Expert Broker
MFAA Accredited
Australia Wide

FAQs

Why use Mortgage Star?

Mortgage Star will be your representative to over 30 Lenders, from the big banks to the smaller lenders with specific niches. It would take you a month of Sundays to visit all the lenders in order to procure a great rate with the right product. This is the reason that you use our expertise to gain the right deal for you. Why use Mortgage Star specifically, well we are not so big that we treat you like a number and we are still small enough to ensure that every single customer experiences a smooth, trouble free process, continuing our relationship through the application process, to settlement and beyond. This is the way we like it, we enjoy being local and this is the way we will stay. We provide good old fashioned customer service, great communication and we genuinely care.

Should I get a pre-approval?

The short answer is yes! Not getting a pre-approval is like going to a garage sale without cash in your pocket. Knowing that you have been pre-approved allows you the confidence to negotiate effectively for that perfect property.

Should I go Fixed or Variable?

In most cases this is a personal decision. A fixed rate allows you to budget more effectively as the home loan rate is locked in for the specific length of time, you know what your repayments are and you can plan around this. However locking in the interest rate is a good and a not so good thing. For instance yes you have certainty that the rate will not change but you are locked in and if life changes there will be break costs involved if you need to break the fixed term for any reason. Also if rates fall your rate remains the same and if rates rise your rate will not move until your fixed rate term is over. Variable allows you to see where the market is going and to benefit from any rate fluctuations, however rates can rise.  Variable is more flexible as you can make extra repayments and you can fix the rate at a later stage. Alternately you can split the loan so that you have a certain amount of the loan variable and the rest fixed, so that you can make extra repayments with no penalty.

Why would I refinance?

It is always worth doing a home loan health check to ensure that there isn’t a better deal in the market. Your home loan product may have been the right one when you first did the application but now, 2,4,10 years later, after life has gotten in the way you may find that there is something better out there, to save you money with a better rate, debt consolidation, set you up to buy an investment, you need a holiday or new car, and what’s best the consultation is free. So why wouldn’t you take some time to ensure you have the right deal, we all look for the best deal in insurance, lifestyle products, food, why wouldn’t we ensure that we have the right deal for our home loan.

What is an offset account?

An offset account is a transaction account that is linked to an eligible home loan account. The balance of a 100% offset account offsets the balance owing on your loan account reducing the interest being calculated on a daily basis depending on the amount in the offset on any given day.

How do I know if I'm choosing the right loan type and lender? 

During the initial consultation with your Mortgage Star Mortgage Broker, we will discuss your Home Loan requirements, lifestyle and future plans to ensure we find a suitable Home Loan that will not only benefit you in the short term, but also in the long term. During this phase, we will discuss Lenders and Loan products to ascertain which lenders and products best suit your present and future needs and requirements. Following on from this, our expert Mortgage Broker will make recommendations based on your brief and the conversations had.

How long will the home loan application process take? 

At Mortgage Star, we ask our valued clients to allow 31 days maximum for the entire home loan process to be completed, from the application process right through to settlement. At Mortgage Star, we pride ourselves on offering a quality service and fast turnaround thanks to our strict step-by-step home loan application process, which covers the following phases:

Phase one: Initial Meeting
Find the right loan product and lender specific to the clients needs and lifestyle.

Phase two: The Application Process
Mortgage Star will lodge your home loan application to the Lender within a 24 hour period. The lender will send a confirmation reply , generally 24 hours after the application has been lodged. 

Phase three: Conditional Approval
It generally takes up to 3 days to receive conditional approval. Following this, valuation reports will be completed by the Lender, depending on access to the property/s, within a 3-4 day period.

Phase four: Formal Approval
Once satisfactory valuations have been returned and all other conditions have been met, formal approval will be received from the Lender within 2-3 days.

Phase five: Mortgage Documents
Once we have received confirmation of formal approval, your lender will send you the mortgage documents to sign and return. This usually takes 5 working days. You are advised to return the signed documents within 7 days. 

Phase six: Settlement 

Purchasing: Within 3-5 days of your documents being returned to the Lender, your conveyancer/solicitor will be contacted to book settlement. 

Refinancing: Within 3-5 days of the Lender receiving your signed loan documents, they will liaise with your current Lender to refinance your loan. Your current Lender may take up to 10 working days to discharge your current mortgage.