Choosing the right loan
With access to 29 different lenders and hundreds of financial products, we’re here to answer all your questions – just answer a couple of ours.
Home Loan
Buying your first home, upgrading or downsizing? As one of the largest purchases you’ll make, it’s worth making sure that you have the right lender and loan to suit your situation.
Property Investment Loan
Looking to buy a property to live in, rent out or use for a business? Get connected to lenders who specialise in property loans, with the right interest rate to maximise your returns.
Refinancing
If you’re looking to secure a better deal, consolidate debts, or unlock equity in your current property, we can help make the process straightforward.
Personal Loan
If you require finance for anything other than real estate or business-related expenses, select Personal Loan.
Business Loan
Need to invest in your business, with new equipment, premises or R&D? Get connected to a lender that understands small business.
What type of loan are you looking for?
The right repayment type
Let’s make sure you’re clear on the type of loan and repayments that are right for you. You’re probably already familiar, but:
Interest only means you’re not paying off the loan amount. If you borrowed $250,000 through an interest only loan, after 5 years you’ll still owe $250K.
Interest: charged by the lender for borrowing the principal.
Principle and interest is much more common for owner/occupied properties because you’re paying off the entire loan to eventual ownership.
Principal: the amount you borrow to buy a property.
First Home Buyers, upgraders and downgraders usually opt to pay for Interest and Principal. If your aim is to repay your home loan in full over time, then principal & interest repayments will mean that you’ll end up owning your home mortgage-free.
Repayments: 4% interest rate on a $350K loan means you’re paying 4% of $350K EVERY YEAR. This is called compound interest.
Any extra repayments you make come directly off the principle and lowers the total compound interest you pay.
With a loan amount of $350,000 at 4% interest rate, an additional $50 on top of your normal loan repayments will reduce your loan term from 30 years to just over 24 years with a total saving of approx $55,000!
Investors may wish to pay the interest only because the interest on an investment loan is tax deductible. This does carry additional financial risks in cases where the property value does not grow. One- to ten-year interest only periods are available.
Principle
Principal: the amount you borrow to buy a property.
Interest Only
Interest: charged by the lender for borrowing the principal.
What type of repayments will suit you?
About your max borrowing amount:
We don’t need all the details now, but before making a formal application we will need to determine your maximum borrowing amount.
This will require knowledge of your income (either weekly, fortnightly, monthly or yearly – before or after tax), any current loan balances and total upper limit on credit/store/interest free cards.
What is the purchase price of the property
How much does a deposit help?
For a home loan, there’s this little thing known as Lender’s Mortgage Insurance, or LMI, which can become pretty costly.
Effectively, any home deposit less than 20% means a lender will pass on an insurance fee to cover against the chance of a loan default. The insurance will be built into the loan (and the fees compound) so you end up paying more.
But don’t be fooled. This insurance only protects the lender from losses, and does nothing for the borrower.
A deposit of around 10% is very common, and will still greatly reduce the LMI you’ll end up paying.
Note: If you own equity in a property, you can include that in your deposit total.
How much deposit do you have saved?
What type of property ?
Are you building or buying a house? Existing property means the house/apartment you wish to buy is already built. If you’re buying a property to renovate, it still counts as an existing property.
Construction means you intend to have a builder complete the project or build a structure yourself.
What type of property ?
Does your work history matter?
Did you know that some lenders require as little as one day at your current employment?
Many will consider previous and consistent employment as acceptable if it’s in the same occupation. Applying during a probation period is totally ok!
Casual
Casual employment refers to a contract that has no guaranteed hours of employment, and has no paid sick leave or holiday entitlements.If you have more than one employer, just get in touch directly for an accurate assessment of appropriate lenders.
Part Time
Part time employees work, on average, less than 38 hours per week. They usually work regular hours each week and receive entitlements.
Full Time
A full-time employee has ongoing employment and works, on average, around 38 hours each week - though this can change depending on the employer and industry.
Self Employed
A self-employed person does not earn income in a PAYG manner. You may own a business through an ABN or invoice for contracts. If you’re a business owner or self employed, you may not need to have completed your most recent tax return in order to apply for a loan.
What best describes your employment situation?
How long have you been consistently employed?
You may have changed employers in the last few months or years, and that’s fine. We need to know how long have you been consistently working in the same industry or professional capacity? Unfortunately if you’ve left the industry for more than one month at any point, the timer starts over when you re-joined or began your new career.
eg: you’ve been a welder for four years, but decided to quit and become an Elvis impersonator for three months last year before realising you can’t really sing. You’ll answer the time since you returned to the welding workshop.
How long have you been in your current employment?
Amount owing on Property
Based on your mortgage agreement, fill in how much is remaining to pay down the principal. Do not include the expected interest payable over this time.
If you own your property outright, write 0 in the field.
How much is owing on your property?
What is the property value ?
At the most recent valuation, what is your property valued at? Note that due to the fluctuations of property markets, valuations older than 12 months may not be accepted by lenders. Feel free to ask us about getting your property revalued.
What is property value ?
Who will lend to me?
These nice people! We’ve highlighted the lenders below who are likely to loan to someone with your particular goals and financial fingerprint.
Get a better rate and lower fees from a lender without the legwork. Let’s discuss your application in detail and get your formal application underway. Remember, you don’t pay us a cent whether you loan is approved or not.
Book a chat with us!