Frequently Asked Questions

A mortgage broker helps borrowers compare home loan options across multiple lenders rather than being limited to a single bank's products. This can save time and often improve the chances of finding a loan structure that aligns with your financial goals, borrowing capacity, and long-term strategy.

At Globe Financial, mortgage broking goes beyond simply comparing rates. We assess lending policy, borrowing power, repayment strategy, loan features, and lender suitability based on your personal circumstances. Whether you're buying your first home, refinancing, building, or investing, a mortgage broker can help guide you through the process from initial assessment to settlement.

A bank can only offer its own home loan products, while a mortgage broker can compare lending options across a panel of lenders, including major banks and non-bank lenders.

This can be particularly valuable if your financial situation isn't straightforward, such as if you are self-employed, buying an investment property, building a home, or looking to structure lending strategically across multiple assets.

A mortgage broker can also explain lender policy differences, borrowing capacity, approval pathways, and loan structures that many borrowers may not be aware of when dealing with one bank directly.

For many borrowers, using a mortgage broker can provide greater choice, strategic lending guidance, and support throughout the application process.

A mortgage broker can compare lenders based on more than just interest rates — including loan features, servicing calculators, policy flexibility, turnaround times, and suitability for your financial goals.

For borrowers with complex income structures, investment strategies, construction lending needs, or refinancing goals, mortgage brokers can often identify lending solutions that may not be obvious through a single bank approach.

For many standard residential home loan applications, mortgage brokers are typically paid by the lender after settlement, meaning there is often no direct fee charged to the borrower.

However, this can vary depending on the type of finance involved, particularly in specialist lending, commercial lending, complex scenarios, or certain non-standard transactions.

A professional mortgage broker should always explain how they are paid and disclose any fees upfront, so you understand the costs involved before proceeding.

Borrowing capacity depends on several factors, including:

• Income
• Existing debts
• Living expenses
• Credit history
• Number of dependants
• Deposit size
• Loan type
• Lender policy

One of the biggest misconceptions borrowers have is assuming all lenders assess borrowing power the same way — they don't.

Some lenders may assess income more favourably than others, particularly for professionals, self-employed borrowers, investors, dual-income households, or borrowers with bonus income, commission, or complex financial structures.

A mortgage broker can compare borrowing capacity across multiple lenders to identify options that suit your circumstances.

A 20% deposit is often considered the benchmark because it may help borrowers avoid Lenders Mortgage Insurance (LMI), but it is not always required.

Many eligible borrowers can purchase with a lower deposit, depending on:

• Lender policy
• Credit history
• Government scheme eligibility
• Guarantor options
• Property type

In some cases, first home buyers may be able to enter the market with as little as 5%, although additional costs and lending criteria still apply. The right deposit strategy depends on your goals, timeline, and broader financial position.

Yes, many Australian lenders offer home loans for eligible borrowers with a 5% deposit, although the overall structure depends on your financial position and the lender's requirements.

A lower deposit may trigger Lenders Mortgage Insurance (LMI), unless an eligible government scheme or guarantor strategy applies.

It's also important to understand that buying with a 5% deposit doesn't just involve the deposit itself — buyers may also need to consider costs such as legal fees, government charges, and other purchase-related expenses.

A mortgage broker can help assess whether a low-deposit strategy makes sense based on your circumstances.

Lenders Mortgage Insurance (LMI) is an insurance premium that may apply when a borrower has less than a 20% deposit.

LMI protects the lender — not the borrower — against loss if the loan goes into default.

While LMI adds to the cost of borrowing, it can also help some buyers purchase sooner rather than waiting years to save a larger deposit.

In some cases, LMI may be reduced, avoided, or structured differently depending on lender policy, profession, guarantor support, or government scheme eligibility.

Home loan pre-approval is an initial lender assessment that indicates how much you may be able to borrow, based on your income, debts, living expenses, deposit, and credit profile.

For many buyers, pre-approval can be an important first step because it helps establish a realistic buying budget before making offers on property.

Pre-approval can also help:

• Identify borrowing limits
• Confirm lender suitability
• Strengthen buying confidence
• Reduce surprises later in the process

However, pre-approval is not the same as unconditional approval, as the lender still needs to assess the property and confirm final documentation before settlement.

Yes — mortgage brokers can be particularly valuable for first home buyers because buying a property often involves much more than simply choosing a loan.

A mortgage broker can help first home buyers understand:

• Borrowing capacity
• Deposit requirements
• Government schemes
• Stamp duty considerations
• Pre-approval
• Repayment options
• LMI implications

For Adelaide first home buyers, understanding South Australian grants, concessions, and lender policy can make a significant difference to how a purchase is structured.

The right advice can help first home buyers avoid costly mistakes and move into the market with greater confidence.

Refinancing may be worth considering when your current home loan no longer aligns with your financial goals, loan structure, or market conditions.

Common reasons borrowers refinance include:

• Reducing their interest rate
• Lowering repayments
• Accessing equity
• Consolidating debts
• Ending a fixed-rate period
• Improving loan features
• Restructuring lending for investment or future purchases

However, refinancing is not just about chasing a lower rate. Borrowers should also consider break costs, discharge fees, new loan features, long-term strategy, and whether the new lender's policy suits their broader financial plans.

A mortgage broker can assess whether refinancing makes sense based on your full financial picture, not just headline rates.

Yes, many borrowers refinance to access a more competitive interest rate. However, the lowest rate is not always the best loan. When refinancing, it's important to consider:

• Loan fees
• Repayment flexibility
• Fixed vs variable options
• Cashback or refinance incentives (where available)
• Borrowing policy

A mortgage broker can compare lenders across both pricing and structure to help determine whether refinancing creates a genuine financial benefit.

Yes — if your property has increased in value or you have reduced your loan balance over time, you may be able to access usable equity, subject to lender approval.

Borrowers commonly use equity for:

• Renovations
• Purchasing an investment property
• Debt consolidation
• Business purposes
• Asset purchases
• Wealth-building strategies

However, accessing equity increases your overall borrowing, so it should be structured carefully with a clear purpose and repayment strategy in mind.

A mortgage broker can help assess how much usable equity may be available and whether the loan structure supports your goals.

An offset account is a transaction account linked to your home loan that reduces the amount of interest charged on your mortgage.

For example, if you have a $700,000 home loan and $50,000 sitting in your offset account, interest may only be charged on $650,000.

Offset accounts can be particularly valuable for:

• High-income borrowers
• Owner-occupiers
• Investors
• Borrowers with surplus cash
• Households wanting flexibility without locking funds into repayments

Whether an offset account is worth it depends on how much cash you typically hold and whether the loan package costs justify the benefit.

A fixed-rate home loan locks in your interest rate for a set period, which can provide repayment certainty and protection from rate increases during that time.

A variable-rate home loan can move up or down with market conditions and often provides more flexibility, such as:

• Offset accounts
• Extra repayments
• Redraw facilities
• Easier refinancing options

Some borrowers also use split loans, combining fixed and variable components to balance certainty and flexibility. The right loan structure depends on your risk tolerance, financial goals, and future plans.

Yes — self-employed borrowers can absolutely get home loans, although the documentation and lender assessment process is often different to PAYG applicants.

Depending on the lender and loan type, self-employed borrowers may need to provide:

• Tax returns
• Financial statements
• BAS statements
• Accountant information
• Business activity evidence

Some lenders also offer alternative documentation pathways in certain circumstances. Because lender policy varies significantly in this space, working with a mortgage broker can help identify lenders that better understand self-employed income structures.

Yes — many Australian lenders accept non-standard income, including:

• Casual employment
• Contract income
• Commission income
• Overtime
• Bonuses
• Shift allowances
• Secondary income streams

The key issue is usually not whether the income exists, but how each lender assesses it. Some lenders may shade or discount variable income, while others may treat it more favourably depending on income history and employment stability. This is one area where lender policy can make a significant difference to borrowing capacity.

A guarantor home loan allows an eligible family member — often a parent — to use equity in their own property as additional security to help a borrower purchase sooner.

This may help reduce:

• Deposit requirements
• Lenders Mortgage Insurance (LMI)
• Time needed to save a full deposit

Guarantor structures can be useful for first home buyers and some strategic borrowers, but they also create financial obligations and risks for the guarantor. For that reason, guarantor lending should always be structured carefully with a clear understanding of responsibilities and exit strategy options.

Yes — construction loans are more complex than standard home loans and often require careful planning around lender policy, contract structure, progress payments, and borrowing capacity.

Construction lending usually involves:

• Land purchase considerations
• Building contract review
• Progress payment stages
• Valuation requirements
• Build timeline assessment
• Contingency planning
• Completion requirements

Not all lenders approach construction lending the same way, and policy differences can affect approval outcomes. A mortgage broker can help structure the finance correctly and guide borrowers through the build process from approval through to completion.

Construction home loans are generally funded in stages rather than paid in one lump sum. As construction progresses, the lender releases funds at agreed milestones, often including:

• Slab stage
• Frame stage
• Lock-up stage
• Fit-out stage
• Completion

Borrowers usually only pay interest on funds drawn during the construction phase, rather than the full approved loan amount upfront. Construction lending can involve more moving parts than a standard purchase loan, so lender selection, builder requirements, valuation processes, and contingency planning are important parts of the finance strategy. A mortgage broker can help borrowers navigate these complexities and structure the loan appropriately from the outset.

Yes — mortgage brokers can help borrowers structure finance for investment property purchases, whether you are buying your first investment property or building a larger portfolio. Investment lending often involves more than simply securing approval. It may require strategic consideration around:

• Borrowing capacity
• Loan structuring
• Equity use
• Cash flow management
• Interest-only vs principal and interest repayments
• Offset account strategy
• Future borrowing plans

Different lenders also assess investment lending differently, so choosing the right lender can have a significant impact on both approval outcomes and long-term portfolio flexibility.

An owner-occupier loan is generally used for a property you intend to live in, while an investment loan is for a property purchased to generate rental income or for wealth-building purposes.

Investment lending can involve different:

• Interest rates
• Deposit requirements
• Servicing assessments
• Tax considerations
• Loan features
• Lending policy requirements

Because investment lending can affect both cash flow and future borrowing power, the loan structure should align with your broader financial strategy. Borrowers should also seek tax advice where appropriate, as tax outcomes depend on individual circumstances.

It may be possible, depending on the nature of the credit issue, how long ago it occurred, and your current financial position.

Not all credit issues are viewed the same by lenders. For example, lenders may assess things differently depending on whether the issue involved:

• Late repayments
• Defaults
• Court judgments
• Debt agreements
• Credit enquiries
• Historical financial hardship

Some lenders have specialist lending options for borrowers with credit impairment, while others apply stricter criteria. A mortgage broker can help assess which lenders may be suitable based on your specific situation.

There is no single minimum credit score that applies across all lenders.

While a stronger credit profile may improve borrowing options and pricing opportunities, lenders also assess:

• Repayment history
• Existing debts
• Deposit size
• Income stability
• Credit conduct
• Overall financial position

Credit score is only one part of the assessment — lender policy and broader application strength also play an important role.

Yes — debt consolidation may allow borrowers to combine multiple debts into a single loan structure, which can simplify repayments and potentially improve cash flow.

Borrowers commonly consolidate:

• Credit cards
• Personal loans
• Car loans
• Tax debts (subject to lender policy)
• Other unsecured liabilities

However, debt consolidation should be approached carefully. While monthly repayments may reduce, extending short-term debts into a long-term mortgage can increase the total interest paid over time if not structured correctly. A mortgage broker can help assess whether debt consolidation supports your broader financial goals.

Yes — many borrowers refinance from one lender to another if a new loan better suits their financial goals or provides improved pricing, flexibility, or structure.

Common reasons borrowers switch lenders include:

• Lower interest rates
• Better loan features
• Access to equity
• Improved serviceability
• Debt consolidation
• End of a fixed-rate term
• Strategic restructuring

Before switching, borrowers should consider costs, lender policy, long-term suitability, and whether the new loan delivers a genuine financial advantage.

Choosing a mortgage broker is an important decision, particularly if you want strategic lending advice rather than simply the lowest advertised rate. Questions worth asking include:

• How many lenders do you work with?
• Do you have access to banks and non-bank lenders?
• How are you paid?
• What types of borrowers do you specialise in?
• Can you help with complex lending scenarios?
• Will you guide me through the process from start to finish?
• How do you structure loans for future goals?

A good mortgage broker should provide clarity, transparency, strategic guidance, and support throughout the process.

Yes — borrowers with strong incomes or complex financial situations often require more strategic lending advice than simply choosing a standard home loan.

Examples include:

• Medical professionals
• Executives
• Business owners
• Multi-entity borrowers
• High-net-worth households
• Borrowers with multiple income streams

These borrowers may benefit from lender policy expertise, borrowing strategy, cash flow planning, equity structuring, and future portfolio considerations. A mortgage broker can help align lending decisions with both immediate and long-term financial objectives.

Yes — many finance brokers assist clients with lending beyond residential home loans, depending on their accreditation and service offering.

This may include:

• Vehicle finance
• Equipment finance
• Business asset lending
• Commercial lending
• Development finance
• SMSF lending (subject to lender policy and professional advice requirements)

For borrowers with broader financial goals, working with a broker who understands multiple lending areas can help create a more strategic finance approach across different needs.

Choosing a mortgage broker is about more than finding a home loan — it's about working with someone who understands lending strategy, lender policy, and how finance decisions fit into your broader goals.

At Globe Financial, clients work with Domenic Passalacqua, an experienced finance broker with over 22 years in lending and finance, helping clients navigate everything from first home purchases through to refinancing, construction loans, investment lending, and more complex borrowing scenarios.

With access to a panel of 25+ bank and non-bank lenders, Globe Financial provides strategic lending guidance tailored to the borrower — not a one-size-fits-all solution.

Whether you prefer a digital appointment or in-person service, the focus is on:

• Personal advice
• Fast approvals
• Strategic lending structures
• Clear communication
• Goal-driven finance solutions

While Adelaide is home, Globe Financial supports borrowers Australia-wide across a broad range of lending needs.