5 Essential questions to ask your mortgage broker before buying a home
Buying a home—especially your first one—is an exciting milestone. But with so many loan options, fees, and government schemes out there, it’s easy to feel overwhelmed. That’s where a good mortgage broker comes in.
To make the most of your journey (and avoid costly surprises), here are five important questions you should ask your mortgage broker before signing on the dotted line.
If you're already a client, the below won't be new to you. So perhaps forward the below tips to any friends or family who are looking to enter the property market.
1. How much should I save for a deposit to avoid Lenders Mortgage Insurance (LMI)?
Lenders Mortgage Insurance (LMI) is an additional cost that kicks in when your deposit is less than 20% of the property’s value. While it can help you get into the market sooner, it can also add thousands to your loan.
Knowing exactly how much you need to save to avoid LMI can help you plan better—and may even influence the timing of your purchase.
2. Are there any first-home buyer grants or incentives I can access?
There are several government schemes available to first-home buyers, including the First Home Owner Grant and stamp duty concessions.
You could be eligible for thousands of dollars in savings or support, but the rules vary by state and your circumstances. A mortgage broker can help you understand what’s available and how to apply.
3. Are there ways to increase my borrowing capacity?
Your borrowing power is influenced by factors like your income, debts, spending habits, and credit score. But there are often ways to improve it—such as consolidating debts, adjusting your loan term, or choosing the right lender.
This will help you understand your limits and explore ways to potentially borrow more (without overcommitting).
4. Are there any lenders that are offering cashback incentives?
Some banks and lenders offer cashback deals—anywhere from $1,000 to $4,000+—for new home loans or refinances.
These offers can help cover your moving costs, legal fees, or even add a little breathing room to your budget. A broker will know who’s offering what, and whether it’s worth it in the long run.
5. Are there any hidden fees or extra costs I should be aware of?
Application fees, valuation fees, legal costs, and break fees (if you refinance early) are just some of the extra costs that can sneak up on borrowers.
Understanding the full picture—beyond the interest rate—ensures there are no nasty surprises down the track.
The right questions lead to the right loan. A good mortgage broker will welcome these conversations and guide you through every step of the home-buying process with transparency and tailored advice.
Get in touch today for an obligation-free chat about your goals and how we can support you through the journey.
