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        Will my other debts affect the amount I can borrow?   The more debt you have, the less you will be able to borrow. The process of finding out how much you can qualify for involves examining your income and comparing it to your debt ratios. These are variables that help determine how much you can borrow. If you have an excessive debt ratio, this reduces the amount of finance eligibility. By examining your credit profile we can give you an idea of what you can borrow. If you have credit card problems, do not be embarrassed to discuss them honestly with us. If you have credit problems we can assist the process by obtaining a copy of your credit report to help in determining your ability to qualify for finance. We can sit down with you and examine your entire financial situation to best position you prior to submitting your loan application. My Very Best To You Always,  
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      What is Lenders Mortgage Insurance?   Lender’s Mortgage Insurance (LMI) does not protect the borrower should they be unable to make mortgage repayments. It protects the lender from any losses resulting in the sale of a property due to default by the borrower. LMI premiums are payable by the borrower when the amount borrowed is above a certain percentage, usually 80%, of the lender’s valuation of the property. Some lenders will allow you to add the LMI premium to your home loan; others require you to pay it up front. My Very Best To You Always,  
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        Are there Advantages of Using Finance Brokers over Banks?   Most definitely YES!   Finance brokers will source the best loan for you depending on your financial circumstances from a huge range of products and lenders. Many bank employees may not have the wealth of knowledge about the loan products available in the market place, as they will be limited to the products available at their own institution. Although a bank or lender may offer their best available product, they won’t tell you if another bank has an even better product or deal for you. The role of a finance broker is to research the best loan for you (against other products available on the market) and recommend this to you based on your individual financial situation. Could you imagine trying to work out the difference between 20-30 different loan products? That would take you ages! This is why brokers get paid for what they do. They invest their tim...
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  Is the cheapest interest rate always the best? Not necessarily. There are several things to look at when searching for the right loan. Even though a lower interest rate might be appealing, if the loan is not set up with the correct structure or you are not aware of all the fees and charges, it may actually cost you more in the long run. It is important to seek recommendations from your broker and discuss products such as offset accounts, particularly for investors as they can preserve your future tax benefit.   Also, for self-employed borrowers, there are several lending options available not offered by all banks. Once again, your mortgage broker can discuss the range of strategies and options offered by many lenders as opposed to one or two products that a bank would discuss with you. Many bank employees may not have the wealth of knowledge about the loan products available in the market place, as they will be limited to the products available to them.
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    What is a low doc loan? This is a term used to describe the extent and type of financial information you’re able to provide when you apply for a home loan. If you’re unable to provide pay slips or up-to-date financial statements then a low doc loan might suit you better than a more traditional loan (e.g., if you’re self-employed or a contractor). My Very Best To You Always,  
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What is redraw? A redraw facility gives you easy access to any additional repayments you’ve made on your loan without going through a complete application process. If your loan has a redraw facility, you can request access to these funds online or over the phone and funds are usually credited to your account within 24 hours. My Very Best To You Always,  
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    What government charges may apply when I buy a home? Stamp duty is a state tax that is imposed when the ownership of a property changes. Other fees that may apply are land transfer registration fees and mortgage registration fees. For more information about buying a home and stamp duty in your state, visit the Australian Government’s MoneySmart website. My Very Best To You Always,  
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    What is meant by ‘Principal and Interest’?   Principal and Interest is the standard type of repayment for most home loans. The borrower makes regular repayments that include a portion of the principal repaid and the interest that is charged on the outstanding loan amount. Over time the principal portion of the repayment will increase and so the outstanding loan balance also reduces. My Very Best To You Always,  
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        What is meant by ‘Interest-only’?     This is a repayment type that allows you to make regular repayments that only incorporate the interest charged on the loan, over a set period of time. This means that the outstanding loan balance remains relatively unchanged during the term of the Interest-only period. Lenders generally offer Interest-only periods between one and five years. After the initial Interest-only period the loan reverts to Principal and Interest for the remaining term of the loan.   My Very Best To You Always,  
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What is a comparison rate? The National Consumer Credit Protection Act 2009 (Cth) stipulates that any advertised interest rate must also include a comparison rate. A comparison rate is calculated in accordance with a standard formula which incorporates known establishment, ongoing and discharge fees into the interest rate. It is designed to provide you with the ability to compare the ‘true cost’ of different loans. However, the comparison rate does not include any ‘event-based costs’ such as redraw fees or fees that are not known at the time the comparison rate is provided. My Very Best To You Always,  
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