Role of Mortgagee broker in your home-buying journey

Under the new rules now in effect in Australia (from 1 April 2025 to 31 March 2027), foreign investors, temporary residents, and foreign-owned companies are generally prohibited from purchasing pre-built homes. However, they are still legally allowed to purchase property “Off the Plan”, provided they pay the applicable government fees.

The Nepali community in Australia is growing and includes a rising number of professionals such as mortgage brokers, real estate agents, solicitors, and conveyancers. This presents a valuable opportunity for the community to receive property advice that is both culturally and linguistically accessible, making the process of buying property more confident and informed.

Choosing the Right Location

Homebuyers often select locations based on key factors such as education, healthcare, employment, and infrastructure development. However, challenges can arise when planned infrastructure is delayed or never built. It is essential for investors to stay informed about completed and ongoing projects by property developers, as this can significantly influence future property value.

Banks also consider these factors when evaluating loan applications, which means areas with active or completed infrastructure projects are more likely to see higher property valuations.

Thus, investing in the right location based on your family’s current and future needs is crucial.

Consulting Multiple Brokers for Better Clarity

Although many mortgage brokers are available, people often rely on a single contact due to a lack of awareness or convenience. However, consulting two or three brokers can help you understand various options related to interest rates, loan structures, and locations with growth potential.

Understanding the area’s Master Plan before buying or selling can give you a long-term advantage. If you lack this information, it’s advisable to consult a real estate agent, property developer, or mortgage broker for guidance.

Avoiding Legal Confusion

Many buyers only start asking about legal issues related to refinancing, interest adjustments, or bank balances after the purchase is complete. To avoid such uncertainty, it is wise to speak to at least two mortgage brokers or consult multiple banks to fully understand your position before making a purchase.

Insights from a Mortgage Expert

We spoke with the CEO and Mortgage Broker of Divine Mortgage & Finance, who has over six years of experience in the mortgage and finance industry. Key insights from our discussion are outlined below:

1. Why do banks sometimes not adjust interest rates after the RBA changes the cash rate?

Most banks do adjust rates in line with the Reserve Bank of Australia’s decisions. However, internal bank policies vary, and sometimes rates change even if the RBA rate remains unchanged. If you’re unsure about changes to your rate, contact your bank or broker. A mortgage broker is responsible for helping clients find the most competitive loan options.

2. Is it possible to get a home loan with a default on your credit history?

Yes, depending on the reason for the default and whether supporting documents can be provided. While approval is not guaranteed, it is possible to get a loan if the issue is justified. It’s also essential to pay future instalments on time, as this strengthens your financial reputation.

3. How can someone pay their loan if they can’t work due to an accident and don’t have insurance?

We strongly recommend Income Protection Insurance. This type of insurance can cover your loan repayments if you’re unable to work due to illness or injury. If you don’t have insurance, some banks may still offer options such as mortgage repayment freezes or interest-only repayments, depending on the circumstances.

4. How does the current property market compare to the past six years?

According to recent data, Australian property prices have increased by 39.1% over the past five years. States like NSW, SA, ACT, and QLD have seen significant growth, while Victoria and Tasmania have experienced more modest increases. It is crucial to understand state government regulations, banking policies, and development trends before investing.

5. What sets you apart from other mortgage brokers?

I’ve personally handled over 1,000 cases, including both simple and complex ones. I provide clients with complete information—from property profile reports and appraisals to deposit guidance and loan processing—which empowers them to make informed decisions.

Looking ahead, our company plans to expand services across more Australian states to offer convenient, high-quality assistance to our clients. We also aim to launch scholarship and shelter programs for underprivileged children in Nepal. Our goal is to contribute to society by creating new opportunities and hope for the less fortunate.

A mortgage broker is more than just a loan arranger. They act as a trusted advisor, helping clients choose the right property location, assess property value, and navigate the loan process in collaboration with banks. Their role is to make the home-buying journey smooth, secure, and successful.