Why can’t I just go to my bank?
The great advantage of speaking to our team at Purely Finance is that we are completely independent of the banks and the bank shareholders. This means that we are only interested in finding the best loan structure for your specific needs. We work for you – no one else. When you deal with Purely Finance you deal with experienced, expert professionals who offer you advice and service information from many different lenders.
How much do your Finance Brokering services cost?
We normally do not charge you for our services. We are paid commission from the Lenders for introducing business to them and for completing the loan application requirements. Details of commissions plus any fees or charges that may apply will be fully disclosed in writing before we commence business with you.
Am I engaging the services of a professional?
Yes. All of our Finance Managers are highly experienced finance professionals. They all hold the Diploma of Financial Services (Finance/Mortgage Broking Management) and regularly keep up-to-date with ongoing industry training. Purely Finance holds its Australian Credit Licence, through ASIC, is a member of the Mortgage Finance Association of Australia (MFAA), is part of the Professional Lenders Association of Australia (PLAN) and is a member of an external dispute resolution service – Credit and Investments Ombudsman.
Does Purely Finance work on commissions or fee for service?
We receive an initial brokerage fee from insurance companies when we place your insurance business with them and we continue to receive an ongoing amount for each year that you retain the insurance (these amounts do not affect the premium that you pay to the insurance company). All other work will be on a “fee for service” basis.
How much money can I borrow?
The amount you can borrow is commonly known as your borrowing capacity. Your borrowing capacity will differ from lender to lender and depends on many factors including your income, expenditure, existing loans and deposit available.
What documentation will a lender require from me when I apply for a loan?
Depending on the type of loan, and your individual circumstances, most lenders will require:
- driver’s licence
- birth certificate OR valid passport
- pay slips for the last 4 weeks
- if you are in a new job – a copy of the contract
- last year’s Group Certificates
- rental statement for any rental properties owned
- loan information
- copy of any investment, personal or car loan contracts or statements
- last month’s credit card statement
- proof of equity
- land rates on existing property or properties
- bank account statements showing funds to complete the purchase
- last superannuation and personal insurance policies or statements
- proof of purchase
- offer and acceptance of property
- receipts for any deposit paid
What is a First Home Owner Grant (FHOG)?
The First Home Owner Grant scheme provides a grant to first home buyers. It is currently a one-off payment of up to $3,000 for established homes and $10,000 for newly constructed homes. This is to assist eligible first home owners with purchase or construction costs.
How do I know if I am eligible for the First Home Owner Grant?
As a basic rule, you may be eligible if you are an Australian citizen or permanent resident, buying or building your first home in Australia, with the intention of occupying it as your principal place of residence within 12 months of the date of settlement. The total value of the property (i.e. total value of the home and land) does not exceed $750,000 for homes south of the 26th parallel, or $1,000,000 north of the 26th parallel. It is important to note that if you are buying the property in conjunction with others, they must also meet the same criteria.
What is lenders’ mortgage insurance and can the premium be added to my loan?
Lenders’ Mortgage Insurance (LMI) gives you the opportunity to purchase a property with a smaller deposit. It protects the lender (not you, the borrower) should you default and the property is sold for less than the outstanding amount on the loan. LMI premiums are payable by the borrower when the amount borrowed is above a certain percentage. Some lenders will allow you to add the LMI premium to your home loan; others require you to pay it up front.
What other costs are involved in purchasing a property?
Other fees and charges may include (but are not limited to):
- building/pest inspection
- valuation fees
- lender’s mortgage insurance (LMI)
- settlement agent fees
- connection fees – phone/gas/electricity
- shire rates and taxes
- stamp duty
What is refinancing?
Refinancing allows you to alter your home loan to suit your current circumstances. It is important when considering refinancing that you are aware of any costs from your current lender to discharge your existing loan. When you refinance your existing loan, funds may be used to pay out this loan and/or additional funds may be borrowed.
Why do people refinance?
Home loan refinancing may be used for different reasons including:
- consolidation of debts
- taking advantage of special lender offers
- raising cash for a purchase
- obtaining a home loan that will allow frequent deposits or withdrawals and will benefit you for having additional daily funds resting in this loan
- switching from a fixed rate to a variable rate or vice versa
Can I use the equity in my home as a deposit if I refinance?
Equity is the difference between the value of the property and any borrowings on that property. It may be possible to use this equity as a deposit or to increase your borrowings. When you buy a property, costs such as establishment fees, solicitor fees and stamp duty add up to a few thousand dollars. Instead of trying to find cash to pay these fees, take them into account in your borrowings.