Meeting with a mortgage broker is a crucial step in securing finance for your property purchase. To make the process smoother and improve your chances of approval, it’s essential to come prepared. Here’s what you need before your appointment.
1. Know Your Borrowing Capacity
Before seeing a broker, have a rough idea of how much you can borrow. This depends on:
- Your income and expenses
- Your credit history and score
- Your deposit amount and savings
- Whether the property is owner-occupied or an investment
2. Gather Key Documents
Lenders require proof of your financial position. Have the following ready:
✅ Proof of Income
- Recent payslips (last 3 months)
- Latest tax return and Notice of Assessment (if self-employed)
✅ Assets & Savings
- Bank statements showing savings and investments
- Details of any other properties owned
✅ Liabilities & Expenses
- Credit card and loan statements
- Details of other financial commitments (e.g., HECS/HELP, child support)
✅ Identification
- Driver’s license or passport
3. Check Your Credit Score
Your credit score affects loan approval and interest rates. Check your credit report for any errors or outstanding debts before your meeting.
4. Understand Your Deposit & Loan Options
Most lenders require a 20% deposit to avoid Lender’s Mortgage Insurance (LMI), but some allow as little as 5% with LMI. Also, check if you’re eligible for government grants like the First Home Guarantee.
5. Consider Loan Features
Think about what matters to you in a home loan:
- Fixed vs Variable Rate – Do you want stability or flexibility?
- Offset Account or Redraw Facility – Do you want ways to reduce interest?
- Loan Term – A shorter loan saves interest but increases repayments.
6. Set Your Budget & Property Goals
Be clear about your budget, repayment capacity, and property goals before speaking with a broker. Knowing what you can afford will help them find the best loan for you.
Final Thoughts
Being prepared ensures a faster loan process and a higher chance of approval. With your documents in order and a clear understanding of your borrowing power, your mortgage broker can help you secure the right finance for your property purchase.
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