Why use a mortgage broker?
Mortgage brokers are professionals in the home loan industry. We work with you to determine your borrowing needs and how much you can borrow. Unlike individual Banks, mortgage brokers have access to a wide range of mortgage products from many different lenders. This means that we can shop around to get the right loan for your needs and circumstances.
While all lenders seem to advertise great rates and products, once you really sit down to compare home loans things can get confusing. That’s where an experienced mortgage broker will help you navigate through lender policy, fees, rates and product features to ensure the best solution for you.
Our team at V homeloans are qualified and accredited to the industry’s highest standards and are members of the Mortgage and Finance Association of Australia (MFAA).
Do you charge a fee for your service?
There is a myth that it costs more to use a mortgage broker that go to a bank. This is not true at all. Brokers get paid commission by the bank for bringing new business to them, this does not impact your interest rate, set up fees, product features or level of service.
We do not charge upfront fees for our services, but we do charge a small fee should we obtain you a loan approval and you choose not to proceed – just to cover our costs. We disclose any fees and commissions receivable from the Bank upfront, so you know exactly how your V homeloans broker is paid.
Don’t you just recommend the lender who pays you the most commission?
Absolutely not! In truth, most lenders actually pay very similar commissions to brokers. There is also legislation governing our industry, called the National Consumer Credit Protection Act 2009 (or NCCP), designed to protect consumers and ensure ethical and professional standards in the finance industry. Our brokers are all members of the Mortgage and Finance Association of Australia (MFAA) and adhere to its Code of Conduct.
We tell you upfront what commission we will be getting from the bank.
How much can I borrow?
This is dependent on how much you have saved for a deposit and what you current expenses are. Give us a call and we can go into your options in more detail, or check out the loan calculator page of our site!
I am not in your area, can we still work together?
Sure thing! We are mobile brokers so we can come to you!
Which lenders do you deal with?
We have partnered with over 30 lenders and service providers, offering a vast range of loan products at our disposal to secure the best financial solution tailored to your scenario.
Our extensive Lender Panel includes all the major lenders, most second and third tier lenders, credit unions and mutual.
What is “Genuine Savings”?
Most lenders require you to show how you’ve saved a portion of your home loan deposit (usually 5%) as part of your application, as a way to prove your ability to save over a period of time. With most lenders “Genuine Savings” means the money for your deposit has to have been accumulated and held in your bank account for a minimum of 3.
Some examples of the types of genuine savings a lender may consider include:
- Regular savings into an account in your own name
- Rental payments to a licenced real estate agent
- Funds received from the sale of an existing property
- Sale of shares, or other assets, where you can prove that you held the assets for the required period.
However, some forms of deposit are not considered “Genuine” for deposit purposes:
- First Home Owners Grant (FHOG)
- Gifts of funds from parents, relatives or friends
- An inheritance
- Tax returns
- Borrowed Funds, from a personal loan, or credit card
- Rebates from land developers or builders
At V homeloans we understand that everyone’s situation is different, and that not everyone has the required “Genuine Savings”. That’s why we use our extensive Lender Panel includes all the major lenders, most second and third tier lenders, credit unions and mutuals to find a solution that is right for you.
What is Lenders Mortgage Insurance (LMI)?
Lenders Mortgage Insurance (LMI) is a type of insurance used by the lender to protect them should the borrower fail to meet their loan repayments.
Lenders generally require a borrower to take out a Lenders Mortgage Insurance policy if their deposit is less than 20% of the value of the property to be held as security. LMI allows people with a low deposit to obtain their dream of home ownership with a smaller deposit (say 5%). While LMI premiums can be expensive, many people prefer to pay LMI to get into their home now, rather than continue to save for many years.
Generally, if you are required to pay an LMI premium, it will be added to your loan amount (known as “capitalising”).
Why should I use a mortgage broker if I can go with a bank?
Every bank (or lender) has loads of different specials and loan options – low doc, package loans, re-draw facilities, plant and equipment loans, fixed, interest only, interested in advance, variable, introductory variable… the issue you face as a consumer is ‘which loan is right for me?’
And that is where having an experienced V homeloans broker comes in. As part of our offering we will:
- Sit down with you an review your current individual situation and requirements
- Use our extensive lender panel to find the right loan for you
- Advise you of any grants, concessions or rebates that you might be entitled to
- Liaise with your lender, builder, developer, real estate agent and settlement agent throughout the loan process
- Provide ongoing financial guidance throughout your home ownership journey and into the future with regular customer reviews of your loan.
If you go direct to the bank, you will only be offered the loan options available through that one lender. As your mortgage broker, we are across many lenders and all of their loan products and our sole purpose is to find the right loan for your needs.