As the name implies, Lender’s Mortgage Insurance safeguards the lender rather than you as the borrower. A one-time fee known as Lender’s Mortgage Insurance (LMI) is typically charged on loans if the consumer is borrowing more than 80% of the purchase price.
LMI is adjusted based on the amount of the loan and the percentage you need to borrow (between 80 and 100%). LMI might be as low as $800 or as much as almost 4% of the loan amount.
LVR, or loan to valuation ratio, is calculated by dividing the loan amount by the property’s purchase price or appraisal. Owner occupiers can typically borrow up to 95% LVR from lenders.
Simply put, refinancing is getting new funding for something you already own (or partially own, like real estate).
It resembles a balance transfer in that you pay off your existing loan by moving it from one lender to another in order to receive better terms, but this time it’s a mortgage rather than a credit card.
The Average Annual Percentage Rate (AAPR) is a rate that enables customers to contrast
loans provided by various lenders. Based on the interest rate, initial fees, ongoing expenses, and exit fees, it calculates a “real rate”.
This feature is frequently applied to fixed-rate mortgages and lines of credit. The borrower is given the option to divide the loan up into various sub-accounts. Dividing the loan’s fixed and variable rate sections is the typical justification for doing this.
Another frequent application is to divide a mortgage into the personal and investment
sections in order to keep track of interest expenses that are and are not tax deductible.
In order to check your financial position, expenses, and income, your lender will typically need personal identity, evidence of income, bank records, and tax returns. As loan application requirements can differ from lender to lender, make sure to ask your lender about the precise paperwork needed. A loan application may go more quickly if all of your supporting paperwork is ready.
In a lot of cases, yes. We deal with a number of lenders who will lend to people with defaults in their credit history and even to bankrupts.
In general, yes. The cost of the stamp duty can be added to the loan’s principal. The money you use as a down payment on your loan will be used to pay the stamp duty. Depending on your state and the price of your home, you may incur different amounts of stamp duty.
This loan is mostly used by real estate investors. It enables the borrower to make interest- only payments rather than principal plus interest (i.e. the principal balance remains the same during the interest-only period). As a result, the investor’s tax deductions are maximised, and cash flow is made available for additional investment options.
You can carry over your mortgage to the next property you buy, thanks to this feature. With the help of this function, you can avoid paying a new establishment fee and other expenses related to opening a new home loan.
Any extra money you have paid back over and above the required instalments might be withdrawn from the mortgage. Since the funds are less expensive than taking out a personal loan, many people utilise this service to purchase a new automobile or for a vacation.
Knowing how long it typically takes a mortgage lender to close a loan is crucial information to have when comparing mortgage offers. It should be noted that the amount of time it takes for a mortgage to get approved varies from lender to lender. Within 30 to 45 days of the application, a reputable mortgage lender ought to be able to finance a mortgage.
It’s critical to realise that a mortgage approval may be delayed for a variety of reasons. It’s crucial to maintain regular touch with the lender during the mortgage application process and to deliver any needed documents as quickly as feasible.
How are the banks able to maintain the same interest rates on their goods while paying mortgage brokers’ commissions?
In order to attract customers, brokers would need to spend more money on advertising and expanding their sales staff if they weren’t writing loans for the banks. Individual mortgage brokers now pay to find clients, and the banks reimburse us for our services. In essence, everything balances out.
You will get full service if you come to us for your house loan. We can first give you a general sense of which lenders you might be eligible for, and then we can work with you to discover the best mortgage those lenders are offering.
This stops you from damaging your credit history by submitting several applications to lenders who later reject them. When you choose a loan, we assist you in completing the application and gathering the necessary supporting documentation. We deal with the bank up until settlement after sending it to them. This implies that since we will handle it for you, you won’t have to wait in any bank phone lines.
Yes, they are exactly the same. The features, interest rates and fees are identical.