How much could you save by refinancing?

Yes, self-managed superannuation funds can be used to purchase investment property, and Mortgage Path has expertise in this specialised area. SMSF property purchases are subject to strict regulations and compliance requirements that differ significantly from standard home loans. The property must meet the 'sole purpose test', meaning it's held solely to provide retirement benefits to fund members. You cannot live in the property, and it cannot be purchased from or rented to related parties. The loan must be a limited recourse borrowing arrangement, which means if the loan defaults, the lender can only claim the property held as security, not other SMSF assets. Not all lenders offer SMSF loans, and those that do have specific criteria. We'll help you understand the regulatory requirements, connect you with appropriate lenders, and coordinate with your accountant and lawyer to ensure compliance. This approach helps protect your superannuation whilst building your retirement wealth through property investment.

The documentation required depends on your employment status and financial circumstances, but generally includes proof of identity such as a driver's licence and passport. You'll need income verification, which for employees means recent payslips and either a letter from your employer or tax returns. Self-employed applicants typically need two years of tax returns, financial statements, and accountant references. We'll also require details of your assets and liabilities, including bank statements showing savings for your deposit, statements for any existing loans, and credit card limits. If you're purchasing a property, we'll need the contract of sale or property details. Additional documentation may be required depending on your situation. For instance, property investors need rental income evidence, and SMSF purchases require trust deeds and documentation showing compliance with superannuation regulations. At Mortgage Path, we provide a comprehensive checklist tailored to your circumstances and explain why each document is needed, making the collection process more manageable.

In most cases, our mortgage broking services don't cost you anything directly. Mortgage brokers in Australia are typically paid a commission by the lender once your loan settles. This means you receive professional advice, loan comparison services, and application support without paying upfront fees. The commission structure is regulated by law and doesn't affect the interest rate or terms you receive. We're transparent about how we're remunerated and will always disclose our commission arrangements. In some specialised situations, such as complex commercial lending or certain self-managed superannuation fund loans, there may be a fee for service. However, we'll discuss this with you upfront before commencing any work. Our priority is ensuring you understand all costs involved in your property purchase or refinancing journey.

An offset account is a transaction account linked to your home loan where the balance reduces the amount of interest you pay on your mortgage. For example, if you have a mortgage of $400,000 and $20,000 in your offset account, you only pay interest on $380,000. Your funds remain accessible for everyday expenses, unlike making additional repayments into the loan itself. This flexibility can be particularly valuable for property investors, as the interest on investment loans is typically tax-deductible, but keeping funds in an offset rather than paying down the loan directly can provide tax advantages. Offset accounts are also helpful for people with irregular income or those saving for upcoming expenses, as you reduce interest charges whilst maintaining access to your money. However, loans with offset facilities sometimes have slightly higher fees or interest rates than basic loans. At Mortgage Path, we help you evaluate whether the interest savings from an offset account will exceed any additional costs, based on your likely account balance and spending patterns.

Pre-approval, also called conditional approval, is an initial assessment where a lender agrees in principle to lend you a certain amount based on your financial information. This gives you confidence when house hunting because you know your borrowing capacity. Pre-approval typically lasts three to six months and helps you make offers on properties with greater certainty. However, it's subject to conditions such as providing additional documentation, property valuation, and maintaining your financial circumstances. Final approval occurs after you've found a property and the lender has assessed the specific property you're purchasing. The lender will conduct a valuation to ensure the property provides adequate security for the loan. They'll also reverify your financial situation hasn't changed since pre-approval. Once final approval is granted and all conditions are satisfied, the loan proceeds to settlement. At Mortgage Path, we guide you through both stages and ensure you understand what's required at each point.

Refinancing can be worthwhile for various reasons, and the decision depends on your individual circumstances and goals. Common reasons to refinance include accessing equity for renovations or investment purposes, consolidating debts into your mortgage to reduce overall repayments, or switching from interest-only to principal and interest repayments. Some borrowers refinance to access features their current loan lacks, such as offset accounts or redraw facilities. Before refinancing, you need to consider the costs involved, including discharge fees from your current lender, application fees for the new loan, and potential valuation costs. You should also check if break costs apply if you're on a fixed-rate loan. At Mortgage Path, we conduct a thorough analysis of your current loan compared to available alternatives. We calculate whether the potential savings or benefits outweigh the costs of switching. Our assessment considers your long-term financial objectives, not just immediate savings, ensuring any recommendation aligns with your overall property and financial strategy.

Property investors have distinct financing needs, and we provide tailored advice for building and managing investment portfolios. We help structure your loans appropriately, which might involve interest-only repayments to maximise cash flow and tax benefits, or using offset accounts to maintain flexibility whilst reducing interest costs. We understand serviceability calculations for investment properties, including how rental income is assessed by different lenders and how to maximise your borrowing capacity across multiple properties. We can advise on the optimal sequencing of purchases and whether to use equity from existing properties as deposits for additional investments. Different lenders have varying policies regarding the number of investment properties they'll finance, and we know which lenders are more accommodating to portfolio investors. We also assist with refinancing investment properties to access equity or improve loan structures as your portfolio grows. Our understanding of depreciation schedules, negative gearing, and capital gains implications means we can refer you to appropriate tax specialists whilst ensuring your loan structure supports your investment strategy effectively.

A mortgage broker acts as an intermediary between you and potential lenders. At Mortgage Path, we work on your behalf to understand your financial situation, property goals, and borrowing needs. We then research and compare loan products from multiple lenders to find options that align with your circumstances. Our role involves preparing your application, liaising with lenders throughout the approval process, and explaining the terms and conditions of different loan products. This saves you considerable time and effort, as you benefit from our industry knowledge and established lender relationships. We handle the paperwork, negotiate on your behalf, and guide you through each stage until settlement. Unlike dealing directly with a single bank, working with a broker gives you access to a broader range of lending options and professional advice tailored to your specific needs.

Absolutely. We have considerable experience assisting self-employed Australians in securing home loans, refinancing, and investment property finance. We understand that self-employed applicants face unique challenges when applying for mortgages, as income verification differs from standard wage earners. We know which lenders have favourable policies towards self-employed borrowers and what documentation they require. This might include tax returns, business financial statements, accountant letters, or Business Activity Statements. We'll advise you on the most appropriate loan products and help present your financial position in the most favourable light to lenders. Some lenders offer low-doc or alternative documentation options for self-employed borrowers, and we can explain when these might be suitable. Our expertise means we can often help self-employed clients access finance when they've been declined elsewhere or told they need to wait longer before applying.

The timeline for mortgage approval varies depending on several factors, including the complexity of your financial situation, the lender you choose, and how quickly you can provide required documentation. Generally, pre-approval can take anywhere from 24 hours to five business days once we've submitted a complete application. Full approval and settlement typically takes between four to eight weeks from the initial application. Self-employed applicants or those with complex income structures may experience slightly longer processing times. Property investors seeking multiple loans or those applying through their SMSF might also require additional time for assessment. At Mortgage Path, we work efficiently to gather all necessary documentation upfront, which helps expedite the process. We maintain regular communication with lenders and keep you informed throughout each stage, ensuring there are no unexpected delays that could jeopardise your property purchase timeline.