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Australia
Australia
AustraliaKey Choice Lending
FAQ
Frequently asked questions.
“A mortgage broker in Australia accesses a panel of lenders on your behalf and is legally required to recommend what is genuinely in your best interest — not what earns the highest commission. Banks are under no such obligation.”
A mortgage broker is a licensed credit professional who works with multiple lenders to find a loan suited to your position. In Australia, mortgage brokers receive commission from the lender when a loan settles — they are not independent advisers in the way a financial planner is. However, the law goes a long way toward protecting you.
Under Australian credit law, mortgage brokers operating under an Australian Credit Licence are bound by Best Interest Duty. This means they must recommend a loan that is genuinely suitable for your situation. If the loan they recommend is not the cheapest option on their panel, they are required to document and demonstrate why the chosen loan is still in your best interest. This is a significant legal obligation.
Banks have no equivalent obligation. A bank loan officer works for the bank and can only offer their employer's products — with no legal requirement to recommend what is best for you. This is the core reason to use a broker rather than going directly to a bank.
Key Choice Lending operates under Australian Credit Licence 538623, accessing 70+ lenders. The firm charges an upfront advice fee — disclosed before any work begins — and also receives commission from lenders when a loan settles. Both are disclosed in the Credit Guide provided at first contact.
“The critical difference is obligation, not just access. A bank has no legal duty to recommend what is best for you. A mortgage broker does.”
The key difference is legal obligation and product access. A bank loan officer can only offer their employer's products — and is under no obligation to tell you whether a better loan exists elsewhere. A mortgage broker is bound by Best Interest Duty and must recommend a loan that is genuinely suitable for your position, with documented reasoning if a cheaper alternative was available on their panel.
Mortgage brokers receive commission from lenders — they are not financially independent. But the Best Interest Duty obligation under Australian credit law means they must act in your interest regardless. If they recommend a loan that is not the most cost-effective option on their panel, they must demonstrate why it is still the right recommendation for your situation.
“Key Choice Lending charges an upfront advice fee — $660 for standard lending, $1,100 for specialist lending — disclosed and agreed before any work begins.”
Key Choice Lending charges an upfront advice fee before any work begins. This is disclosed in full before engagement and is specific to this firm — not all mortgage brokers charge an upfront fee.
Most mortgage brokers are paid entirely by lender commission — earned only when a loan settles. That structure creates a built-in incentive to place loans rather than give advice. Key Choice Lending charges a separate advice fee so that the research, lender selection, and credit strategy work is paid for independently of whether a loan proceeds. The advice is the product. The loan is the fulfilment of it.
Fees current as at May 2026:
• Standard lending (any loan size): $660 incl. GST • Specialist lending (SMSF, bridging, reverse mortgage, trust/company structure, construction, visa holders): $1,100 incl. GST • Commercial or business lending: 1% of loan amount — capped and quoted before engagement
Lender commission is also received when a loan settles. Both are fully disclosed in the Credit Guide provided at first contact. Annual rate reviews and repricing support are provided as part of the ongoing client relationship at no additional charge.
“Best Interest Duty is an Australian legal requirement that obliges mortgage brokers to recommend a loan that is genuinely in your best interest — not the one that earns the highest commission.”
Best Interest Duty (BID) is a legal obligation under Australian credit law requiring mortgage brokers to prioritise their client's interests when recommending a loan. It applies to all Australian mortgage brokers operating under an Australian Credit Licence. Banks and bank loan officers are not subject to this obligation.
If a cheaper option exists on the broker's panel and is not recommended, the broker must explain why in writing. All commissions, fees, and potential conflicts of interest must be disclosed in writing before engagement.
“The most important question to ask a mortgage broker is not 'what rate can you get me?' — it's 'how do you determine which lender is right for me, how do you charge, and what happens if you recommend something that isn't the cheapest option?'”
Choosing the right mortgage broker in Australia means asking about process, obligation, and fees — not just rate. Rate is one variable in a much larger lending decision. The right broker should be able to explain their lender assessment process, their fee structure, and how they satisfy Best Interest Duty when the cheapest option isn't what they recommend.
“Choosing a mortgage broker in Australia comes down to five things: the size and quality of their lender panel, transparency about how they are paid, genuine expertise in your specific lending situation, a track record of settled outcomes, and structured ongoing support after settlement — not just at application.”
Choosing the right mortgage broker is one of the more consequential financial decisions you will make — because the broker you choose determines which lenders see your application, how your credit file is used, and whether your loan structure serves you well over time or just at settlement.
Lender panel size and quality: A broker's value is partly determined by who they can access. A broker limited to a small panel cannot always find the right fit for complex situations.
Transparency about how they are paid: All Australian mortgage brokers receive commission from lenders when a loan settles. Some also charge an upfront advice fee. Both models are legitimate — but you should know which applies before engaging.
Expertise in your specific situation: Standard residential lending is handled by most brokers. Complex lending — SMSF borrowing, bridging finance, construction loans, trust and company structures, expat and visa holder applications, commercial and business lending — requires specialist knowledge and lender relationships that not all brokers hold.
A verified track record: Key Choice Lending has facilitated over $1 billion in lending since 2001, supported more than 3,000 clients, and has been recognised as Winner of the Better Business Awards 2024 and Finalist in both 2025 and 2026.
Structured ongoing support after settlement: A quality broker conducts annual reviews, monitors your rate against the market, manages IO expiry periods proactively, and contacts you before your fixed rate expires.
“An SMSF can borrow to purchase investment property in Australia using a Limited Recourse Borrowing Arrangement — but it requires a correctly established fund, a specialist lender, and a licensed financial adviser to confirm the strategy is appropriate for your situation.”
Using your super to buy investment property means establishing or using a self-managed super fund (SMSF) to borrow money under a Limited Recourse Borrowing Arrangement (LRBA). The property is held inside the fund, generating tax-advantaged rental income. In pension phase, capital gains may be significantly reduced or eliminated.
Not all lenders offer SMSF loans. The major banks have largely exited this market. Key Choice Lending works with specialist lenders including Liberty Financial, La Trobe Financial, and Firstmac, who maintain dedicated SMSF loan products.
“An LRBA is the only legal borrowing structure available to an SMSF under Australian superannuation law. 'Limited recourse' means if the fund defaults, the lender can only recover the property — not the fund's other assets.”
A Limited Recourse Borrowing Arrangement (LRBA) is the legal loan structure used when a self-managed super fund borrows money to purchase an investment property. Designed under the Superannuation Industry (Supervision) Act, the structure protects the fund's other assets from lender recovery if a default occurs.
“SMSF loan applications are frequently declined not because of the property — but because the fund is not correctly prepared before the application is lodged.”
SMSF loan eligibility requires significantly more preparation than a standard investment loan. Lenders assess the fund itself — not just the borrower — and require documentation that takes time to prepare correctly.
The fund must be fully established before any lender will assess an application. This includes a compliant trust deed, a confirmed trustee structure (individual or corporate), an ABN, a TFN, and a dedicated SMSF bank account.
The fund's investment strategy must explicitly permit borrowing and direct property investment. A separate bare trust deed — specific to the transaction, drafted by a solicitor — is required. Many lenders also require written confirmation from a licensed financial adviser that the SMSF strategy is appropriate for the fund's members.
“The major Australian banks have largely withdrawn from SMSF property lending. Active lenders in this market are specialist non-bank providers with specific SMSF policies, LVR limits, and rate structures.”
SMSF loan lenders in Australia are specialist non-bank providers. The major banks have largely withdrawn from SMSF lending over the past decade, which means borrowers cannot simply walk into a branch and apply.
Key Choice Lending currently accesses SMSF lending products from: Liberty Financial, La Trobe Financial, Firstmac, Pepper Money, RedZed, Bluebay Home Loans, Granite Home Loans, Orde Financial, WLTH, Think Tank, Better Mortgage Management (including their Edge, Aspire, Leo, and Bold product ranges), and others — across both residential and commercial SMSF property, with full-doc and alt-doc options available. In total, Key Choice Lending accesses 69 SMSF loan products across this panel as at May 2026.
Not all lenders accept all SMSF structures. LVRs typically range from 60–80% depending on the lender and property type. Each application lodged with a lender generates a credit enquiry — approaching multiple lenders directly can damage credit scoring before a single application is formally assessed.
“Australian citizens and permanent residents living overseas can borrow to purchase property in Australia — but lender policy varies significantly, and not every lender assesses foreign income the same way.”
Australian expat home loans are available but require specialist lenders with policies designed for overseas income assessment. Standard lenders often apply a foreign income shading — reducing assessable income by 20–40% — which can materially reduce borrowing capacity. Key Choice Lending specialises in expat mortgage applications for Australians living in the UK, Singapore, Hong Kong, UAE, and the US.
“The three variables that determine an Australian expat's borrowing outcome are income currency, country of residence, and employment type — not just credit history or savings.”
Key Choice Lending assesses four variables for every expat application before approaching any lender: country of residence, income currency, citizenship or residency status, and employment structure. Each variable affects lender eligibility, income shading, and LVR limits.
“Investment property loans in Australia are priced and structured differently to owner-occupier loans — the structure can be optimised to maximise tax effectiveness and long-term borrowing capacity across your entire portfolio.”
An investment property loan is a home loan used to purchase a property you intend to rent out rather than live in. In Australia, lenders treat investment loans as higher risk, which typically results in a higher interest rate — but the correct structure significantly improves tax position and long-term borrowing capacity.
“Using equity from an existing property is one of the most effective ways to fund an investment property purchase in Australia — but only if the equity is accessed in the right structure from the start.”
Equity release for investment means borrowing against the increased value of an existing property to fund the deposit or purchase of a second property. In Australia, most lenders lend up to 80% of the property's current value without requiring Lender's Mortgage Insurance (LMI).
Usable equity = (current property value × 80%) minus your existing loan balance. Equity released as a separate loan split keeps investment and personal debt structurally separate — important for tax purposes.
“Cross-collateralisation is when a lender uses more than one of your properties as security for a single loan. It gives the lender significantly more control over your assets and your future borrowing decisions.”
Cross-collateralisation occurs when a lender registers multiple properties as security against one or more loans. This is common practice at major banks because it increases the lender's security position. For borrowers, it creates a set of significant long-term problems that are expensive to undo.
Key Choice Lending structures investment loans independently wherever possible — avoiding cross-collateralisation as a default position.
“A reverse mortgage allows Australian homeowners aged 60 or older to access the equity in their home as cash — without selling the property and without making regular loan repayments during the loan term.”
A reverse mortgage is a loan secured against your home that does not require regular repayments while you remain in the property. The loan balance — including accrued interest — is repaid when the property is sold, you move into aged care, or the loan is otherwise repaid. In Australia, reverse mortgages include a No Negative Equity Guarantee under Australian credit law.
“A reverse mortgage in Australia includes strong legal protections including the No Negative Equity Guarantee — but it is still a long-term financial commitment that reduces the equity available to you and your estate over time.”
Australian reverse mortgage protections include legally mandated safeguards that do not exist in some other countries. All ASIC-regulated reverse mortgages must include the No Negative Equity Guarantee, and lenders must provide a borrower protection document.