Finance Broker Melbourne simplifies the borrowing process so you can raise finance with confidence. We provide big bank experience and small business understanding to help you realise your aspirations.
Though we will help you organise your loan, instead of charging you, we are remunerated by the lender you choose after your loan has settled. Moreover, we outline in full exactly how much we are paid by the nominated lender prior to submitting your application, meaning the entire process is clear and fully transparent for you.
It depends. Before the meeting, we will talk on the telephone to learn more about your personal circumstances and what you’re looking to achieve – and from there, we can advise what will make the process easy and convenient for you. Most clients typically like to get their loan processed as quickly as possible, which means we might ask you to have some documents prepared for the meeting to make more efficient use of your time.
While we welcome you to our Elwood boutique any time (we are open Monday through to Saturday), we are committed to making the process as quick and simple for you as possible, which will typically start with a conversation on the phone. From there, depending on your lending situation and the timeframes, we will either arrange to meet you at our Elwood boutique or another convenient location. Most of the clients find it easiest to visit us during office hours or in the late afternoon, from which we can discuss your options and the way forward.
The initial conversation on the phone will take anywhere from 15 minutes to 45+ minutes. From there, we will begin the research process for you and when we meet, it will typically take around 50 minutes – though it can vary depending on the number of questions you have.
Possibly. What we can do is contact your lender on your behalf and make a ‘pricing request’ for you, where our aim is to get your current lender to offer you a better rate, though if they are not willing to reconsider their pricing, we can show you other options that could potentially save you money and reduce your loan term.
Buying your home or property is amongst the biggest purchases you will ever make, and you want things to go smoothly with an experienced broker who is reliable, easy to deal with and trustworthy. With a process that involves minimal filling of forms, our clients find the process simple, easy and professional. Further, our frequent and timely communication means you will be kept in the loop at every step of the process while knowing we are taking care of the details for you.
Yes. We understand that getting everything organised can be a little challenging, and that’s why part of our service for you includes helping you complete the necessary forms to claim benefits as a First Home Buyer.
There are several factors that will influence the banks or lenders who are a great fit for you. These include your own personal goals, your loan scenario, employment history and what types of features you want from the loan or lender. The same as a doctor will diagnose before prescribing, we too will help identify what’s important to you so we can advise an appropriate lender and lending solution.”
A disability pension is generally considered a valid income source by most lenders for the purpose of making a loan application. As with any loan application, the amount of income from a disability pension or from any other source factors into the amount you can borrow and affects eventual the terms of the loan.
Yes. We can help you choose the right loan product for the kind of property you are looking to buy. There are different options available for hobby farms, rural farms or vineyards with homes and we can support you through the entire process to help your dream of owning a home in the countryside a reality.
The fees and charges for each loan will vary depending on the total amount being borrowed and the size of your deposit as a proportion of the total purchase price and eligibility for the first home loan deposit scheme. For purchases, the most prevalent fees are stamp duty, and, in some cases, Lenders Mortgage Insurance. Other fees include a loan application, conveyancing, registration of mortgage documents and a certificate of the title search. Contact us if you would like an accurate and transparent breakdown of all fees that you might incur to establish your loan.
The mortgage registration fee registers the physical property as the security on a home loan. The fee varies marginally from state to state, though is nominal by comparison to other fees associated with the lending process, such as stamp duty and Lender Mortgage Insurance. To get a clear picture of what fees and charges will apply, contact us and we can give you a line by line breakdown as part of our process.
This depends on a number of variables – including but not limited to the ‘break costs’ that might be associated with switching from an existing loan to a new one. To accurately help determine whether switching makes sense for you, beyond a good interest rate, we will help you review the ongoing fees and charges and determine what your goals are and whether switching is in your best interests. Sometimes the ‘break costs’ of an existing loan could mean you don’t end up better off, and it’s important to look at all variables to ensure that the loan you decide on is best for you.
Otherwise known as approval-in-principle, pre-approval means a calculation has been done on your borrowing capacity based on your income, assets and liabilities. By knowing how much you can borrow, you can start to look for properties in your price range. Some people like to shop around with multiple lenders to see how much they can qualify for, but this can adversely affect your credit score meaning it could end up resulting being declined. For that reason, speak with us first so you can get you a clear idea of who you are likely to qualify without impacting your credit score.
Online calculators can sometimes vary significantly from the actual amount a lender is willing to borrow because they don’t always factor in the full circumstances that can influence your borrowing capacity. If you rely on the online calculator alone and put down an offer on a property, it could be a big risk. So, to avoid making a costly mistake, contact us to get a clear and quick calculation of your borrowing capacity.
Equity is the difference between what your property is worth and the balance owing on your mortgage loan is. For example, if you have a property valued at $400,000 with a mortgage of $200,000, you have $200,000 worth of equity. Whether you live in the home or it is an investment property, equity is typically built up over time as the price of the property appreciates in value and/or as the loan value decreases.
Your credit score provides banks an indicates as to your reliability as a borrower. If you have a default (such as phone bill, gas bill, etc.), it can impact your credit score – and therefore, which lenders you are eligible to access funding through. Credit scores are mainly for the banks to have confidence the people they are lending money to are creditworthy and have the capacity to repay the loan.
Depending on your personal situation and goals, home loans can incorporate a range of different features. Whether you are anticipating children, would like to downsize, make extra repayments, renovate, or more, we can discuss the features you would like and provide you with a tailored lending solution to suit.
We will review your situation and talk with you about why you’ve missed making payments. Missing one or two payments is unlikely to prevent you from getting refinancing though it could impact which lenders you will be available to refinance with.
The bank wants to be sure that if they are going to lend out their money, the people they lend it too are creditworthy and will pay it back. Lenders are in the business of managing and assessing risk, so this is their way of managing this process to determine whom they will lend money to.
A bridging loan is a shorter-term loan. It is typically needed when you are selling one property and purchasing another one. It is also used when you are waiting for the arrangement of longer-term financing.
Lender’s Mortgage Insurance protects the lender in case a borrower defaults on their home loan. Lender’s Mortgage Insurance (LMI) is a once-off fee that normally applies when the customer is borrowing more than 80% of the purchase price. LMI is scaled depending on the percentage you need to borrow (between 80 – 95%) and the dollar amount of the loan. LMI can be paid upfront or added to the total loan amount. As part of how we help our clients, we itemise every lender fee and charge so you have a complete breakdown of the costs associated with your loan.
A mortgage offset account is a transaction account linked to your home loan, into which you can deposit your salary, transfer money from other accounts, and use it for everyday spending, like for your groceries and bills. It can also reduce the interest payable on the balance of your loan. For example, if you have a loan of $340,000 and have $12,000 in your offset account, the amount of interest you pay will be calculated on only $328,000 ($340,000 – $12,000). A redraw enables borrowers to deposit additional funds directly into their home loan, which can also reduce the interest payable. And, those funds can then be accessed at a later point if required. Whereas an offset account will normally allow you to access any required funds on the same day, a redraw would normally take a little longer and might incur a redraw fee. To determine if one of these loan features is appropriate for you, send us a message.
We have a wealth of experience organising and submitting applications on behalf of our clients – and overseeing the process to settlement and beyond. We will present your application, along with accompanying documents to the lender in a format that not only meets their lending policy, but makes it easy for them to review and assess to allow the application process to be as quick, smooth and easy for you as possible.
Yes, your online bank statements are the same as the ones you receive in the mail. You can access your statements all in one place and print the ones that are needed to assist with the application process.
Typically you will receive an email notifying when your next statement is available to view through Internet Banking. These notifications will typically NOT have a link to online banking, and you should beware of emails that are pretending to come from a bank.
All electronic communication will be sent to the email address we have on your personal file. Please ensure this is current so that you never miss out on any email notifications and keep us updated of any change in the email address.
The same types of loans and feature tend to be available for both investors and owner occupiers. These days, some investors will opt for an interest-only loan while others go for a principal & interest (P&I). Almost always, owner-occupiers have a P&I loan so they can reduce the amount owing and own their home outright. Also, some lenders may charge slightly higher rates for investment properties, particularly if they there to be higher risks associated with the type of property and or location.
Most investors get started by using the equity in their home as the deposit on their investment property. Some investors are told to put up their home as collateral to fund the deposit of the new property (known as cross-collateralising), though we feel this is too risky. We prefer to minimise your risk by drawing out some equity and using it as a deposit for the new property so each asset is separately financed. This is where loan structuring and receiving appropriate advice is absolutely critical – so send us a message or call us to help walk you through how this could work for you.
Negative gearing is when the annual cost of owning your investment property (inclusive of interest repayments, body corporate fees, maintenance etc) exceeds the rental income you receive from that property. This loss can be used to reduce your taxable income. If you would like us give you some examples of how other clients have negatively geared their property and what this could look like for you, send us a message and we can run some specific numbers for you.
A self-managed super fund loan is when you withdraw money from your super fund to invest in a property. There are a few rules and restrictions around this, so it’s a good idea to consider getting financial, tax and legal advice before considering this type of loan. If you would like to explore if an SMSF loan will work for you, we can put you in touch with our SMSF specialist.
There are a number of factors that will determine the amount you can borrow, including (but not limited to) your current income, the purchase price of the property, whether the goal is to generate maximum capital growth or to live in a later point and so on. These variables will influence the price, type and location of the property and the ongoing ‘holding costs’, so it’s best to chat through your options.
Just like investment properties, when it comes to investment loans, there are a number of advantages and disadvantages of different loan types – and the correct loan type (and loan structure) will be heavily influenced by what is important to you in terms of your investment goals, your income, current financial situation, and so forth. Our expertise is in helping each client identify a lending solution that is appropriate for them – so if you would like to find out more about know how to get started in investing, or to expand your existing portfolio, send us a message.
You will need a minimum of 10% of the value of the property for your deposit, although this will vary between lenders and will be based on different criteria, such as the type of dwelling, location, etc. Some lenders may require a much higher deposit for some types of property and some lenders may not lend at all for particular property types and/or locations. That’s where our expertise will help you understand which lenders you can qualify with and how much they are prepared to lend on a particular property.
Most lenders will let you choose your repayment cycle, although if possible, it is a good idea to think about aiming for fortnightly payments rather than monthly, as you will make more repayments over the year which will shorten the length of your loan.
Typically, there are 3 main considerations when it comes to investing in property.
1. Capital Growth. Over the long term, the property has proven to grow in price at about 9% per annum.
2. Risk. Compared with most other investment classes, the property is seen as lower risk and lenders are therefore prepared to lend a higher % against the value of the property
3. Leverage. This is where you can use equity from your home to fund the deposit on a property and borrow a substantial percentage from which you can still earn a valuable return.
Landlord’s insurance (or investment insurance) will cover your property against damage or theft caused by the tenant, events such as weather and fire, as well as outstanding rent should the tenant not be up to date. It will also cover you for any liability should a tradesperson be injured while working on your property. If you would like some options for landlord insurance, send us a message or give us a call.