Frequently Asked Questions

 

Why use a mortgage broker when looking for finance?

A mortgage broker is someone who helps find the right loan for you. Whether you’re in the market for your first home or building a portfolio of investment properties, or even purchasing a car, we have access to hundreds of loans from a host of Australia’s leading lenders.

 

When should I see you and what can I expect?

You can see us at any stage in your financial journey. You might still be saving for your first home, wishing to use the equity in your current one, or wondering if you’re still getting the right deal with your existing lender. You can make an obligation-free appointment with us at a time and place that suits you.

We will ask about your financial circumstances and objectives to find out what’s important to you in a home loan. For example, flexibility might be important because you plan to start a family or you may want ready access to equity for a rental property or renovations. Whatever your plans, we will research the market and recommend the right home loan to suit your needs. We always look for the right loan for you, not the lender.

 

How can this service be free of charge?

We are paid by the lender, not the borrower. The lender has fixed marketing costs in every loan and pays these monies to their own representatives, branches or brokers like us.

 

Do you hold an Australian Credit Licence?

Yes, we hold an Australian Credit License (ACL 467671) as required under the National Consumer Credit Protection Act.
We are also a member of the Mortgage and Finance Association of Australia (MFAA Member No 141963) . We maintain the highest standard of training and education, as well as compliance with government regulations.

 

How do I get started?

Our mortgage brokers do all of the hard work. All you will be required to do is fill out the application and supply the required documentation. We can then complete a preliminary assessment and give you some options to choose from. Once we know which lender you would like to proceed with then we lodge the loan online directly into their system for a quick approval.

Home Buyer & Investing

 

How much money can I borrow?

We’re all unique when it comes to our finances and borrowing needs. Speak with one of our mortgage experts and find out more about your:

  • Maximum borrowing capacity
  • Estimate of costs for purchasing
  • Lender product comparison

 

How do I choose the loan that’s right for me?

There are hundreds of different home loans available, but we do the heavy lifting and compare and structure the loan that is right for you.

 

How much do I need for a deposit?

Usually between 5% – 10% of the value of a property, which you pay when signing a Contract of Sale. Speak with us to discuss your options for a deposit. You may be able to borrow against the equity in your existing home or an investment property.

 

What fees/costs should I budget for when buying a property?

Here are some example costs you should budget for when purchasing a property:

  • Stamp Duty — This is the big one. All other costs are relatively small by comparison. Stamp duty rates vary between state and territory governments and also depend on the value of the property you buy. To find out your total Stamp Duty charge, try this handy Stamp Duty Calculator.
  • Legal/conveyancing fees — Generally around $1,000 – $1500, these fees cover all the legal rigour around your property purchase, including title searches.
  • Building inspection — Should be carried out by a qualified expert, such as a structural engineer, before you purchase the property. Your Contract of Sale should be subject to the building inspection, so if there are any structural problems you have the option to withdraw from the purchase without any significant financial penalties. A building inspection and report can cost up to $1,000, depending on the size of the property. Your conveyancer will usually arrange this inspection, and you will usually pay for it as part of their total invoice at settlement (in addition to the conveyancing fees).
  • Pest inspection — Also to be carried out before purchase to ensure the property is free of problems, such as white ants. Your Contract of Sale should be subject to the pest inspection, so if any unwanted crawlies are found you may have the option to withdraw from the purchase without any significant financial penalties. Allow up to $500 depending on the size of the property. Your real estate agent or conveyancer may arrange this inspection, and you will usually pay for it as part of their total invoice at settlement (in addition to the conveyancing fees).
  • Lender costs — Most lenders charge establishment fees to help cover the costs of their own valuation as well as administration fees. We will let you know what your lender charges but allow about $600 to $800.
  • Moving costs — Don’t forget to factor in the cost of a removalist if you plan on using one.
  • Mortgage Insurance costs – If you borrow more than 80% of the purchase price of the property, you’ll also need to pay Lender Mortgage Insurance. You may also choose to take out Mortgage Protection Insurance. If you buy a strata title, regular strata fees are payable.

 

What is landlord’s insurance?

Landlord’s insurance provides standard building and contents cover plus cover for theft or malicious damage to the property by tenants and covers loss of rent in certain circumstances. It also covers the owner’s liability (e.g. if a tradesperson is injured while working in the property). Landlord’s insurance is an affordable extra safeguard and strongly recommended for all investors.

Refinance

 

Can I get a mortgage where I pay less than I’m paying now?

It is always a good idea to speak with an expert to ensure you aren’t paying too much for your loan. Our team will check you have the right loan for your needs, compare hundreds of different lenders and options and ensure you are getting the best deal available.

 

How do I choose the loan that’s right for me?

There are hundreds of different home loans available, but we do the heavy lifting and compare and structure the loan that is right for you.

 

Can I consolidate credit card or other debts into a home loan?

This is one of the reasons many people refinance. The advantage is that you pay a much lower interest rate on a mortgage than for most other forms of debt – e.g. credit cards, overdraft facilities, personal loans etc. Providing you have sufficient equity in your property, you may be able to consolidate all your debt on a home loan. If you take this option though it is important to make sure you maintain your repayments at their current level or you could end up paying more over a longer period of time. Speak with us today to discuss your personal needs.

 

What fees/costs are involved in switching mortgages?

Penalty fees could apply if you’re paying off your current mortgage early, especially if you’re exiting a fixed home loan. But these may be offset by repayment savings when you switch home loans. We’ll walk you through any fees that will apply in your circumstances.

Application

 

How does applying for a loan work?

Our mortgage brokers do all of the hard work. All you will be required to do is fill out the application and supply the required documentation. We can then complete a preliminary assessment and give you some options to choose from.

Once we know which lender you would like to proceed with then we lodge the loan online directly into their system for a quick approval.

 

How long will a preliminary assessment take?

Using our expertise, we can find you the right home loan in less than 24 hours as long as you provide us with all of the required documents in one go.

If you are in a hurry to get approved because you are going to an auction or have a deadline for a cooling off period on your purchase then please let your mortgage broker know and they can escalate your application.

 

How long will it take to get a formal approval for my loan?

From receipt of your signed loan application and all supporting documents, we will usually have a formal approval in place within 10 to 12 working days.

Have more questions? Speak to one of our expert brokers today on 1300 131 500

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