Frequently Asked Questions
We start with a chat to understand your goals, compare your options across our panel of lenders, then manage the full application for you.
Here's what that looks like in practice. First, we have an initial conversation, in person or over the phone, about 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 you. We explain the pros and cons of each in plain language. Once you decide, we handle the entire application and paperwork, keeping you updated at every step. We're also available for questions along the way, no matter how small.
Orca is a boutique, education-focused broker led by a founder with over 26 years of finance experience, based locally in Sydney's Eastern Suburbs.
We take the time to educate you on your options rather than just pushing a product, whether you're a first home buyer, refinancer or upgrading to your next home. Being based in the Eastern Suburbs means we know the local market well. As a boutique broker, you get personalised service rather than being one of many files at a large call-centre-style broker.
No, our service typically comes at no direct cost to you. We're paid a commission by the lender once your loan settles.
We're always transparent about how we're paid, and there are no hidden fees. Our goal is to find a loan suited to your needs from our panel of lenders, not to add to your costs. It costs nothing to have a chat with us and explore your options.
A fixed rate locks in your repayments for a set period, while a variable rate can move up or down as the market changes.
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With a fixed interest rate, your rate is locked in (commonly for 2-3 years), so your repayments stay the same during that time. This makes budgeting easier and protects you if rates rise, though you won't benefit if rates fall, and fixed loans are generally less flexible - extra repayments are often limited, and break fees can apply if you exit early.
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With a variable interest rate, your rate moves with the market. Repayments can fall if rates drop, or rise if rates increase. Variable loans usually offer more flexibility, such as unlimited extra repayments, an offset account, or redraw access.
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In short: fixed is steady and predictable, variable is flexible but can fluctuate. Some borrowers split their loan into fixed and variable portions to get a bit of both. We're happy to walk you through the options.
Twenty percent is the standard deposit benchmark, since it typically avoids Lenders Mortgage Insurance, but many buyers, especially first home buyers, purchase with less.
It's entirely possible to buy with a 10% or 5% deposit - you just need to understand the implications. If your deposit is under 20%, most lenders require Lenders Mortgage Insurance (LMI), which is covered in the next FAQ. Some government schemes allow a smaller deposit without LMI for eligible buyers - the First Home Guarantee, for example, allows eligible first home buyers to purchase with just 5% down and no LMI.
We can discuss strategies like family guarantor loans, or check whether you qualify for a low-deposit first home buyer program. Remember to budget for other upfront costs too, like stamp duty, legal fees, and inspections.
LMI is an insurance premium charged when your deposit is below 20% of the property value. It protects the lender, not you.
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If you borrow more than around 80% of the purchase price, the lender takes out insurance in case you can't repay the loan. LMI can cost several thousand dollars and is often added to your loan amount rather than paid upfront, so you may be paying it off over time. It isn't popular, but it does let many buyers purchase sooner with a smaller deposit.
The main ways are saving a full 20% deposit, using the First Home Guarantee, or using a family guarantor loan.
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Save a 20% deposit: if you can wait and save at least 20%, LMI isn't required.
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First Home Guarantee: eligible first home buyers can purchase with as little as 5% deposit and no LMI, with the government acting as guarantor for the difference.
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Family guarantor loan: a parent or family member offers part of their home's equity as security, which can boost your deposit and avoid LMI.
Every situation is different, so we look at your specific case to see if LMI applies or if there's a way around it, and we always explain the cost upfront.
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Pre-approval is an indication from a lender of how much they'll lend you, based on your financial situation, though it isn't final or guaranteed.
Getting pre-approved means the lender has reviewed your income, expenses, and credit, and is comfortable in principle lending up to a set amount. It usually lasts a few months while you house-hunt, and doesn't lock you into that lender.
Pre-approval is highly recommended, especially for first home buyers. It tells you your real budget before you start making offers, and sellers take you more seriously when you can show you're pre-approved. Final approval still requires a property valuation and updated documents. The process is free and typically involves just a quick fact-find and paperwork submission.
Key programs include the First Home Guarantee (5% deposit, no LMI), the First Home Owner Grant, and NSW stamp duty concessions.
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First Home Guarantee: a federal scheme allowing eligible first home buyers to purchase with just 5% deposit and no LMI, saving tens of thousands in insurance costs.
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First Home Owner Grant (FHOG): a one-off grant (currently $10,000 in NSW) generally for buyers building or purchasing a new home, with rules varying by state.
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Stamp duty concessions: discounts or exemptions for first home buyers up to certain property values, significantly lowering upfront costs.
Eligibility criteria apply and change over time, so we stay current on the latest incentives and check which grants or schemes you can access. We also have a free First Home Buyer Guide covering these programs in more detail.
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A bridging loan is short-term finance that lets you buy a new property before your current one has sold, using your existing equity as security.
If you've found your next home and want to buy before your current house sells, a bridging loan provides the funds now. Once you sell your old property, usually within 6 to 12 months, the sale proceeds pay down the bridging loan.
Many bridging loans are interest-only during this period, or even let you capitalise the interest so you make no payments until your house sells. Not every lender offers bridging finance, and terms vary. If you're an upgrader or downsizer weighing up buying first or selling first, we can look at your numbers and timeline together.
Yes. Self-employed applicants can get home loans - the documentation is just different to a PAYG application.
Instead of payslips, you'll typically provide business financial statements, tax returns, and ATO notices of assessment. Lenders usually want at least two years of income history, and may average your last two years' profits if income fluctuates.
Specialist lenders and low-doc loan options exist for self-employed borrowers without traditional financial documents ready, sometimes accepting alternatives like BAS statements or an accountant's letter. We prepare your financial documents, help you understand your borrowing capacity, and present your case in the best light to lenders.
Generally: photo ID, income proof, evidence of savings, a summary of debts, and property details if applicable.
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ID documents: passport, driver's licence, or other photo ID
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Income proof: payslips for employees, or tax returns and BAS statements for self-employed clients
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Savings and deposit evidence: bank statements showing your deposit or savings history
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Expenses and debts: loan and credit card statements, plus a general overview of living costs
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Property details (if applicable): contract of sale and conveyancer contact info, or current loan statements if refinancing
We use secure tools to access key financial information with your permission, which usually means less paperwork for you.
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Lenders look at your income, expenses, existing debts, deposit size, and current interest rates (plus a buffer) to work out what you can comfortably repay.
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Income: salary or wages, plus consistent extra income like bonuses, rental income, or business income
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Expenses: living costs, compared against the HEM (Household Expenditure Measure) benchmark
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Debts: existing loans and credit cards, including HECS/HELP, with credit cards assessed at their full limit even if unused
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Deposit and property value: a larger deposit reduces how much you need to borrow and can improve your rate; the property's valuation also caps lending via the Loan-to-Value Ratio
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Interest rate buffer: lenders test affordability at roughly 3% above the current rate, a regulatory requirement to keep lending responsible
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Credit history: a strong credit record can boost borrowing capacity slightly; credit issues can reduce it
Every lender's calculator and policy differs slightly, so one may lend more or less than another for the same information. We estimate your borrowing capacity across multiple lenders and explain the result - if it's lower than hoped, we can discuss ways to improve it.
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Yes, though vacant land loans are assessed a little differently to a standard home loan, and often require plans to build within a set timeframe.
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Lenders typically want to see that you intend to build on the land, and may require a construction loan to follow once you're ready to start. Loan-to-Value Ratio limits for vacant land are sometimes lower than for an established property, and location matters more too - rural or unusually large blocks can be assessed more conservatively. If buying vacant land is part of your plan, it's worth talking to us early, since financing a land purchase and a subsequent build works differently to a standard purchase.