The Journey of Home Ownership Using a Mortgage Broker

Are you planning to purchase your first home, next home or an investment property and wondering what’s involved when using a Mortgage Broker from 40 Forty Finance?

With 70% of all home loan applications facilitated by Mortgage Brokers in Australia, more and more borrowers are turning towards these lending specialists to help navigate the buying process and lending market. With home ownership often the biggest expense in one’s life, it is fundamental that the right guidance and support is provided from the outset.

Applying for a home loan can be complex, time consuming and daunting, especially if it’s your first home, so here is a summary or the major steps a prospective borrower will encounter throughout their journey of home ownership:

1. Connecting with 40 Forty Finance

Connecting with 40 Forty Finance can be as simple as reaching out to one of our brokers where they will arrange a time to speak to you. It is within this phone call that the broker will ask several questions relating to your goals and objectives as well as your current financial and lifestyle situation.

2. Assessing Your Circumstances

Once you have had initial contact with a 40 Forty Finance broker, you will be asked to complete a Privacy Consent Form and fill in an online Fact Find. It is within this Fact Find that you will be required to list your personal, employment and financial information which will be used to model up various scenarios and lender products that suit your needs. In addition, you will be provided with a list of documents to provide which will enable 40 Forty Finance to clearly assess your position.

3. Reviewing the Options

It is at this stage where a Zoom meeting will be arranged to run through possible options relating to your goals. 40 Forty Finance will present and recommended clear lending structures and strategies that are consistent with your objectives and requirements. This is a great opportunity to ask questions relating to specific lender requirements, assessment time frames or any other expectations.

4. Lodging your Application

Once you have decided on your preferred course of action, an application is made to your preferred lender. The application is filled in by 40 Forty Finance and you will be asked to sign application forms and provide any additional supporting documentation required for your submission.

5. Lender Assessment & Decision

Once 40 Forty Finance lodges your application, you will be given clear information as to the likely assessment timeframe at your preferred lender. It is during this assessment period that the lender may request further information which will be relayed back to you to source and provide. 40 Forty Finance with liaise between the lender and you to ensure the lines of communication is very clear. Once your loan is approved, 40 Forty Finance will complete the signing of loan contracts with you and guide you in preparing for settlement.

6. Settlement

Preparing for settlement is where 40 Forty Finance will liaise with your Conveyancer or Solicitor to ensure your purchase goes through smoothly. Most of the work is done well before settlement day so there is a little stress as possible on the actual day when the property becomes your home.

7. Home Ownership

After settlement has successfully gone through you can now enjoy your new property. Now that you have a home loan in place, 40 Forty Finance will provide ongoing updates and loan reviews annually to ensure your needs are met and your home loan product remains the most competitive option for your circumstances.

If you are looking to start your home ownership journey or wish to discuss anything about homes loans then click here to get in touch with one of our friendly brokers.

Mortgage Broker vs Bank: Who should you approach to obtain a home loan?

Whether you are buying a property for the first time, looking to upgrade your home or purchase an investment property, you might be wondering if you should use a Mortgage Broker or go to a bank directly.

Both avenues offer their own unique advantages, so here are some considerations to help you make the choice:

Mortgage Brokers

A Mortgage Broker is a home loan specialist who acts as the intermediary between a borrower and a lender. With access to a panel of multiple lenders, brokers can research and identify the most suitable home loan product for a borrower’s given position. With 68% of all residential loans now being written by Mortgage Brokers, more and more Australians are turning to brokers to navigate the complex world of the lending market.

In addition to identifying and comparing lending products, brokers also play the key role in educating and determining the borrowing capacity of borrowers as well as handle the time-consuming paperwork relating to the loan application. Furthermore, once a loan settles a broker then performs the important role of ensuring you continue to have a competitive deal while also assisting you with any future lending needs.

Typically, most Mortgage Brokers won’t charge any fees to borrowers. Brokers are remunerated by the lender through commission earned after the loan settles.

Benefits of using a Mortgage Broker:

  • Provide guidance to borrowers through calculating borrowing power and guiding you through the important stages of the purchase process
  • Offer a broad product range
  • Identify the most suitable lending solution, resulting in fewer applications and a stronger credit score
  • Project manage and process the entire loan application
  • Have a single point of contact throughout the entire process, no matter which lender you apply to
  • Review your home loan post settlement, answer any future questions and ensure your deal is still competitive
  • There is no additional cost to the borrower

Direct to the Bank

Going direct to a bank is still an option in obtaining a home loan. This can be done by simply showing up at your local branch and requesting a home loan. Alternatively, most lenders have the option now to chat through options over the phone with a lending specialist. Going direct is a very different approach to using a Mortgage Broker as you will only be offered a product from that given lender and no comparison will be made against other lenders.

Benefits of going direct to a Bank: 

  • A lending specialist from a specific bank will have intimate knowledge of the current products and policies
  • Could be faster due to the lender process the loan application directly rather than going through a Mortgage Broker
  • Some borrowers might find the convenience and comfort of turning to a bank that they have dealt with for many years more favourable

The good thing is that as the borrower, you have a choice and ultimately it will come down to what your preference is. Whether you opt to have the guidance and support from a Mortgage Broker or if you prefer to go direct to a bank, at the end of the day there isn’t a right or wrong way.

With a house purchase typically being one’s biggest expense, more and more are turning towards the guidance and support of a broker. If you wish to discuss what may be possible at no cost then be sure to get in touch with the team at 40 Forty Finance.

Home Loans for Registered Nurses & Midwives

Are you a Registered Nurse or Midwife and seeking to get into the property market?

Due to the recognised stability and professional accreditation of your employment, some lenders will now waive the hefty fee of Lenders Mortgage Insurance (LMI). Certain lenders see borrowers of these certain professions as low risk and therefore see it as good business to try and win their business. For Registered Nurses and Midwives, this is a great opportunity to save thousands of dollars and may be the difference in entering the property market sooner.

What is Lenders Mortgage Insurance?

Generally, if you are seeking to borrow more than 80% of the value of the property, you will have to pay LMI. LMI is an insurance policy taken out by the banks to protect them in the instance that you can not make repayments on your loan. This fee is incurred by the borrower and is a once off charge that can either be paid upfront in cash at settlement or added to the total loan amount. This charge is around 2-2.5% of the purchase price so on a $500k purchase, can be $10,000 – $12,500.

What are the benefits of waiving LMI?

  • Save on thousands of dollars for a fee that is only protecting the bank
  • Purchase with a lower deposit without incurring insurance fees
  • Makes a purchase with a 10% deposit more cost effective, thus reducing the need to get to a 20% deposit which will significantly reduce the time to save funds to get into a position to buy

What are the Qualifying Criteria?

  • Registered Nurses and Midwives need to demonstrate that they have an active and valid registration through the Australian Health Practitioner Regulation Agency (AHPRA)
  • Must be an Australian Citizen or Permanent Resident working full time in Australia
  • Subject to meeting the minimum gross income threshold requirement of $90,000 per annum (not including superannuation). This can include overtime/shift allowance payments
  • Eligible Registered Nurses and Midwives can have the LMI fee waived when borrowing up to 90 per cent of the property’s value

Case Scenario: Jackie – Registered Nurse 

Jackie is a Registered Nurse working full-time in a Melbourne Metropolitan Hospital earning $100,000 plus superannuation. She has been saving for her first home for several years and has managed to save a deposit of $60,000. Jackie’s maximum borrowing capacity is $510,000 and the property she has her eye on is worth $560,000. Using this offer, Jackie can purchase the property with a 10% deposit of $56,000 and take out a loan for the remaining 90% of the purchase price of $504,000.

Usually, borrowing 90% of the purchase price would incur a LMI fee of approximately $14,000, meaning that she couldn’t afford the property due to having not enough cash or borrowing power to fund the fee.

Jackie being a qualified and Registered Nurse, she qualifies for this offer resulting in a saving of $14k in insurance costs and being able to secure her dream home sooner.

If you are a Registered Nurse, Midwife or Health Professional seeking to purchase a property and would like to find out if you qualify for any LMI waiver then please reach out. The power of having a Mortgage Broker on your side will allow you to find out what is the most suitable option for your given circumstances.

Interest Rate Rises

The Reserve Bank of Australia (RBA) have decided to raise interest rates for the first time in 11 years. This means that for those that have a variable home loan, the rise in rates will have a direct impact on your repayments as all lenders pass on this cash rate hike to borrowers. Traditionally, lenders will take no longer than a week to pass on this increase to their borrowers.

Is a rate rise to your home loan avoidable?

In short, there is no way to avoid a rate rise nor any future rate rises. One option you do have is to fix a portion of your loan. Currently, the interest rate on Fixed loans is higher than variable rates due to banks pricing into the Fixed rate what they predict will happen over the next few years. Fixing a portion of your loan now will provide protection in the event of future rate rises, however doing so will be at a higher rate and therefore increase your monthly repayments. The main benefit of fixing your loan is that doing so will provide a sense of surety and consistency in repayments over the fixed term.

What happens if my home loan is Fixed?

If your loan is Fixed, the rate rise by the RBA will not change your repayments on your fixed loan. We are not recommending any of our clients to break their fixed loan at this time. Rather, we recommend waiting until 1 month before it expires before analysing other options.

Should I refinance to a new Lender?

Different Lenders will pass on rate rises at slightly different times and in different increments so might look like a better rate at one lender today may not be true in time.

Are more rate rises coming?

Yes, there certainly will be more rate rises in the next 18 months. CBA Chief Economist Garth Aird expects the cash rate to rise by 1.15% by the first quarter of 2023 and AMP Chief Economist Shane Oliver is anticipating an increase of 1.4% by the end of 2023. We can also see what the banks are predicting to happen given the average fixed rates for 2 and 3 Year Terms are around 3.5% and 4%+ respectively.

Do rate rises impact my Pre-Approval?

As rates rise, your borrowing power (ability of your income to repay debt) reduces. This means that any pre-approval you have in place will need to be reviewed to ensure the loan amount you are pre-approved for is still achievable. With this in mind, we strongly recommend all clients reach out to us before making any offer or bidding on a property to ensure we review your financial position in line with the current lending conditions.


With great movement in the lending space, now is a good time to get in touch with 40 Forty Finance to explore your option on new and existing finance.

Home Loans for Physiotherapists & Podiatrists

Are you a certified and practicing Physiotherapist or Podiatrist and looking to get into the property market?

Did you know that some lenders offer discounts to this group of health professionals when it comes to borrowing money, specifically discounts on Lenders Mortgage Insurance! This is very unique and some banks recognise the stability of these professions and subsequently are happy to waive this often limiting fee for those looking to purchase a property.

What is Lenders Mortgage Insurance?

Lenders Mortgage Insurance (LMI) is an insurance policy taken out by the banks to protect them in the instance that you default on your loan. If you have less than a 20% deposit, or in other words, are seeking to borrow greater than 80% of the value of the property, LMI will incur. It is a once off expense that is paid by the borrower at settlement or is added on to the total loan amount.

Benefits of being a Physiotherapist or Podiatrist?

  • Waived LMI for funds borrowed up to 90% of the property value
  • Save on thousands of dollars for a fee that is only protecting the bank
  • Purchase at a lower deposit without incurring insurance fees
  • Purchase sooner
  • If you intend to purchase a property with your partner, husband or wife, the LMI waiver will apply to the entire application if you are a certified Physiotherapist or Podiatrist

What is the catch?

  • There are only a few lenders that offer this policy per profession
  • Must be a fully qualified Physiotherapist or Podiatrist
  • Registered with AHPRA
  • Working full time in Australia

Case Scenario: Jess – Physiotherapist

Jess is a full-time physiotherapist and has been saving for her first home. She has managed to save $50k

Jess can borrow $441k and the property she has her eye on is worth $490k. This means that she would be borrowing 90% of the value of the house

Usually this would incur an LMI fee of approximately $9k meaning that she couldn’t afford the property

This shows you that by Jess being a Physiotherapist she has just saved $9k in insurance costs

Case Scenario: Sarah & Daniel 

Sarah is a full-time physiotherapist and Daniel is a full time Engineer and they have been saving for their first home. They are in a de facto relationship and have saved $112k. Their dream house is worth $700k

Their combined salaries allow them to borrow $630k which is 90% of the value of the house

Usually this would incur an LMI fee of approximately $17k meaning that they couldn’t afford the property if they didn’t have access to this waiver.

This shows you that although one applicant is a physiotherapist, the LMI waiver policy is still applicable for the entire home loan application


Saving money on LMI may very well be the key to entering the property market sooner. The power of having a Mortgage Broker on your side will allow you to find out what is best for your given circumstance. If you are a Physiotherapist or Podiatrist and wish to find out more then get in touch with the team at 40 Forty Finance to run through your options.

Lenders Mortgage Insurance Discounts for Professionals

Buying a property without a 20 percent deposit will usually incur an insurance fee that is to be paid by the borrower. This insurance fee is called Lenders Mortgage Insurance (LMI) and it is a once-off cost that is paid to protect the bank in the event that the borrower defaults on the loan.

This fee can add up in the tens of thousands of dollars and can often be a limiting factor to entering the market sooner. With the challenge of saving enough cash to pay for the deposit plus purchases costs, an added LMI fee can be another hurdle to overcome when trying to enter the property market.


Professional Packages

Although rarely advertised, some lenders offer professional packages for specific professions such as Lawyers, Doctors & Accountants. These types of professions are regarded as lower risk for default by the lenders and therefore specific lenders are prepared to waive the entire LMI fee when the applicant has a 10% deposit. This can provide a substantial saving to the qualifying professional and speed up the process of home ownership.

It is important to note that lenders offering these professional packages tend to require certain criteria to be met before granting the waiver such as evidence of industry registration and minimum income thresholds. The requirements differ for each profession and lender so it is important to speak to a broker to understand what you may be able to qualify for.


Case Study: Accountant Based in Victoria

John is an Accountant and he meets the qualification and income requirements to be eligible for a Professional Package Waiver.

He has saved enough money to pay a 10% deposit plus purchase costs for a $800,000 property in Victoria. John’s lender of choice are willing to waive the Lenders Mortgage Insurance (LMI) fee of $19,087.00.


  1. If John wasn’t eligible for this waiver and didn’t have enough cash or enough borrowing capacity to cater for this LMI fee, he would not be able to afford the purchase
  2. By meeting the eligibility requirements, John has saved $19,087.00 and secured the property

A Professional Package Waiver may provide a great opportunity to save thousands of dollars and potentially open up the opportunity to enter the property market sooner. If you are seeking to understand your eligibility, please don’t hesitate to get in touch with the team at 40 Forty Finance.

Why should you use a Mortgage Broker

With many home loan options and products available to everyday consumers, it’s not uncommon to be confused as to which lender might be the perfect fit for you. With strong competition amongst banks, it is important to know that certain lenders may be more favourable to one’s given position as opposed to others.

How do I know who the best lender is for me?

This is where a Mortgage Broker can help. A Mortgage Broker is a financial professional that specialises in finding the very best lending solution for their clients. Their role is to represent the client and be the intermediary between the consumer and the lender. In Australia, more than half of the home loans written are from Mortgage Brokers and with more products coming on to the market each year, the role of a Broker has never been more important. Mortgage Brokers are accredited with multiple home loan providers, and with the increase of second tier lenders amongst the big four (CBA, NAB, Westpac and ANZ), consumers are broadening their scope in the search for the most suitable lender.

So why should you use a Mortgage Broker?

Ensuring you’re getting the best deal

Walking into your local bank branch may be convenient but how do you know if the product they are offering you is the cheapest and most suitable. Mortgage Brokers are accredited with various different lenders and have scope to compare many home loan products against one another. This gives you a platform to make an informed decision that is right for you instead of being subject to one home loan option.

Mortgage Brokers represent the consumer and provide education on products and processes

A Mortgage Broker can be a great sounding board as well as an excellent resource for navigating the complex world of banking. For those that may not necessarily have a lot of experience within this space, a Mortgage Broker can break down the complexities and provide education on the most suitable home loan. In addition to providing information on home loan products and solutions, a Broker’s role is to also ensure that their client has the confidence and knowledge in the purchasing process.

They make the home loan process easy

Mortgage Brokers take the legwork out of time-consuming home loan applications and the complexity that comes with it. The detailed paperwork and requirements by the lender will be explained thoroughly and ensure the client is fully aware of their selected product.

Provide complex lending solutions or alternative lending options

If you wish to utilise some of the equity within your home for renovations, purchases or a holiday then a Mortgage Broker can be used to access these funds. Refinancing to another lender offering a better interest rate is also an important aspect of the day-to-day tasks of a Broker. Interest rates and individual circumstances change frequently so having a Mortgage Broker in your financial team will allow you to be up to date with market rates and options.

With a high level of lending knowledge behind them, Mortgage Brokers should be considered a key member within your financial services team. If you are seeking to purchase a home or thinking about refinancing to another lender, then contact the team at 40 Forty Finance to ensure you have the knowledge and support behind you.


When is the right time to buy?

Deciding when the right time is to buy property can be exceptionally overwhelming and challenging. In a world where information and social pressures are never too far away, the decision about when to buy is typically made more confusing and complex than what it really is. The extensive amount of information and influencing factors can not only lead to stagnation and stress but also hinder progress through the purchasing journey.

For those deciding about when to purchase their first home, there are some key considerations that need to be understood when embarking on this process.

Buy when you are financially ready

Investing in property is typically the greatest expense in one’s life so being aware of the monetary outlay and ongoing commitments is critical in determining whether you are ready to buy or not. It is exceptionally difficult to predict future market conditions, interest rate changes and property growth so if you are in a position to buy, and you have been Pre-Approved, then look to make an offer if you have come across a desirable property. If you feel any hesitation in the outlay then you may not be financially or psychologically ready to make the leap. It’s a common occurrence where social pressures of friends and family expectations can push someone into thinking they are ready to purchase when this might not be the case. Buying in your own time is the key to ensuring you are entering the market at comfortable time in your life.

Property is for the long term

Adopting the mindset that property is a long-term game is a sensible approach. The large outlay of initial fees such as stamp duty, settlement fees, pest and building inspection fees need to be considered when planning how long you intend to hold on to the property. Property is not a ‘get-rich quick’ scheme and most often you will have to wait several years before capital growth breaks even to the initial financial outlay. Having a five-year minimum approach allows enough time for the property to grow in value and for also personal circumstance to change requiring an upgrade.

Market rises and falls

Be careful not to be overly analytical when trying to time your purchase with current market conditions. This is because the property market tends to operate in cycles of rising and falling. Economic changes are inevitable so minor fluctuations in market ups and downs tend to even out over time. Historically, the performance of property has shown tremendous results so adopting a ‘buy when ready approach’ is a far better method than trying to time the market.

Purchasing a property takes a lot of financial and emotional investment so being comfortable and certain that the timing is right for you is key when looking to buy. If you believe that you may be in a position to buy your first home then be sure to get in contact with the team at 40 Forty to map out a home loan and purchasing plan.

Should you borrow as much as you can?

Applying for a home loan to purchase a property almost always comes with the question of how much should be borrowed. It is important to know that although a bank is willing to lend you an amount of money, it may not necessarily be within your best interest to take on that amount. In the eyes of a first-time buyer, borrowing a large amount of debt may be required to break into a competitive market but does that mean it’s the right approach. In recent years, we have witnessed a Banking Royal Commission, Federal Election and some of the lowest interest rates by the Reserve Bank of Australia (RBA).

To prevent mortgage stress is recommended that mortgage repayments are around 30% of total household income. Due to the rapid rise of housing prices and competition, many buyers have turned to borrowing more in order to break into the market. If you have very few other debts (credit cards, personal loan, car loan, HECS) then justifying going to 35% is possible, but much further than that and you place yourself at risk of not maintaining your repayments.

Don’t rush!

When deciding about purchasing a house, buyers shouldn’t jump at a perceived bargain or feel rushed. In a competitive market and social pressures on numerous fronts, buyers need to critically analyse their financial situation, goals and future outlook when taking on debt. A house secured from a high level of debt in a falling market can quickly turn sour, especially those that have leveraged themselves to a high point. On the other hand, borrowing high levels of debt when the value of a property is increasing and paying off the loan can strengthen your financial position. This is when borrowing big makes the most sense…. But how confident are you of picking the market?

Awareness and sound judgement of position

Buyers need to be aware of their budget and stick to a plan that works for their given situation. Taking into consideration all lifestyle variables, potential future changes and aspects that may affect your cash flow is important when thinking about how much debt to take on. For any debt you need to be absolutely certain that your loan repayments can be met in addition to all of your other expenses.

If you are looking to understand more about borrowing debt and the costs involved then contact the team at 40 Forty Finance to undergo an assessment.

Buying vs Renting: What is right for you?

Taking the plunge and entering the property market or choosing to rent is a decision many encounter throughout their lifetime. The age-long debate of whether it is better to buy or rent can be a confusing and complex decision for some. With recent housing affordability challenges, some believe that the great Australian Dream of owning your own house is a bridge too far. It is now that this debate couldn’t be more relevant as many ponder their options and future.

Ultimately the decision comes down to each and every individual situation and the first step is to work out whether renting or buying suits your own financial and personal situation.

Here are the pros and cons of each option as well as the main things to consider if you are considering to buy or continue to rent.



  • Flexibility to live in different suburbs and properties
  • Allows for potentially greater savings and diversification of investments
  • Live in an area that you couldn’t necessarily afford if you were to buy
  • Cheaper monthly outgoings of rental payments as oppose to mortgage repayments
  • Avoid costly maintenance and rates that are to be covered by the landlord


  • You never stop paying rent as opposed to those that pay off their mortgage in the long-run
  • Cost of renting steadily increases due to inflation
  • Restrictions to what you can and can’t customise within the rental property
  • Reduced stability and uncertainty with landlords having the right to put their property on the market at any time. This may impact your need to be living in certain school zones or close to transport links to work.



  • Sense of stability and freedom to create a world around your home and make changes to the property to sure your particular needs
  • You can add value to the property and access equity within your home for other investment or lifestyle needs
  • Based on historical property prices, it is likely your property will increase in value over time


  • Large financial outlay and utilisation of savings
  • Paying interest for the life of the loan
  • Restrictions on lifestyle costs as most of the money can be tied up in the loan repayments
  • Responsible for maintenance, council rates and any other costs associated with keeping the property in a liveable state

The truth is that what works for someone may not necessarily work for another. Understanding and deciding what works best for you is the fundamental question before you commit to either option. Additionally, it may be that for the next 5 years it is better for you to rent, then look to buy at a later date…. Or the other way around.

If you would like to understand fees and charges involved with purchasing property, or you wish to find out more about your capacity to apply for a loan, then contact the team at 40 Forty to arrange an appointment.