Frequently asked questions
Discover answers to frequently asked questions about home loans and equity release with Wellman Finance.
Your questions. Our answers
Straightforward guidance on home loans, refinancing, and mortgage advice, so you can make confident financial decisions.
1. How much deposit do I need as a first-home buyer?
Most lenders prefer a 20% deposit, but many first-home buyers secure a loan with as little as 5% and in some cases even less through government schemes. A broker can help you understand your options and how your deposit size affects your borrowing power and repayments. You can read more about first home loans here.
2. Am I eligible for any first-home buyer grants or government schemes?
3. How much can I borrow as a first-home buyer?
4. What costs should I expect besides the deposit?
5. Should I get pre-approval before making an offer?
Yes-pre-approval gives you clarity on your borrowing limit and shows sellers you’re a serious buyer. It also helps speed up the final approval process once you find the right property. Contact us to find out why we are the experts in first home loans Melbourne. We can organise your pre-approval and ensure everything is in order.
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Buying your first home is exciting but can feel overwhelming. This guide breaks the process into clear, practical steps so you can move forward with confidence. With the right preparation, your first home is closer than you think.
1. What is an equity release?
An equity release is where you take a new loan to release equity (new funds) against an existing property that you own. You can read more about equity releases mortgages here.
2. How do I take cash out/release equity?
3. What can I use an equity release loan for?
4. How do I structure my equity release loan?
5. Where do I start?
Contact us to find out why we are the experts in Equity release mortgages Melbourne and we will arrange some valuations on your property with some different banks and lenders. We will also look at your additional borrowing capacity, as you will need to have enough income to service your new equity loan.
1. Do all banks assess borrowing capacity the same way?
No. Every bank uses its own policies, assessment models and risk settings. This means your borrowing capacity can vary significantly between lenders. Working with a mortgage broker helps you compare options, understand the differences and choose a lender that supports your goals.
For more information watch this video.
2. Why does my borrowing capacity change between lenders?
Each lender has its own rules for income, expenses, debts, credit history and property type. Some are more flexible with overtime, bonuses or rental income. Others take a more conservative approach. This is why comparing lenders is important.
3. Does borrowing capacity affect my refinancing options?
Yes. When refinancing a home loan in Melbourne, lenders reassess your income, expenses and debts. A strong borrowing capacity can open up better rates and more flexible loan structures.
4. How can a mortgage broker help me choose the right lender?
A broker reviews your financial position, compares lender policies and identifies which banks are most likely to support your goals. This can improve your borrowing capacity and help you secure a structure that fits your long term plans.
5. What should investors know about borrowing capacity?
Investment property loans in Melbourne are assessed differently to owner occupied loans. Lenders may apply higher buffers, different rental income calculations and stricter criteria. Understanding these differences helps you plan your next purchase with confidence.
1. Why should I use an independent mortgage broker instead of going directly to a bank?
An independent mortgage broker compares loan options from multiple lenders, not just one bank. This means you get access to a wider range of products, interest rates and features tailored to your situation, rather than being limited to a single bank’s offerings. Independent brokers act in your best interest by focusing on suitability, flexibility and long-term outcomes.
For more information watch this video.
2. How is an independent mortgage broker different from a bank lender?
A bank lender can only offer products from their own institution. An independent mortgage broker works with a panel of lenders, including major banks, non-bank lenders and specialist providers. This independence allows brokers to recommend solutions based on your needs, not sales targets tied to one lender.
3. Does using an independent mortgage broker cost more than going to a bank?
In most cases, no. Independent mortgage brokers are typically paid a commission by the lender you choose, meaning there is usually no direct cost to you. Importantly, the interest rate and loan terms are generally the same as if you went directly to the lender, but with the added benefit of expert guidance and comparison.
4. Can an independent mortgage broker get better interest rates than a bank?
Independent mortgage brokers can often access competitive rates and lender-specific offers that aren’t always advertised to the public. While no broker can guarantee the lowest rate in every scenario, comparing multiple lenders significantly increases the likelihood of securing a competitive deal suited to your financial profile.
5. Is an independent mortgage broker really working in my best interest?
Yes. Independent mortgage brokers, such as Wellman Finance are legally required to act in the best interests of their clients under Australian law. This means recommendations must be based on what is appropriate for your circumstances, goals and financial position, not what benefits the broker or a lender.
1. What is a construction loan?
A construction loan is a home loan specifically designed to fund the building of a new property or major renovations. Unlike a standard home loan, funds are released in stages (called progress payments) as construction milestones are completed, rather than paid in a single lump sum.
2. How does a construction loan work?
With a construction loan, the lender releases funds progressively at key stages of the build, such as slab, frame, lock-up, fixing and completion. During construction, you typically only pay interest on the funds that have been drawn down, helping manage cash flow until the build is finished.
3. What are progress payments?
Progress payments are staged payments made to the builder as construction reaches agreed milestones. The lender usually requires an inspection or confirmation before releasing each payment to ensure the work has been completed to the required standard.
4. How long does a construction loan last?
Most construction loans are structured with a build period of 6 to 12 months, depending on the lender and the complexity of the project. Extensions may be possible if construction delays occur, subject to lender approval.
5.What deposit do I need for a construction loan?
Deposit requirements vary depending on the lender, your financial position and the total build cost. In many cases, lenders require a deposit similar to a standard home loan, though some may accept lower deposits if you qualify for specific lending criteria or guarantees.
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