What does a mortgage broker do?

A mortgage broker can help you understand your borrowing capacity and options when it comes to purchasing property. This typically entails:

• Understanding your needs, objectives and current financial circumstances.
• Comparing home loan products to determine your borrowing capacity and find  the loan products that are right for you.  
• Recommending a home loan solution with a competitive rate that is aligned with your best interests.
• Assisting you in completing all the paperwork involved.
• Providing advice from application through to settlement, keeping you up to date at every step.
• Staying in touch post-settlement to ensure your home loan remains the right fit for you. 

Why should I use a broker versus going to a bank direct?

Think of going direct to a bank like going shopping at a brand-name boutique – you only get what’s on their shelves. A broker is like having a personal shopper who scours a large shopping centre to find the right fit for you and at a competitive price

Here is why most people prefer using a broker over going direct to a bank:

1. Choice: A bank can only sell you its own specific loan products. A broker compares options from a panel of lenders (including major banks, credit unions and non-bank lenders) to find the loan product right for you.  
2. Huge time-saving:  A broker manages the entire process from research to settlement, so you don’t have to.  
3. Credit score protection: Applying directly to multiple banks can hurt your credit score. A broker checks who is more likely to approve you before any official application touches your credit file.  

What legislative obligations do brokers have to follow?

Loan Market brokers are always committed to acting in your best interests with all of your lending needs. 

There are many legislative obligations brokers must adhere to that ensure your needs and requirements are at the centre of their work. These laws, including but not limited to the National Consumer Credit Protection Act 2009 (Responsible Lending), The Privacy Act 1988, Anti-Money Laundering and Counter Terrorism Financing Act 2006 (AML/CTF), are designed for your protection.

What is the advantage of choosing a Loan Market broker over going to a bank directly?

By choosing to work with a Loan Market broker, you can save yourself time and be sure you end up with a product that is right for you. Going directly to a bank will limit your options to the products they offer. A Loan Market broker has access to over 100 lenders and thousands of products. This means they are more likely to find a loan that suits your needs and offers a competitive rate.

A Loan Market broker is by your side from start to finish. They can help you understand your borrowing power, suggest loan products, manage the application process and ensure settlement runs as smoothly as possible. And it doesn’t end there. Your broker can also help you with other loans, including car loans, and check your loan remains competitive over time. This could mean negotiating with your current lender or finding one that is better suited as your circumstances or the market changes. Whatever your ambition, your Loan Market broker can help make it happen.

Does it cost me anything to use a Loan Market broker?

Loan Market brokers’ core residential lending service costs you nothing*. The lender you choose pays them a commission after your loan settles. Your broker may charge a fee to cover additional time required by their team, however any fees will be discussed with you in advance so you can make an informed decision before proceeding with your application. 

How do Loan Market brokers get paid?

Loan Market brokers are paid by the lender you choose (with no additional cost to you*) in the following ways: 

Initial payment 

When your loan has ‘settled’, the lender will pay the broker an initial payment as a percentage (%) of the ‘net of offset’ (total loan, less any amount in the linked offset account). This percentage varies by lender but generally ranges between 0.60% and 0.75% (includes GST).

If the loan is transferred or is paid out within 2 years of the settlement date, the lender may reclaim some or all of these commissions from me. This is known as ‘clawback’.

Ongoing monthly payments 

The selected lender may also pay an ongoing monthly payment (known as trail). This is a percentage (%) calculated and paid on the outstanding balance of your loan at the end of each month. The percentage varies by lender but is typically around 0.15%.

It is important to note a Loan Market broker’s advice is always aligned to your best interests and does not take into consideration any variance of commission between lenders.

Net of Offset

Any payment paid by the lender is based on the loan amount minus any money you have in your offset account. This means if you take out a $1 million loan and place $900,000 into your offset account, the broker will receive a commission based on $100,000. If you place the entire loan into the offset account, the broker will not get paid until you use those funds. If you do not use those funds in the first 12 months, the broker will typically not receive any commission in relation to those funds. 

Clawback

If the loan is refinanced or is paid out within 2 years of the settlement date, the lender may reclaim these commissions. Typically, this will be:

• • 100% within the first 12 months  
  • 50% within 12-24 months of the loan settlement date

If this does occur, there is no cost to you. However, it does mean that regardless of how appreciative you are of the service provided, your broker may not be paid for helping you with your loan. Because of this, please consider working with your broker for future refinancing of your loan.

What types of loans can Loan Market help me with?

Loan Market is the home of the diversified broker – they can help with home, personal, car, business, commercial loans and more. If you have a goal, your Loan Market broker can help structure the finance to achieve it, from buying property, getting a new car or investing in a commercial operation.

What can I expect when working with a Loan Market broker?

When you meet with your Loan Market broker, they will take time to understand your circumstances and goal. They will then calculate your borrowing power and let you know if you are eligible for any schemes or grants. Then they will show you which products are suited to your needs and take charge of the application through to settlement. It will look a little like this:

• Discovery: You answer some questions online about your circumstances and goals.

• Meeting: Your broker will talk through your needs, calculate your borrowing power and discuss your options.

• Game Plan: After further in-depth research, your broker will present you with your personalised Game Plan, providing tailored solutions and recommendations to meet your goals.

• Application: Your broker negotiates with your lender of choice and prepares your paperwork. Once you have signed, your broker will do the legwork to get it approved.

• Approval: This is the moment we live for. Getting your loan approved. Once the lender gives the nod, your broker arranges the paperwork for you to sign.

• Settlement: There is a lot that happens on settlement day, and your broker works closely with your lender to ensure it runs as smoothly as possible.

• Today, tomorrow and beyond: A Loan Market broker is by your side for life. From checking in to make sure your loan continues to be competitive to helping you find the right car loan.

What are the basic requirements to apply for a loan?

While every lender has their own specific criteria, there are a few foundational requirements most have:

• Age (18+): You must be at least 18 years old to legally sign a binding loan agreement.
• Residency and visa status: Generally, you need to be a citizen or a permanent resident of the country where you are applying. Some lenders will consider applicants on valid work visas, though these often come with stricter terms and shorter loan durations.
• Steady income: Lenders need to ensure you can comfortably manage your repayments. You will typically need to provide proof of stable employment (like recent payslips), self-employment tax returns, or a consistent alternative income stream.
• Credit history basics: Your credit score is essentially your financial report card. Lenders will review your credit history to look at your past repayment behaviour, existing debts and any defaults. A healthy credit history proves you are a reliable borrower and can unlock better interest rates.

If you fall outside any of these requirements, reach out to a Loan Market broker to see if a lender could still be suited to you.

What documents do I need to provide to apply for a loan?

To get your loan application processed as quickly as possible, it helps to gather your paperwork ahead of time. While exact requirements can vary depending on the lender and the type of loan, you will generally need to provide documentation across four main categories:

1. Proof of Identity

You typically need a combination of documents that prove your full name, date of birth and current address:

• • Primary photo ID: A current driver license or passport.
  • Secondary ID: A Medicare card, birth certificate or recent utility bill/council rates notice.

2. Proof of Income

• If you are an employee: Your two or three most recent payslips (showing year-to-date income), plus your most recent tax summary or Notice of Assessment.
• If you are self-employed: Personal and business tax returns, profit and loss statements and Business Activity Statements (BAS) for the last 1 to 2 years.
• Alternative income: Proof of regular rental income (tenancy agreement), share dividends or government benefit statements

3. Expenses and Liabilities

• Credit cards: Your most recent statements. 
• Existing debt: Statements for any active loans including personal, car finance or student debts.
• Living expenses: Consecutive bank statements (usually covering 3 to 6 months) to verify day-to-day spending, rent and recurring bills.

4. Assets

• Savings and investments: Bank statements proving your genuine savings history, or statements for share portfolios and term deposits.
• Property (if buying or refinancing): A copy of the Contract of Sale or your most recent council rates notice.

Can I get a loan if I am self-employed?

Being self-employed, a freelancer, or a small business owner will not stop you from getting a loan. Because you don’t have traditional payslips, lenders simply use alternative methods to assess your applications  which could include viewing your recent tax returns, Business Activity Statements (BAS) or business bank statements to verify your income and financial stability.

Can I get a loan if I have a low credit score?

It could be possible. While standard bank loans can be trickier, we have plenty of specialist lenders on our panel that look beyond a single number to evaluate your current financial health and ability to repay. Your Loan Market broker can also walk you through ways to get to your goal, which may include taking steps to improve your credit score.  

How long does the loan approval process take?

The turnaround time for a loan approval depends heavily on the type of loan you are applying for, the lender you choose and the complexity of your application. Some personal loans can be approved within 24 – 48 hours, while complex home loans might take a few weeks. Other factors, such as public holidays, could also slow down a loan assessment.