Frequently Asked Questions

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We offer a range of services from financial health check, personalised solutions and we manage the entire process for home loans, refinancing, and property investment, all at no cost to help you achieve your financial dreams! 

Yes! Our expert guidance and support come at no cost to you. We’re dedicated to helping you find the best financing options without any hidden fees.

Simply reach out to us to schedule a consultation! We’ll discuss your financial goals and determine the best path forward.

We provide various loan options, including fixed-rate loans, variable-rate loans, and offset accounts. We’ll help you find the one that suits your needs best.

Your borrowing capacity depends on various factors such as your income, expenses, and credit history. We can provide you with a detailed assessment during our consultation.

Refinancing can be beneficial if you’re looking for lower interest rates, to access equity, or to change your loan terms. We’ll help you evaluate if it’s the right time for you.

We can guide you in assessing your current assets and determining how much equity you can access for investment opportunities.

We're here to help! Feel free to contact us anytime, and we’ll be happy to provide the information you need.

We have access to over 15 lenders from your big banks to your smaller high-risk lenders. Essentially, we have a lender that meets all our client's needs.

A financial health check typically includes a credit check, a review of your current loan structure, and an exploration of potential future options to enhance your financial strategy. This is adaptable and can be expanded based on your needs and goals.

Yes, your credit score is important because it reflects your creditworthiness and financial reliability to lenders. A higher credit score can lead to better loan terms, lower interest rates, and increased chances of loan approval. It can also affect other financial aspects, such as insurance premiums and rental applications. Maintaining a good credit score is essential for accessing favorable financial opportunities and achieving your financial goals. 

To improve your credit score, focus on the following strategies:

1. Pay your bills on time and keep your credit card balances low (ideally below 30% of your limit).
2. Avoid applying for multiple credit accounts at once and limit hard inquiries.
3. Regularly check your credit report for errors and dispute any inaccuracies.
4. Maintain older accounts to enhance your credit history length.
5. Use credit responsibly and consider becoming an authorized user on a responsible account holder's card.

Implementing these steps can help you gradually boost your credit score!

Yes, it's important to keep an eye on your interest rate as it can impact your monthly payments and overall financial strategy. While we will actively manage your loan and conduct regular loan health checks to ensure you’re on the best path, we encourage you to stay informed about market trends. If we identify opportunities for refinancing or adjusting your loan structure for better terms, we'll be sure to communicate those options to you promptly! 

One of our partners Creative Home Designs Australia has developed a Pre-development Property Report which explains zoning, sewer maps plus other important information regarding the property.

These reports are created from their wealth of experience in dealing with different council restrictions.

They look at many aspects of the property and are specific to your property.
Each reports covers the following:

• Personalised observation notes on your property;
• Property opportunities detailing what is permitted and prohibited;
• Zone classifications;
• Ratios (Floor space / Landscape etc);
• Property parameters;
• Bushfire attack levels; and
• Additional zoning information.

These reports are really helpful if you are looking to buy a property and want to ensure your future proof your plans or if you are looking to renovate your existing property.

The home loan approval process can vary depending on several factors, but generally, you can expect the following timeline:

1. Pre-Approval Stage (1 to 2 weeks): This is a preliminary step where you submit your financial information to your lender. They’ll assess your eligibility and provide a conditional approval, which can often be completed within one to two weeks. This is a great way to understand your borrowing capacity and budget before starting your property search.
2. Formal Application Stage (2 to 6 weeks): Once you’ve found a property and submitted your formal application, the timeline can vary widely. Factors influencing this stage include the complexity of your financial situation, the specific lender’s processes, and the completeness of the documentation provided. After you submit all required documents, the approval can typically take anywhere from two to six weeks.
3. Final Approval and Settlement (1 to 2 weeks): After your application is assessed and approved, there’s a final review stage. Once approved, you’ll receive a formal offer from your lender. From this point, the settlement process can take an additional one to two weeks, depending on the requirements of your lender and the agreement with the seller.

Tip: To expedite the process, ensure you have all necessary documents ready, including proof of income, bank statements, and identification. At Pathway Finance Solutions, we can help you gather and prepare these documents, ensuring a smoother and faster approval process.

If you have any questions about securing a home loan or would like to discuss your specific situation, please reach out. We're here to help you every step of the way!

The essential documents you'll need when applying for a mortgage.

1. Proof of Identity (Photo ID i.e: a current driver's license, Additional ID i.e. Medicare card)

2. Proof of Income (If you're employed you will need to provide 2 payslips or those who are Self-employed 2 tax returns both business and individual)

3. Bank Statements (Provided via a link sent from us or you can manually provide them)

4. Evidence of Assets and Liabilities (Documentation and Statements as required)

5. Details of the Property (if applicable) (Contract of Sale or Property Valuation)

6. Additional Documents for Special Circumstances (Rental Income Statements, Gift Letter, Divorce documents etc...)

We will help you every step of the way, so this does not feel overwhelming. 

Utilising useable equity to purchase an investment property is a common strategy among property investors. Here's how it typically works:

1. Calculate Usable Equity: The equity in your investment property is the difference between its current market value and the outstanding mortgage balance. Lenders will generally allow you to access up to 80% of the property’s value (this varies by lender), minus what you still owe.
   • Example: If your investment property is worth $600,000 and you owe $300,000, the total equity is $300,000. Usable equity might be around 80% of the property’s value, which would be $480,000. So, $480,000 minus your remaining loan balance of $300,000 would give you $180,000 in usable equity.

1. Use Equity for Deposit: You can then use this usable equity as a deposit for your new investment property. The lender can either refinance your current loan to release that equity or set up a new loan secured by both properties.
2. Borrowing Capacity: Your ability to borrow will also depend on your income, existing debts, and the rental income generated by your properties.

Leveraging equity is a smart strategy many property owners use to invest in new real estate. By accessing the equity built up in their current home, individuals can use this amount as a deposit for an investment property. This enables them to capitalise on their existing asset without needing to save up a large cash deposit. Once the deposit is secured, they can then take out a separate loan specifically for the purchase of the new investment property. 

This two-step approach not only allows investors to expand their property portfolio but also takes advantage of their current home’s value, creating a pathway to generating additional income and building wealth through real estate. Our team is here to guide you through this process and help you make the most of your equity!

 A deposit bond is a type of surety bond that can be used as a substitute for a cash deposit when purchasing a property. It essentially guarantees that the buyer will pay the deposit amount to the seller at a later date, typically when the purchase contract is finalised.

Deposit bonds are useful for buyers who may not have the required cash deposit immediately available or prefer not to tie up their funds in a deposit while waiting for the settlement of a property transaction. Instead of providing a cash deposit (often 10% of the purchase price), the buyer pays a premium for the bond, which is usually a small percentage of the deposit amount.

When the buyer meets the terms outlined in the bond agreement (usually within a specified timeframe), the bond is released and the funds are transferred to the seller. This allows buyers to secure a property without needing to pay a large sum upfront, helping them to manage their finances more effectively during the buying process.

Generally, most lenders require a deposit of 20% of the property's purchase price. However, some lenders may allow a deposit as low as 5% for eligible buyers, particularly first-time home buyers. Lenders will usually charge a client LMI (Lenders Mortgage Insurance) if the deposit is less than 20%. This is a one-time premium paid upfront that is calculated based on the loan amount, the Loan-to-Value Ratio (LVR), and the specific policies of the lender or insurer, with smaller deposits typically resulting in higher premiums (refer to LMI in the FAQ's for more information).

If you're considering an investment property, a deposit of 20% or more may be preferred to avoid Lenders Mortgage Insurance (LMI). It's important to check with your lender and understand your specific options, as well as any associated costs, to determine the best deposit amount for your situation. Our team is here to help you navigate this process!

Lenders Mortgage Insurance (LMI) is a type of insurance that protects lenders in case a borrower defaults on their home loan. It typically kicks in when the borrower's deposit is less than 20% of the property's purchase price. In other words, if you have a deposit smaller than 20%, your lender may require you to pay for LMI.

The purpose of LMI is to minimise the lender's risk when lending to borrowers who have a lower equity stake in the property. The cost of LMI can vary based on the size of the loan and the loan-to-value ratio (LVR), but it’s often a one-time premium paid upfront, or it can be added to your loan amount.

Lenders Mortgage Insurance (LMI) is calculated based on several factors, including:

1. Loan Amount: The total amount you are borrowing is a significant factor; a higher loan amount typically results in higher LMI costs.
2. Loan-to-Value Ratio (LVR): This ratio measures the size of your loan compared to the value of the property. The higher the LVR, the more risk the lender assumes, which can lead to higher LMI premiums. For example, if you have a loan of $450,000 on a property valued at $500,000, your LVR would be 90%.
3. Deposit Size: The size of your deposit affects the LVR and, as a result, the LMI calculation. A smaller deposit (less than 20%) generally incurs higher LMI costs.
4. Insurer Policies: Different lenders or insurers may have varying rates and policies, which can influence the final LMI amount. Each lender may have its own LMI calculator or insurance table to determine premiums based on the above factors.

The total LMI premium can often be estimated using an LMI calculator, giving borrowers an idea of what to expect. It can be paid upfront or added to the loan amount, impacting your overall borrowing costs. If you want specific calculations tailored to your situation, it’s best to reach out to us for assistance!

It's important to consider LMI when planning your deposit, as it can increase your overall borrowing costs. If you're uncertain whether LMI will apply to your situation, feel free to reach out for guidance!