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Frequently Asked Questions

  • We make the home loan process simple and personalized. First, we start with an initial chat either in person or over the phone to understand your goals and financial situation. Then we search across our panel of lenders (including major banks and specialty lenders) to find a few home loan options that suit your needs. We’ll explain the pros and cons of each option in clear, simple terms. Once you decide, we handle the entire application and paperwork for you, keeping you updated at every step. Essentially, we guide you from start to finish, so you can secure your loan with confidence and minimal stress. (And don’t worry – we’re always available to answer questions along the way, no matter how small.)

  • Orca Home Loans prides itself on being trustworthy, local, and education-focused. Our founder has over 26 years of finance experience, so you’ll have an industry veteran in your corner. We take the time to educate you on your options, not just push a product whether you’re a first-home buyer or upgrading to your next home, we make sure you fully understand the process. Being based in Sydney’s Eastern Suburbs, we know the local market inside-out and love helping our neighbors and community. And because we’re a boutique broker, you get friendly, personalized service. We treat every client like a VIP. In short, we’re here to empower you with knowledge and find a home loan that genuinely fits your situation. Feel free to reach out and experience the Orca difference for yourself!

  • No, our service is free for you. As mortgage brokers, we’re typically paid a commission by the lender when your loan settles, which means you don’t have to pay us for standard home loan services. We will always be transparent about how we get paid, and there are no hidden fees. Our goal is to find you the best possible loan from our panel of lenders, not to add to your costs. It’s essentially advice and loan shopping at no charge to you. (If a unique situation ever did involve a fee, we’d tell you upfront – but that’s quite rare.) Bottom line: it costs nothing to have a chat with us and explore your options.

  • The difference comes down to whether your rate stays the same or can change over time. With a fixed interest rate, your rate is locked in for a set period (e.g. 2 or 3 years), so your monthly repayments remain the same during that time. This stability makes budgeting easier as you’re protected if overall interest rates rise. The trade-off is that if rates drop, you won’t benefit, and fixed loans can be a bit less flexible (for example, limited extra repayments and potential break fees if you exit early).

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    With a variable interest rate, your rate can go up or down as the market changes. If interest rates fall, your repayments may decrease (saving you money), but if rates rise, your repayments can go up. Variable loans usually offer more flexibility, such as typically allowing you to make extra repayments freely, have access to an offset account, or redraw funds if needed. Many people like this flexibility and the chance to pay off the loan faster if they can.

    In summary: fixed = steady and predictable, variable = flexible but can fluctuate. Depending on your situation and comfort with risk, you might prefer one or even do a mix of both (splitting your loan into fixed and variable portions).

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    We’re happy to walk you through the options and help you decide which approach is best for you.

  • The “ideal” deposit is usually 20% of the property price, because a 20% deposit lets you avoid extra costs like Lenders Mortgage Insurance. However, many buyers (especially first-home buyers) put down less than 20%. It’s absolutely possible to buy with, say, a 10% or 5% deposit, you just need to be aware of the implications. If your deposit is under 20%, most lenders will require you to pay Lenders Mortgage Insurance (LMI), which protects the lender (we explain LMI in another FAQ below). There are also some government schemes that allow smaller deposits without LMI for those who qualify (for example, the First Home Guarantee scheme allows eligible first-home buyers to purchase with only 5% down and no LMI).

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    Keep in mind, the bigger the deposit you have, generally the less you need to borrow, which means lower monthly repayments. But we know saving a huge deposit in Sydney can be challenging (it can take years). The good news is we’ll help you explore all your options. We can discuss strategies like family guarantor loans (where a parent can help secure the loan) or see if you qualify for any low-deposit first-home buyer programs. Also remember to budget for other upfront costs like stamp duty, legal fees, and inspections when planning your purchase. Every situation is different, so feel free to talk with us about what deposit you might need. We’re here to help you make a plan to get into your home sooner!

  • Lenders Mortgage Insurance (LMI) is an insurance premium that you pay if your deposit is below a certain amount (usually 20% of the property value). It’s important to know LMI protects the lender, not you as the borrower. Essentially, if you borrow more than about 80% of the purchase price, the lender wants insurance in case you can’t repay the loan. LMI can cost several thousands of dollars, and it’s often added on top of your loan amount (so you might be paying it off over time).

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    Nobody loves paying LMI, but it does enable many people to buy a home sooner with a smaller deposit.

  • Here are a few ways:

    • Save a 20% deposit: If you can wait and save up at least 20%, you won’t need to pay LMI.

    • First Home Guarantee: If you’re an eligible first-home buyer, the federal government’s First Home Guarantee scheme allows you to buy with as little as 5% deposit without LMI (the government acts as guarantor for the difference).

    • Family Guarantor Loan: Some buyers have a parent or family member who can offer part of their home’s equity as security. This guarantor support can effectively boost your deposit and sidestep LMI.

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    Every scenario is unique, so we can look at your situation and see if LMI applies or if there’s a way around it. We’ll always explain the costs upfront.

    Our aim is to help you get your foot in the property door in the most cost-effective way possible. If avoiding LMI isn’t possible, we’ll make sure you understand the cost and that it’s still a worthwhile move for your long-term goals.

  • A pre-approval (also called conditional approval) is basically a green light from a lender for a certain loan amount, given your financial situation – but it’s not yet final or guaranteed. Getting pre-approved means the bank has reviewed key details like your income, expenses, and credit, and is comfortable in principle to lend you up to a specified amount. The pre-approval usually lasts a few months while you house hunt. It doesn’t lock you into that lender, but it gives you confidence about your budget.

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    Having a pre-approval is highly recommended, especially for first-home buyers or anyone looking to purchase soon. It lets you know how much you can afford to spend before you start making offers, which prevents heartbreak later. Sellers (and real estate agents) will also take you more seriously if you can say you’ve been pre-approved as it shows you’re prepared and financially capable. Keep in mind, final approval will still require things like the property valuation and any updated financial documents to check nothing has changed. The process typically involves a quick fact-find and paperwork submission to the lender. It’s free and gives you peace of mind while shopping for your dream home. Reach out to us to get started on a pre-approval so you can house-hunt with confidence.

  • Buying your first home can feel overwhelming, but there are some great programs and incentives to give first-time buyers a boost. Here are a few key assistance programs:

    • First Home Guarantee: A federal government scheme that allows eligible first-home buyers to purchase with just 5% deposit and no LMI. This can save you tens of thousands in insurance costs and let you buy sooner.

    • First Home Owner Grant (FHOG): This is a one-off grant (for example, in NSW it’s currently $10,000) to help first-time buyers, usually applicable if you’re buying a brand new home or building. The rules vary by state, for example in NSW it’s for new homes under certain price caps.

    • Stamp Duty Concessions: In NSW and many other states, first-home buyers get discounts or even exemptions on stamp duty (the property transfer tax) up to certain property values. This can significantly lower your upfront costs.

    • First Home Buyer Assistance Scheme (NSW): NSW has periodically offered programs (like the recent First Home Buyer Choice) that either reduce stamp duty or allow an alternative smaller annual property tax for first homes under a price threshold. The specific schemes can change with government policy, but they’re aimed at making it easier to afford your first home.

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    These programs have eligibility criteria (for example, income or property value limits, whether you’ve owned property before, etc.), and they do change from time to time. We stay up-to-date on all the latest first-home buyer incentives. When you work with Orca Home Loans, we’ll check which grants or schemes you can access and guide you through the application for them.

    We also have a free First-Home Buyer Guide available. It’s a handy downloadable resource that explains these programs in detail and offers tips for new buyers. If you’re unsure what you qualify for, just ask! We’re here to make the journey to your first home as smooth (and affordable) as possible.

  • A bridging loan is a short-term loan that helps you finance a new property while you’re in the process of selling your existing one. It’s basically a “bridge” between buying and selling. Here’s how it works: imagine you’ve found your next dream home and want to buy it before your current house is sold. A bridging loan gives you the funds to purchase the new home, using your current property’s equity as security, so you don’t have to wait. Then, once you sell your old property (usually within 6 to 12 months), you use the sale proceeds to pay down the bridging loan.

     

    During the bridging period, many loans are interest-only (or even allow you to capitalize the interest, meaning you don’t make any payments on the bridging loan until your house is sold). This makes it feasible to hold two properties briefly. Keep in mind, until you sell, you’ll owe the debt on both the old and new property, so you need to be confident in your ability to sell the first property in a reasonable time. Bridging loans can be a bit more complex than standard loans. Not every lender offers them and the terms can vary.

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    Orca Home Loans has experience with bridging finance and can explain if it’s a good option for your situation. If you’re an upgrader wondering “should I buy first or sell first?”, let’s chat. We’ll look at your numbers and timeline to see if a bridging loan makes sense and guide you through the process if you decide to go that route.

  • Yes, absolutely. Self-employed professionals can get home loans, and we help clients like this all the time. Being self-employed just means the paperwork and process might be a little different than for a PAYG salaried person. Lenders will still want to see that you have a stable income and can afford the loan, but instead of payslips you’ll provide documents like business financial statements, tax returns, and notices of assessment from the ATO. Typically, banks like to see at least two years of income history for your business. If your income fluctuates, they might take an average of the last two years’ profits or some figure that reflects your earnings.

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    Don’t be discouraged as there are also specialist lenders and “low-doc” loan options for self-employed people who might not have traditional financial documents ready. These might let you verify income with alternative documents (like BAS statements or an accountant’s letter) if your situation warrants it. The key is to prepare your financial documents and understand your borrowing capacity (we can help with that). We’ll present your case in the best light to lenders, highlighting your business’s strengths and adding any necessary explanations (for example, one-off expenses or COVID-impacted income, etc.). Orca Home Loans has a strong focus on professionals and business owners as we understand the challenges of being your own boss. We’ll work hard to find a lender that appreciates your professional success and can offer a competitive loan. Feel free to contact us for a personalised assessment of your situation as we’re here to help self-employed clients navigate the mortgage maze with confidence.

  • At Orca Home Loans, we use smart tools to securely access key financial information (with your permission), which means less paperwork and fewer headaches for you. We’ll guide you through what’s needed and help compile everything in the format lenders prefer.

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    Here’s a general idea of what might be required:

    • ID documents: Passport, driver’s license, or other photo ID (to meet the 100-point check).

    • Income proof: Payslips for employees; tax returns or BAS statements for self-employed clients.

    • Savings/deposit evidence: Bank statements showing your deposit or savings history.

    • Expenses and debts: Statements for loans or credit cards, plus a general overview of your living costs.

    • Property details (if applicable): Contract of sale and conveyancer contact info, or current loan statements if refinancing.

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    Remember, we’re here to make the process smooth, simple, and stress-free, so you can focus on the exciting part: finding your new home.

  • Your borrowing power (how much you can borrow) is determined by a few key factors that lenders evaluate. In a nutshell, they look at your income, your expenses, and your existing debts, and see what loan repayment you could comfortably afford given current interest rates. Here are the main things that go into the calculation:

    • Income: This includes your salary or wages, and may also include other consistent income like bonuses, rental income from investment properties, or business income if you’re self-employed. (Lenders typically take an average of your past 2 years’ business income if you’re self-employed.)

    • Expenses: Lenders examine your living expenses which includes things like food, utilities, insurance, transportation, and discretionary spending. They often compare your stated expenses to a benchmark (the HEM - Household Expenditure Measure) to ensure your figures are realistic.

    • Debts: Any existing loans or credit commitments will reduce your borrowing capacity. Credit cards are factored in too (usually lenders assume you might use the full credit limit, even if you don’t). They account for monthly repayments on things like car loans, personal loans, HECS/HELP study loans, and so on.

    • Deposit and Property Value: The size of your deposit matters. A larger deposit not only reduces how much you need to borrow, but it also can avoid LMI and might qualify you for better interest rates. The lender will also consider the property value (via a valuation) because they won’t lend above a certain percentage of the property value (that’s the Loan-to-Value Ratio limit).

    • Interest Rates and Buffers: Lenders test your ability to pay not just at the current interest rate, but with a buffer (often around 3% above the current rate) to ensure you could handle future rate rises. This is a regulatory requirement to keep lending responsible.

    • Credit History: Your credit score and credit report are checked to see if you have a history of good repayment behavior. A strong credit history can boost your borrowing capacity slightly, while any credit issues might reduce it.

     

    All these factors go into the lender’s calculators to produce a maximum loan amount they’d approve for you. Every bank has a slightly different calculator and policy, so one might lend you more or less than another, even with the same info. Don’t worry, we do this math for you. As your broker, we can quickly estimate your borrowing capacity across multiple lenders. We’ll explain the result and, if it’s lower than you hoped, we can discuss ways to improve it (like reducing debts or opting for a longer loan term to lower the repayments). The goal is to ensure you borrow an amount that you can comfortably afford without stress. Contact us for a personalised borrowing capacity assessment and we’ll happily crunch the numbers and guide you toward a sensible budget for your home purchase.

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