Mortgage FAQs
What is a mortgage?
The home loan is secured by a mortgage. A mortgage is a form of security taken over real estate and land. It gives the lender the right to repossess the real estate or land if the borrower does not repay the loan.
How much can I borrow?
How much you can borrow will depend on your income and expenses. We can give you an estimate of how much a bank will likely lend you, but you should only borrow what you can afford to repay.
As a rule of thumb, you can borrow your income multiplied by four depending on how many other financial commitments you have.
Have a look at the repayment calculator to get an idea of what your repayments will be.
What is a loan pre-approval and should I get one?
A home loan pre-approval is similar to full finance approval, except that you have not yet found the property you want to purchase.
It makes house hunting a lot easier as it gives you clear guidelines on how much money you have to spend. You can search for a property and negotiate with confidence that you have the required buying power.
It is also a lot easier to get the final application through because you have done most of the work up-front.
We can help you with pre-approved loans - saving you time and unnecessary stress once you do find what you are looking for.
Why don't I go direct to the bank for a mortgage?
Banks want to make a profit, so won't necessarily offer you the product that is to your best advantage. You may deal with someone who does not fully understand the options or who is not particularly interested in getting the best deal for you.
Also, we know the different loan options each lender offers. You would need to know where to go and what to look for, but we save you the time! There is also more to getting the best loan than interest rates. The cheapest rate can sometimes end up costing you more.
I'm self employed - can I get a home loan?
Yes but it can be more difficult.
We can help with home loans for the self employed and smooth the process for you. We'll explain what you will need to do.
Contact us to find out more.
I don't have proof of income - can I get a loan?
Yes!
A low-doc loan is designed for people who can't provide proof of income in the traditional sense through payslips or accounts. It's likely that you won't be able to borrow as much and won't have as many options, but talk to us and we'll get the best deal possible for you.
What information do I need to complete a loan application?
The following documents will be typically required:
- proof of income - payslips, financial accounts if self employed. If you don't have this we may be able to help with a low-doc loan
- bank statements
- identification (drivers license, passport etc.)
- signed, dated sale and purchase agreement (not necessary for pre-approvals)
If you have any questions or concerns just talk to us. You can also download this handy checklist.
What type of mortgage is best for me?
You should get independent, professional advice whenever you arrange any kind of finance or loan. Each lender has different options so what mortgage suits you best depends on your particular circumstances and financial goals.
We'll provide you with guidance as to the type of mortgage that best suits your circumstances.
What is a reverse mortgage?
This type of loan is also called a "home equity", and may be suitable if you are an older person who owns your own home but has small or limited income.How much you can borrow depends on your age and the value of your home.
The loan is registered as a mortgage against your home which you continue to live in. You do not make any repayments of either the principal or interest. Principal, interest plus any fees are added to the loan each year. The amount builds up over the years to a total amount owed which is repaid when:
- the loan ends
- your house is sold
- you move to another house or into residential care
When the loan ends then either you or your estate must pay back what is owed to the lender. This comes from the proceeds of the sale of your home.
