Home loan frequently asked questions
1. How much does it cost you to use my services as a Finance Specialist?
There is no charge to the customer for using me as your Finance Specialist. In Australia, Finance Specialists (also known as Mortgage Brokers) are paid by the lending institution the loan is secured with.
2. What is the benefit of using a Finance Specialist over a bank
- No cost to you – we’ve already covered this one!
- Time Saver – rather than spending a huge amount of your time researching all of the different loan options and lenders, let me do it for you! I will also complete and submit the paperwork for you, managing all communication with the lender up until settlement.
- Expertise – Over 13 years of lending experience. I have also worked for one of Australia’s leading financial institutions which means I understand how the banks think.
- Options – As a Finance Specialist with Loan Market, I have access to more than 30 lenders and over 800 loan products giving me a wide range of options. This allows me to find the most suitable loan for your circumstances.
Relationships with Lenders – As I deal with financial institutions regularly, I have strong relationships with these lenders which allows me to get the loan secured as quickly as possible and even negotiate a better deal for you.
3. What is a Pre-Approval?
Pre-approval means that the lender has determined you are a suitable candidate for a loan based on your credit history and financial situation. This does not guarantee that your loan application will be approved but can be helpful in showing sellers that you are a serious buyer.
4. How do you decide which loan is suited to me?
I will ask you a series of questions so I can truly understand your current situation. I will then research the market and come up with a range of suitable options. We will then decide which loan product is most appropriate for you.
5. Do you offer a range of different lenders?
As a Finance Specialist with Loan Market I have access to more than 30 lenders and up to 800 loan products. This allows me to find the most suitable loan to suit your individual circumstances.
6. How much of a deposit do I really need to obtain a loan?
Some lenders will lend up to 95 per cent of the value of the property therefore a min of 5 per cent is required. Please note if Lenders Mortgage Insurance is applicable you may need more than a 5 per cent deposit. Once I have assessed your current situation, I will be able to give you a more accurate idea of what deposit is required by you.
7. What is a comparison rate?
A comparison rate is a tool used to help consumers identify the true cost of a loan in order to effectively compare it to loans from other lenders. It factors in the amount and term of the loan, the repayment frequency, the interest rate and the fees and charges relating to the loan. This is then calculated into a single percentage figure.
8. What information do I need to provide you to obtain my finance?
This will differ from person to person. I will be able to give you a list of required documentation once I truly understand your current situation. For example, a self employed person will need to provide different documentation then a person who works for a business or company.
9. Can you explain to me what Lenders Mortgage Insurance is for?
Lenders Mortgage Insurance is designed to protect the lender in the event you could default on your loan. To avoid paying Lenders Mortgage Insurance a 20 per cent deposit is required. Please ask me about other ways to avoid paying Lenders Mortgage Insurance eg Family Guarantee loans.
10. How much money can I borrow?
There are several factors which will determine how much you can borrow:
- Your income
- Your Financial Commitments and Living Expenses
- Your deposit and savings
The best way to determine how much you can borrow is by organising an obligation free appointment on 0424 463 302.