Home Loan – Frequently Asked Questions
I don’t live in Melbourne. Can I still use your service?
Absolutely! We service clients throughout Australia. Plus, most of the communication can be done over the phone or via email. If you can’t attend our office please talk to one of our team members about after hours appointment –
How do I know you’re not just recommending the lender who pays the highest commission?
Our job is to find you the best loan for your needs. We pride ourselves with our high ethical and professional standards. You will be told upfront what commission we will be receiving from the bank. You can rest assure knowing that we are complying with the National Consumer Credit Protection Act or NCCP. This is a legislation that has been designed to protect consumers like you and to ensure ethical and professional standards are being maintained in the finance industry. If you would like to know more, please contact us today.
How much can I borrow?
In most cases the amount of money a bank will lend you depends on the deposit saved, income and your current expenses. However, if you have a little or no deposit we can also assist in recommending other options. We are more than happy to discuss your borrowing options, so please don’t hesitate to Contact Us or you can click here to try our Mortgage Loan Calculator.
Why should I use a Mortgage Broker and not just walk into any bank?
If you walk into a bank today, you’ll only be offered the loan options available through the one lender. How will you know if it’s the right loan for you? It would be extremely time-consuming and difficult to shop around and compare the thousands of loan products available in Australia. The good news is there are mortgage brokers like Elevate Financial Group, that are across many lenders and their loan products. It’s simple; we do all the legwork and find the right loan for your needs.
What if I don’t have the standard 20% deposit that most banks require?
We will have a number of solutions we can offer you. Our experienced Credit Advisors have helped many customers in different financial situations. Don’t hesitate contact Malcolm Hester, from Elevate Financial Group today to discuss your options.
My parents are selling their house to me at below market rate. Is there a bank that will use the higher valuation rather than the contract price?
Yes, we can help you in this circumstance. The sale must be to an immediate family member and a letter is required stating that the equity is being gifted. Contact Elevate Financial Group so we can answer your questions.
Will a bank allow me to borrow against my home to pay a Tax Debt?
Many lenders are unwilling to lend against a residential property to pay off a tax debt. However, Elevate Financial Group has access to lenders who are accepting of this purpose and can provide the finance with competitive interest rates. Please contact Malcolm Hester, one of our credit advisers to discuss your circumstances.
I want to build two or three houses/townhouses on my property. Can you assist me with funding for this project?
We have relationships with many lenders that can provide construction lending. We are happy to talk to you about your project. We want to help you avoid paying high costs associated with development/private funding and find you the most competitive and suitable loan option. Contact Elevate Financial Group for more detailed information.
I’m an Australian Citizen working and residing overseas. Can I borrow to purchase a property in Australia for an investment, or to live in if I return home to Australia?
Yes. The right lender for your loan request will be agreed on by; the currency you are earning; the country you are living and whether you are on a salary or self employed. In most cases you will be able to borrow up to 80% of the purchase price. Please speak to one of our credit advisors at Elevate Financial Group.
I’m a Director of a number of companies. Do I need to make available the tax returns for all the companies to prove my income?
It is normal practice for a lender to review the financial statements and tax returns of all business entities that you are a director. We can help you streamline the document process by having your accountant provide a declaration that reflects your financial positions. However, your interest rates and fee’s can be more competitive with a full documentation.
What can I do if my loan has been declined?
There is good news; we are the experts at finding the right lenders and loan products to suit your individual needs. All our lenders have different credit policies, which means that we can help you find the perfect fit. To find the loan that fits you best contact Elevate Financial Group today.
What can I do if my bank won’t lend me the amount I need?
Contact Elevate Financial Group, our credit advisors are the experts in finding and recommending the right product to suit your situation. All our lenders use their own methods to calculate how much you can borrow. As we have access to a broad variety of lenders and loan products we can help find what you’re looking for.
The valuation of my property I bought came back low. Is there anything I can do?
Yes. In most cases the bank will have to accept the first valuation they order and not allow a second valuation to be used. If we feel the property has been underestimated in the property valuation, we can discuss on your behalf directly with the Valuer. For further information contact Malcolm Hester.
How do I apply for a home loan?
We do this every day so call Elevate Financial Group and speak with one of our credit advisors. They will talk you through the entire process; your borrowing capacity, how to structure your loan, the loan products available plus documents needed to support your application.
I’m a first home buyer with little savings, what assistance can my parents provide?
Your parents can help by Guarantor Support. This means that they can help you by mortgaging their property as additional security for your home loan. If you don’t have sufficient security yourself, having a Guarantor Support may allow you to borrow more money or possibly avoid paying mortgage insurance. For more information on Guarantor Support contact Elevate Financial Group.
How long will I be a Guarantor on my children’s loan?
You can be released from your obligation when the loan has been reduced by the amount of the family guarantee. This can be done via paying down the loan or an increase in property value that would reduce the Loan to Value ration (LVR). For further information on Guarantor Support contact Malcolm Hester today.
Does the guarantee to my loan application have to be related to me?
No, some lenders will allow guarantors not to be personally related to applicants. If you have further questions on this subject, please speak to one of our credit advisor at Elevate Financial Group.
Can my Guarantor keep their property with their existing bank if it’s not the same bank issuing my loan?
Yes, there is no requirement to change loans or banks, as some banks will take a second mortgage on the guarantor security property. Contact Malcolm Hester to discuss your circumstances.
My builder says the building contract will be a split contract. Can you help structure my finances with this type of contract?
Yes, we can help you with the nitty-gritty of any building contract, including split contracts. This is when your funds are only needed at the final two stages of the build. Please contact Elevate Financial Group to discuss your split contract.
What are the alternatives to an offset account?
One of the main features of an offset account is the ability to reduce the interest charged by the bank, if you have funds sitting in the offset account. Another option is by placing your extra funds directly into the loan account, and because interest is charged based on the account balance, the interest cost will drop. If you’re making principle and interest repayments, your repayment amount will remain the same, but a bigger portion of your repayment will go towards paying the principle balance of the loan. If you’re making interest only repayments, your repayments will decrease as those repayments are based on the loan balance (this is similar to a line of credit product). By using the redraw feature of a loan instead of an offset account, you can also save the ongoing fees that are commonly linked to offset accounts. Contact Malcolm Hester to discuss alternatives to offset accounts.
Is it worth paying the extra fees for an offset account?
You can work out what savings will bring you each year and if it will cover the ongoing fees. The best way to calculate this is –
- Your annual fee for your offset account (or loan package fee) = A
- Your home loan interest rate = I
- A ÷ I = the average amount of money you require in your offset account to save the cost of your annual fee
E.g. $450 annual fee ÷ 5% home loan interest rate = $9,000 on average you require to have in your offset account to save $450 annually.
If you need further information on offset accounts contact Malcolm Hester today.
What do I do if my loan application is declined?
No one wants to be declined by a lender. However, the good news is, it doesn’t mean that other lenders will decline your application. Every bank has a different policy. So if you were unsuccessful with one lender, you might be successful with another. Elevate Financial Group can look at your overall situation, and advise you of the lenders you have the best chance of meeting all the policy requirements. If your loan application is declined we are here to help. Please contact Elevate Financial Group today.
What are the reasons behind why I was declined by lenders mortgage insurance?
If your loan needs to be approved for Lenders Mortgage Insurance (LMI), it will be assessed under stricter guidelines in comparison to the banks. Some of the common reason’s applications are declined by LMI are –
- A poor credit report
- Income serviceability is too tight for the requested loan amount
- Inadequate employment history
- An unacceptable security property
If you call Elevate Financial Group today we can help investigate whether you could meet the requirements of another mortgage insurer.
There are two mortgage insurers who insure the majority of banks in Australia. If one declines you, we can assist you, so you don’t apply to a lender who uses the same Mortgage Insurer. Contact Malcolm Hester to discuss your Mortgage Insurance application.
I am a self-employed non-resident who would like to purchase property in Australia. Is there a bank that will lend to me?
Yes. We know lenders that do finance for self-employed non-residents. For further details contact Elevate Financial Group.
Are there any banks that only require three months of loan statements for refinances?
Yes. Elevate Financial Group can provide you with banks that will do refinances using only three months loan statements. If you would like to know which banks could, contact Malcolm Hester today.
So what exactly does a mortgage broker do?
Professional Mortgage Brokers are the experts of the home loan industry. We have access to a wide variety of loans, which means that we can help find the right loan to suit your personal situation. We will also work with you to establish how much you can borrow plus ensure you don’t take out a loan that’s too big for you.
Do you charge fees for home and investment loans?
Elevate Financial Group does not charge you fees for home and investment loans. Our Mortgage Brokers get paid commission by the bank for bringing new business to them. This does not cost you or change your rate and level of service you receive from us. Please feel free to contact us if you have any further questions.
Self Managed Super Funds – Frequently Asked Questions
I want to use your service but I am not in your area, can we still work together?
Absolutely! We love to get out of the office and are mobile in and around the Melbourne area. If you do live further a field don’t worry; we can communicate over the phone, email or Skype.
I would like to borrow to purchase a property under my self-managed super fund (SMSF). Is this possible?
Yes, you can borrow in your Self-Managed Super Fund. We know a wide variety of Lenders for all types of investment property purchases. We are happy to assist in providing advice and finding you a suitable product for your investment needs. Contact Malcolm Hester today for more information on self-managed super funds.
Can I get a Self-Managed Super Fund home loan?
No. Traditional home loans are not available for self-managed super funds. Contact Malcolm Hester today to discuss what your options are for a self-managed super fund loan
Which banks will give me a self-managed super fund loan?
Self-managed super fund loan structures are complex. There are SMSF loans specifically designed for financing residential investment properties in a trust. We know which lenders will quickly approve your SMSF loan with great rates.
Contacts us to find out which banks have the most competitive loan package available.