FAQs

A mortgage broker works for the borrower, not the lender. At Generation Financial Group we put our clients first. We work with you to find out what your requirements are and then we use our experience and knowledge of the market to better negotiate the right loan for you with the lender. We help you complete all of your paperwork and manage the application process for you right through to settlement.

Our aim is to save you time and just make your life easier when looking for the right loan.

We’re all unique when it comes to our finances and borrowing needs. Get an estimate on how much you may be able to borrow (subject to satisfying legal and lender requirements) by speaking to one of our lending specialists or mortgage brokers today. We can help with calculations based on your circumstances.

That’s where our Generation Financial Group mortgage brokers are here to help. We are experts when it comes to home loan finance and know where to go to find you the right loan product with the right features to suit your needs. Book an appointment to speak to us today.

Click below to find out more about all the different loan types available.

Most lenders offer flexible repayment options to suit your pay cycle. Aim for weekly or fortnightly repayments, instead of monthly, as you will make more payments in a year, which will shave dollars and time off your loan.

• Stamp duty — This is the big one. All other costs are relatively small by comparison. Stamp duty rates vary between state and territory governments and also depend on the value of the property you buy. You may also have to pay stamp duty on the mortgage itself. To estimate your possible stamp duty charge, visit our Stamp Duty Calculator.
• Legal/conveyancing fees — Generally around $1,000 – $1500, these fees cover all the legal requirements around your property purchase, including title searches.
• Building inspection — This should be carried out by a qualified expert, such as a structural engineer, before you purchase the property. Your Contract of Sale should be subject to the building inspection, so if there are any structural problems you have the option to withdraw from the purchase without any significant financial penalties. A building inspection and report can cost up to $1,000, depending on the size of the property. Your conveyancer will usually arrange this inspection, and you will usually pay for it as part of their total invoice at settlement (in addition to the conveyancing fees).
• Pest inspection — Also to be carried out before purchase to ensure the property is free of problems, such as white ants. Your Contract of Sale should be subject to the pest inspection, so if any unwanted crawlies are found you may have the option to withdraw from the purchase without any significant financial penalties. Allow up to $500 depending on the size of the property. Your real estate agent or conveyancer may arrange this inspection, and you will usually pay for it as part of their total invoice at settlement (in addition to the conveyancing fees).
• Lender costs — Most lenders charge establishment fees to help cover the costs of their own valuation as well as administration fees. We will let you know what your lender charges but allow about $600 to $800.
• Moving costs — Don’t forget to factor in the cost of a removalist if you plan on using one.
• Mortgage Insurance costs — If you borrow more than 80% of the purchase price of the property, you’ll also need to pay Lender Mortgage Insurance. You may also consider whether to take out Mortgage Protection Insurance. If you buy a strata title, regular strata fees are payable.
• Ongoing costs — You will need to include council and water rates along with regular loan repayments. It is important to also consider building insurance and contents insurance. Your lender will probably require a minimum sum insured for the building to cover the loan.

LVR stands for “Loan to Value” Ratio.  This is the amount of the loan compared to the value of the property. For example, if you have borrowed $400,000 and your property is valued at $500,000, the LVR would be 80%.

LMI (Lenders Mortgage Insurance) is a form of insurance that is taken out by the lender to protect themselves should the customer default (e.g. can’t repay their loan).  It is a once off premium that the borrower pays and is generally only required if the LVR is higher than 80%.  The key point to remember is that LMI covers the lender, not the borrower.

Both repayment options come with their own pros and cons.

A fixed rate gives you certainty of what your repayments will be each month and will protect you against any future rate rises. However if the rates decrease you will miss out on the benefit.

A variable rate provides you with some added flexibility that a fixed rate may not. For example, extra repayment features, offset account and the ability to redraw on your loan. However, if rates change then there is a risk that your variable rate will also change.

An offset account is a transactional account linked to your home loan. The balance held in this account offsets the balance in the home loan, helping to reduce the interest paid and overall term of the loan. For example if your home loan balance is $250,000 and you have $10,000 in your offset account, you will only be charged interest on a $240,000 loan.