Frequently asked questions

Q: How much can I borrow?

Q: How do I know which home loan is best for me?

Q: How much money do I have to save for a deposit?

Q. What other costs will I have to allow for when I purchase a house?

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

Q: How do I know if I’m eligible for the First Home Owner Grant?

Q. What is the First Home Owner Boost (FHOB) and am I eligible?

Q. Does the State Government give First Home Buyers a grant?

Q: How much money do I need for Stamp Duty?

Q: What is Lenders Mortgage Insurance?

Q: What documentation do I need when applying for a loan?

Q: What will my repayments be?

Q: How often can I make mortgage repayments?

Q: Is there a fee for the Aurora Finance Group service?

Q: Which lenders does Aurora Finance Group work with?

Q: How does Aurora Finance Group find a loan that’s suitable for me?

Q: What happens with my personal information?

Q: Do I have to do any of the paperwork?

Q: How long will it take to get my loan approved?

Q: What is settlement?

Q: Should I fix my loan or keep it variable?

Q: What’s the best type of loan for me?

Q: What happens when I complete and send you my Aurora Enquiry Form?

Q: How do I get more information and help?

Q. How do I know that your Finance Professionals are qualified?

Q: How much can I borrow?

How much you can borrow, your borrowing capacity, is determined by a number of factors such as income, the cash (or equity) you have available, how long you’ve been in your job and your credit worthiness. The amount differs with each lender and some will lend you more than others. To find out how much you can borrow please contact us.

Q: How do I know which home loan is best for me?

At Aurora Finance Group we use a sophisticated software qualifier which interrogates the hundreds of loans on the market to find a suitable loan that suits your situation so contact us  for more information.

Q: How much money do I have to save for a deposit?

The amount of deposit you need depends on a number of things including; the type of home you want to purchase, if you’re a salary earner or self-employed and which lender you choose. Generally, if you’re a salary earner (or self-employed and you can show your and your business financials) you’ll need at least 5% of the purchase prise as a deposit. If you’re self-employed and cannot show your financials then you’ll need a deposit of at least 20% of the purchase price plus additional costs such as stamp duty.

Q: What other costs will I have to allow for when I purchase a house?

There are a number of costs associated with buying a home, but as a rule of thumb, it’s recommended that you allow between 5%-7% of the purchase price on top of your deposit to cover all fees and charges.

So, if the house is $400,000, then you can expect the upfront costs to be approximately $20,000 to $28,000. Click here to read a list of indicative fees and costs.

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

The First Home Owner Grant (FHOG) scheme was introduced on 1 July 2000 to offset the effect of the GST on home ownership. It is a national scheme funded by the states and territories and administered under their own legislation. The scheme allows for a one-off grant of up to $7,000 payable to first home owners that satisfy all the eligibility criteria.
The grant’s not means-tested so if you’re eligible you can receive the grant without declaring your income and it doesn’t matter where you intend to build or buy, or the value of your first home.

Q: How do I know if I’m eligible for the First Home Owner Grant?

Generally, you’ll be eligible for the FHOG if you’re:

  • an Australian citizen or permanent resident
  • buying or building your first home in Australia
  • intending to occupy the home as your principle place of residence within 12 months of settlement.

It’s important to note that if you’re purchasing the property with others, they must also meet the same criteria for the grant to be applicable.

Q. What is the First Home Owner Boost (FHOB) and am I eligible?

On top of the existing one off grant of up to $7,000 payable to first home buyers, the Australian Government has introduced the First Home Owner Boost so first home buyers can get:

  • an extra $7,000 for buying an established home
  • an extra $14,000 for buying or building a new home
  • for contracts made from 14 October 2008 to 30 September 2009

You’re eligible for both grants if you’re:

  • an Australian citizen or permanent resident
  • buying or building your first home in Australia
  • intending to occupy the property as your principal place of residence within 12 months of the settlement.

Q. Does the State Government give First Home Buyers a grant?

There are also a range of state concessions available to First Home Buyers and Aurora Finance Group personnel will be able to assist you with these queries. State concessions are in addition to the First Home Owner Grant and Boost.

Q: How much money do I need for Stamp Duty?

Stamp duty is a state government charge based on the selling price of the property. Each state/territory has a different way of calculating the duty. Some states offer first home buyers a discount on the duty. Stamp duty is a significant cost for the purchaser. Click here to access online calculators to find out how much stamp duty you’re likely to pay.

Q: What is Lenders Mortgage Insurance?

Lenders Mortgage Insurance (LMI) is a premium you, the borrower pays to protect the lender from any loss the lender may incur in the sale of your home should you default on paying the mortgage. You are required to pay LMI when the amount you borrow is above a certain percentage, usually 80% of the lender’s valuation of the property. Most lenders allow you to add the LMI premium to your home loan. Other lenders require you to pay the premium up-front.

LENDERS MORTGAGE INSURANCE DOES NOT PROTECT YOU, THE BORROWER should you be unable to make mortgage repayments. You need separate insurance for this. Contact us and we’ll be able to help you. We’re not insurance brokers, but we know reputable and skilled professionals who can assist you.

Q: What documentation do I need when applying for a loan?

Together with your loan application, lenders want to confirm your identity and to know that you are able to repay the loan. Each lender has slightly different requirements, but generally the documents you’ll need to submit to the lender includes; copies of your driver’s licence and/or passport/birth certificate, recent payslips/tax returns, savings statements. If you’re refinancing a loan, then you’ll need to submit the last six months of your current loan statements. For property purchases, a copy or the contract of sale is required. Click here for a fuller list of supporting documents you’ll need to submit.

Q: What will my repayments be?

Your repayment amount is determined by your loan amount, type of loan and the interest rate. Aurora Finance Group can show you different repayments scenarios to help you determine the level of repayments that best suits you. Please make an enquiry.

Q: How often can I make mortgage repayments?

Most lenders allow you to make monthly and fortnightly, and many also allow you to make weekly repayments.

Q: Is there a fee for the Aurora Finance Group service?

There is generally no charge for the specialist residential home loan service we provide. The lender you choose pays us a commission. We provide you with a Credit Disclosure Report and a Finance Broker Contract prior to you signing up for a loan and these documents outline a schedule of lender commissions.

Q: Which lenders does Aurora Finance Group work with?

Because we use an advanced software package that is updated daily with any changes our panel of lenders make, we have the most up to date information regarding lender product, interest rates and loan features. We deal with approximately 20 well-known and reputable banks and non-bank lenders.

Q: How does Aurora Finance Group find a loan that’s suitable for me?

Firstly, we focus on you to get an understanding of your objectives and needs for getting a loan, and to establish a list of criteria that your loan must meet. For instance, you may want a loan with free, unlimited internet access where you can make weekly repayments and have the ability to make lump sum repayments at any time without penalty.

Then we calculate how much you can borrow based on information such as your income, savings, how long you’ve been in your job, if you’re a salary earner or self-employed.

Finally, using our specialised software, we prepare a loan Product Comparison Report that combines the loan amount you want or your maximum borrowing capacity and your specific criteria. This comprehensive report compares a large range of loan features, including repayments, to enable you to make an informed and confident decision about the most suitable loan for you. We focus on keeping this simple and easy to understand. Contact us for more information on how we can help you with your home loan selection.

Q: What happens with my personal information?

Our Privacy Policy outlines fully how your personal information is collected, how it will be used and stored. We never give your personal information to marketing organisations.

Q: Do I have to do any of the paperwork?

One of the key benefits of using Aurora Finance Group is that we look after most of the paperwork and all of the lender follow up for you, saving you time and stress.

You never have to phone us for an update. Firstly, we help you with the application form and the supporting documents you need to provide. Then we professionally package your application and supporting information and electronically lodge it with your chosen lender. We then pro-actively monitor the progress of your loan, every step of the way, contacting you regularly via phone, SMS, email or letter with loan status updates. Click here to read the home loan process fact sheet.

Q: How long will it take to get my loan approved?

This depends on the nature of your loan application and your personal situation. Generally, you can get a ‘conditional approval’ in five working days after the application and all supporting information has been received by the lender (this type of approval is subject to further conditions being met. Example of conditions may be the valuation of the property to a certain level, mortgage insurer’s approval, your employer’s verification of your commission or bonus payments etc).

An ‘unconditional approval (formal approval) can be obtained within eight to ten days and is granted when you have satisfied fully all lender requirements and no further information is needed. Click here for the home loan process fact sheet.

Q: What is settlement?

Settlement is the completion of the sale process, when you, the borrower formally take possession of the property. The mortgage takes effect from the settlement date.

Q: Should I fix my loan or keep it variable?

To fix or not to fix is a question only you can answer. It depends on whether you want peace of mind in knowing that you’ll be making the same repayments through a specified fixed term or whether you’re prepared to risk the possibility of having a higher rate. Of course this interest rate may go down and it you’re locked into a fixed rate term, you wont’ benefit from any reduction in interest rates. Click here for some pros and cons about fixed and variable loans.

Q: What’s the best type of loan for me?

The loan type best suited to you depends on a number of factors including; your goals, how quickly you want to pay down the loan, your income etc. Click here for the Loan Product Fact Sheet

Q: What happens when I complete and send you my Aurora Enquiry Form?

Completing the Aurora Enquiry Form helps us to properly assess your borrowing capacity and if you can afford the loan.

  • We’ll contact you to answer any questions you have and, if applicable, to clarify any information you’ve provided.
  • When we know your goals and needs and have assessed your borrowing capacity we’ll send you a Product Comparison Report of loan that are suitable for you. 
  • We’ll also prepare a Preliminary Credit Assessment Report and send this to you.

Q: How do I get more information and help?

Call or email us for confidential assistance with your home loan finance. Call us on 03 9636 0299 or email us at askus@aurorafinance.com.au

Q. How do I know that your Finance Professionals are qualified?

All Aurora Finance Professionals are fully qualified and have completed intensive induction training.They have ongoing mandatory training in technical and customer service areas.  Click here for full terms and conditions of this website.