Why should I use a mortgage broker?
We are a free service and we can save you time and money. We have 25 lenders to choose from and we can help find a loan to suit your circumstances.
We have banks that will lend money to clients who are on casual employment and probation. Plus, we know which banks are offering ´specials' that may be able to save you money on an application fee (up to $600).
We do all the paperwork and can advise you on what you need to do through each stage of the home loan process.
We receive a commission from the bank once your loan has settled. No fees or extras are added on to your loan. It is the same loan as you would get through a branch of any bank.
Do I need a deposit?
Generally, the banks like to see that you have saved a 5% deposit. Some banks allow the deposit to be made up of non genuine savings – the sale of an asset (eg a car), a gift from your parents and some genuine savings.
If you are currently renting through a real estate agent for at least 6 months, this can help when it comes to your deposit as well.
Please call us to discuss your options further.
How much I can borrow?
The first thing you need to do is contact us and we will do a serviceability test. This means that we put all your income and liabilities into our software program, to see if you can afford to get a loan.
Not all banks will lend you the same amount of money. The software program will give me a guide as to how much you can afford.
We suggest to a lot of first home buyers to apply for a pre-approval, which means the bank will look at your circumstances and then give you a letter saying that the loan has been approved in principle. You can then start shopping around, knowing that most of the finance has been taken care of.
A couple are seeking to buy a home and have a 5% deposit. They come to me seeking finance. I put the following details into the computer.
Income: $40,000 for the male applicant and $30,000 per annum for the female applicant;
Personal loan: $400 per month;
Credit card: Limit of $2,000.
Here are four examples of what some of the banks will lend:
Lender 1 $362,000
Lender 2 $353,000
Lender 3 $339,000
Lender 4 $322,000
As you can see, it makes sense to shop around and we can do that
for you in a matter of minutes.
How do I apply for the First Home Owner’s Grant?
We take care of all the paperwork, including the grant. All you need to do is sign the application and we take care of the rest.
To be eligible for the grant, you must plan to live in the property you are buying and not have owned a house previously.
What costs are involved with getting a loan?
There are five major costs involved with a loan: stamp duty (government tax), bank and government charges, mortgage insurance, pest and building inspection and legal fees.
Stamp duty: As a first home-buyer you receive exemptions on your stamp duty. On a property up to $500,000, you do not pay any stamp duty on your property. For other home buyers, for example, you would pay $5,250 on a house worth $400,000.
Bank and Government charges: Generally most banks charge an application fee of about $600, you can also pay a number of other fees such as settlement fees, title registration and search fees. These vary from bank-to-bank and I can give you a better estimate when you see me.
Mortgage insurance: Varies from lender to lender and I would need to give you a quote when you are applying for the loan. With a 5% deposit (genuine savings) on a house worth $350,000, you could expect to pay $11,500 approx. Most of this fee can be added to the loan with some lenders. For loans where you don’t have genuine savings, you may pay a higher mortgage insurance premium.
Legal fees: Generally the fees vary. However, I would allow approx $1,600.
Pest and building inspection: We can recommend a business to you and generally you will pay $460 for a pest and building report.
How long does it take to get finance?
Once you have had the initial meeting and filled out an application for finance, it will generally take about two days (minimum) to 10 working days (maximum) to have the finance approved. From time to time, for whatever reason, we may need to ask for an extension on finance. This can be handled by your solicitor.
What are the reasons for loans taking so long?
Some of the reasons for delays in processing your loan include:
Missing information, such as credit card statements, payslips etc. It is important to have the correct information when the loan is sent away;
Credit problems – the client may have been unaware of an unpaid debt;
The bank’s mortgage unit may be extremely busy;
The valuers may have had problems contacting the client/agent to do a valuation.
FREE Home Buyers Guide
This Guide contains all the information you need to get finance for your own home or investment properties.