Question 1

What Finance Brokers do?

Accepted Answer

Finance Brokers take the time to understand your needs and requirements and work with you to determine your finance needs, repayment ability, and cash flow requirements to select a loan or financing solution suited to your circumstances.

Question 2

Why should I contact a Finance Broker?

Accepted Answer

Brokers can save you time: the choices now available in the mortgage and commercial lending market can seem limitless and completely overwhelming. A Finance Broker already has that knowledge, experience and information to hand.

Question 3

My situation is complicated? Can you help?

Accepted Answer

Yes. Everyone’s situation is different, but we take the time to make sure we can assist whatever the need is.

Question 4

What does a Mortgage Broker do?

Accepted Answer

A Mortgage Broker will act as the liaison or person in the middle between you and your chosen lender.

Question 5

Isn’t it just easier for me to go to my bank directly?

Accepted Answer

Many people make the mistake of thinking that their current bank will give them the best deal. The role of a Mortgage Broker is to do all the research for you. They can look in to a wide variety of products across multiple lenders to ensure you are getting the best deal.

Question 6

When should I see a Mortgage Broker?

Accepted Answer

We recommend that you see a Mortgage Broker as soon as possible. They are able to help establish how much you can borrow before you start looking. This makes things a lot simpler when it comes to making an offer.

Question 7

Should First Home Buyers talk with a broker before looking at homes?

Accepted Answer

The answer to the question is yes!  There are tons of reasons why you should talk with a broker or a bank and get pre-approved before looking at homes.

Question 8

Who qualifies as a first-time Home Buyer?

Accepted Answer

A first-time home buyer is any person who hasn’t owned their main residence during the last 3 years, with exceptions for single parents, divorced and displaced homemakers, and people who live rent-free.

Question 9

When is it time to stop renting and buy a home?

Accepted Answer

When debating between renting vs. buying, you need to think about your lifestyle and finances. While renting can provide more flexibility, owning a home enables you to build equity in the property and may provide tax benefits.

Question 10

How do Home Loans work?

Accepted Answer

A financial institution typically provides a home loan to help successful applicants buy a property. Usually, you must contribute to the property purchase in the form of a deposit. The financial institution then advances you the remainder of the funds to purchase the property and takes out a mortgage over it.

Question 11

Do I need a guarantor to get my first Home Loan?

Accepted Answer

Not necessarily, as it depends on the overall strength of your financial position, including your income, expenses, assets, liabilities and the size of your deposit. A guarantor provides additional security to the lender by providing a guarantee of repayment.

Question 12

What’s the difference between a Home Loan and a Mortgage?

Accepted Answer

A home loan is a financial product a lender uses to lend money to a home buyer and involves you signing a loan contract. A mortgage is the formal agreement you have with your lender which sets out the terms of the home loan and gives the lender the authority to take ownership of your home if you end up unable to meet your home loan repayments.

Question 13

Why do homeowners refinance their loan?

Accepted Answer

There are a number of reasons to refinance your home loan: you might want a better, cheaper interest rate or a different one (fixed vs variable, principal and interest or interest-only etc). Ultimately, most reasons for refinancing boil down to switching to a more suitable home loan for your needs.

Question 14

How much equity is required to refinance?

Accepted Answer

Equity is basically just the difference between the current value of the property, and how much of it you own. The more of your loan you’ve paid off, the higher your equity will be as you own a higher percentage of it.

Question 15

Does refinancing affect your credit rating?

Accepted Answer

Yes, refinancing can affect your credit score, as refinancing is considered to be a credit application. A bad credit score can influence your chances of being approved for refinancing, and rejection can negatively impact your credit score too.

Question 16

Will an Investment Loan be any different to my existing loan?

Accepted Answer

There are few differences between what you need to do to borrow for a property you’ll live in and for one you’ll rent out. Some lenders charge a higher interest rate for investment properties because their risk may be higher.

Question 17

How much money can I borrow?

Accepted Answer

The amount you can borrow is commonly known as your borrowing capacity. Your borrowing capacity will differ from lender to lender. To establish your borrowing capacity, call us to arrange an interview for an assessment of your situation.

Question 18

Why invest in property?

Accepted Answer

Investment properties have many benefits when building long-term wealth. If you take the time and select your investment properties well – for example, to meet the demands and lifestyle expectations of the changing demographic – property can deliver good returns for long-term investors.

Question 19

What is the duration of a loan?

Accepted Answer

The term of your personal loan will depend on a range of factors, including your financial situation and the reasons you are taking out the loan. Most personal loans have a standard minimum term of 1 year, and can range up to a maximum of between seven and 10 years. However, it's important to remember that the longer the term of the loan, the more you will pay in interest.

Question 20

How are repayments calculated?

Accepted Answer

Once you take out a personal loan, you'll be liable to make regular repayments. These repayments are calculated based on the full amount of your loan, as well as any related fees, the term of the loan, and interest rates.

Question 21

What happens if your repayment is late?

Accepted Answer

There may be unexpected circumstances where you are late in making a loan repayment - sometimes this is unavoidable. However, it's important to know that most lenders will charge you for a late payment, so make sure you check the fine print when you sign up to the loan.

FAQ | First Rate Finance Brokers Goulburn