to the vendor initially and what a lender wants you to have as a contribution to the purchase price.

  • In most instances a deposit of 5% is a minimum. A deposit or the ability to contribute at least 20% of the purchase price will assist you in avoiding lenders mortgage insurance. In certain circumstances you can use the equity in your current home to support your purchase.

  • Cash at the bank is not the only source of funds for a deposit. Other avenues are available such as non-refundable gifts from family or friends, guarantors, equity in other property or deposit bonds.


What other factors should do I need to consider when buying a property?

  • There are many factors and other associated costs to consider when purchasing a property. Costs will include government charges, loan application costs, legal costs, first home owner grants (where applicable) and other costs. Building and pest inspections are also great value in certain situations when buying. We will be able to discuss these items with you in detail.

  • Other factors to consider include location, level of maintenance of the property, fit for purpose etc.


How do I apply for a mortgage loan?

  • The application process can be complex and time consuming and that is where Reliant Mortgage & Finance will help.

  • Based on information that you provide we will review your financial situation and provide you with loan options and other value added information. We will discuss all your available options including rates, fees and enable you to make an informed decision. Once you have made your decision based on the facts and information we have provided we will guide you through completing your mortgage application and getting your supporting documents to ensure your home loan application has the optimum chance of success. We will do all of the negotiation and consultation with the lender and continue to support your loan through to unconditional approval of your loan.


Why should I refinance my home loan?

  • There are many considerations when you are looking to refinance your home loan. There are reasons for and against refinancing so you should consider carefully before refinancing and the information needed can be quite complex.

  • For more information please click the button.


What is LVR that I keep hearing about?

  • LVR is the acronym for Loan To Value Ratio and is expressed as a percentage of the value of the property being purchased. For example if a home has a value of $500,000 and the loan size is $400,000 then the LVR is 80%. i.e. $400,000/$500,000.

  • It should be noted that in most instances a lender valuation of the property is required and sometimes the valuation can differ from the purchase price.


What are the other costs that I need to consider when buying a property?

  • There are a number of other costs that you may have to have available funds for when purchasing a home. These costs can vary dependent upon the specific situation. We will estimate these costs and educate and explain each cost element to you. Some of the major costs that you need to allow for include:

  • Legal/conveyancing fees.

  • Loan application fees

  • Valuation fees.

  • Conveyancing costs.

  • Government charges (Stamp duty, registration of title, title search etc.)

  • Adjustment to rates.

  • Lenders Mortgage Insurance.


What is Lenders Mortgage Insurance (LMI)?

  • Lenders Mortgage Insurance (LMI) is insurance that covers the lenders risk (not any risk to the borrower). It is generally applied where the total borrowed (i.e. the loan) is more than 80% (generally) of the value of the price or value of the property being purchased. It insures the lender for any shortfall in the net proceeds from sale of the property and the remaining mortgage loan in the event of a default by the borrower. LMI can be a very significant on cost when purchasing a property and we can assist you to understand the impact of this and strategies to help you minimise the cost to you.


What is the First Home Owners Grant (FHOG) and do I qualify?

  • The FHOG is a program that provides a tax free payment to first home buyers in Australia. Only one FHOG is available to the purchaser of the home and varies from state to state and has specific criteria that must be met for eligibility.

  • To be eligible or qualify for the grant:

  • You must be an Australian citizen or a permanent resident of Australia.

  • You are aged 18 or older.

  • You or your spouse/partner has not previously received the FHOG.

  • You or your spouse/partner has not previously owned a home in Australia, either jointly or separately, prior to 1 July 2000.

  • You or your spouse/partner have not previously occupied, for a continuous period of at least six months, a home in which either of you acquired a relevant interest on or after 1 July 2000 in Australia.

  • You or your spouse/partner intend to live in the home as their principal place of residence (PPR) for at least 12 continuous months, commencing within 12 months of settlement or completion of construction

  • The FHOG does vary from state to state and we can provide information on the specific grant that applies.

  • There are also Stamp Duty concessions for eligible first home buyers. These also vary from state to state and also vary by state.

  • A common question that we get is that can I get a FHOG if my partner has had one in the past. The answer is no, even if you have never had the grant before the fact that your partner has precludes it being provided again.


What is a loan Pre-Approval and why should I get one?

  • A loan pre-approval is where a lender authorises a conditional approval of a loan based on your loan application. This conditional approval is based on your current financial situation and it gives you a borrowing limit as an approved estimate of your borrowing capacity. As this is based on your current situation it is like applying for a loan as would normally be the case but there is not a security (property) found and contract of sale available.

  • A loan pre-approval is where a lender authorises a conditional approval of a loan based on your loan application. This conditional approval is based on your current financial situation and it gives you a borrowing limit as an approved estimate of your borrowing capacity. As this is based on your current situation it is like applying for a loan as would normally be the case but there is not a security (property) found and contract of sale available at this time.

  • The major purpose for getting a pre-approval is to provide you with some level of comfort that you will be able to borrow this amount in support of your property purchase. The best time to get a pre-approval is before you start your purchasing process as it provides you guidance on the price point for your potential purchase. It enables you to negotiate with vendors/agents in an informed manner.

  • Pre-approvals are generally active for up to 90 days before they expire. Often new documents are required prior to formal loan approval.


What is a guarantor loan and do I need one?

  • A guarantor loan is a loan where a family member or friend provides some form of guarantee to assist the purchaser in getting the loan. Often called a Family Pledge this is the main type of guarantor loan available in the market and is one where an additional security (Security Guarantee) is provided in support of a loan application.

  • A guarantor loan is most often used to reduce the application of lenders mortgage insurance and to enable lending to a much higher loan to value ratio than was possible without the guarantor.

  • The guarantor is generally a family member but it can also be others parties and the combined LVR for the property to be purchased and the guarantor’s security is 80% or less.

  • The rules can vary from lender to lender and the use of a Family Pledge is a complex and emotive issue and our broker will consult with both the client applying for the loan and the possible guarantors to advise them of the specific approach or process for this type of loan.


How often should I review my current loans?

  • Lenders do continually come to the market with new loan products and it is prudent to monitor your loan to ensure you get best value for money. Reliant Mortgage & Finance recommend that you conduct a review on your loans at least every 2 years. By having regular health check on your loans you can ensure that you continue to source the most appropriate loan product throughout the loan life cycle.

  • Reliant Mortgage & Finance provide these regular reviews at no cost to our valued clients.


What are genuine savings?

  • The term genuine savings is used by lenders to describe funds to be used as a deposit for the purchase of a property by a borrower that have been genuinely saved over time. A lender wants to know that someone applying for a loan with them has a history of sound financial behaviour. The evidence of having a good savings history over time and a balance of 5% or more of the property purchase price in a savings account is a primary exhibit of this.

  • Generally 5% of the purchase value is required to be genuine savings when borrowing more than 80% of the value of the property. Whilst some lenders can differ a little on what genuine savings are genuine savings are, generally they include the following types of funds.

  • Cash savings in bank account held for 3 months.

  • A savings pattern established over 3 months.

  • Equity in an existing property or from the sale of a property

  • Shares held for 3 months

  • Non-refundable gift held for 3 months.

  • Term deposit held for 3 months.

  • Inheritance held for 3 months.

  • Note that the FHOG does not qualify as genuine savings.


What happens if I have already been declined credit or have credit defaults?

  • Based on a detailed review of your particular situation we will identify potential options and discuss these with you. The lender panel available to Reliant Mortgage and Finance has specialist lenders that operate in this particular area so we will search for a lender that may be able to help.


Can you help me with financing if I live in rural Victoria or interstate?

  • Yes, there are special processes that we take to ensure we are compliant with all regulations and lender policies. If you need us we will help.


Can I get a loan if I am self-employed?

  • The short answer is yes, dependent upon supporting financials; in essence it is no different to a PAYG applicant. Numerous lending options can be accessed for self-employed clients. There are multiple lenders that have products including mortgage loans, asset finance or commercial loans available to self-employed applicants.


Do you offer other services?

  • No, we are finance brokers and are limited under regulation to provide finance broking services only. We do however have a network of referral service providers that can assist you in many other areas required when purchasing a property. These include real estate agents, property buying services, accounting, and legal/conveyancing through to various trades. Whatever the service you need ask us first if you are unsure where to go and we may be able to assist.


What lenders do you use?

  • Reliant Mortgage & Finance can access dozens of different lenders from a wide panel of lenders who have 100’s of different loan products to choose from. We guide you through this process so you can decide what lender and product best fits your needs.

  • Please refer to our affiliated lenders page for the panel lenders that we use.


Are you licenced?

  • We are members of the Mortgage and Finance Association of Australia (MFAA) and the Credit and Investments Ombudsman (CIO). We comply with all requirements of the regulatory bodies including ASIC.


What happens to the information I supply to my mortgage broker?

  • All information is treated as strictly confidential and we operate within all the guidelines of the Privacy Act 1988 and any amendments. The only people that see your information are those that must see it to process your loan application.