During your assessment with your broker you will cover the follwing:
- Find out what you need in a home loan.
- Calculate how much you can borrow and what your repayments will be.
- Explain the Application fees and other charges.
- Demonstrate ways you could save money on your loan.
Your Mortgage Broker can also take you through some helpful info like:
- What is Lender’s Mortgage Insurance and will I have to pay for it?
- Can I borrow to purchase property with my Superannuation Fund?
- Is there ways to free up money & How can I pay my mortgage off faster?
- How can I use the equity in my current property?
Our service to you is personalised and takes into account your own unique circumstances. To help us to better understand your needs, we ask that you fill out a Customer Information Form.
To help us understand your financial situation and qualify you, we ask you to complete our Client ‘Fact Finder’ questionnaire.
Please bring this along with you to your appointment or complete prior to our meeting.
What is Cross-Collatralisation?
Cross-collateralisation is a term used when the collateral for one loan is also used as collateral for another loan. If a person has borrowed from the same bank a home loan secured by the house, a car loan secured by the car, and so on, these assets can be used as cross-collaterals for all the loans. If the person pays off the car loan and wants to sell the car, the bank may veto the deal because the car is still used to secure the home loan and other loans. Technically, cross-collateralisation expires when the borrower has no outstanding loans with the bank. Using the car analogy makes up easier to understand however usually this occurs between the Home and the investment properties.
How much can I borrow?
Banks can loan up to 95% for investment properties. Therefore, you will need to save and provide at least 5% of the value of the property for a deposit plus the amount of the costs.
What are the costs?
Remember that additional fees and costs will generally require 5 – 7% of the purchase price.
These include:
- Stamp Duty: the state government tax on mortgage documents and the property price.^
- Conveyancing: the legal transfer of property title from one person to another.
- Mortgage Insurance: what you’ll incur if borrowing more than 75 – 80% of the property’s value#.
- Building Insurance: should be activated as soon as the contracts are exchanged, including contents if you are an owner occupier#.
- Goods and Services Tax: will be charged with new house and land packages, your real estate agent’s selling commission, conveyancing and solicitor fees, valuation fees, moving costs.