You probably have a lot of questions if you have never had a home loan before.
Please browse through our frequently asked questions below:
If you have a question you would like to have answered; please contact us.
Can I use rent to qualify as genuine savings?
Yes, in some cases. Here are some examples below:
Customer wishes to purchase a property for $500,000, they require $25,000 (5%) as funds to complete the sale. They have been renting for 12 months, at $300pw ($15,600 per year). The customers’ parents have offered $25,000 as a gift to assist with the purchase. How does this work?
Non Genuine Savings Conditions Satisfied by rental? Yes
How? The 12 months of rental history satisfied the conditions for genuine savings. The amount of the rental is not relevant, we are simply assessing behaviour that the customer can make regular contractual payments.
Funds to complete: As the Non Genuine Savings conditions are satisfied by the 12 months’ rent, funds to complete the loan can come from any source. In this case the customer received 25K as a gift from a parent to assist with the purchase, this is acceptable to use with some lenders.
Customer purchasing property $575,000-5% equates to $28,750. Customer has only rented for 5 months. They have $20,000 in genuine savings and have just received a bonus last week of $15,000.
Non Genuine Savings Conditions satisfied by rental? No
Why? The 5 months of rental history aren’t enough to satisfy the conditions for genuine savings.
Fund to Complete: As the Non Genuine Savings are not passed by rental, the funds to complete the loan need to come from source of genuine savings as defined by bank.
The customer requires $28,750 to satisfy policy and complete the loan, this can come from;
• $20,000 of savings
• As they have been renting for up to 3 months they are able to use the bonus to make up the $8,750
Customer purchasing property $575,000 – 5% equates to $28,750. They have been renting for 6 months ($450 pw) = $23,400. Customer has a gift of $20,000, genuine savings of $24,000 and a $5,350 from bonus.
Non Genuine Savings Conditions satisfied by rental? No
Why? The customer only has 6 months of rental history, this does not satisfy the genuine savings requirements under rental
Funds to Complete: The requirements on Non Genuine Savings are not satisfied, as there is not 12 months rental history
The funds to complete must come from forms of genuine savings. As the customer has 6 months of rental they can use tier 1 and tier 2 sources. In this situation the customer has;
• $20,000 gift – THIS IS NOT ACCEPTABLE
• $24,000 in savings – acceptable
• As they have been renting or up to 3 months they are able to use the $5,350 bonus
For more examples or any questions, please contact us on 1300 734 410
Do you work with Real Estate Agents?
Yes, we can work with any real estate agent. We can provide a letter to show you have been pre-qualified once we have assessed your financial situation. This can help you get your offer accepted on the property you would like to buy.
How are you paid?
Property Finance Online is paid commissions from all the lenders on our panel. A copy of our commission schedule is provided to every client we work with for total transparency.
How many years have you been in business?
Property Finance Online has been in existence since 2006 and operates the office in Perth. We are a small group of expert mortgage brokers with a team to support your loan application from start to finish.
I have a problem with my credit. Can I still get a loan?
This will depend on a few different factors. We can assist you to find out how much you can borrow by assessing your current financial situation and discussing your finance requirements.
If you have had credit issues before it will be important to get an up to date credit report.
This can be obtained by visiting www.mycreditfile.com.au
You can apply for the credit report via the website for a fee or contact them directly to obtain your free report. Details are on the website.
Once you have your credit report and know your financial circumstances we can advise you on your ability to get a loan.
What is the difference between a mortgage broker and a lender?
A mortgage broker guides you on the loans available from various wholesalers, takes your application, and usually processes the loan which includes assembling the total record of data about your transaction including the credit report, appraisal, verification of your employment and assets, and so on. At the point when the record is finished,but sometimes sooner, the lender “underwrites” the loan, which means deciding whether you are or not an acceptable risk.
How much does it cost to use a mortgage broker?
Nothing. Mortgage Brokers are paid by the lenders who subsidises your home loan. Consider it like a referral expense.
What documentation do I need to provide?
The documentation required for each loan contrasts relying upon the loan program. While a few programs require income, employment, and asset verification, others require no documentation by any means. Your home loan expert will give you a rundown of things required.
How long does the mortgage process take?
The time span that it takes from beginning application process until an arrangement closes and you get a home loan shifts from deal to deal. The underlying meeting with your home loan dealer is a genuinely speedy process, generally taking a maximum of 60 minutes. If you fill out the application online early this procedure is considerably faster.
What Is The Difference Between A Pre-Qualification & A Pre-Approval?
A home loan pre-qualification can easily be defined as an estimation of how much a purchaser can get. In many cases a pre-qualification is only as good as the piece of paper that it’s composed on. It’s genuinely basic practice that a mortgage lender who pre-qualifies a purchaser approaches them for income, debts, and other assets without verifying the information. In the event that a purchaser is not honest or commits an error when giving the data, this can lead to issues later on when the mortgage is verified by an underwriter.
A mortgage pre-approval is the thing that each home purchaser should obtain prior to looking at homes. A mortgage pre-approval can be easily defined as a written responsibility for a purchaser from a mortgage lender. To acquire a mortgage pre-approval a purchaser will be required to give similar records that are required when formally applying for a mortgage, for example, pay stubs, and bank articulations.
Where can I find some customer testimonials?
There are some testimonials on our home page. You can click on link which takes you through to the testimonials page.