FAQs

A mortgage broker focuses on home and investment property loans, while a finance broker has a broader scope — including personal, business, and commercial lending. At Pacific Horizon Finance, we’re licensed to help with both, giving you more choice.

A broker helps you:

• Understand your borrowing capacity
• Compare loans from multiple lenders
• Choose a loan tailored to your goals
• Handle the paperwork and application
• Support you through to settlement

They act in your best interest and simplify the process.

For most standard home and investment loans, our service is free — we’re paid a commission by the lender after your loan settles.

However, a service fee may apply for:

• SMSF loans
• Credit-impaired or non-conforming lending
• Business or commercial loans (case-by-case)

If any fee applies, it will always be disclosed and agreed upon upfront.

Banks only offer their own products. A broker compares dozens of lenders and negotiates on your behalf — which can mean better rates, more flexible policies, and a greater chance of approval if your situation is outside-the-box.

1. Fact Find & Discovery
2. Research & Strategy
3. Loan Options Presentation
4. Application & Submission
5. Approval & Settlement
6. Ongoing Support (if needed)

We guide you from start to finish — and stay available even after your loan settles.

Often, yes — brokers may have access to competitive or broker-only-rates and can negotiate on your behalf. But the rate you’re offered depends on your financial profile and the lender’s policies. Our focus is on finding the right balance between a sharp rate and a loan structure that aligns with your long-term goals.

Depending on your state and circumstances, you may be eligible for:

• First Home Owner Grant (FHOG)
• Stamp duty concessions
• Shared equity or government support schemes

We’ll help you explore what’s available in your region.

Most lenders require 5–20% of the purchase price. A 20% deposit avoids Lenders Mortgage Insurance (LMI), but some professionals (like doctors, accountants, or lawyers) may qualify for LMI waivers even with smaller deposits.

Government schemes or guarantors can also help reduce deposit requirements. Every lender has different policies, so It’s best to speak with a mortgage broker who can assess your situation and guide you through your options.

Common costs include:

• Stamp duty
• Conveyancing and legal fees
• Building and pest inspections
• Loan setup fees and LMI (if applicable)
• Government charges
• Moving costs or utility connections

Stamp duty is a state-based tax charged on property purchases. The amount depends on location, purchase price, and buyer status (e.g., first home buyer). Concessions or exemptions may apply.

Selling first gives certainty. Buying first secures your next home but may require a bridging loan. We’ll help you assess based on your financial position and market conditions.

You can:

• Pay off the existing loan
• Apply to port the loan to your new property (if allowed)
• Or refinance with a new lender

We’ll help explore the best approach.

Refinancing means switching to a new lender or loan for better rates or features. Costs may include:

• Discharge and setup fees
• Valuation costs
• Break costs (for fixed loans)

Often, the long-term savings outweigh upfront costs.

Redraw lets you access extra repayments you’ve made on your loan. It can be a useful way to reduce interest while still giving you access to those funds when needed.

An offset is a bank account linked to your home loan. The money in this account doesn’t earn interest – instead, if offsets your loan balance for interest calculation purposes.

Example:

Home Loan = $400,000

Offset account = $20,000

You’re only charged interest on $380,000.

Most lenders require the offset account to be in the same name as the home loan holder(s) for the feature to work properly. Check with your lender or broker to be sure.

• Offset: A separate bank account linked to your home loan
• Redraw: Accesses surplus repayments directly from the loan

Offset accounts generally offer more flexibility, but both save interest.

• Fixed rate: Your interest rate is locked in for a set period (e.g. 1-5 years). Repayments stay the same, which can help with budgeting. But if you refinance or pay out the loan early during the fixed term, break costs may apply.
• Variable rate: The rate can go up or down with the market. These loans often come with more features and flexibility (e.g. offset accounts, unlimited extra repayments).

Some borrowers choose a split loan, combining fixed and variable portions to get the best of both worlds.

Loan-to-Value Ratio (LVR) is the amount you’re borrowing compared to the property’s value — shown as a percentage.

Example:

If your property is valued at $500,000 and you borrow $400,000, your LVR is 80%.

A lower LVR generally means lower risk to the lender — which can help you avoid Lenders Mortgage Insurance (LMI) and potentially secure a better interest rate.

Note: Property value is usually based on the lender’s valuation report, which may differ from the purchase price or market estimate.

LMI protects the lender – not you – if you’re unable to repay your loan. It’s usually required when borrowing more than 80% of the property’s value (LVR).

You can either pay if upfront or add it to your loan (capitalise it). We can help you explore ways to reduce or avoid LMI, depending on your situation.

Equity is the difference between your property’s current market value and your loan balance — it’s the portion you truly own.

Example:

Home value: $800,000

Loan balance: $500,000

Equity = $300,000

While online estimates can provide a guide, lenders calculate usable equity based on a formal valuation during your application. This impacts how much you may be able to borrow.

You may be able to access equity for things like renovations, investing, or consolidating debt — subject to lender approval. We can help you assess how much is available and which loan structure suits your goals.

A “good” loan is one that works for your current situation and supports your long-term goals. It typically:

• Suits your financial needs now and in the future
• Offers flexibility in case your circumstances change (e.g. redraw or offset facilities)
• Is competitively priced for the features it includes
• May offer tax benefits — for example, interest on an investment loan could be tax-deductible*

*This is general information only. You should speak with a licensed tax adviser or accountant for advice specific to your situation.

A “bad” loan is one that doesn’t align with your goals or may cost you more than necessary. This could include loans that:

• Have high interest rates or unnecessary fees (e.g. exit fees or ongoing account charges) • Lack flexibility — such as no offset or redraw options
• Aren’t structured in a way that supports your future plans
• Provide no tax benefit — for example, a personal-use home loan not set up for future investment

Note: A “bad” loan doesn’t always mean it’s the wrong loan — it may simply not be working as well as it could. It’s worth reviewing regularly to ensure it still suits your needs.

Gearing refers to borrowing money to invest, usually in property or shares. There are two main types:

• Negative gearing is when your investment expenses (like interest and maintenance) are higher than the income it generates. This results in a loss, which may be used to reduce your taxable income. * • Positive gearing is when the income from your investment exceeds your expenses, generating a surplus. This extra income is generally taxable.

*This is general information only and doesn’t take your personal circumstances into account. Speak with a licensed tax adviser for personalised advice.

Debt recycling is a long-term financial strategy that involves turning non-deductible debt (like a home loan) into potentially tax-deductible investment debt. This is usually done in stages and may involve:

1. Using available equity or surplus funds to invest
2. Applying investment income or returns to reduce your home loan
3. Reborrowing against your home loan to invest again — repeating the cycle

This approach can help build wealth over time, but it involves risk and isn’t suitable for everyone. Market fluctuations, interest rate changes, and investment performance all play a role.

Important: This is general information only and not financial advice. Please speak with a licensed financial adviser before considering this strategy.

Commercial lending refers to loans used for business purposes — such as purchasing property, funding growth, managing cash flow, or acquiring assets. These loans are tailored to meet business needs and are assessed differently from personal lending.

Some common types include:

• Term loans
• Lines of credit
• Equipment or asset finance
• Commercial property loans
• Invoice financing
• Business overdrafts

Each type supports a different business purpose — from purchasing assets to managing cash flow. We can help you choose the right solution for your goals.

Typically, you’ll need:

• Business financials (e.g. BAS, tax returns, profit & loss statements)
• ABN or ACN
• Purpose of funds or business plan
• Identification documents

Requirements vary depending on the lender and loan type. We’ll guide you every step of the way.

This depends on your business’s financial position, credit profile, loan type, and the security offered. Lenders assess:

• Cash flow and debt servicing ability
• Assets and liabilities
• Credit history and overall risk
• For commercial properties: lease returns, tenant strength, and property type may also be considered.

We’ll help you understand your borrowing capacity and tailor options that suit your goals.

Most lenders require a deposit of 20–30% of the property’s value.

However, the exact amount can vary based on factors such as:

• Property type (e.g. specialised or single-use properties may require more)
• Loan structure (e.g. interest-only loans may require a larger deposit)
• Lender type (some private or non-conforming lenders may accept lower deposits but often charge higher interest rates or fees)

We’ll assess your situation and help match you with a lender that fits your needs and goals.

Yes – but lenders usually require a strong business plan, financial forecasts, and often personal financial backing. Some startups may also benefit from government grants or alternative lenders, depending on their situation.

Sometimes – it depends on the complexity of the application. Any service fee will be clearly disclosed and agreed upon upfront. In many cases, fees may be waived.

Yes. Australian citizens living overseas (expats) can apply for home loans in Australia.

Lenders will assess:

• Foreign income and currency
• Tax obligations
• Employment stability

Note: Approvals may take longer and require extra documentation.

Yes. NZ citizens on a Special Category Visa (SCV) are generally treated like permanent residents. This means, in most cases:

• Access to standard home loan products with full borrowing rights
• No special restrictions for most property purchases

Yes — but conditions apply. Most lenders require:

• A higher deposit (typically 20–30%)
• A qualifying visa (e.g. 482, 491, 820, 309)
• Stable income in Australia

FIRB approval may be needed for property purchases.

Yes, though it’s more complex.

Lenders typically require:

• A 30–40% deposit
• Foreign Investment Review Board (FIRB) approval
• Only certain property types allowed (e.g. new dwellings, vacant land)
• Higher interest rates and stricter lending terms

It depends on your residency status, visa type, income source, and currency. Many lenders only accept income in major currencies (e.g. USD, GBP, SGD) and apply currency conversion buffers to manage risk.

We can help you understand your options and structure the loan to maximise your borrowing power.

You may need to provide:

• Passport and visa (if applicable)
• Proof of foreign income (e.g. payslips, tax returns)
• Australian Tax File Number (if available)
• FIRB approval (if required)
• ID verification and proof of deposit/funds

We’ll walk you through each step to make it easier.

The Foreign Investment Review Board (FIRB) regulates foreign purchases of Australian property. Non-residents usually need FIRB approval, while Australian citizens and most NZ citizens on Special Category Visas (SCV) do not.

We’ll help you understand whether FIRB applies in your case and guide you on what to expect — including timing — during the loan process.

Note: This information is general in nature. We recommend seeking legal or immigration advice if you’re unsure about FIRB requirements.

FIRB approval usually takes around 30 days, but timing can vary depending on your situation. It’s best to apply early if your purchase is time sensitive.

We can help coordinate the timing alongside your loan application.

Application fees for residential property acquisitions (as of June 2025) is:

• Under $1M – $14,100
• $1M–$2M – $28,200
• $2M–$3M – $42,300
• $3M–$4M – $56,400

Higher tiers apply for more expensive properties.

Note: These are base fees and may vary if buying through a trust, company, or multiple properties.

Over 55s finance includes loan options designed for those nearing or in retirement.

Lenders consider superannuation, investment income, and exit strategies. Common options include:

• Reverse mortgages
• Equity release loans
• Interest-only terms with asset-based servicing

Loan terms vary – Professional advice is essential before proceeding.

Low doc (or alt-doc) loans are designed for self-employed borrowers who may not have traditional income documents like payslips or recent tax returns. Instead, lenders may accept:

• BAS statements
• Business bank statements
• Accountant declarations

Lending criteria and documentation requirements vary — we’ll help you understand what’s needed for your situation.

Low doc or alt-doc loans are commonly used by:

• Sole traders and self-employed business owners
• Borrowers with irregular or seasonal income
• Those waiting to finalise recent tax returns

Eligibility varies between lenders. A clean credit history, provable income through alternative documents, and a strong exit strategy (especially for higher LVRs) can improve your chances.

Yes. Some lenders ojer solutions for borrowers with defaults, late payments, discharged bankruptcies, or low credit scores.

These are known as credit-impaired or non-conforming loans. While they may have higher interest rates or shorter terms, they can be a useful way to rebuild your credit and work toward refinancing in the future.

Non-conforming loans are designed for borrowers who don’t meet standard bank criteria — such as inconsistent income, unique employment, complex financials, or recent credit issues. These loans ojer flexible solutions where traditional lenders may not.

SMSF (Self-Managed Super Fund) loans let you buy residential or commercial property through your super. The property is held in a separate trust and must meet strict compliance requirements set by the ATO. These loans require larger deposits (usually 20–30%), and professional financial advice is strongly recommended.

Short-term loans (3–12 months) are used to cover urgent needs such as:

• Business cash flow gaps
• Bridging finance or urgent settlements
• Unexpected expenses or ATO debts

These loans usually have higher interest rates, shorter terms, and often require security like property or assets.