FAQ
What does a Mortgage Broker do?
Mortgage brokers have access to a wide range of lenders and guide you through the entire loan process. We are qualified and have to be licensed or appointed to act as loan advisers. We have in-depth knowledge of loans and options suitable for a range of different financial situations. As a Mortgage Broker, it is our role to work with you to find the lender and loan that best suits your needs and objectives. We also negotiate with lenders to arrange loans and manage the process through to settlement.
Do I have to pay a fee for your services?
Our service is at no cost to you. The way the Australian market works, is that our service is paid for by the lender you choose for introducing your business. A lender has a lot of overheads to pay to source clients directly, there are massive costs involved for advertising, staff, branches, branding, etc. A mortgage broker is independent, responsible for their own costs and a lender only has to pay a broker when a loan actually goes ahead. Broker introduced loans probably cost the lender less than branch introduced loans. This is why lenders often offer discounted rates to broker clients. In many cases, even if the client approached the bank directly, they would not be able to get the same discounted rate.
Why shouldn’t I just go directly to the bank?
To put it simply, choice. A bank’s offerings are restricted as they can only provide you advice and options within their portfolio. This means that they can only help you if it is within their policy, and they can only provide you with their specific products and rates. As we work independently, we can give you the full view of the entire Australian market. We’ll advise you on all the options from an extensive range of lenders. When you work with us, you’ll get the full picture. We guide you through the process to make sure you select the best available option in the market for your individual needs.
Don’t you just recommend the lender who will pay the most?
Never. We are an independent company with an unbiased market view. In actual fact for standard residential home and investment loans the differences between the lender commission rates is very small. The industry is also heavily regulated to ensure all advices are genuinely in the best interest of the client and not the broker. I am personally a member of the Mortgage and Finance Association of Australia and am bound by code to act in your best interests. The advice we give you will always be tailored to suit your individual needs and it is our goal to make sure you get the loan that is right for you.
I don’t live in VIC or QLD. Can I still use your service?
Yes you can. We are authorised and accredited Australia wide and our knowledge and experience is of the entire Australian mortgage market. I was born in Cairns and established my career as a mortgage broker in Melbourne. As a result, the majority of our clients are Victoria and Queensland based, however we continue to work with clients all over Australia.
I went to the bank and they said I can’t get a loan?
Not all banks say no. Each lending institution has their own very specific set of rules around who can and can’t get a loan. If you feel that buying a house is in your best interest, and that you’ll be able to pay back that loan, have a chat to me. I’ll give you the facts, and let you know who will lend you money, and what that will look like. Regardless of your situation I will do my best to get the outcome you desire.
How long does the application process take?
Generally you can expect an application to be assessed within 24-48 hours from receipt of application and full supporting documentation. However, this timeframe can vary depending on; valuation requirements, loan complexity, documentation requirements, and from time to time the chosen lender service levels. If you require an urgent settlement, and all required documentation has been provided, we can often negotiate an escalation with the lenders.
Is it worth getting a pre-approval?
YES! For anyone buying property, this is our number one tip. It reduces the risk of missing out on your dream home because you couldn’t obtain finance. Pre-Approval provides you with the knowledge of how much the banks will lend you and can also give you greater negotiating power. Once you find a property, everything is already in place so this also means a faster approval! There is no cost involved for getting pre-approval and we do not charge you for our professional services. Note: pre-approvals usually have a 90 day expiry, however, this can easily be extended when and if required.
Fixed or Variable, what should I do?
The age old debate. There are pro’s and con’s for both fixed and variable. The benefit of fixing your loan is stability, as your repayments will remain the same for the entire fixed term, regardless of what is happening in the market. One disadvantage of fixing your loan is that there are restrictions on how much extra you can repay (usually a cap of around $10,000 per year in additional payments). There are also penalties involved in breaking a fixed loan, so consider any future plans that may require you to sell or refinance during the fixed term. The benefits of a variable loan are that there is no limit to how much extra you can pay on your loan, allowing you to make an infinite number of repayments or you can put all your savings in an offset account (allowed on variable loans only). One disadvantage of a variable rate loan is that it is affected by the rise and fall of interest rates, subject to change beyond your control. Still not sure? That’s ok. You can also split your loan into a fixed component and a variable component providing you with you the best of both worlds. Our simulation and modelling will showcase to you which is the most cost effective way to proceed.