Frequently Asked Questions
What is a finance consultant or mortgage broker?
A finance consultant or mortgage broker is a professional person just like your accountant, solicitor or financial planner. A finance consultant or mortgage broker is a specialist who provides you with expert advice regarding your finance and credit needs.
What does a mortgage broker do?
A mortgage broker assesses your personal financial circumstances and goals and helps you to understand how much you can afford to borrow. The mortgage broker then uses this information to help you select a finance or mortgage product and lender that is suitable for your needs.
Your mortgage broker will do all the legwork for you in terms of searching the market for the most suitable finance products for your needs from a variety of different lenders. They will compare all of the available products that may be right for you and explain to you the differences and the benefits of each product that meets your needs and borrowing criteria.
Once your mortgage broker has helped you to select a finance product, they will assist you with the application process. Mortgage brokers are experienced with regard to the information each lender requires and know how to go about submitting successful applications. They will help you to complete your application correctly, help you to avoid expensive mistakes, and do their best to ensure your application will be successful the first time, saving you time, hassle and money.
Homeloan Corp brokers are qualified to perform this process for other finance purposes in addition to home or property purchases. They can also assist you with finance for cars and other assets, business equipment, personal loans, debt consolidation and more.
Why should I use a mortgage broker?
There's an old saying that goes "you don't know what you don't know."
A professional mortgage broker is here to make sure you know everything you need to know. They will help you to understand your financial position and what that means in terms of finance, gain knowledge about the different finance products available to you, help you to select the one that's most suitable for you and help you to understand everything involved with making the application and getting your home loan through.
Picking the loan with the lowest interest rate isn't always wise - there's a lot more to it than that. In fact, you could spend a lot of time researching all the available loans from all of the different lenders, and still not know which product best suits your personal financial circumstances and goals. Using a mortgage broker will take the confusion out of the process and save you a lot of stress! They can even help you to save money - both on interest and also by helping you to avoid making unsuccessful applications which can be expensive.
Expert credit advice could make a big difference to your financial well-being both now and in the long-term. Using a professional finance or mortgage broker could also be very beneficial to you in terms of helping you to build wealth for your future - it's not only about the finance needs you have today!
How do I claim a First Home Owners Grant?
You can claim the First Home Owners Grant by lodging your application with an approved agent (usually the lender at the time of loan application), or by lodging the application directly with the government office responsible in your state.
Not everyone is eligible for the First Home Owners Grant and it is not available on every kind of home purchase. Your iConnect Financial broker can tell you if you are eligible for the grant or not. Alternatively, you can find out more by Googling "First Home Owners Grant" as this will give you information relevant to you in your location.
What will it cost me to use an Homeloan Corp broker?
The actual costs involved with taking out a home loan will depend on the kind of loan you need and the requirements of the lender you choose. Your iConnect Financial broker will make sure you understand all the costs involved with getting the home loan you choose and will provide this information to you in writing before you take out the loan.
Generally speaking, the costs you can expect to encounter with a home loan may include:
- Home loan application fees: most lenders charge a home loan application fee to cover the costs of legal contacts, property title checks and credit checks.
- Mortgage establishment fees: in addition to the application fees, most lenders also usually charge an extra fee to cover the costs of setting up the mortgage in their banking systems.
- Property valuation: before they can grant you a mortgage, your lender will need to get an independent valuation of your property - both the land and the buildings and improvements. It is important to note that the lender will not accept your valuation - even if you have paid an independent valuations expert to produce it for you.
- Mortgage registration fees: all mortgages must be registered with the government and a registration fee will apply. Ask us to help you calculate how much this will cost for your particular property.
- Lenders Mortgage Insurance: if your deposit amounts to less than 20% of the purchase price of your property, you will be required to take out Lenders Mortgage Insurance by law. It is important to note that this insurance is for the lender in case you default on your loan - it does not cover you in the event you cannot make your repayments.
- In addition to the costs of getting a home loan, you will also need to take into consideration the essential costs of purchasing the property.
Can fees be added into my mortgage?
Most lenders require you to have enough money to cover the cost of your fees and all the other costs associated with purchasing your property (such as stamp duty, legal fees etc) as well as a deposit on your home. Lenders will not allow you to borrow more than the property is currently valued at under any circumstances.
With that said, some fees and charges can sometimes be added into the amount you borrow under certain circumstances, depending on the lender. For example, you may be allowed to borrow enough money to cover the costs of your loan application and establishment fees, lender valuations, mortgage registration fees and lender mortgage insurance (if you have less than 20% deposit).
What documentation do I need to provide?
The documentation you need to apply for a mortgage will vary according the purpose of the loan and your personal situation. For most home loans, the documentation you will need includes:
Proof of identity.
You will need to provide several forms of identification and please note that the original documents will be required. You can provide the required proof with 100 points of identity verification. This will include one of the following:
- Current, valid passport
- Australian driver's license
- Australian proof of age card
Or you could provide two of the following documents:
- Birth certificate
- Medicare Card
- Citizenship certificate
- Pension card issued by Centrelink
- Overseas driver's license
- A recent household bill / rates notice, phone or electricity bill for example
Proof of income.
You will need to provide proof of all the income that you receive. This may include your salary or wages from your job/s, Centrelink payments, income from rental property, income from any trust or annuity or more. For most people, the proof of income documentation you provide should include:
- Complete bank account statements for at least three months
- Three payslips from your employer/s
- A copy of your employment contract, or a letter from your employer detailing your current base wage
- A PAYG payment summary from the ATO
- Your last tax return
If you are self-employed, you will also need:
- Copies of your last two BAS statements
- Your most recent personal tax return
- Your most recent business tax returns including financial statements
- Your most recent ATO Notice of Assessment.
If you earn rental income from investment property, you will need to provide:
- Statement or letter from the Property Manager/Real Estate Agent
- Current lease agreement
- Most recent tax returns showing your ownership of the rental property
- Bank account statements showing three months of rental income credits.
If you receive Government Income, you'll need one of the following:
- Bank account statements showing three months of payment credits.
- A letter from Centrelink confirming your benefit amount.
- If you earn income from other investments or another source:
- Bank account statements showing three months of the income payment credits.
- A copy of your latest tax return detailing the income.
Any other documentation for the investment which supports its existence/income payable.
Confirmation of your deposit. The lender will require confirmation of the deposit you have saved for your purchase and of any other funds that will be contributing toward the purchase. This will require:
- A copy of your last three bank statements showing the funds
- A Statutory Declaration for any funds that are being given to you to put towards the purchase if these funds are not already in your bank account.
Verification of outstanding debts.
Some lenders may ask you to verify any debts you may have including personal loans, credit cards, store credit and other property loans. For this you may require:
- Personal loan and credit card statements for the past six months
- Documentation for any store credit arrangements.
- For Refinancers. You will be required to provide some additional information regarding your current home loan in addition to the above documentation. This includes:
- Documentation about your existing home loan/s.
- Bank account statements for all home and personal loans for the previous six months.
- The latest Council Rates Notice and building insurance policy for the property/s being used as security for the loan.
- Credit card statements for the last 6 months, or if you don't owe anything on your credit card, the most recent statement will do.