You have the questions, we have the answers

1. Firstly we need to find out what your financial situation is and what your requirements and objectives are.
2. Then we complete an assessment to see what loans from our panel of lenders are not unsuitable for your situation.
3. We will discuss your options and then assist you to apply for the loan. We will take the selected loan application and ask you for relevant documentation and submit it to the lender for a conditional approval.
4. The lender will verify the information and documents you have provided and if all is okay they will conditionally approve your loan.
5. An independent property valuation will then normally be completed to confirm the value and condition of the property.
6. Once the lender receives a satisfactory report back from the valuer, your loan will be formally approved and solicitors will be instructed to prepare your letter of offer and the mortgage documents.
7. Once you receive your mortgage document you need to sign them and return them so that they can be checked and settlement can happen as soon as possible.
8. Depending on the nature of the application it can take anywhere between 3 to 6 weeks for a loan to be ready for settlement.

A good Mortgage Broker is an expert in lending and has access to a good number of reputable lenders.

Using their knowledge of the lending products and policies available, they will work with their client to find a lender and loan that best fits the situation.

Importantly, they also support their client through the loan application and settlement process helping with the paperwork and answering any questions as and when they come up.

LVR is an abbreviation for Loan to Valuation Ratio. This ratio is the amount of the loan compared to the value of the property. For example if your loan is $400,000 and your property is valued at $500,000 the Loan to Value Ratio is 80%.

LMI is an acronym for Lenders Mortgage Insurance. The policy covers the lender if the borrower defaults on their loan payments and the bank has to sell the property and there is not enough money to repay the bank.

Lenders Mortgage Insurance is usually paid by the borrower when the loan amount is above 80% of the value of the property being used as security for the loan. The insurance premium is paid in a lump sum at settlement of the loan and is an additional cost to the borrower.

There are numerous ways to repay your mortgage sooner from increasing your repayments, changing frequency of repayments or even refinancing and/or consolidating debts. Please contact us to discuss these options further.

Equity is the bit you own. It is the difference between the property value and the amount of your loan. For example if your property was worth $600,000- and you owed $300,000 your equity would be $300,000 or 50% of the value of the property.

When you have made make extra payments into your mortgage you can usually access this money by redrawing it. This is why it called a redraw.

A split loan facility allows you to split your mortgage into a number of different loan products.

Some people have half of the loan amount as a variable interest rate and the other half in a fixed interest rate product. Others have a split for their personal debt and another split for their investment debt.

There are many ways you can choose to split your mortgage, please do not hesitate to contact us for more information.

Most home loan lenders allow you to borrow up to 95% of the value of your property but you will have to pay Lenders Mortgage Insurance if your loan amount is more than 80% of the value of your property.

Each lender has their own way of testing if your income is sufficient to make the repayments without financial hardship. We will let you know what your loan repayments are anticipated to be.

Ultimately you need to be sure that you can afford to make your repayments taking into account your spending habits.

Interest is calculated on the daily outstanding balance of your loan. You can reduce the interest payable by making extra repayments or depositing additional funds into your loan account to reduce your balance. You may be able to redraw these funds as and when you need them.

An 'interest only' loan means that your repayments only cover the interest payable on the loan. Every month after the interest has been added to your loan account and you make your repayment you still owe the full amount you borrowed. The advantage is that the repayments minimised during the interest only term. This type of loan is ideal for people who are borrowing for investment purposes and want to pay off their personal debt first or minimise their taxation liability.