Financing Hope answers some common financing and mortgage brokering questions
Why use a mortgage broker?
Financing Hope’s mortgage brokers provide clients with choice, convenience, and vast product knowledge with a lending panel that allows us to find the best solution. We happily meet up with clients outside of normal business hours and love sharing the joy of buying a property at a Saturday auction!
Should I get a pre-approval if I am looking for a property?
Pre-approval is a great starting point if you are considering purchasing a new home, adding to your property portfolio, or simply want to be confident of your potential borrowing power. Also, knowing how much you can afford to spend will be critical to determining how much you can safely bid on a property of interest should the opportunity suddenly arise. The lender will issue a letter of offer and this will be valid for a certain period, usually 90 days. Any conditions or additional requirements will be noted in the pre-approval that is provided by the lender.
How do I get the process started with Financing Hope?
We always start with a simple discussion over the phone or in person to find out exactly what help you are looking, and then advise on the next steps both parties need to take. Simply complete our contact form and someone from our team will be in touch with you today.
How do you calculate how much I can borrow?
There are a number of contributing factors when trying to work out your borrowing capacity, including:
- Your income
- Your current repayments for all debts
- Other household and general living expenses
- Any foreseeable changes in your income and expenses in the short-term
What is Lenders Mortgage Insurance?
When you borrow more than 80% of the value of your property, you will need to pay Lenders Mortgage Insurance. This charge can be added to the loan amount in most cases, and can be payed out of your own funds. This insurance basically protects the lender in the event that you are unable to make your loan repayments. This is paid during the settlement of the loan and will only need to be paid again if you decide to change lenders and your loan is still over 80% of the value of the property.
Am I eligible for the First Home Owners Grant?
The $7,000 First Home Owner Grant is a federally funded program and is processed by the Office of State Revenue in each state and territory. There are three criteria to deciding your eligibility:
1. Are you an Australian citizen or Australian permanent resident?
2. Are you buying or building your first home in Australia?
3. Will you occupy the property as your principal place of residence within 12 months of settlement, and do so for a period of at least six months continuously?
In addition to the First Home Owner Grant, there is also different stamp duty concessions offered in each state and territory across Australia.
Can my parents help me buy a property?
Parents are able to help their children buy property through the loan product known as a Family Pledge Loan. This allows parents to provide a deposit from the equity in their own home. It is important that both parties understand their legal rights and obligations.
What is a credit check?
A credit check is a report that includes your credit inquires and payment history for the past five years. Bankruptcy, defaults and court judgements are all listed on this report. Financing Hope conducts credit checks on each of its clients, with copies provided to each client so they understand their credit history – and how it affects their financial future.
Can I still get a loan if I have a default on my credit file?
While defaults on your credit file limits the number of lenders that we are able to choose from, Financing Hope still has options for people with credit impairment. Contact us today to find out how.
I want to buy an investment property but don’t have a deposit – can you still help me?
If you don’t have a deposit and you want to buy an investment property, then you need to have equity in your existing home. This equity can be used to provide for the deposit and costs required to complete the purchase of your new property. For more information contact our team today.