FAQs

What is a Home Loan?
Am I a first home buyer?
What is refinancing?
What is commercial overdraft?
What is a redraw facility?
What is a line of credit?
I’m not Australian resident or citizen; can I get a home loan?
I am self-employed. Can you still help?
I’m near retirement age, can I get a home loan?
Can I get a home loan if I have a bad credit history?
How long it will take for my home loan to be approved?
How much deposit do I need for a home loan?
What is a pre-approval?
What is the difference between fixed and variable rates?
How does Smith Finance Group source the best loan for me?
My family would like to help me buy my first home. This is good, right?
What documents will I need?
How much can I borrow?
What is a minimum and maximum amount for commercial loan?
My financial circumstances have changed, what should I do?
I applied for a loan, can I change my mind?
What is the best interest rate I can get?
How is interest calculated?
Why should I use Smith Finance Group if I can go with a bank?
What is LMI? Do I have to pay for it?
What is LVR?

• What is a Home Loan?

A Home Loan is a loan from a bank, or a lender that is secured against a physical residential property, such as a home, house or unit.

• Am I a first home buyer?

You are a first home buyer if you have not owned a residential property, either by yourself or with others in NSW. If you have previously owned a joint property with a spouse and you are now a single parent, you may still be eligible. If you are not sure if you are a first home buyer or have further questions, please visit our First Home Buyer page or contact Smith Finance Group today.

• What is refinancing?

Refinancing is a where a new loan pays out an existing debt or loan. Refinancing can benefit some people due to lower interest rates, better fees, or to be able to access additional funds. In some circumstances refinancing is not the best option, we recommend that you contact a financial adviser who will look at your current situation and give you the best possible advice.

• What is commercial overdraft?

A Commercial Overdraft (or overdraft) is a loan from the bank that allows you to withdraw funds from your bank account, below the zero dollar balance (or overdraw the bank account). An approval overdraft facility will have an agreed interest rate and fees that is better than the standard fees and charges from the bank. For more information, please visit our commercial finance page.

• What is a redraw facility?

By having a Redraw Facility on your loan this will allow you to access additional funds that you have already repaid on the loan, or decrease the balance of your loan and interest payment.

• What is a line of credit?

A Line of Credit is a loan from a bank or lender that acts as a source of funds that can be used at your discretion. You only pay interest on the money that you actually use or withdraw.

• I’m not Australian resident or citizen, can I get a home loan?

Yes, you are able to get a home loan, but there are extra steps that you will be required to complete during the application process. Please contact Smith Finance Group and we can assist you with this process.

• I am self-employed. Can you still help?

You can apply for a loan, but for people that are self-employed applying for a loan can be tiring due to the requirements from the bank or lender. At Smith Finance Group we can save you time searching for the right loan or finance. We can tailor a loan to suit your specific needs. Contact us for more information about how we can assist you.

• I’m near retirement age, can I get a home loan?

Yes, you can apply for a home loan, although different banks and lenders have different policies and requirements for borrowers over a certain age. The National Consumer Credit Protection Act (NCCP) requires banks and lenders to ensure that loan doesn’t affect you during retirement.
As each bank and lender have different requirements and outcomes, Smith Finance Group can assist you with the application process, to find the loan that best suits your needs.

• Can I get a home loan if I have a bad credit history?

If you have a default listed on your credit history within the last five years it can be very hard for you to get a home loan. The good news is that there are options available for you. At Smith Finance Group will be able to assess your situation, view your credit history and assist you with the application process to achieve the best possible outcome for you.

• How much deposit do I need for a home loan?

When purchasing a house you will need a deposit, but the amount will depend on the type of loan you choose and the value of the property that you are buying. Click here to find out more about home loans and investing.

• How long it will take for my home loan to be approved?

The average home loan can be approved within 48-72 hours, but this will depend on the information about you, the bank or lender, the type of loan that you are applying for, and if all the information has been provided with your application. For more information about time frames, and please contact Smith Finance Group today.

• What is a pre-approval?

A pre-approval is a conditional approval on a house loan, and generally lasts for around three months. A pre-approval will allow you to search for your new home knowing how much the bank or lender will be willing to lend to you.

• What is the difference between fixed and variable rates?

A fixed rate has a set interest rate for a set period of time. A variable rate is an interest rate that fluctuates based on the Reserve Bank of Australia’s (RBA) official interest rates.

• How does Smith Finance Group source the best loan for me?

At Smith Finance Group, we have over 25 years of experience and are accredited Mortgage Brokers with over 30 banks and lenders. With our extensive experience and resources, we are able to find you the most cost effective finance solution at the best possible rate.

• My family would like to help me buy my first home. This is good, right?

A bank or lender will consider this a gift and they do not recognise these funds when it comes to your home loan application. At Smith Finance Group we take this into account when applying for your home loan.

• What documents will I need?

When you apply for a home loan or commercial finance there is a number of documents that the bank or lender will require. This includes (but is not limited to):

• A copy of your Driver’s License, Passport and/or Birth Certificate, and Medicare Number,
• A copy of your two most recent pay slips (and sometimes your last Group Certificate or PAYG Summary),
• A copy of your savings account statement for the last 6 months,
• If you are self-employed, a copy of your last two personal tax returns and the details of your accountant. You may also have to supply your business profit and loss statements.
• This can be a lot of documentation to get together, and sometimes the financial institution will require more. At Smith Finance Group we will hold your hand through the process and be with you every step of the way.

• How much can I borrow?

The amount of money that a bank or lender will allow you to borrow depends on a number of factors. These factors can include your income and expenses (including your partner’s), how much you want to borrow, and what the purpose of the loan is for. Click here to find out more about home loans, first home buyer loans, and commercial loans.
If you are thinking about applying for a loan, but are not sure what is the right solution for you, contact Smith Finance Group and we can assist you will finding the right solution to suit your specific needs.

• What is a minimum and maximum amount for commercial loan?

The amount that you are able to borrow from a bank and lender varies between each bank and lender. Smith Financial Group can suggest ways that can help you increase the amount you are able to borrow, or assist you to find the right commercial loan for your business.

• My financial circumstances have changed, what should I do?

If your circumstances change, we suggest getting in touch with us at Smith Financial Group to ensure that the change will not adversely affect your loan. If the change in your circumstances will affect your loan, we are able to provide advice and assist you with the best course of action for your situation.

• I applied for a loan, can I change my mind?

We understand that sometimes people change their minds and don’t want to go ahead with purchasing a new house, home renovation, buying an investment property or for many other reasons. You can cancel your loan, but your bank or lender may charge exit or cancellation fees.

• What is the best interest rate I can get?

Interest rates fluctuate regularly. A low interest rate may not always be best suited to your situation. At Smith Finance Group we can assist you by finding the loan to best suit your situation, please contact us today.

• How is interest calculated?

There is a number of ways that a bank and lender will calculate interest rates. Home Loan interest rates are based on the official interest rates from the Reserve Bank of Australia (RBA). Banks and lenders use the RBA’s decision as a basis for setting their own interest rates.
At Smith Finance Group we will source you a loan at competitive rates, and we’ll be with you every step of the way to ensure that you understand your loan.

• Why should I use Smith Finance Group if I can go with a bank?

At Smith Finance Group we find you a bank or lender with different products that will give you a competitive interest rate. At Smith Finance Group we are accredited mortgage brokers with over 30 banks and lenders, so we are able to save you time search for the right home loan or commercial finance. We will tailor a loan to suit your specific needs. Contact us today.

• What is LMI? Do I have to pay for it?

Lenders Mortgage Insurance (or LMI) is usually associated with High Loan to Value Ratio (LVR) loans. LMI covers the financial institution in case you are unable to repay your loan, such as in cases of unemployment, death, illness or injury. Depending on the type of loan and the loan amount, different insurance may be required.

• What is LVR?

LVR stands for Loan to Value Ratio, and refers to the amount used to buy an asset, such as your home, and how much of the asset was purchased with a loan. The LVR is calculated by dividing the amount of the loan by the value of the asset.