What information do I need to provide you with?
To complete the loan application there are many proof documents you will need to provide. Things like: Proof of identity (drivers license, passport, birth certificate and the like) Proof of income (pay slips showing your average wage, last annual tax documents) Proof of savings (bank statements)
How do we meet with you to discuss our needs and objectives?
We conduct our meetings remotely, via phone and video calls. This way you don’t have to have anyone come to your home.
Can we talk with you after business hours?
Yes you can. We make ourselves available up to 9 pm at night. We will even chat with you on weekends if it suits you.
How long does it take to obtain approval?
Obtaining approval depends on many factors. It can be as quick as 2 days but could stretch out to more than two weeks.
How much deposit do I need?
Currently lenders will consider you buying a property with as little as 5% of the value plus stamp duty costs and legal fees. But a 95% loan is much harder to get than an 80% one.
What is LMI (Lenders Mortgage Insurance)?
LMI is an insurance policy which minimises the risk for the lender. When you borrow more than 80% of the property value, the lender considers this to be a higher risk situation. To protect themselves, they require you to take out Lenders Mortgage Insurance. The benefit for you is you are able to get into the property market sooner than if you waited to save up your 20% deposit. The benefit for the lender is their money is protected should anything go wrong.
What is a Honeymoon Rate?
A honeymoon rate is a reduced interest rate usually set for the first 12 months and is normally offered to buyers who are tight for initial cash flow. The idea is to bring your payments down while you settle into the habit of paying your mortgage. This could be helpful to get into a property of your own but beware the interest rates will return to at least the current market value when the reduced interest period is over. This will increase your monthly payments.
What is a fixed rate loan?
A fixed rate loan locks you into a set interest rate for a predetermined period of time. The idea is to protect yourself from sudden rate increases. Be careful though as a fixed rate loan will have an interest rate which is higher than the current variable interest rates meaning you are paying more. The advantage comes if the variable rate rises above your fixed rate.
What is a split Loan?
A split loan is where you have a part of your loan at a fixed interest rate and the other part on a variable rate.
What is a Line of Credit Loan?
A line of credit loan gives you access to your equity. It’s a bit like a credit card and if you are not disciplined, you could find yourself in financial strife.
What are upfront costs?
Depending on the lender you may need to pay an “all up” establishment fee which covers the banks legals, application fees and a valuation fee. Others add security costs as an upfront fee. Generally speaking they are the fee’s an institution deems necessary to conduct the work to organise you a loan.
Does loyalty to my Bank provide me with any special savings?
In some circumstances you could possibly get a discount on the rate but for the most part, new customers who have never banked with your institution before will probably get a better deal.
Are there exit costs imposed if we pay the loan out early?
When you pay out a loan, watch for the exit costs. The lender may charge you legal and preparation fees to discharge your mortgage, and some even sneak in a service fee.
Are there loans which just have the basics?
It’s true; you do get what you pay for. But if you are after flexibility, be aware you will pay more for this kind of loan. Loan flexibility equals premium options and will cost you more. The more basic loans have less features. Call us on … and talk to us about your needs.
Can we have a package deal where we consolidate all our banking with one institution?
Some lenders offer banking packages and discounts which can reduce the cost of your everyday financial needs. These packages provide significant discounts to certain groups. It’s worth shopping around as these kinds of deals can be quite lucrative to those who have been able to secure them. Our Mortgage Options can give you guidance in this area if you are interested in doing a debt consolidation.