Your Lending Questions, Explained Clearly

A mortgage broker gets to know your goals and financial position, compares suitable loan options from the lenders they can access, explains the differences, helps prepare your application and manages the process through to settlement.

Lenders generally pay mortgage brokers a commission when a loan settles, rather than the client paying the broker directly. Any commission or fee that may apply will be explained and disclosed to you before you proceed.

No broker has access to every lender in the market. Brokers work with an approved panel of lenders and should explain which lenders they can consider, which they cannot access and why a recommended option may suit you.

There is no formal preparation required. It helps to know what you would like to achieve and, if available, your current loan balances, interest rates and repayments. We can work through the rest together.

Borrowing power depends on factors such as your income, living expenses, existing debts, dependants, deposit and the lender’s assessment rules. An initial estimate is a useful starting point, but it is not a loan approval or guarantee.

The deposit required depends on the property, lender, loan type and your circumstances. Some borrowers may be eligible for options with a smaller deposit, while other applications may require more. We can discuss the likely upfront costs as part of your review.

A guarantor is someone who agrees to support another person’s loan and accepts financial risk if the borrower cannot meet their obligations. For a home loan, a family guarantor commonly offers part of the equity in their own property as additional security. The guarantee may cover only part of the loan, but the guarantor should understand exactly what they are guaranteeing and obtain independent legal advice before proceeding.

Not under a standard security guarantee. A lender must still assess what you can responsibly afford based on your own income, expenses, debts and circumstances. If your maximum borrowing capacity is $650,000 without a guarantee, it will generally remain $650,000 with a security guarantee. A guarantor may help address a smaller deposit or security shortfall, but does not make otherwise unaffordable repayments affordable. Guarantor structures and lender policies vary, so the arrangement must be assessed carefully.

Pre-approval is an indication from a lender that you may be eligible to apply for a loan up to a certain amount, based on the information assessed at that time. It can help set a buying range, but it is conditional and is not a guarantee of final approval.

Common requirements include physical identification documents rather than digital-only ID - typically your physical driver licence and Medicare card - along with income evidence, bank and loan statements, details of assets and debts, and information about your living expenses. The exact documents vary between lenders and situations, so you will receive a tailored list.

Timeframes vary depending on the lender, the complexity of the application, valuations and how quickly documents are supplied. You will be kept updated throughout the process and told about anything that may affect timing.

Yes. Different lenders assess self-employed, casual, contract and mixed income in different ways. Understanding how your income is structured helps identify possible pathways and the evidence a lender may require.

It can still be worth having a conversation. The options available depend on what appears on your credit file, how recent it is, the explanation and your wider circumstances. Being open early helps avoid unsuitable applications.

Refinancing may be worth reviewing if your rate is no longer competitive, your needs have changed or you want different loan features. The potential benefit should be compared with discharge, application, valuation, break and other switching costs.

No. Sherrard+Co. also assists with refinancing, investment lending, business finance, specialised lending and personal lending. The available options depend on the purpose of the finance and your circumstances.

Yes. Face-to-face appointments can be arranged across selected Mid North Coast locations, and phone or online appointments are available for clients across Australia. Please call to arrange a suitable time and location.