You Have Questions? We Have Answers.
What are the benefits of using a broker?
Sure, you have a vast choice of lenders. But do you have the time and expertise to wade through these to find the best available loan for yourself? If not, this is where a mortgage broker like us pays dividends. We do not charge you a cent. But we will work tirelessly on your behalf liaising with lenders to bring you the best possible home loan solution.
Do you work for me or the lender?
We work for you. Platinum Package Home Loans does receive a commission from your chosen lender upon settlement. We will tell you this and our commission figure right up-front. But our commission structure does not add up to an alliance with any particular lender. Our team are all permanent staff members of Platinum Package Home Loans. We receive no incentives or kick-backs from any of our lender networks. In other words, we are completely independent and there is no motivation for us to recommend one bank over another. So our recommendations are based solely on which lender and solution best ticks the boxes for your specific needs.
Which bank or lender should I be using?
There are several factors that will influence the banks or lenders who are a great fit for you. These include your own personal goals, your loan scenario, employment history and what types of features you want from the loan or lender. The same as a doctor will diagnose before prescribing, we too will help identify what’s important to you so we can advise an appropriate lender and lending solution.
Do I need to prepare anything before meeting with you?
It depends. Before the meeting, we will talk on the telephone to learn more about your personal circumstances and what you’re looking to achieve – and from there, we can advise what will make the process easy and convenient for you. Most clients typically like to get their loan processed as quickly as possible, which means we might ask you to have some documents prepared for the meeting to make more efficient use of your time.
How much can I borrow?
Each lender will have their own requirements that may impact how much you can borrow. We help you get the very most out of your borrowing capacity by matching you with the right lender.
I have been Pre-Approved – What Does this Mean?
Otherwise known as approval-in-principle, pre-approval means a calculation has been done on your borrowing capacity based on your income, assets and liabilities. By knowing how much you can borrow, you can start to look for properties in your price range. Some people like to shop around with multiple lenders to see how much they can qualify for, but this can adversely affect your credit score meaning it could end up resulting being declined. For that reason, speak with us first so you can get you a clear idea of who you are likely to qualify without impacting your credit score.
Is my credit score relevant?
Yes. Your credit score is one of the many factors that lenders consider when deciding what they will lend you. If you are concerned that your credit rating may be problematic, there are steps you can take. We are happy to help you find out what your credit score is and address any impacts this may have on your borrowing.
What is equity?
Equity is the difference between what your property is worth and the balance owing on your mortgage loan is. For example, if you have a property valued at $400,000 with a mortgage of $200,000, you have $200,000 worth of equity. Whether you live in the home or it is an investment property, equity is typically built up over time as the price of the property appreciates in value and/or as the loan value decreases.
Should I choose a fixed or variable rate?
The answer to this lies in your immediate to mid-term goals. Fixed rates give you cost certainty. Meanwhile, variable rates allow you the chance to capitalise on interest rate drops. Platinum Package Home Loans will help you determine exactly what rate structure is best for you.
Will you be able to help me with all the First Home Buyer requirements?
Yes. We understand that getting everything organised can be a little challenging, and that’s why part of our service for you includes helping you complete the necessary forms to claim benefits as a First Home Buyer.
What features should my home loan have?
Depending on your personal situation and goals, home loans can incorporate a range of different features. Whether you are anticipating children, would like to downsize, make extra repayments, renovate, or more, we can discuss the features you would like and provide you with a tailored lending solution to suit.
What is Lender’s Mortgage Insurance?
Lender’s Mortgage Insurance protects the lender in case a borrower defaults on their home loan. Lender’s Mortgage Insurance (LMI) is a once-off fee that normally applies when the customer is borrowing more than 80% of the purchase price. LMI is scaled depending on the percentage you need to borrow (between 80 – 95%) and the dollar amount of the loan. LMI can be paid upfront or added to the total loan amount. As part of how we help our clients, we itemise every lender fee and charge so you have a complete breakdown of the costs associated with your loan.
Can I refinance a fixed-rate loan?
Consumers are eligible to refinance a fixed-rate loan, though there could be ‘break costs’ to get out of the fixed rate. These costs must be taken into consideration to determine the most suitable solution for you, which is why it is critical to speak with your broker to determine what option work will work most in your favour.
Do I need to pay off the car loan and credit card before I can qualify for a home loan?
Though existing debts could impact how much you are eligible to borrow, some loans allow you to ‘consolidate’ all your debts into a single, lower-rate loan instead of having several loans, some of which have very higher interest rates.
Does it matter where my deposit comes from?
If you receive an inheritance or other lump sum, though this can help with your deposit, many lenders also like to see evidence of regular savings to give them confidence you can manage money responsibly and therefore pay back the loan. As there are a lot of varying policies when it comes to assessing a deposit, contact us so we can advise who you will qualify with based on where your deposit has come from.
What is a guarantor?
A guarantor is a person who provides a legally binding promise to pay off a mortgage if the principal borrower fails to do so.
Though not always, guarantors are often parents who are in a much better financial position than their child who is applying for the loan and needs to leverage their parent’s property as ‘security’ to help fund a loan.
Lenders may regard borrowers as less risky when they have a guarantor – and may charge lower interest rates or even approve mortgages they would have otherwise declined.
If however a borrower falls behind on their repayments, the lender might pursue the guarantor for payment. In some circumstances, this could include seizing and selling the guarantor’s property to recoup their money.