Home Loan FAQs – Getting started with loans

We've collated some of the most frequently asked questions about getting started on the home loan journey.
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Why does the bank care if I have other debts?

Based on your current debt levels, a bank can determine how much more debt you could comfortably take on. It’s called serviceability and your broker will help you calculate it.

How much deposit do I need to purchase a property?

The amount of deposit you need to purchase a property will depend on where you are looking to buy, how much you have already saved and if you’re receiving help with your deposit. Your broker will guide you through this process and answer any questions you may have.

How many lenders do you deal with?

My Local Broker deals with over 40 different lenders, including the four big banks.

Why does the bank think my house is not worth as much as I think it is?

Generally, your lender will value the property at the lower end of the scale as the figure needs to reflect what a bank can reasonably expect to regain should it need to repossess and sell the property in distressed circumstances. Most of this data is collected through comparable sales in your area, so it is normally a fair reflection of what your home is worth. Your broker will be able to help you estimate the price of your home before selecting a lender.

What fees do brokers charge me?

Some brokers do charge a fee for their service as well as collecting a commission from the bank. My Local Broker won’t charge you a fee as we are paid by the banks when your loan settles.

What is the RBA?

The RBA is the Reserve Bank of Australia and they are responsible for many things, including setting the cash rate.

What’s my interest rate going to be?

There are many variables that impact an interest rate, such as how much you borrow, your loan-to-value ratio, what features you want to add or remove from your loan, and what bank you choose. This is why a My Local Broker should always be your first call.

How much can I borrow?

Once the bank knows what you earn and what you owe, they will advise you on how much you could comfortably borrow. Our online calculators can help estimate how much you can borrow. The information provided by our online calculators should only be regarded as a guide.

Will my interest rate change?

If you have a variable interest rate product, your interest rate can fluctuate. A discussion with your broker will help you determine the best product for you.