FAQ

Got questions?

Well, you’ve come to the right place then. We’ve compiled the answers to the most frequently asked questions for your convenience. Of course, the easiest way to have all your questions answered is to get in touch. We’re here to help.

General
What's involved in switching lenders?

Fact: switching your home loan to a new lender can get complicated. Basically, it’s like applying for your home loan all over again. There’s a fair bit you need to consider, such as different loan conditions. There’s also a lot of paperwork involved, and possibly fees as well.

But here at Mortgage Domayne we can make the switch as hassle-free as humanly possible. We’ll ensure you understand the choices and make sure you get the maximum gain.

What are your interest rates?

Short answer: they vary from lender to lender! The good news is that we work closely with a range of lenders and we may be able to get better rates than going direct. Also, we work with ‘second tier’ lenders who often have lower overheads and can offer better rates. So while the rates vary, what you can bank on is we’ll secure you the best rate going.

Why use a mortgage broker if I can go straight to the bank?

Well, we compare over 40 lenders to find you the most competitive and suitable loan. Plus, we do all the hard work for you. No running around on your end. Then we’ll present our recommendations and explain clearly why we believe they’re the most suitable options for your needs. Try doing that with a bank!

Do you hold a credit licence?

Yes, we hold a credit licence.

Do you charge brokerage fees?

We don’t charge a brokerage fee for our services. Our services are 100% free – there is no cost to you.

How do you get paid then?

We’re paid by lenders for new applications and for undertaking most of the initial work that they’d normally have to do. Think of it like outsourcing. It’s great for customers because we have no allegiance to anyone and are dedicated solely to getting you the best loan.

How can I be sure you'll recommend a suitable loan?

First up, here at Mortgage Domayne our guiding principle is to ensure our customers receive the best advice and loan possible. The continued growth of our business is testament to that fact. Secondly, as of 2010 the industry has been governed by a series of regulations to protect customers from unsuitable loans promoted to increase financial gain.

Do you recommend particular banks to receive a higher incentive?

No, we’re guided purely by our mission to provide you with the best loan to suit your needs. We have over 40 lender partners, bank and non-bank. We’ll always provide a range of recommendations and take you through the details.

Are you owned by a bank or financial institution?

We’re proudly 100% independent. And we’ll always be that way. That means we can provide impartial advice and get access to the widest possible range of lenders and loans.

We don't live in Victoria - can you still help us?

Absolutely. We have helped people right across Australia – from capital cities to remote rural locations. We also work with international clients with finance to purchase Australian properties. So, while we’re based in Melbourne, we can help you wherever you are.

Buying
Can I buy a display home?

The answer is yes! And you should absolutely consider it if you have the means and opportunity. Because display homes are often a great property investment. They’re built to the highest standards and have carefully-maintained landscaping. They’re also guaranteed to be rented for a specific period, too. To top it all off, the tax depreciation is very appealing. One thing to bear in mind is that loans for display homes are a little different with their lease back options and the like. Lots of upsides, but lots to consider too. That’s where we can help you out.

How do I invest in property?

There is no single way to answer that question. There are many approaches, and each one is different. A great starting point is to check your finances and gauge how much you can borrow. This is also a good opportunity to discuss an overall strategy and your appetite for risk. Here at Mortgage Domayne we can discuss the various loan investment options and do all the application heavy lifting for you.

Can I use equity to buy another property?

Yes, you can. Equity is a great way for owner-occupiers to branch out and purchase another property – be that a holiday house or for an investment property portfolio. At Mortgage Doymane we can advise you on the most effective way to maximise your existing equity to facilitate another purchase. There’s a bit to consider and understand, but we’ll ensure you have the most suitable loan possible.

Can a First Home Owners Grant be used as your deposit?

Generally speaking, you can use the First Home Owners Grant towards your deposit for your first property. It is usually regarded as a part of your savings. As there are a number of different grants and initiatives, with varying eligibility criteria and cut-offs, we recommend you talk with us about the best approach. We’ll ensure that you maximise the various grants and get into your first home sooner!

If I have a bad credit history, can I still get a loan?

It really depends. Even with a bad credit history, there are specialist lenders who might offer you a home loan. So yes, there are options out there. As always, every situation and circumstance is different, so it’s important to talk it through with our brokers. They can help you minimise future bad credit marks, too.

How much deposit is required?

There’s no hard and fast percentage amount. The required deposit depends on your situation and the way that the lender assesses your borrowing limits. With home loans, generally speaking, the lower the deposit, the more likely you’ll need to pay mortgage-based insurance or have additional conditions applied.

How can I consolidate debt?

Depending on your personal circumstances, there are a number of ways you can consolidate your debt. For example, you might be able to bundle all your debts into your mortgage. As property loans generally have a lower interest, you could save yourself plenty on repayments. Not to mention making your life so much easier with a single monthly repayment. There are a lot of options available – the trick is to devise and implement the optimum strategy for your individual circumstances.

That’s where we can help. We’ll take the time to examine your financial situation, explain everything clearly, then recommend an appropriate debt consolidation strategy. Talk to us today.

How does a guarantor loan work?

This situation often arises when your deposit falls short and you want to avoid paying Lender’s Mortgage Insurance. (Of course, there are other scenarios, but this is what we’re seeing most commonly with first home buyers.) It basically works like this: while the primary security for the loan remains your property, the lender also gets a mortgage over your guarantor’s property. This just supports your guarantor’s obligation to meet the financial needs of the loan if you can’t. Of course, every situation is different, so contact us today to discover how a guarantor loan might work for you.

How soon can I change my mortgage?

There is no fixed time you have to wait. But there are a few important things you need to consider. Every time you refinance (change your mortgage), there are associated fees and costs, which vary from lender to lender. The other important consideration is that refinancing may increase the length of the loan or increase the repayments. So, there are lots of variables that need to be considered. We always recommend having a chat with us so the big picture can be taken into account. Only then will you know if it’s a good time to be changing your mortgage.

What is Lender's Mortgage Insurance (LMI)?

Basically, if you don’t have a deposit of around 20% you’ll generally have to pay LMI. This essentially safeguards the lender if you can’t make your repayments. Think of it as their safety net. While LMI is often regarded as an extra expense, there are some potential upsides. Most notably, you can get into the property earlier and without saving a sizeable deposit, which might take years. As with everything loan-related, it always pays to have a discussion specific to your circumstances. And that’s where we come in – talk to us today.

What is an offset account?

An offset account is simply a regular transaction account linked to your loan. The beauty of an offset account is that it can significantly reduce the amount of interest you’ll pay over the life of your loan. This is how it works: the balance (or proportion thereof) of your offset account is ‘offset’ against your home loan balance, and you’re only charged interest on the difference. Here at Mortgage Domayne we can help find you the best offset option and outline a strategy to really help you save on interest.

What is redraw?

A redraw facility allows you access any additional loan payments you’ve made on top of the minimum loan repayments. And while those additional payments are parked in your loan, they reduce the interest you pay, much like an offset account does. Importantly, it provides you with a heap of flexibility. You can park money for a rainy day and potentially reduce your interest payments and loan term. Different lenders have different types of redraw, so it’s well worth having a chat with us about making redraw work for you.

What happens when my fixed rate term ends?

Generally speaking, your interest rate will revert to the standard variable rate when your fixed term expires. The key word here is ‘generally’, because this isn’t the case for all loans. So talk to your broker well before your fixed rate term expires to find out exactly what will happen.