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10 Questions To Ask Your Finance Broker

You’ve saved your deposit and you’re ready to start looking at properties, but have you considered all the details? Here are 10 questions to which you need answers.

Why choose a broker over a bank?

A finance and mortgage brokers job involve negotiating with financial institutions, banks and credit unions to source the right lending products based on each client’s individual needs, goals and history. At Acquired, we compare over 20 lenders with a broad range of options, meaning our resources can be a lot more comprehensive than what you may be able to research.

While a bank will only offer you its own products, a credit adviser is an industry expert who will take the guesswork out of finding the mortgage to find you a product that suits your you and your needs. The cheapest may not be the best suited, and we can assess your situation and goals to find a solution that works. Want to know the best time to speak with a broker? It may be different than you think.


How many properties should I look at before buying?

A good rule of thumb is to inspect at least 15 properties to get a feel for the market and also to check rich property data reports on sale prices.


How much deposit do I need?

The larger your deposit, the better. Sometimes you can secure a property with just a few hundred dollars’ deposit, but most markets still require at least five to 10 per cent deposit and sometimes 20 per cent. The size of your deposit is one of your most important considerations. Read more about LVR here.


What if I’ve just found the perfect property, but haven’t finished saving the deposit?

You may be able to apply for a deposit guarantee (for up to 48 months). This is a second loan that covers the deposit. 


Am I eligible for any grants?

Ask your credit adviser if you are eligible for the First Home Owners’ Grant. The answer will depend on the value of the property, whether you are purchasing it with help from your parents, whether and how long you intend to live in the property, whether it is the first property you have purchased and more. 


Do I have to pay stamp duty?

Yes, and there are two kinds. There’s stamp duty on the mortgage itself and on the property. You may be eligible for a rebate on the second type, so be sure to ask. To learn more about what stamp duty is check out our recent post, or use our stamp duty calculator to find out how much it could cost in your state.


What other costs should I allow for?

You need to have the property inspected for structural problems and pests before purchase and you may need a solicitor or a conveyancer – a specialist property lawyer. Then there is the cost of actually moving out of one property and into another – allow for removalists, cleaning and any new furniture and fixtures the new property requires. 


Can I negotiate the fees of a solicitor or conveyancer?

Of course, and you may want to shop around, meeting with two or more such providers. Reach out to friends and family that you trust for recommendations to who they’ve used and the fees they’ve paid. As people often move houses or invest in property a few times in their life, finding a good connection is important.


Do I need mortgage insurance?

Most lenders will require you to pay mortgage insurance if you are borrowing more than 80 per cent of the property’s value.  Read our guide on Lenders Mortgage Insurance here to find out the value for first home buyers, how to buy without the 20% deposit and how you could even waive LMI completely!


What other insurance will I need?

Check with your adviser as to when you become liable for building insurance. You may also want to think about income protection insurance if you contribute financially to the mortgage or household living expenses. Think about how you would pay your bills if there was a sudden illness or accident. To learn more about why you might consider income protection insurance, read our quick article.


Our approachable team at Acquired have the expertise to help you with these questions and more, guiding you through the journey to home ownership.