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Frequently Asked Questions (FAQ)
WHAT ARE THE BENEFITS OF USING A MORTGAGE BROKER?
- More Choices, Better Deals. Access to multiple lenders and loan options to secure competitive rates.
- Expert advice and guidance through the loan process,
- Will get you potentially better interest rates and loan terms because They Work For You, Not the Bank.
- Assistance with paperworks and negotiations, thus, Saves You Time and Effort.
- Note that banks offer their limited products whilst mortgage brokers offers their services to find you the best product that suits your unique circumstance within a wide range of lenders.
- Finds solutions that banks can't.
- Has Best Interest Duties (BID) to work towards the interest of the borrower.
Are there any Government incentives for first home buyers
Yes, there are basically three (3) Schemes that the Australian government have initiated.1. The First Home Guarantee Scheme under Housing Australiaa. First Home Guarantee (FHG) is the 5% low deposit for an individual or joint applicantsb. Regional First Home Guarantee (RFHG) is the 5% low deposit for individual or jointapplicant that must have lived in regional areas.c. Family Home Guarantee is a 2% low deposit for single parents or single legal guardians.2. First Home Owner Grant (FHOG) is a one-off payment to encourage and assist first home buyers to buy or build new residential property for use as their principal place of residence.3. First Home Owner Rate of Duty (FHOR) is a concessional rate of duty applied to certain transactions such as a contract to purchase or transfer a home or vacant land. Eligibility is aligned with the requirements under the FHOG.Note that the eligibility requirement and the different schemes that may be available varies depending on every statesIt is best to talk to your mortgage broker to see where your circumstance fits in the eligibility criteria.HOW SOON CAN WE GET OUR LOAN APPLICATION APPROVED?
I understand the importance of a collaborative approach when it comes to securing a mortgage. It requires a joint effort between yourself, your mortgage broker, and ultimately, your lender. The success of your loan application depends greatly on how you handle the request for necessary documents and the accuracy of the information provided in your profile. By promptly responding and submitting truthful information, you can expedite the loan process and increase the chances of getting your application approved in a timely manner. Trust in the expertise of our team and be an active participant in the process, and you will soon be on your way to a successful mortgage application. Help us to help you.What Is The Difference Between A Fixed And Variable Rates?
Fixed Rate means the interest rate remains the same for a set period, providing repayment stability, whilst,Variable Rate means the interest rate fluctuates based on market conditions, which can lead to lower or higher repayments.HOW MUCH CAN I BORROW FOR A HOME LOAN?
The amount you can borrow depends on varying factors, like your income, debts, expenses, deposits and your credit score. A mortgage broker can assess your financial situations and can provide an estimate. Getting a Pre-approval helps you understand your borrowing capacity and strengthen your position when making offers.What is the minimum deposit required for a home loan?
Ideally, lenders require at least 20% of the property value as a deposit. Some loans allow lower deposits but may require Lenders Mortgage Insurance (LMI). However, there are other avenues to explore where you can put as low as 2% deposit for your home loan.What is a Lenders Mortgage Insurance (LMI)?
LMI is an insurance that protects the lender if a borrower defaults on the loan or financially incapacitated to make repayments on the loan. It does not protect you as a borrower. It is usually required if the deposit is less than 20% of the property's value.What are the different types of home loan Repayments?
- Principal and Interest Loans (P&I): You repay both the loan amount and interest. By paying both your principal and interest on the loan, you will build up your equity over time and save you interest over the life of your loan.
- Interest-Only Loans (IO): You pay only the interest for a set period, then start repaying the principal. This will benefit you if you are constraint of cash flow for considerable period of time.
- Offset Account: A savings account linked to the home loan to reduce interest against your principal loan. Off-set accounts is valuable if you have extra cash flow to put towards your savings but is liquid.
- Redraw Facilities: Allow access to extra repayments made on the loan.
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