- What are Mortgage Managers?
- Are Mortgage Managers safe?
- How much deposit do I need?
- Does it cost more to use our services?
- What is equity?
- What is LVR?
- Are there any other cost?
- What is APR?
- What is Comparison Rate?
- What is Bridging Finance?
- What are Bad Credit Loans?
- Who is responsible for the mortgage?
- What is a fixed rate Loan?
- What are your Rates & Charges?
- What is debt consolidation?
- Can I use my existing valuation on my security property?
- Do I arrange the valuation of my security property?
- What if I disagree with the valuation of my security property?
- Can I get a copy of the valuation of my property?
- What if I don't have all the supporting documents required?
- If I supply original documents will I get them back?
- Can my interest rate change before settlement?
- What are the steps in my loan settlement?
- How long does settlement take?
- What are Variable Rate Mortgages (VRMs)?
- Can I still qualify for mortgages if I have previously filed for bankruptcy?
- I have bad credit can still get a mortgage?
What are Mortgage Managers?
Mortgage Managers are first mortgage specialists who organise funding for home buyers and property investors
(residential, commercial, industrial, retail) from a variety of funding sources. The Mortgage Manager is responsible
for arranging the funds for your loan and the ongoing, prudent management through each phase of your loan's life
from credit assessment to the monitoring of loan repayments, insurance renewals, interest rate adjustments and
loan variations. The mortgage management industry in Australia is poised for strong growth. It is worth pointing
out that there are 22,000 non banking organisations in the US providing more than 50 per cent of home mortgages.
Are Mortgage Managers safe?
The answer is "yes"! Mortgage Managers do not lend their own money for home or investment loans they source their funds
from elsewhere and this has significant benefits. Mortgage managers do not accept deposits. They are not banks. Mortgage
Managers arrange home and investment loans using funds from sources such as unit trusts, superannuation funds, securitised
funds and even the banking sector itself. Inturn we are able to provide you the best rates due to our lower overheads due
to the fact that we don't have a thousand branches to support hence passing the savings onto you.
How much deposit do I need?
To purchase an owner occupied home most lenders require at least 5% of the purchase price.
However the industry has been de-regulated and made home ownership more accessible to home buyers as a whole. A range
of 100% & no deposit home loan and re-financing packages have been enterprised. So long as you have income and some
cash to assist paying legals and stamp duties & generally this can be overcome by the FHOG along with a good credit
rating, you should have no problem raising a mortgage. Contact your solicitor to advise you on how much these costs may
be. If no savings history can be produced, a lump sum deposit of 5% is the minimum deposit required, however equity in
a current home or property can be used for this purpose, even to consolidate debts or expand investments.
Does it cost more to use our services?
No, in most cases you are not charged for our services. The only cost you may incur are standard establishment fees.
What is equity?
Equity is the difference between the value of a property and the amount outstanding on the current loan.
What is LVR (Loan to Value Ratio)?
LVR is the loan amount divided by the lesser of the purchase/contract price or valuation amount. Eg: A loan of $50,000
secured against a property worth $100,000 equals an LVR of 50%
Are there any other cost?
There may be various government duty and council costs which are non-related to funders etc. but still needs to be known.
Mortgage insurance may be applicable to you, it depends on the LVR.
What is APR?
APR is the actual annual percentage rate otherwise known as the comparison rate. This means all lenders should disclose their
fees and charges all year round such as set up costs, monthly costs, annual costs, etc, all these need to be declared and converted
into a rate. e.g. a rate could be 6% but after all the fees and charges there is an additional 1.5% P.A. in cost approx this brings
your actual comparison rate up to 7.5%. This just an example of how it works, so next time if I were you I'd be asking what is my
comparison rate and not falling for their marketing gimmicks. Because at the end of the day it is your money.
What is a Comparison Rate?
A Comparison Rate expresses some of the costs of a loan into a single interest rate. The aim of the Comparison Rate is to help
consumers make a more informed decision on the costs associated with a loan and help them to compare various loans and services
offered by financial institutions and mortgage providers. The formula for calculating a comparison rate is regulated by the Consumer
Credit Code and all Australian financial institutions and mortgage providers are required to use the same formula.
What types of loans are covered?
The new regulations require lenders to disclose the comparison rate for fixed term consumer credit. This includes loans such as
Home Loans and Personal Loans but excludes Lines of Credit and Credit Cards.
Why is there a warning statement?
Whenever you see a comparison rate you should also see the following warning statement which is required by law to accompany the rate.
"WARNING:
This comparison rate applies only to the example or examples given. Different amounts and terms will result in different
comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison
rate but may influence the cost of the loan."
This warning statement highlights that when choosing a loan you need to consider more than just the comparison rate. Additionally, the
comparison rate is calculated on predetermined amounts and terms and these may not be the same term and amount that you are seeking.
What is the "right" comparison rate for you?
To get the most appropriate comparison rate, simply look for the rate, term and amount on the Comparison Rate Schedule for Redilend® loan
type that you intend to borrow. You can also use that rate as a comparison of rates quoted by other financial institutions and mortgage
providers for the same term and amount. You should remember that costs that cannot be predetermined such as fees and cost savings such as,
discounts or fee waivers are not factored into the comparison rate.
What the comparison rate doesn't tell you?
The comparison rate is just one of the many factors that should be used to help select your home loan, but don't assume the comparison rate
by itself is going to tell you how much your loan is going to cost, or if the loan is right for you. Experienced borrowers know that there are
many factors that should be taken into account when looking for the right loan, not just the interest rate and fees.
These include:
- Are you going to get good service from your lender?
- Do you have the access you need to your loan and lender?
- What are the features of the home loan and what restrictions does it have (make sure it has the features you want and the flexibility you need)
- Can your lender provide other products such as credit cards, transaction accounts and insurance?
Where can I get a Comparison Rate Schedule?
Just contact the lender you're seeking a schedule from, in this case, us, on 1300 85 45 75 and it will be happily provided.
What is Bridging Finance?
Bridging finance is a short term loan usually for cover between the purchase often known by lenders as a re-locatable loan or can be
used as a short term loan for many other purposes. Short term loans are now becoming more popular due to market demand and can be arranged
by contacting our office on:
1300 85 45 75
What are Bad Credit Loans?
Bad Credit Loans or Mortgages are for people who have a bad credit rating to due falling behind in their loan repayments. So long as you have a property to use as security we can help to improve your financial situation with our bad credit loans.
Who is responsible for the mortgage?
The owner of the mortgage is not the Mortgage Manager, but the original provider of the funds, who works through a trustee. The trustee's
job is to ensure your mortgage is properly and professionally managed on a day to day basis by the Mortgage Manager. If your Mortgage Manager
ceased trading, the trustee would simply appoint another Mortgage Manager and your mortgage would carry on as before, but "under new
management". Mortgage Managers have brought strong competition to the home loan market and are subject to competitive pressures, ensuring
they offer attractive interest rates and personal service.
What is a fixed rate Loan?
A fixed loan is when a Mortgage interest rate is not allowed to exceed a predetermined figure for a period of time, but will decrease if
official interest rates do so.
What are your Rates & Charges?
Coming soon.
What is debt consolidation?
Debt Consolidation is the process of combining your debts into one regular repayment.
Can I use my existing valuation on my security property?
No. The lender will normally use their own valuer.
Do I arrange the valuation of my security property?
No, The lender will arrange the valuer.
What if I disagree with the valuation of my security property?
You can request another valuation at your cost.
Can I get a copy of the valuation of my property?
No. Most do not supply you with a copy of the valuation.
What if I don't have all the supporting documents required?
It's essential that you advise us of any supporting ducmentation that you cannot provide.
If I supply original documents will I get them back?
Normally yes.
Can my interest rate change before settlement?
If you failed to disclose that you had a credit default, or if and supporting documentation is not supplied then the
lender may increase your interest rate based due to the higher risk of lending to you.
What are the steps in my loan settlement?
1. Sign Approval Documents,
2. Return them with all supporting information,
3. A Valuation of the security property is done,
4. The Mortgage Documents are issued and signed,
5. Once the Mortgage Documents are received back settlement is arranged
How long does settlement take?
It is difference case by case. Contact us and we will be able to give you a rough estimation
What are Variable Rate Mortgages (VRMs)?
VRMs are mortgages where the interest rate is calculated depending on market factors such as the Consumer
Price Index.
Can I still qualify for mortgages if I have previously filed for bankruptcy?
Yes. Your bankruptcy must have been discharged for 2 years.
I have bad credit can still get a mortgage?
Yes. We are bad credit experts. Generally if you have bad credit you can not get a low interest rate.
If you have a question that hasn't been covered, feel free to contact our office.
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