Frequently asked questions

A mortgage broker compares home loans from a panel of lenders on your behalf, recommends options that suit your situation, and manages the application through to settlement. Instead of you approaching lenders one at a time, the broker does the comparison and the paperwork.

For most residential home loans a broker’s service is free to you — the lender pays the broker a commission when the loan settles. Your broker is required to disclose how they’re paid, so you can see there’s no hidden cost to you.

A bank can only offer its own products; a broker compares loans across many lenders and handles the legwork. Neither can promise a lower rate, but a broker widens the field of options and does the comparison for you.

Yes. Mortgage brokers in Australia are bound by a Best Interests Duty, which legally requires them to act in your best interests when recommending a home loan — a duty that doesn’t apply to a bank selling only its own products.

Whatever suits you. Domain Finance is based in Berwick and happy to meet locally, but the whole process — from first chat to signing — can be done over the phone and online if that’s easier. We work with clients across Australia that way.

Lenders typically accept deposits from 5% of the purchase price. At 20% you avoid Lenders Mortgage Insurance; below that, LMI usually applies unless you’re eligible for a government guarantee scheme.

No — 20% is the point at which you avoid Lenders Mortgage Insurance, not a minimum. Many people buy with less (from 5% with LMI, or via a government guarantee scheme if eligible). Paying LMI to buy sooner can be the right call; it just needs to be a deliberate choice rather than a surprise.

LMI is a one-off cost most lenders charge when your deposit is under 20%. It protects the lender if the loan defaults — not you — and is usually added to the loan rather than paid upfront, so it also attracts interest over time.

Beyond the deposit, budget for stamp duty (where it applies), conveyancing or legal fees, building and pest inspections, loan and lender fees, and moving costs. A broker can help you estimate the full picture before you commit.

In Victoria, the main ones are: the First Home Guarantee (buy with a 5% deposit and no LMI, subject to a property price cap — $950,000 for Melbourne, $650,000 for the rest of the state); the Victorian First Home Owner Grant ($10,000 for a new or never-lived-in home valued up to $750,000); and stamp duty relief for first home buyers (no duty up to $600,000, and a concession from $600,001 to $750,000). Amounts and thresholds change over time and eligibility rules apply, so a broker checks which you actually qualify for. Figures current as at July 2026.

Usually: identification, evidence of income (payslips for employees, or tax returns and BAS if you’re self-employed), recent bank statements, and details of your existing debts and living expenses. A broker will give you a tailored checklist up front.

Pre-approval is a conditional indication of how much a lender may be willing to lend you. It’s time-limited and not a final approval, but it helps you shop in a realistic price range and shows agents you’re serious.

Each loan application can leave an enquiry on your credit file, and several at once can work against you. A broker helps you apply once, to a lender whose policy fits you, rather than scattering applications and hoping.

It varies with the lender, the complexity of your situation, and how complete your documents are. A broker chases the lender and keeps the application moving, which is often what avoids unnecessary delays.