What is a Mortgage Broker?
As a Mortgage Broker, Andrew has access to a panel of the best lenders in Australia. Andrew will have a detailed conversation with you to understand your lifestyle, financial goals and then investigate, research and present to you options that would best suit. You choose the best option for you. Andrew will work with the bank to obtain what you need. You will receive personalised service throughout the file journey as well as ongoing post settlement support.
What fees do I have to pay?
Our service is complimentary and obligation free. There is no fee to use a mortgage broker. Andrew is paid by the Bank that you choose to have your home loan.
There will be state or territory government fees and potentially lender imposed fees to put your loan in place. You will pay no more than what the bank or lender would normally charge you directly.
What documentation is required to move ahead with assessment/application?
The actual documentation you will need to provide will depend on your financial situation, but an example of required documentation is as follows:-
- Two forms of ID – driver’s licence, medicare card, passport or birth certificate. If you have been married/divorce we will need to have a paper trail of that information as well
- Two most recent pay slips, If you are self employed – your last two years of personal (including the NOTICE OF ASSESSMENT) and business tax returns, including profit and loss statements
- Other income support, this may includes Centrelink, child support, dividends, family trust disbursements
- Most recent years PAYG payment summary from your employer/s
- Bank statements showing evidence of genuine savings (this is important for first home buyers)
- The most recent statement of each of your credit cards and personal/car loans. If you have a HECS debt, please provide evidence of balance
- Most recent superannuation statements
- Most recent statement of any investments that you may have, this includes any managed investments, term deposits or share certificates
- A copy of the sale of contract of the property you want to purchase (if you have a property) If you are purchasing an investment property, we will need rental income validation from the real estate agent managing the property
- 6 months of home loan statements if you are refinancing your loan for a better deal, council rates and your home and building certificate of currency
- If you are building a house we would need a signed copy of the building contract with the milestone schedule of payments, plans, council approved including specification list.
Can I get a loan if I’m self employed or a contractor?
You sure can – there are certain documents we need to present to the bank to validate your financial position.
How much deposit do I need to get a home loan?
It really depends. Normally 20% of the purchase price is ideal but you can get loans with as little as a 5% deposit. Andrew will explain this in more detail, see below regarding Lenders Mortgage Insurance.
Am I eligible to get a First Owners Grant from the government?
Each state has different criteria. When you meet with Andrew, this will be discussed and validated by your solicitor.
What is the maximum amount I can borrow?
Andrew will work out your borrowing capacity as part of the process. The amount will vary from lender to lender.
What types of home loans are there?
MANY! There are countless loans in the market. Andrew’s job is to fully understand your personal circumstances to ascertain which are the best products for you and your needs and present them to you.
Is fixed or variable home loan better?
Great question. Andrew will provide an overview of his research based on your personal circumstances, you can have the best of both worlds with a portion of you loan fixed and a portion variable, it is totally up to you.
How can I improve my chances of being approved?
Andrew will deep dive into your situation to understand your monthly money movements. Ensuring your finances are in the best possible position it can be to present to the bank. There are lending options if you are behind in your home loan or consumer debt (ie credit cards)
What is Lender’s Mortgage Insurance (LMI)?
LMI is a premium paid to the bank if you borrow more than 80% of the property value. Anything above 80% of the property value is deemed as a higher risk to the bank, therefore, if your borrowing power allows you to borrow more than 80%, you can indeed do this – for a cost. It depends on the insurer/lender, the loan amount and the purchase price of the property. This would be discussed in the conversation with Andrew. This option is great for those clients who do not have a huge deposit.
What is stamp duty?
Stamp duty is a government charge on the property you will purchase. If you are a first home buyer for example, there may be government incentives in place so this amount is reduced.
How do I apply for a home loan?
Firstly, touch base with either Andrew (0407 949 075) or Megan (0402 414 062) to have an obligation free chat.
Below is an overview of the home loan journey:
* Choosing the best home loan for you: Andrew will research the best options for you after understanding your current financial position and your goals. There are so many lenders and products in the market, Andrew will provide you with a select few to choose from. It will be at this point that you will understand any lender costs. Andrew will send you documents as a part of lending compliance.
* Presenting your application to the lender: with the documents listed above and the lenders application form, Andrew and Megan will submit this to the bank.
* Assessing your application: A bank assessor will do this with all the information submitted. Service levels of each bank differ, Andrew and Megan will guide you with timeline expectations throughout this step as the service levels with the lender could change (daily!) so we want you to have a realistic timeframe to work with. Purchasing a property is different to refinancing applications. With purchasing, Megan will likely call your solicitor and Real Estate Agent to introduce herself to also set the time expectation. Therefore, you know a team is looking after you at a potentially stressful time (this goes for applicants who are going through a separation too, we are here to hold your hand through this step).
The bank will look at two main areas of your application, can you service the loan and what equity or deposit you have. Their initial checks will ensure your credit profile is suitable and order any property report if required, validate your employment, do a title search for the dwelling you are purchasing or refinancing and send the deal for higher credit approval if needed. Please refrain from signing any contracts during this time.
* Application APPROVED: The lender has facilitated all the checks and your application is now approved! It is at this point, Andrew or Megan will call your solicitor if required and send the Discharge Authority form to your outgoing lender if you are refinancing.
* Loan documents are issued and dispatched: The lender will produce the loan offer and mortgage document for you. You will need to read, sign and return to the lender. Andrew and Megan will guide you through this step as it differs from lender to lender.
* Settlement date booked in: Once the documents have been verified by the lender, the file will be handed to a settlement officer to prepare for settlement.
* SETTLEMENT DAY: this is ultimately the final step in the file journey ~ your loan settles with the bank, you can obtain the keys if you have made a purchase or you now have a better deal on your current loan if you are refinancing!
What happens after settlement day?
After settlement support will be facilitated by Megan. Megan is here to help you with any loan maintenance and questions you may have. Megan will be your point of contact once your deal settles. The post settlement care is what Clear Cut Finance prides themselves on. Andrew will always be available if needed as well.