Frequently asked questions

Working With Us

Q: What is a mortgage broker and how are they different from a bank?

A mortgage broker acts as an intermediary between you and lenders. Unlike a bank, which can only offer its own products, a broker compares home loans across multiple lenders, in our case, 40+ to find the best fit for your situation. We handle the research, paperwork, and lender negotiations on your behalf. Our service is free to you; we are paid a commission by the lender when your loan settles.

Q: How much does it cost to use StepUp Wealth?

Nothing. Our service is completely free to you. We are paid an upfront commission and an ongoing trail commission by the lender when your loan settles. These commissions are disclosed to you in writing before you proceed with any application, in accordance with our Best Interests Duty obligations. The commission does not affect the interest rate or fees you pay.

Q: Do I need to come into an office?

No. We are 100% remote. All meetings are conducted via video call or phone, and all documents are handled digitally. You can complete the entire process from your home or office, at a time that suits you.

Q: How long does the process take?

The initial strategy session takes 30 to 60 minutes. From there, we typically submit your application within 3 to 5 business days of receiving your documents. Formal approval from the lender usually takes 3 to 10 business days, depending on the lender and complexity of your application. Settlement timelines vary depending on whether you are purchasing or refinancing.

Q: What lenders do you work with?

We work with a panel of 40+ lenders including the major banks (ANZ, CBA, NAB, Westpac), second-tier lenders (ING, Macquarie, Bankwest, ME Bank), and specialist lenders for complex situations. We are not aligned to any single lender, which means our recommendations are based on what is best for your situation.

First Home Buyers

Q: How much deposit do I need to buy my first home?

The minimum deposit for most lenders is 5% of the purchase price. However, if your deposit is below 20%, you will generally need to pay Lenders Mortgage Insurance (LMI), which protects the lender if you default. LMI can add thousands to your loan cost. We will help you understand whether saving a larger deposit, using a guarantor, or accessing a government scheme (such as the First Home Guarantee) is the right approach for your situation.

Q: What is the First Home Guarantee (FHBG)?

The First Home Guarantee (formerly the First Home Loan Deposit Scheme) allows eligible first home buyers to purchase with as little as a 5% deposit without paying LMI. The federal government guarantees up to 15% of the loan, making up the difference. There are income and property price caps, and places are limited each financial year. We will assess your eligibility and help you apply through a participating lender.

Q: What is the First Home Owner Grant (FHOG)?

The First Home Owner Grant is a state government grant available to eligible first home buyers purchasing or building a new home. The amount varies by state, in NSW it is $10,000 for new homes valued up to $600,000. We will confirm your eligibility and ensure the grant is applied correctly at settlement.

Q: What is stamp duty and do first home buyers get a concession?

Stamp duty (also called transfer duty) is a state government tax on property purchases. It is calculated as a percentage of the purchase price and varies by state. Most states offer stamp duty concessions or exemptions for first home buyers purchasing below a certain threshold. In NSW, for example, first home buyers purchasing a home valued up to $800,000 pay no stamp duty. We will calculate your exact stamp duty liability and any concessions you are entitled to.

Q: What is Lenders Mortgage Insurance (LMI)?

LMI is an insurance premium charged by the lender when your deposit is below 20% of the purchase price (i.e. your LVR is above 80%). It protects the lender, not you, if you default on the loan. LMI can range from a few thousand dollars to tens of thousands depending on your loan size and LVR. It can be paid upfront or capitalised (added to your loan balance). We will calculate your exact LMI cost and explore options to reduce or avoid it.

Q: Can I use the First Home Super Saver Scheme (FHSS)?

Yes, if you are eligible. The FHSS allows you to make voluntary contributions to your superannuation fund and then withdraw them (up to $50,000 total) for a first home purchase. The tax advantages can make it a more efficient way to save your deposit compared to a standard savings account. We recommend speaking with your financial adviser or accountant about whether FHSS is suitable for your situation.

Refinancing

Q: When should I consider refinancing?

You should consider refinancing if your current interest rate is higher than what is available in the market, if your fixed rate period is ending, if your financial situation has improved and you may qualify for a better rate, if you want to access equity in your property, or if you want to consolidate debt. As a general rule, if you can save 0.5% or more on your interest rate, refinancing is worth exploring, though we will always calculate the full cost including any break fees or discharge costs.

Q: What does it cost to refinance?

Refinancing costs typically include a discharge fee from your current lender ($150 to $400), a new loan establishment fee ($0 to $600 depending on the lender), government registration fees ($100 to $200), and potentially LMI if your LVR is above 80%. If you are on a fixed rate, you may also face a break cost, which can be significant. We will calculate the full cost of refinancing and the time it takes to recoup those costs through your interest savings (the "break-even point").

Q: How much can I save by refinancing?

This depends on your current rate, your loan balance, and the rate you can access. As an example, refinancing a $600,000 loan from 6.5% to 5.9% saves approximately $3,600 per year in interest. Over a 25-year loan term, the compounding effect of a lower rate is substantial. We will run the exact numbers for your situation.

Q: Will refinancing affect my credit score?

Every loan application results in a credit enquiry, which can have a minor short-term impact on your credit score. However, if refinancing results in a lower rate and you manage the loan well, the long-term impact on your credit profile is positive. We will assess your credit position before submitting any application to ensure you are in a strong position.

Q: Can I refinance if I have less than 20% equity?

Yes, but you may need to pay LMI again if your LVR is above 80%. In some cases, the interest savings from refinancing still outweigh the LMI cost. We will calculate this for your specific situation. Some lenders also offer LMI waivers for certain professions (doctors, lawyers, accountants, engineers). We will check your eligibility.

Home Loan Basics

Q: What is the difference between a fixed and variable interest rate?

A fixed rate is locked in for a set period (typically 1 to 5 years), giving you certainty about your repayments regardless of market movements. A variable rate moves with the market, it can go up or down. Variable rates typically offer more flexibility (extra repayments, offset accounts, redraw). A split loan combines both - part fixed, part variable. We will help you choose the right structure based on your goals and risk tolerance.

Q: What is an offset account and how does it work?

An offset account is a transaction account linked to your home loan. The balance in the offset account is subtracted from your loan balance when calculating interest. For example, if you have a $500,000 loan and $50,000 in your offset account, you only pay interest on $450,000. This can save significant interest over the life of your loan and reduce your loan term. Most variable rate loans offer offset accounts; fixed rate loans typically do not.

Q: What is a redraw facility?

A redraw facility allows you to access extra repayments you have made on your loan. For example, if you have paid $20,000 ahead of schedule, you can redraw up to that amount. Unlike an offset account, redrawn funds are taken back from your loan balance, which means you will pay interest on them again. Redraw is less flexible than offset but is available on more loan types, including some fixed rate loans.

Q: What is LVR (Loan-to-Value Ratio)?

LVR is the percentage of the property value that you are borrowing. For example, if you are buying a $700,000 property with a $140,000 deposit, your LVR is 80% ($560,000 loan divided by $700,000 property value). LVR affects your interest rate (lower LVR means a better rate), whether you need to pay LMI (LVR above 80% usually triggers LMI), and which lenders and products you are eligible for.

Q: What is the difference between the interest rate and comparison rate?

The interest rate is the base rate used to calculate your repayments. The comparison rate includes the interest rate plus most fees and charges, expressed as a single annual percentage. It is designed to help you compare the true cost of different loans. However, the comparison rate is calculated on a standard $150,000 loan over 25 years - it may not accurately reflect your actual costs for larger or shorter loans. We always show you the full cost breakdown.

Q: Should I choose principal and interest or interest-only repayments?

Principal and interest (P&I) repayments reduce your loan balance over time and build equity. Interest-only (IO) repayments only cover the interest - your loan balance does not reduce. IO is often used by investors for cash flow and tax reasons, but you will pay more interest over the life of the loan. For owner-occupiers, P&I is almost always the better long-term choice. We will explain the implications for your specific situation.

Investment Property

Q: How much deposit do I need for an investment property?

Typically 10 to 20% of the purchase price, plus costs (stamp duty, legal fees, building inspection, etc.). If you have equity in your existing home, you may be able to use that as your deposit - avoiding the need for cash savings. We will calculate your usable equity and the most efficient way to structure the purchase.

Q: Can I use equity in my home to buy an investment property?

Yes. If you have sufficient equity in your home (typically 20%+ of your home's value above your current loan balance), you may be able to access it as a deposit for an investment property. This is done through a cash-out refinance or a line of credit. We will calculate your usable equity and structure the most efficient approach.

Q: What is cross-collateralisation and should I avoid it?

Cross-collateralisation is when a lender uses multiple properties as security for a single loan or portfolio of loans. While it can simplify your lending initially, it significantly reduces your flexibility - you cannot sell or refinance one property without the lender's involvement in all of them. We structure investment loans to avoid cross-collateralisation wherever possible, keeping each property's loan independent.