Where do our lenders get the Money from?
We principally use the
major banks as the wholesale channels that source wholesale Funds. Our branches
are not limited to sell our products although we presume we have added value to
our products. We have ACCESS to all major lenders. Tell us what you want, we can
help you.
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What is the lowest
interest rate I could get?
There are interest rates
lower than approximately 1% of average variable rate (honeymoon rate). Any
person under normal Full Doc criteria will be eligible for this. There are other
attractive packages for professionals (Loan amounts over 500k) and lenders may
consider 0.7% off. Best answer to this question would be - your eligibility.
Confidential analysis of your current financial situation will tell us what
products available to you and related interest rate for each of them, this will
enable you to pick your best.
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Which
home loan ( mortgage ) is best for me ?
You certainly have a lot of HOME LOANS to choose from.
Fixed or variable? Principle and interest or Interest only or Line of credit
mortgage facility.
The loan satisfy your requirements best is the one for
you. An independent home loan consultant is more likely to direct you to a
correct lender as they have no special obligation towards one lender against the
other.
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Why should you come to us?
We open branches to serve
you better when traditional bank close one that is near you. We believe you need
a financial partner to deal daily. We will build a good relationship with you to
satisfy all your financial needs.
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What is Full Doc Loan
Application?
A loan application that is
supported by verifiable documentary proof. Since the risk is less on such loans,
once 105% loans were possible on them. A comparable interest rates were lower as
well.
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What is Lo Doc Loan?
Normally customer has to
submit proof of income a way of PAYG or Tax Returns. A self certification of
income confirming an undertaking to repay and ability to do so is acceptable
normally from self employed. A loan acceptable to a lender in this manner is
called a Lo Doc Loan.
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What is No Doc Loan?
No documents necessary to
obtain this type of a loan. Since risk is high LVR on such loans may be lower,
maximum 70% of security value. Also it will attract higher interest rates.
READ
MORE - Non conforming Loans
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How can I pay out my Mortgage
Loan sooner ?
There are ways that I know that will work to pay out
your mortgage sooner.
- Making the higher repayments. A refinance with lower
interest rate may enable you to do so.
- Don't make withdrawals on your loan.
- Buy a smaller, cheaper property to begin with (Lower
end of your need), try to repay an extra dollar when you can.
- Shop around for better loans and move your self from
one bank to another if the move is beneficial to you.
- Get a home loan with a lower comparison interest
rate (lower or no on-going fees and charges).
- Consolidate your debts into one loan with a line of
credit facility (All credit cards & high interest loans), these are
normally offset accounts.
What is L.V.R?
L.V.R. when referred to a mortgage is the short form of Loan
to Value Ratio. This is a ratio, expressed as a percentage, of the
size of the mortgage loan required compared to the value of the property that
you are contemplating to buy.
less LVR will be a easy loan as there will be no mortgage
insurer involved in decision making. Mortgage Insurance is necessary over
60% Lo Doc & 80% Full Doc LVR . Some banks may accept to Capitalize Mortgage
Insurance, please find out your options from your consultant.
When LVR is higher and if you have defaults to your credit
history, you are expected to pay high interest on your LOAN, simply because Risk
Factor associated with them are higher.
What is a D.S.R. related
to a mortgage?
D.S.R. is the debt to service
ratio. This is the ratio expressed as a percentage of the loan to determine an
applicants ability to repay the subject home loan, based on their total income
and commitments. This may vary from lender to lender who will have different
methods and formulas to arrive at this.
Normally total debt repayment to
gross income 30-35% is a fair indicator of your loan serviceability but there
could be variations applicable to each customer.
Can someone with a bad
credit history still get a loan at reasonable rates?
As long as you are
truthful with us (declare your position correctly), we will put our best
to getting you a loan, regardless of your past credit history. Lenders have ways
and means of checking, and the lenders need to know that whether you're likely
to repay the loan. Risk to lender has strong relation ship to lenders return. As
a result obviously you may have to pay a rate for higher risk initially for a
qualifying period, then there is a good chance that your interest rate will be
reduced to applicable variable rate.
Advantage with a Non
Bank Lender?
They help you when you
cannot meet major bank criteria to obtain your loan. Non bank lenders will have
less criteria to qualify your loan. As a result, they may have loans
specifically designed to those do not qualify for Bank Lending. You are expected
to pay higher rates for these high risk products although most times they have
competitive products where lender competition is high (some times similar rates
from a bank). Please note, Banks are the last to close down in a crisis
situation. In a CRISIS Banks buy loan portfolios from such Non Bank
Lenders for cheap (ie, RAMS by Westpac ) but yet your loan will continue with
such new buyers on same terms.
