FAQ
Good questions, straight answers.
The things people ask us most. If your question isn't here, send it through and we'll answer it.
01 — General
Q-01What does a mortgage broker actually do?
We look at your situation, compare loans from a range of lenders, explain the options and handle the application through to settlement. The aim is to find a loan that suits you and structure it properly from the start.
Q-02How much does it cost to use Ridge Finance?
For most residential home loans there's no fee to you, because lenders pay brokers a commission when a loan settles. Some specialist, commercial or complex lending may involve a fee. If that applies, we'll tell you upfront and in writing before you go ahead.
Q-03Where are you based?
Our team is based in Oakleigh, Victoria. We help clients across Melbourne's south-east, and for construction, development, SMSF and commercial lending we work with clients Australia-wide.
Q-04Can you guarantee my loan will be approved?
No one can guarantee approval. Lenders make the final decision. What we can do is help you understand your options, check lender policy against your situation and present your application clearly.
02 — Home loans
Q-01How much deposit do I need?
It depends on the lender, the property and your circumstances. A larger deposit may help you avoid lenders mortgage insurance, but some buyers can purchase with less. We'll help you understand what applies to you.
Q-02What is lenders mortgage insurance?
Lenders mortgage insurance (LMI) protects the lender, not you, if you borrow a high proportion of the property's value. It's usually a one-off cost that can sometimes be added to the loan. Some professions and government schemes may reduce or remove it.
Q-03Should I choose a fixed or variable rate?
Each has trade-offs. Fixed gives repayment certainty but less flexibility. Variable usually allows extra repayments and offset accounts. Many people split their loan. We'll talk through what suits your plans.
Q-04How long does pre-approval last?
Pre-approvals typically last for a few months, depending on the lender. If your circumstances change, let us know, as it may need to be reassessed.
03 — Construction and development
Q-01How do construction loans work?
Instead of receiving the full loan at once, the lender pays your builder in stages as the build progresses, usually slab, frame, lock-up, fixing and completion. You generally pay interest only on the amount drawn during the build.
Q-02Can I get a construction loan as an owner-builder?
Some lenders will consider owner-builder loans, but options are more limited and conditions are stricter. We can help you understand what may be available.
Q-03What do lenders look at for small development finance?
Lenders typically review your feasibility, permits, builder contract, experience, the amount of equity or presales and your exit strategy. A well-prepared submission makes a real difference.
04 — SMSF
Q-01Can my SMSF borrow to buy property?
Yes, under a limited recourse borrowing arrangement (LRBA), if your fund's trust deed allows it and the investment fits the fund's strategy. There are strict rules, so we work alongside your accountant or financial adviser.
Q-02Can my SMSF buy my business premises?
An SMSF can generally buy commercial property and lease it to a related business at market rent. Residential property cannot be lived in or rented by members or related parties. Get specialist advice before going ahead.
Q-03Do you give SMSF advice?
No. We arrange the loan. Whether an SMSF property investment is right for you is a question for a licensed financial adviser and your accountant, and we're happy to work with them.
05 — Working with us
Q-01Do I need to meet in person?
No. Most of our clients work with us by phone, video and email. If you'd like to meet, we're based in Oakleigh and happy to arrange it.
Q-02How quickly will you get back to me?
We aim to reply to every enquiry within one business day.
Q-03Can you work with my accountant or builder?
Yes, and we encourage it. With your permission we can talk directly with your accountant, builder, conveyancer or agent to keep things moving.
Q-04Do you stay in touch after settlement?
Yes. We're here for progress payments, variations, rate reviews and whatever comes next. We'll check in periodically to make sure your loan still suits you.
Still have a question?
Ask us directly. We reply within one business day.