FAQs

Frequently Asked Questions

Here is a handful of question we are asked. Please reach out anytime for any more specific questions or queries you may have.
What does a mortgage broker do?
A mortgage broker acts as an intermediary between you and potential lenders, helping you find a mortgage that best fits your financial situation. They assess your needs, compare loan options from different lenders, and guide you through the application process whilst acting in the best interests of you, the borrower.
Mortgage brokers can access multiple lenders and loan products, offering a wider range of options. They may also negotiate better rates and terms on your behalf, potentially saving you time and money compared to working directly with a bank.
Mortgage brokers are usually paid by the lender when your loan is implemented (or ‘settled’), meaning there is often no cost to you.
When a broker pre-qualifies you, they may conduct a soft credit check, which doesn’t impact your score. However, once you apply for a mortgage, lenders will perform a hard credit inquiry, which can have a temporary impact on your score.
Look for a broker with a good reputation, positive client reviews, and experience in the type of loan you need. Word of mouth from our long list of clients is one of the best forms of feedback and recognition we at L5 Finance pride ourselves on.
Be prepared to provide documentation of your income, employment history, credit history, assets, and any liabilities. This helps the broker understand your financial situation and find the most appropriate mortgage options for you.
Yes, a mortgage broker can assist in finding lenders that specialise in working with borrowers who have less-than-perfect credit. They may also suggest ways to improve your credit score before applying for a mortgage.
If your application is denied, a mortgage broker can help you understand the reasons why and suggest alternative lenders or loan products. They may also provide guidance on improving your financial profile for future applications.

Your mortgage broker will recommend one or more home loans that fit your borrowing needs

    The Pick Of The Bunch

    There’s a huge choice of home loans available, but to find the right match you’ll need to do a bit of homework.

    Making yourself familiar with a few of the popular products available will give you a strong head start when discussing your loan options with your broker. Here are just a few of the product types you’re sure to come across.

    01

    Basic Home Loans

    Basic home loans or ‘no frills’ loans offer borrowers a loan with a low interest rate. A popular choice among first-home buyers, a basic home loan’s interest rate is often half to one percent below the standard variable rate, which is sometimes combined with minimal ongoing fees. Drawbacks include limited features, less flexibility, and additional charges if you decide to switch loans or pay the loan off sooner.

    02

    Fixed-Rate Home Loans

    Worried about rising interest rates? A fixed-rate home loan will allow you to fix your interest rate for a specific period, usually from one to five years. It’s a sound option when interest rates are on the rise, or in times of economic uncertainty. Should interest rates plummet, however, you’ll still have to pay off your mortgage at the fixed-rate until the end of the agreed period.

    03

    Standard Variable-Rate Home Loans

    Making cutbacks on your lifestyle is one thing, but putting that money to use is another. Remove the temptation to spend your savings by arranging a set amount to be taken out of your pay each month and put directly into a savings account. Shop around, and seek a high-interest rate savings account to get the best returns – many banks now offer an online high-interest account.

    04

    Split-Rate Home Loans

    Want the best of both worlds? A split-rate home loan offers both flexibility and security. A good product for both first-time and existing borrowers, split loans allow you to customise your loan’s interest rate as you see fit: fixing a portion of your interest rate to give certainty to your monthly repayments should rates increase, but also flexibility through taking out a variable-rate portion.

    05

    Interest-Only Home Loans

    Interest-only loans offer borrowers lower repayment options while maintaining many of a traditional loan’s features. This type of loan allows you to pay only the interest component on a mortgage; it does not reduce the principal component. They are a popular choice for investors seeking good capital appreciation on their investments.

    06

    Low-Doc Home Loans

    Low-doc home loans If you’re a self-employed, contract, or seasonal worker and do not have a regular income, a low-doc loan may be a solution. While making homeownership a possibility for a cross-section of Australian workers who previously found it difficult to secure a mainstream bank loan, most low-doc home loans typically have higher interest rates.

    Get In Touch

      Contact Us

      0425 800 005
      [email protected]

      PO Box 9139, Scoresby VIC 3179

      L5 Finance

      ABN: 87629084761

      Credit representative Number: 393552 appointed under LMG Broker Services Pty Ltd ACN 632 405 504 Australian Credit Licence 517192
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