Common questions we get asked
How can a Mortgage Broker help me more than a lender can? Finding the most suitable home loan available on your own can be difficult. That’s where we can help. We’ll compare hundreds of loan options from a wide range of leading banks and lenders to find the right loan for your needs. And, our service is at no charge to you.
Can my loan be arranged quickly? Yes, we’ll save you the time needed to research the right loan. Most importantly, since we have built such a strong relationship with our lenders, we know which lenders can process your loan the fastest.
Will I pay upfront fees for my loan? Some lenders do charge upfront fees to cover the loan application and/or property valuation. We’ll crunch all the numbers to ensure that you have a detailed plan of potential fees.
Won’t it cost me more than going direct? No. Many financial institutions support the services provided by professional mortgage brokers, as this saves lenders costs that they would otherwise incur themselves in promotion and providing equivalent customer service.
What if I don’t qualify for the size of loan I want? Each lender’s loan policies vary, meaning they all calculate the amount of money they lend differently. We can tell you the loan amounts you can borrow from each panel lender.
Can I take out a loan with a friend or family member? This is possible. However, get legal advice on how to structure the property ownership and the joint loan exit process. We can help you with the loan process.
Can I have a loan approved before I go property hunting? Yes, many people do this for peace of mind. It also reassures real estate agents that you are a serious buyer. A ‘pre-approval’ is normally valid for 3 months, with a possibility of extension. To give unconditional approval, the lender usually requires a valuation of the property and verification of the loan application information.
What is mortgage insurance? There are two types: Lenders Mortgage Insurance (LMI) and Mortgage Protection Insurance (MPI). LMI is dependent on the percentage of the property’s value you’ll borrow (i.e. Loan to Value Ratio - LVR). LMI usually applies to loans with an LVR in excess of 80% and covers the lender, not the borrower, in the event of loan default or a capital loss at the time of property sale. This is a once-only payment by the borrower and in some cases can be added to the loan. MPI insures the outstanding balance or repayments of a loan. It can cover such events as death, temporary/ permanent disablement and unemployment. It will not be a requirement of the lender for this to be in place.
Interest only repayments - is this a good idea? There are instances where it’s beneficial to the borrower to make interest only payments rather than making principal and interest repayments. All borrowers should be made aware that this is a viable option in some cases, especially new borrowers. Speak to us today about what will suit your situation.
If I want to invest, how should I structure my home loan? Generally, the longer a property is held, the more capital growth it will likely build and this equity can be accessed to purchase an additional property/ies. Based on your investment strategy, it’s worth considering how much you should borrow, any possible tax benefits, LMI you may pay depending on the deposit and purchase price, principal and interest versus interest only repayments, and more. While the minimum monthly repayments are necessary, there may be a particular loan structure that will help you achieve your goals sooner. Get financial advice about what is best for you