Frequently Asked Questions About Home Loans and Finance

Borrowing capacity depends on factors such as your income, living expenses, existing liabilities, credit history, dependants, deposit, loan term and the lender's serviceability assessment. A borrowing estimate is not the same as formal loan approval.

The required deposit varies by lender, loan type and borrower circumstances. A larger deposit may reduce the loan-to-value ratio and may help reduce costs. Some eligible buyers may qualify for lower-deposit options, subject to lender and program requirements.

Lender's mortgage insurance may apply when the loan represents a higher percentage of the property's value. It generally protects the lender rather than the borrower. The cost can vary and may sometimes be added to the loan, subject to lender policy.

Pre-approval is an initial indication that a lender may be prepared to lend up to a specified amount, subject to conditions. It is not unconditional approval and may still depend on property valuation, updated documents, satisfactory credit checks and final lender assessment.

The appropriate structure depends on your priorities. Variable loans may offer flexibility and features such as offset accounts, while fixed loans may provide repayment certainty for a set period. A split loan combines fixed and variable portions. Fees, restrictions and break costs should be considered.

An offset account is a transaction account linked to an eligible home loan. The money held in the account may reduce the loan balance used to calculate interest. Product eligibility, fees and the percentage offset can vary.

You can use the Home Loan Offset Calculator for an indicative estimate.

Costs may include the deposit, stamp duty, legal or conveyancing fees, inspections, lender fees, valuation fees, insurance, moving expenses and government charges. The actual costs depend on the property and transaction.

Use the Stamp Duty Calculator as a starting point.

Refinancing means replacing an existing loan with a new loan, either with the same lender or a different lender. Borrowers may refinance to review rates, repayments, features, loan structure or access to available equity.

Refinancing may reduce repayments if the new rate or structure is more suitable, but a lower repayment does not automatically mean a lower total cost. Extending the loan term can increase total interest paid. Switching fees and other costs should also be included in the comparison.

Potential costs may include discharge fees, application fees, valuation fees, registration charges, settlement fees, package fees and fixed-rate break costs. Available lender offers may change and should not be considered in isolation.

Equity access may be possible if the lender is satisfied with the property value, your income, expenses, liabilities, repayment capacity and intended purpose. Borrowing against equity increases debt and should be considered carefully.

Eligible debts may sometimes be consolidated into a home loan, subject to lender approval. Although the interest rate may be lower, spreading short-term debt over a long mortgage term may increase the total amount repaid. Fees, behaviour and repayment strategy should be considered.

Danphe Finance can assist eligible applicants with finance enquiries for selected new, used, electric, hybrid, family and commercial vehicles. Approval depends on the applicant, vehicle, purchase arrangement and lender criteria.

Depending on the lender and application, personal loans may be available for eligible expenses such as a vehicle, renovations, education, travel, medical costs or debt consolidation. The permitted purpose varies by lender.

A secured loan is supported by an eligible asset, while an unsecured loan is not directly secured against a specific asset. Rates, fees, loan amounts and approval criteria can differ between the two.

Subject to lender criteria, asset finance may be available for eligible commercial vehicles, machinery, tools, office equipment, technology and other business assets. The age, condition, supplier and intended use may affect eligibility.

Eligible businesses may be able to explore funding for working capital, expansion, stock, operating expenses or other approved commercial purposes. Lenders may assess trading history, revenue, cash flow, liabilities and credit conduct.

Documents vary by loan type and employment structure. Common requirements may include:

• Identification documents
• Payslips or income evidence
• Bank statements
• Details of liabilities and living expenses
• Property, vehicle or asset information
• Tax returns and financial statements for self-employed applicants

A formal credit application may result in a credit enquiry being recorded on your credit report. Multiple applications over a short period can affect how lenders view your credit activity. Discuss the process before submitting applications.

Timing varies by lender, loan type, application complexity, document quality, valuation requirements and lender workload. Some applications may progress quickly, while others require additional assessment or supporting information.

Conditional approval means the lender has assessed the application but still requires one or more conditions to be satisfied. Conditions may relate to valuation, documents, income verification, debt repayment or other lender requirements.

Unconditional approval generally means the lender has completed its assessment and approved the loan, subject to execution of loan documents and any final settlement requirements. Do not make assumptions about approval until confirmed in writing.

No. A mortgage or finance broker cannot guarantee approval. The lender makes the final decision based on its policies, responsible-lending obligations and assessment of the application.

You can book through the appointment page, call Bikas Kandel on 0403 587 786, call the office on (02) 8074 9724, or email info@danphefinance.com.au.