A deposit or a guarantor? What is mortgage insurance? Here’s some of the basics answered, or feel free to contact us to discuss your own specific circumstances.
FREQUENTLY ASKED QUESTIONS
Listed below are some of our most popular questions.
Yes! You are welcome to meet at our office during business hours Monday to Friday, or alternatively we offer appointments out of office Monday to Thursday evenings.
This can depend on what you are looking to achieve. One of our specialties is guarantor lending (family pledge loans) which often don’t need any money down. Also, with many investment purchases we utilise the equity in existing held property to avoid the need for a deposit, whilst also maximising tax benefits.
This is an individualised calculation, using many factors including if you have children, existing car loans, credit cards etc. We will not just tell you how much you can borrow, but also make a recommendation of any changes required prior to making a loan application if there are any particular goals you are looking to achieve.
Nothing. Our service to you is complimentary, as we are paid by the lender for handling the application. There is a lot of false information pertaining to brokers’ commissions, that for some reason it costs more to deal with a broker as we are paid for introducing the loan. This is incorrect, with us saving clients money by finding the best lender and product for their needs, which is usually cheaper than that offered in visiting just a couple of bank branches for a quote. With all of the associated costs of running a bank branch – all of the rent / staffing and so forth; it is more economical for the lenders to pay us a commission rather than the associated costs of opening branches and employing more staff.
Home Loans and More are paid a percentage of each loan that we submit to a lender, once it successfully settles. The amount can vary depending on the loan amount. The most important thing you need to know is that it does not cost any more to have us submit your loan than if you were going directly to the lender yourself.
As we work on repeat business and referrals, we only offer the lenders and loans we would be prepared to offer our families or take out ourselves. If we focused on which lender pays higher commissions, we would not be doing the right thing for our clients, and the repeat business would stop. We disclose our commissions in writing with every single loan application.
The answer is an individual one – it depends on how much equity you hold, and what your plans are. It often is an idea worth considering, especially if increasing the home loan repayments by the amount you had been paying on your existing personal debts; this will then pay off the debts quicker, due to a much lower interest rate than that achieved on a personal loan or credit card.
Often a basic variable (cheap rate, no fees, no catches) is best for a small to medium sized owner occupied loan. But if rate increases could affect your ability to repay the loan, then a portion fixed is like paying insurance. Most investors are better suited to a professional package which although has an annual fee, has other benefits such as offset account facility and further ‘aggregate discounts’ where the more you borrow, the better the interest rate the lender offers.
As a general rule, you are required to pay a 20% deposit plus fees. LMI allows clients to buy a home with as little as a 5% deposit plus fees. This is a once off payment, and may be added to the loan with some lenders. The other option is to utilise a family pledge loan, utilising a parents’ home as security.
Yes, we can assist with putting an offer together. When making an offer, we cover far more than the basic ‘letter of offer’ form provided by the selling agent, thereby strengthening your chances of the vendor accepting your offer.
Some lenders will still accept applications whilst on maternity leave, provided a return to work letter outlining date of return, and income level once back at work is submitted with the application. We also need to provide proof of enough money to cover the shortfalls of the loan repayments until returning.
If a subject to finance clause is in the purchase contract, your deposit is refunded if your loan is declined.
Yes, and this is a specialty area of Home Loans and More. We offer limited liability guarantees, where parents are only liable for the deposit, not for the entire loan. We aim to review in 3 – 5 years, to see if there is enough equity at that point to release the guarantor.
Yes – we structure each loan individually, depending on whether you are buying the land first to hold, or if you are going straight into building. Other factors can also be if you are living in your own home, or renting whilst building. Every single recommendation is individually assessed. Once approved, we will then liaise on your behalf between the bank and the builder for construction payments. Our office takes care of the process at all stages, including making sure your accounts are setup correctly at the end of construction.
AFTER HOURS APPOINTMENTS