Mortgage Broker FAQs — Home Loans Explained
Frequently Asked Questions
Reviewed by Brendan Singh, Mortgage Broker (Credit Rep 575816) · Last reviewed October 2026
Find answers to common questions about home loans, our services, and the lending process.
Costs and how brokers work
Do I have to pay for your service?
No. Loans Cart is paid by the lender once your loan settles — this is how mortgage brokers in Australia are remunerated under the industry's commission structure. There is no upfront fee, no advice fee, and no charge to you at any point in the process. We are required by law to act in your best interests, which means we recommend the loan that suits your situation — not the one that pays us the most.
Is the initial consultation free?
Yes, entirely. There is no charge for an initial consultation with Loans Cart — and no obligation to proceed. The consultation is your opportunity to explain your situation and goals, and our opportunity to give you an honest assessment of your options and next steps. Book online at book.loanscart.com.au or call 0481 005 865.
How many lenders do you have access to?
Loans Cart has access to a panel of 30+ lenders through our aggregator, National Mortgage Brokers (nMB). This includes the major banks, regional banks, building societies, credit unions, and non-bank specialist lenders. Having access to a wide panel means we can compare a broad range of products and find the loan that fits your situation — not just the options one bank can offer.
What's the difference between a mortgage broker and a bank?
A bank can only offer you its own products. A mortgage broker works across multiple lenders and compares many products on your behalf — then recommends the one that fits your goals and circumstances. Brokers in Australia are also legally required to act in your best interests (the Best Interests Duty under the National Consumer Credit Protection Act), which means the recommendation must suit you, not the lender. At Loans Cart, we handle the application, liaise with the lender, and manage the process from start to settlement — at no cost to you.
Do you only work with clients in Melbourne?
No. Loans Cart has offices in Bentleigh East, Mount Waverley, and Truganina, and works with clients across Australia. We conduct consultations online via video call for clients outside Melbourne, and can arrange home loans on properties in any Australian state or territory. Many of our clients are based interstate or have investment properties in other states — the process is the same regardless of location.
The home loan process
How long does the home loan process take?
For a straightforward purchase or refinance, the typical timeline from initial consultation to settlement is three to six weeks. This covers gathering your documents, submitting the application, receiving formal approval, and completing settlement. More complex situations — self-employed income, unusual security properties, or multiple applicants — can take longer. At Loans Cart, we give you a realistic timeline at the start and keep you updated at every stage.
What documents do I need for a home loan application?
Most lenders will require: proof of identity (passport or driver's licence), your two most recent payslips, the last two years of tax returns and notices of assessment (for self-employed applicants), three to six months of bank statements, evidence of your deposit or savings, and details of any existing debts or liabilities. If you are purchasing a property, you will also need the contract of sale. Brendan will give you a specific document checklist for your situation before you start.
What is pre-approval and do I need it?
Pre-approval (also called conditional approval or approval in principle) is a lender's written indication that they would lend you up to a certain amount, subject to conditions such as a satisfactory property valuation and final verification of your documents. It is not a guarantee of finance, but it gives you a clear borrowing limit before you start making offers. In a competitive market, having pre-approval in place puts you in a much stronger position than other buyers who haven't been through the process. Loans Cart can help you get pre-approved before you start house hunting.
What happens after my loan settles?
After settlement, your loan is active and repayments begin in line with your agreed schedule. At Loans Cart, we stay available after settlement for any questions you have about your loan. We also encourage clients to review their loan periodically — interest rate environments change, and what was competitive at settlement may not be two years later. A regular check-in ensures your loan continues to work for you, not just for the bank.
First home buyers
What grants are available for first home buyers?
In Victoria, first home buyers may be able to combine three things. The First Home Owner Grant pays $10,000 towards a new home valued at $750,000 or less. Stamp duty is fully exempt on homes up to $600,000 and reduced up to $750,000. And the Australian Government 5% Deposit Scheme lets you buy with a 5% deposit and no Lenders Mortgage Insurance, with no income caps and unlimited places. Eligibility conditions apply to each. Loans Cart can check which ones you qualify for.
Can I use the 5% Deposit Scheme?
The Australian Government 5% Deposit Scheme (formerly the First Home Guarantee) lets eligible buyers purchase with a 5% deposit and no Lenders Mortgage Insurance. Since October 2025 there are no income caps and no limit on places. You must be an Australian citizen or permanent resident aged 18 or over, a first home buyer or someone who hasn't owned property in Australia in the last 10 years, and you must live in the home. The price cap in Melbourne and Geelong is $950,000, and $650,000 in the rest of Victoria. Your loan must be with a participating lender.
How much deposit do I need to buy a home?
With the 5% Deposit Scheme, eligible first home buyers can buy with a 5% deposit and no Lenders Mortgage Insurance, and eligible single parents with 2%. Outside the scheme, most lenders want at least 5–10%, and a deposit under 20% usually means paying LMI. You should also budget roughly 3–5% of the price for stamp duty (unless exempt), conveyancing, inspections and loan costs. Brendan can work out what you need for the price you're targeting.
What is Lenders Mortgage Insurance (LMI)?
Lenders Mortgage Insurance is a premium charged by lenders when a borrower has a deposit of less than 20% of the property's value (i.e. the loan-to-value ratio exceeds 80%). It protects the lender — not the borrower — in the event of a default. LMI can add thousands of dollars to the cost of a loan, either paid upfront or capitalised into the loan balance. There are ways to avoid or reduce LMI: saving a 20% deposit, using a family guarantee, or qualifying for certain government schemes such as the First Home Guarantee. At Loans Cart, we factor LMI into the full cost picture when comparing your options.
What fees should I budget for when buying a property?
Beyond the purchase price and deposit, buyers in Victoria typically need to budget for stamp duty (unless exempt or concessional as a first home buyer), conveyancing or solicitor fees, a building and pest inspection, a loan application or establishment fee (where applicable), lender's mortgage insurance if your deposit is under 20%, and council and water rate adjustments at settlement. For most purchases, total upfront costs beyond the deposit are in the range of 3% to 5% of the purchase price. Brendan will walk you through the full cost picture for your specific purchase before you make any decisions.
Can I buy with a 2% deposit as a single parent?
Yes, if you're eligible. Under the Australian Government 5% Deposit Scheme, single parents and legal guardians can buy with a 2% deposit and no Lenders Mortgage Insurance. You must apply on your own, be an Australian citizen or permanent resident, and not own any other property once the purchase settles. You don't need to be a first home buyer. The same location price caps apply.
Can I use the 5% Deposit Scheme for a house-and-land package?
Yes. The scheme covers house-and-land packages, off-the-plan purchases and vacant land with a building contract, as well as established homes. With separate land and building contracts, the combined cost must be under the price cap: $950,000 in Melbourne. Your construction loan must be principal and interest, with up to three years allowed for the build.
Refinancing
How does refinancing work?
Refinancing means replacing your existing home loan with a new one — usually with a different lender, a better rate, or different loan features. The process involves reviewing your current loan, comparing it against available options, submitting a new application, getting formal approval from the new lender, and discharging (paying out) your existing loan at settlement. The whole process typically takes three to four weeks for a straightforward refinance. At Loans Cart, we manage every step — including coordinating the discharge with your existing lender — so you don't have to.
How do I know if I should refinance?
The most common trigger is a gap between your current interest rate and what's available on the market — even a small difference on a large loan balance can translate into meaningful savings over time. Other good reasons to refinance include accessing equity in your property, consolidating other debts, switching loan type (fixed to variable or vice versa), or simply ensuring your loan structure still fits your current financial situation. As a general rule, it's worth reviewing your home loan every two years. At Loans Cart, a rate review is free and carries no obligation — book a call and we'll give you a straight answer on where you stand.
Self-employed, investors and complex situations
Can you help if I'm self-employed?
Yes. Self-employed borrowers — whether you operate as a sole trader, a company, a trust, or under an ABN — are assessed differently by lenders, but there are strong options available. Most lenders require two years of tax returns and business financials. Some specialist lenders offer low-documentation loans for borrowers with a shorter self-employment history or irregular income. At Loans Cart, we work with self-employed clients regularly and know which lenders on our panel are well set up for ABN income and business structures.
What if I have bad credit or a complex situation?
A less-than-perfect credit history doesn't automatically disqualify you from getting a home loan. Depending on the nature of the issue — a missed payment, a default, a previous bankruptcy — there are specialist lenders who cater to complex credit situations, often with different criteria and different rates to mainstream lenders. At Loans Cart, we assess your full picture, including what's on your credit file, before recommending a path forward. We'll give you a straight answer on what's realistic.
Can you help with investment property loans?
Yes. Investment lending is one of our core services. We help investors with structuring loans across multiple properties, managing interest-only periods, understanding the impact of rental income on borrowing capacity, and navigating lender policy differences for investment versus owner-occupied security. Whether you're purchasing your first investment property or expanding an existing portfolio, we can help structure the lending in a way that suits your long-term goals.
Can you help with construction loans?
Yes. Construction loans work differently from standard home loans — funds are drawn down in stages (called progress payments) as the build progresses, rather than in a single lump sum. Lenders assess construction loans differently too, requiring a fixed-price building contract, council-approved plans, and a licensed builder. At Loans Cart, we work through the funding structure with you before you sign a building contract, so you understand exactly how the finance will work at each stage of your build.
Still Have Questions?
Our team is here to help. Book a Consultation to discuss your specific situation and get personalised advice.