Frequently Asked Question
Get answers to common questions about buying property, mortgages, and property invesment.
Quick Links for FAQs
Frequently Asked Question
About Finset
What makes Finset Advisory different?
Finset Advisory was founded on a simple belief — a mortgage should do more than help you buy a property. It should be a tool to build wealth and create long-term financial freedom.
With over 10 years of lending experience, our founder, Ari Parh, saw that too many people focused only on interest rates instead of the bigger picture. That’s why Finset Advisory takes a strategic approach, helping clients structure their lending to support not just today’s purchase, but tomorrow’s goals.
Whether you’re buying your first home, upgrading, or growing an investment portfolio, we’re here to provide clear advice, tailored solutions, and ongoing support. Our goal isn’t just to settle your loan—it’s to become your trusted lending partner for years to come.
Buying a Home
How much deposit do I need for a home loan?
The amount you need depends on the property price, the type of loan, and the lender’s requirements. Many lenders may consider applications with as little as 5% deposit, although having a larger deposit can provide more options and potentially reduce costs. Once you’ve saved around 5% of your target purchase price, we’d be happy to discuss your borrowing options.
What is Lenders Mortgage Insurance (LMI)?
LMI is insurance that protects the lender, not the borrower, if a loan is not fully repaid. It is usually required when borrowing more than 80% of the property’s value and is generally paid as a one-off cost when the loan is established. The amount varies based on your loan size, deposit, and lender.
Should I include a ‘subject to finance’ clause?
In most cases, yes. A ‘subject to finance’ clause allows you to withdraw from the purchase if you’re unable to obtain formal loan approval within the agreed timeframe. This can provide important protection and help reduce the risk of losing your deposit. We also recommend having your contract reviewed by a qualified solicitor or conveyancer before signing.
Can first home buyers access any government support?
Many first home buyers may be eligible for government grants, stamp duty concessions, or first home guarantee schemes, depending on their circumstances and the property they’re purchasing. We can help you understand which programs may be available to you.
How much can I borrow as a first home buyer?
Your borrowing capacity depends on factors such as your income, expenses, existing debts, savings, and deposit. Every lender assesses applications differently, so we’ll help you understand your budget and find a loan that fits your goals and lifestyle.
Property Investments
Should I invest in property?
Property investment can be a powerful way to build long-term wealth, but success depends on having the right strategy, understanding your goals, and structuring your finances correctly. At Finset Advisory, we help you look beyond just buying a property by considering factors such as cash flow, loan structure, equity growth, and your long-term financial objectives.
How much deposit do I need to buy an investment property?
The deposit required depends on your financial position, the lender’s requirements, and your investment strategy. Some investors use their existing home equity to fund a deposit, while others use cash savings. We can help assess your borrowing capacity and explore the most suitable approach for your circumstances.
Should I choose principal and interest or interest-only repayments for an investment loan?
The right loan structure depends on your investment strategy, cash flow position, and long-term goals. Many investors consider interest-only loans to improve cash flow and maximise flexibility, while others prefer paying down debt faster. We help you understand the benefits and considerations of each option before making a decision.
How can I use my existing property to grow my investment portfolio?
As your property increases in value, you may build equity that could potentially be used to fund future investments. With the right lending strategy, your existing assets can become a foundation for building a property portfolio over time. We work with you to structure your lending in a way that supports your long-term wealth creation goals.
Borrowings
How long will it take me to get a loan?
Every loan is different, and the timeline depends on your circumstances, the type of loan, and the lender’s assessment process. As a guide, most home loans take around 4–6 weeks from application to settlement. We’ll keep you informed throughout the process and work to make it as smooth and efficient as possible.
We've settled. What's next?
Congratulations on your new property! Once your loan has settled, your lender will register the mortgage, and you’ll begin making your regular loan repayments. You’ll also be responsible for council rates and any ongoing property costs.
As your property grows in value and you build equity, it may be worth reviewing your loan to ensure it still meets your needs. We recommend checking in with us every 12–18 months to see if refinancing or restructuring your loan could help you save money or support your future financial goals.
When should I organise insurance for my new asset?
It’s a good idea to arrange insurance before you take ownership of your new property or vehicle, so you’re covered from day one. This helps avoid any gaps in protection if something unexpected happens.
While we don’t provide insurance advice, we can introduce you to a trusted insurance specialist who can help you find the right cover for your needs.
Loan Features
What is a buffer rate?
A buffer rate is additional percentage lenders apply when assessing your ability to repay a loan. It is designed to ensure you can continue to manage your mortgage repayments if interest rates increase in the future.
For example, if your loan interest rate is 5.5%, the lender may assess your application at a higher rate to make sure your finances can handle potential rate increases. This helps protect borrowers by ensuring they don’t take on more debt than they can comfortably afford.
What is the difference between a redraw and an offset account?
Both redraw facilities and offset accounts can help reduce the interest you pay on your home loan, but they work differently.
An offset account is a transaction account linked to your mortgage. The money held in this account reduces the amount of your loan balance that interest is calculated on, while still giving you access to your funds.
A redraw facility allows you to access extra repayments you have made towards your home loan. It can be a useful feature if you want to pay down your loan faster while keeping some flexibility.
The right option depends on your financial goals and how you manage your money.
Should I choose a fixed or variable interest rate?
The right choice depends on your personal circumstances, financial goals, and future.
A fixed-rate loan provides certainty by locking in your repayments for a set period, which can make budgeting easier. However, it may have less flexibility and could involve costs if you refinance or make significant changes during the fixed term.
A variable-rate loan generally offers more flexibility, with features such as offset accounts and redraw facilities, but repayments can change if interest rates move.
Some borrowers choose a split loan, combining both fixed and variable portions to balance certainty with flexibility. We can help you understand which structure best suits your situation.
Lenders
Why are there so many different lenders?
Every lender has different lending policies, interest rates, features, and assessment criteria. A loan that works well for one person may not be the right solution for another. Factors such as your income, employment type, financial goals, property type, and future plans all play a role in choosing the right lender.
At Finset Advisory, we compare a wide range of lenders to find a solution that aligns with your needs, not just a loan with the lowest advertised rate.
How do I choose the right lender for my situation?
The right lender depends on your individual circumstances and goals. Some lenders may offer better solutions for first-home buyers, while others may be more suitable for investors, self-employed clients, or those looking to grow their property portfolio.
We look beyond interest rates and consider factors such as loan structure, flexibility, approval policies, servicing requirements, and long-term suitability.
Why should I use a mortgage broker instead of approaching a bank directly?
A mortgage broker can provide access to a wide range of lenders and help you compare different loan options based on your circumstances. Instead of being limited to one bank’s products, you have the opportunity to explore solutions across multiple lenders.
We handle the research, application process, and communication with lenders, helping make the journey simpler while ensuring your loan strategy supports your broader financial goals.