Contact Us

Phone

02 6646 8450

 

Mobile

0419 416 046 

 

Fax

02 6638 9617 

 

Email

mick@mfhomeloans.com.au

 

Address

179 Lakes Bld
Wooloweyah NSW 2464

 

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Online Enquiry

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FAQs

 

Mortgage Broker Vs Bank

  • Why should I use a mortgage broker if I can go with a bank?
  • Will a bank tell you if others banks rates are lower?
  • Are they going to tell you if another lenders product is more suitable for your needs?


Mortgage brokers consistently outrank bank managers in customer satisfaction surveys.


Different banks have different policies, we’ll determine whose policy you best fall within and then recommend the lenders and products most suited to your individual needs.


Pre-approvals are often not assessed and mean nothing from the banks, Pre-approvals from brokers are fully assessed and usually only subject to a suitable property being selected.

 

Why Choose Us?

For over 8 years we’ve been providing great service and taking the stress and legwork out of home finance for our clients. We have hundreds of satisfied clients who refer their friends and family and return to us to take advantage of our services and professionalism.

 

How Long Does it Take for an Approval?

There is no simple answer to this, but some lenders tend to offer quicker service than others.

 

Once the application is submitted it generally takes between 3 and 10 days for an approval.

 

We often do an upfront valuation to quicken the process.

 

How much does our service Cost?

It costs you nothing. All consultations and recommendations are at no charge and no obligation. At settlement, we are paid commission by the lender.

 

You may be charged a fee if you instruct us to act on your behalf and use our intellectual property and do not continue to settlement with an approved loan.

 

If you pay your loan out in the first 12 months you may be charged a fee as our commission is clawed back.

 

All potential fees are disclosed at out appointment.

 

How much can I borrow?

The amount of money you can borrow, commonly known as your Borrowing Capacity, will differ from lender to lender. The maximum loan amount depends on your personal situation.

 

This is calculated from your salary and existing debts. There are many calculators on various websites but they can never consider the full picture for a complete assessment. We can also suggest ways to increase your borrowing power. Call today for an accurate assessment.

 

What is an Offset Account?

It’s an account that offsets the balance in that account against the balance of your home loan. This means you pay less interest on your home loan.

 

For example, if you have a home loan balance of $200,000 and have $10,000 in your offset account you’ll only pay interest on a home loan balance of $190,000.

 

Your repayments remain the same but with each repayment you’ll be paying less interest therefore reducing the principle on the loan reducing the time to pay off your loan.

 

What is Lenders Mortgage Insurance?

Mortgage insurance covers the lender in the unlikely event that you default on your loan. It does not cover you, the borrower.

 

We will advise you if you require mortgage insurance and the costs involved. We may be able to structure your loan to avoid, or minimise the need for mortgage insurance.

What kind of Loans do we Do?

All residential home loans and construction for owner occupied and Investment.

 

Refinances and cash out for personal purposes

 

How much deposit do I need?

We can arrange loans with a 5% deposit but as a rule to cover all costs such as stamp duty you’ll need around 10-12% of the purchase price.

 

If you already own a property, you can use equity in that property as a deposit to purchase another property.

 

Redraw on an existing loan can also be used.

 

Parents or family members can go as guarantors and this may also eliminate the need to pay for Lenders Mortgage Insurance.

 

Will the bank require a property valuation?

A valuation will be required but can vary from a full valuation to simply accepting the contract price on a purchase. Refinances will generally need a valuation.

 

This is organised by the broker with the bank. So, sit back and relax as all the work is done for you.

 

What is the difference between a ‘Principal and Interest’ Home Loan and an Interest-only Home Loan?

A Principal and Interest Home Loan is where the principal repayment and the interest are repaid together throughout a loan’s term.

 

Whereas an ‘interest only’ loan allows you to pay only the interest on the loan for a certain period after which you need to pay Principal and Interest for the remainder of the loan.

 

Generally, Owner Occupied loans are Principle and Interest and Investment loans are Interest only.

 

What is the difference between fixed and variable rates?

Fixed Rate Home Loans have interest rates and loan repayments that remain the same for an agreed period. At the end of the term, reverts to a variable rate. There can be exit fees if you want to break out of a fixed rate loan.

 

A Variable Rate Home Loan has an interest rate that can move up and down according to fluctuations in the housing market

 

Can I make extra payments on my Loan?

Almost all variable rate loans allow extra payments at no charge. If you are locked into a fixed rate there may be a cap on extra repayments. E.g. $10,000 per year

 

What is a redraw facility?

Redraw is a feature, which allows you to withdraw the extra money you've paid into your home loan. That is, the extra money you have paid in addition to your scheduled repayments.

 

What documentation will I need to apply for a home loan?

We will provide you with a sheet noting the documents required for your application these may include

  • Driver’s License and Passport
  • Recent payslips
  • Tax returns for self-employed
  • Bank Statements
  • Rates notices (if you own existing property)
 

Am I eligible for a grant?

Please see the grants page for more information

 

Lenders Mortgage Insurance is best explained by watching the short video below,