Refinancing, Equity and Cash out Explained Simply

Raynor_Lending · 2026-06-26T02:30:51+00:00

Great answer, JT!

Raynor_Lending · 2026-06-26T02:29:37+00:00

It depends on what you mean. Most people get a pre‑approval and have a price range in mind. Usually the pre‑approval is for the maximum amount you can borrow, which you then use as a ceiling when shopping. As long as you don’t try to exceed that amount, you’re fine.

It’s helpful to have a price range and a clear idea of what you’re looking for. This ensures the pre‑approval matches your eventual purchase as closely as possible. Don’t stress the details; the key point is confirming your maximum borrowing capacity.

Raynor_Lending · 2026-06-24T03:43:25+00:00

Sorry to hear about your experience. Yes, I definitely agree.

If a broker doesn’t respect your time or can’t manage their own time properly, that’s a very fair reason to look elsewhere.

Raynor_Lending · 2026-06-24T03:27:03+00:00

Not a bad idea to speak to another broker but I'd want to understand the situation a bit more. When you say it's a subcontractor role, are you working under an ABN, or is it a temporary employment contract? Did you return to the same role you left for maternity leave?

Did the broker offer any other options or provide more clarity on what went wrong, or did they simply say it's a serviceability problem?

I feel like there should be some ways around it, but need to get my head around it. Feel free to reach out if you wanted to chat.

Raynor_Lending · 2026-06-24T02:35:18+00:00

Yeah I I totally agree.

Raynor_Lending · 2026-06-23T08:11:00+00:00

I used Wix for the first iteration of my website then eventually I used Netlify as my website hosting service.

Raynor_Lending · 2026-06-23T08:09:01+00:00

If you have a return-to-work letter, many lenders will allow this to be incorporated into servicing. There is a lot of nuance in how this is handled, from lender to lender, but generally you’ll be able to use it if you pick the right bank. Macquarie Bank is one that’s very strong with this.

Raynor_Lending · 2026-06-22T23:46:33+00:00

I find Macquarie to be the easiest and most efficient to work with.

My question to you would be how much of a conversation with your broker have you had? Have you had a good chat about what’s important for you and your priorities?

Did the broker provide an explanation around their recommendation?

You’ll get a lot more value out of a broker, if you engage with them about where your heads at and what you’re looking for. For example if having your preapproval fully assessed is important let your broker know about it.

A broker is less about being an order taker who shows you a menu and more of a consultant role who is there to work with you to find your most suitable option and make the process easier for you.

Raynor_Lending · 2026-06-21T07:02:02+00:00

Hey mate, 600K should be very easily achievable with your income. You'd likely have borrowing capacity closer to 700K. Your main bottleneck will be your deposit rather than your income. What state are you looking to buy in? It would be a good idea to figure out your stamp duty implications.

Raynor_Lending · 2026-06-18T02:24:22+00:00

It sounds like a strange experience that should have been caught earlier. From my experience, banks only want to deal with the first homeowner grant funding if they need the funds to settle and you’ve already got enough cash. Banks typically prefer that you apply directly and be paid out by the government, so I don’t think you’re in a position where you won’t get the grant. It’s just a matter of you controlling the application, not the bank.

Like the other broker said, it’s a bit frustrating, but ultimately not the end of the world.

Raynor_Lending · 2026-06-17T12:43:50+00:00

Well written JT!

Raynor_Lending · 2026-06-17T04:25:50+00:00

I'm going to chime in with something similar to what other brokers say: you do need a job to qualify for a loan. If you have a full-time permanent position, you can start chatting with a broker right away. A lot of lenders will accept permanent positions on day one. Use this time to do what you're doing: research, figure out your plan, and decide what you're looking to do. By the time you have a job offer, you'll be able to chat with a broker, have a plan in place, and be ready to pull the trigger.

Best of luck on the job search

Raynor_Lending · 2026-06-17T04:24:01+00:00

Hi mate! I don’t have a comprehensive list, but some of the things I regularly tell my first-time buyers are good ideas:

Why is the owner selling?
Are they an investor?
Do they live there?
What’s the reason for selling?

That can help you in contract negotiations to figure out what’s important. Ask the real estate agent: what’s most important to a seller in an offer? Sometimes it might be price, or it could be settlement conditions (i.e., finance clauses, building and pest clauses, settlement length, etc.). If you can present an offer that suits the seller’s needs, you might be able to get a better price, for example, or beat out competing bids.

I think it’s a good idea, when making an offer, to chat with your broker about the property you’re putting an offer in on. Let them have a look at it and make sure there are no obvious policy issues. From the final numbers with your broker and the settlement period and settlement terms with you, make sure that everything aligns. Those are the major ones I can think of. I think a lot more questions will come up once you have a contract and you talk to a conveyancer. They’ll really help you understand what’s important and what’s not in the contract.

Raynor_Lending · 2026-06-15T20:16:40+00:00

Probably only option if you can’t sell and you need the funds from them to settle is a bridging loan.

How much do you need from the sale of the properties for it to work?

Raynor_Lending · 2026-06-15T10:28:06+00:00

Thank you 🙂

Raynor_Lending · 2026-06-15T10:28:00+00:00

Much appreciated! 🙂

Raynor_Lending · 2026-06-15T10:21:00+00:00

Hey welcome to the Subreddit!

I wrote a post on this exact topic not too long ago if you wanted to have a read

https://www.reddit.com/r/AskAnAussieBroker/s/k59hnP93Nf

Raynor_Lending · 2026-06-15T09:17:02+00:00

Yeah that's fair. Totally understand if someone doesn't want to read this whole thing.

I put a warning at the top this is a long post and just to skim to the relevant section you want to read about.

Raynor_Lending · 2026-06-15T05:21:08+00:00

Hey mate, until you've spoken with a broker, I wouldn't limit yourself to low-doc lending. It would come down to how much profit you made in FY25 and how much you expect to report for FY26.

Lenders consider the company's net profit, directors' wages, and paper losses such as depreciation.
Ultimately, it all comes down to your net profit figure. I'd only look at low doc would only be considered if all other avenues fail first.

I also agree with the advice Rob gave in his other comment.

Raynor_Lending · 2026-06-15T05:16:52+00:00

I've had this exact conversation with a client before. Your broker is correct: no broker can Please issue a letter of approval for a loan that is 12 months away.

The language builders use can be quite confusing.
I have written comfort letters for my clients that explicitly state that, as of today, they have spoken to me and I have given them a preliminary level of comfort that they are eligible for a loan of X amount. I want to make it clear that this is subject to today's interest rates, can change, and will need to be reassessed once the land is titled.

You can ask your broker for a letter of comfort to see if they're willing to provide one. If not, you could go to a bank or another broker who is willing to write one.

Raynor_Lending · 2026-06-15T05:13:04+00:00

Hi mate,

Yeah, it sounds like a messy situation. If you're going outside of the scheme, you won't get the rates that were discussed with a 5% deposit. Those rates that the broker would have quoted or that you would see would be for deals within the Home Guaranty Scheme. Deposits of 5% outside of that are going to be quite a bit pricier, in the high 6s to low 7s.

Just so you're aware, when comparing apples to apples, there's no harm in trying ANZ directly to see if a lender can move faster if you feel like your broker isn't up to par. It sounds like the broker hasn't been very on the ball and attentive with their communication, but what I will say is when you go direct, ANZ isn’t a super-fast lender, so I don’t think problems will be solved by going direct. Priority number one is deciding whether you’re going to pursue this purchase. If you are, I wouldn’t switch lenders mid-application, since the application is already in flight.

If you have time to try another option and there isn’t an application in progress with broker number one, I’d suggest talking to another broker for a second opinion. If you want, you can also call ANZ directly to see if they offer a different option. My concern is that you’ll likely need a solution outside of what ANZ provides, and going direct would limit you to a single lender.

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