Frequently Asked Questions

Domain Home Loans can help you apply for a home loan online. The first step is to answer a few questions so that we can understand your property goals and individual circumstances. From there, a Home Loan Specialist will help you understand your loan options and help you choose the right loan to fit your lifestyle and circumstances.

Once you've chosen a home loan, you will need to upload a number of documents using our secure online platform. Documents may include:

• Proof of identification such as a passport, driver's license or birth certificate
• Proof of employment such as an employment contract of pay slips
• Proof of savings such as a bank statement
• Proof of debt such as a billing statement
• Proof of assets such as council rates for existing properties

Once all relevant documents are uploaded and verified, our team will do the hard work for you. We will submit your application and guide your loan right through to settlement.

If your home loan application has been successful, we will be able to give you conditional pre-approval usually within 24 - 48 hours. You will receive full approval once the necessary documents to support your application are uploaded and verified.

You can check the status of your home loan application at any time by logging in to your Domain Home Loans account.

Our team will contact you via email and/or phone whenever there is an important status change with your home loan.

Pre-approval is pre-qualification for a loan within a certain value range. A lender will give you an estimate of how much you can borrow based on information about your income, debts and liabilities.

Pre-approval is important in determining your budget, and should be arranged as soon as you’re serious about buying a property. You will need pre-approval prior to making an offer or bidding at auction.

Pre approval is not binding, as such a lender is not obliged to provide a loan.

Unconditional approval occurs later in the buying process, normally after exchange. To receive unconditional approval, buyers need to complete a formal loan application and may need to provide additional information about a specific property, a valuation or proof of insurance. Once unconditional approval is provided, loan offer documents are distributed and your loan application can progress.

It typically takes between 4 and 6 weeks to receive your home loan funds once the loan has been approved. It’s important to note, this timeframe may vary depending on your lender and personal circumstances.

There are certain lenders who specialise in providing the right home loans for individuals who are self employed. In order to be considered for approval on a home loan, you will need to be able to provide at least two years worth of financial documentation, including tax returns, to prove both income and your ability to service loan repayments.

The answer to this question is dependent on a number of factors, including:

• The type of visa you currently hold
• Who is applying for the loan (is it just you, or you and a partner?)
• Your credit score
• Your current savings and assets
• The size of your deposit

One of our Home Loan Specialists can help you understand your eligibility. You can choose a time to chat to a member of our team using this link.

There are a number of lenders who specialise in helping those with credit issues such as a low credit score. Our team of home loan specialists can help you understand your options. You can choose a time to chat to a member of our team using this link.

Principal and interest loans are the most common type of home loan. They involve the borrower paying off the principal (the amount borrowed) and the interest together in regular repayments.

An interest only home loan allows you to pay off only the interest for a certain period of time. The balance of the loan itself remains unchanged for this period. While interest only loans allow for smaller repayments in the short term, the total repayment over time will often be greater as you accumulate more interest over the duration of the loan.

A fixed rate home loan has an interest rate that is locked in for a certain period of time. Fixed rate loans give you certainty regarding your repayments as the rate will not change based on the RBA cash rate.

A variable rate home loan is a loan with an interest rate that may fluctuate throughout your loan. These fluctuations are often based on changes to the RBA cash rate. Many variable rate loans provide the flexibility for you to make extra repayments at no cost to pay down the principle faster. While you will reap the benefits of interest rate drops, you must also factor potential interest rate rises into your budget.

A split home loan allows you to allocate a certain amount of your loan to a fixed interest rate and a certain amount to a variable interest rate.

Bridging finance is a short term loan that covers the cost of purchasing a property before selling an existing property, and is generally provided when a buyer isn’t able to purchase their next home outright.

Bridging loans are short term in nature, and are provided with the expectation that an existing home will be sold and the loan paid out within a few months.

Domain Home Loans is a joint venture between Domain Holdings Australia Limited and Lendi Group Services Pty Ltd.

Domain Home Loans is a home loan platform that matches borrowers with lenders by analysing over 2.5k loans to match the borrower's specific needs. The platform combines smart technology with support from our experienced team of Home Loan Specialists to help you search, choose and settle your home loan online.

A Domain Home Loan Specialist is a mortgage broker dedicated to guiding you through the process of securing a home loan.

Our Home Loan Specialists work with both major and second-tier Australian lenders. Having access to multiple lenders means they are able to negotiate on your behalf to secure you the right home loan to suit your individual needs and financial circumstances.

Our Home Loan Specialists are there to provide support throughout the entire home loan process - from application to settlement.

All of our Home Loan Specialists either have their own Australian Credit Licence (ACL) or become a Credit Representative (CR) of an ACL holder.

Our team of Home Loan Specialists have access to over 2.5k home loans which puts them in a good position to negotiate the best loan offer on your behalf. When you deal directly with a loan officer at a bank, your choice will be limited to the products and interest rates offered by that particular bank.

Furthermore, going directly to your bank is not necessarily easier than going through a Domain Home Loans Specialist. You will still need to fill out all of the required paperwork, even if you're already a customer. If you're refinancing, your current bank may not pass on any rate cuts to you, while a Domain Home Loan Specialist may be able to help you find another lender with a better deal.

Whether you want to reduce your monthly repayments, pay down your loan faster, get cash out or consolidate your debt - Domain Home Loans may be able to help you refinance to achieve your goals.

To find and compare rates, simply answer a few questions or choose a time to chat to a member of our team using this link.

An interest rate is the percentage of interest you will be charged on your home loan and reflects the ongoing cost associated with borrowing money.

A comparison rate is calculated by combining the interest rate as well as certain fees and charges involved with taking out a home loan (such as account keeping fees, government fees and charges). This rate helps you to consider all of the costs associated with taking out a loan therefore helping you understand the true cost of the loan. Furthermore, this rate enables easy comparison of home loans against one another.

Loan repayments are the amount of money you pay towards your home loan each month. The amount you pay each month is calculated based on your rate, the size of your loan and the loan term. It’s important to understand what your repayments might be when it comes to setting your budget.

Increasing your monthly repayments will reduce the total time that it takes to pay off your home loan. By increasing your repayments, you ultimately reduce the amount of interest you pay because as the principal owing decreases, the interest payments get smaller.

Fixed rate home loans will often have restrictions on how much extra you can pay each month. Variable interest rates loans are generally more flexible as you can negotiate the amount you pay on top of your minimum monthly repayments with your lender.

Refinancing involves taking out a new home loan, generally with better rates or features, to replace an existing loan. Refinancing may allow you to take advantage of a better deal or lower interest rate to save on repayments and consolidate debts.

If your current interest rate on your home loan is higher than what’s currently in the market - it’s a good time to think about refinancing. Refinancing allows you to consolidate debts and take advantage of a better deal or lower interest rate, ultimately enabling you to save money on repayments.

The cost of refinancing varies depending on your individual circumstances. You may need to take into account mortgage discharge fees as well as ongoing fees. The best way to find out exactly how much it will cost you to refinance is to speak to one of our Home Loan Specialists. You can choose a time to chat to a member of our team using this link.

You can compare online by following this link. Alternatively, you can speak to one of our Home Loan Specialists who can help you. You can choose a time to chat to a member of our team using this link.

Your maximum borrowing capacity is calculated based on your income, savings, assets, expenditure and credit history. Most lenders will accept an 80% Loan to Value Ratio (LVR). If your LVR is above 80% you will most likely be required to pay Lenders Mortgage Insurance (LMI).

The deposit is the amount of money you contribute towards a property purchase. The majority of lenders require a 20% deposit, although it's possible to buy a home with a deposit as low as 5%.

However, with any deposit below 20%, lenders are exposed to increased risk of the borrower defaulting on their loan. To mitigate this risk, borrowers are charged Lender’s Mortgage Insurance (LMI). This cost is generally added to your loan as a lump sum, but you’ll also pay interest on that amount over the life of the loan.

If you save a deposit of 20% or more, you will not need to pay LMI.

LVR, or Loan to Value Ratio, is the amount of money you are borrowing represented as a percentage of the value of the property you are purchasing. For example, if the property you are buying is $1,000,000 and your deposit is $200,000 your LVR is 80%.

The First Home Owner Grant Scheme funded by the Federal Government, is designed to make it easier for first home buyers to purchase or build their first property. The amount you are eligible to receive differs depending on the state within which you are purchasing. You can view the breakdown here.

You can apply for the first home owners grant during the home loan application process. Your home loan specialist, solicitor or lender will usually guide you through the process. When you settle on your home loan the grant will become available. Alternatively, if you are building, the grant will be available at the time of the first drawdown on contracts to build.

Lenders Mortgage Insurance (LMI) is a one-off cost added to your home loan that protects the lender from the increased risk of a loan defaulting in the instance that the loan amount exceeds 80% of the property value.

Lenders Mortgage Insurance (LMI) is calculated based on individual circumstances and risk profile, as such the premium is not a set amount and will vary between borrowers. This cost is generally added to your loan as a lump sum, but you’ll also pay interest on that amount over the life of the loan.

Apart from the purchase price, there are other costs involved with buying a home that need to be considered. Some of these costs are unavoidable, therefore it’s best to factor them in at the start of the buying process:

• Stamp Duty

  Stamp duty is the amount of tax payable on a property. Stamp duty is calculated based on the value of the property that is transacted and it is generally in the tens of thousands of dollars. Different states and territories have different thresholds and ways of calculating stamp duty. First-home buyers may be entitled to stamp duty exemptions for certain properties.

• Legal fees/Conveyancing

  Legal costs can vary. It’s a good idea to engage a conveyancer or a lawyer and to find out specific costs. As a general rule, conveyancers charge a flat fee, while solicitors charge by the hour and may cost more.

• Mortgage fee

  It costs on average $150 to register your mortgage. The exact cost varies between states and is subject to change.

• Transfer fee

  This fee, averaging $136, is collected by state governments and covers the cost of transferring the land title. The exact fee varies between states.

  You also need to factor in:

1. Council rates

   Council rates are billed quarterly and can cost several hundred dollars per quarter, depending on the value of the property and the way in which that council calculates rates. Ask the real estate agent or vendor for a copy of a recent council rates notice to estimate future payments. It’s important to note that council rates may change over time.

2. Strata fees

   Strata fees vary depending on the building but can cost anywhere from several hundred to several thousand dollars per quarter. A strata report will reveal the fees required, as well as the financial health of the sinking fund so you’ll be prepared for any special levies.

3. Pre-purchase inspection

   A pre-purchase inspection usually costs about $500, but it’s worth it to understand some existing issues with the property that you will need to be prepared for.