Why should I use a mortgage broker if I can go straight to the bank?

Convenience is usually one of the main reasons why customers go direct to their bank, but banks will only sell you their own products and your circumstances may not fit the bank's policies or lending criteria.

At Urban Finance Co, we compare hundreds of loan products and more than 35 lenders, to offer the right loan for your needs. It is our sole purpose to provide a suitable loan that matches your personal financial circumstances and goals.

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How long is the application process?

Once an application is submitted, the assessment process usually takes 24 to 72 hours but this will depend on the lender's current turnaround times.  We will provide updates throughout this process.

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Which lenders do you deal with?

We are representatives of Connective and have access to a panel of over 35 lenders. Connective's panel includes all the major lenders, as well as most second and third tier lenders and credit unions. We can therefore provide a range of competitive options to our customers. 

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How much can I borrow?

Specific factors, such as income, employment position, deposit saved, current living expenses and commitments, will affect your borrowing capacity. Our borrowing calculator can give you a rough idea but for a more accurate assessment, please give us a call and we can go into your options and discuss your circumstances in more detail.

 

What is Lenders Mortgage Insurance?

Lenders Mortgage Insurance (LMI) is an insurance premium that protects the lender against the event that you fail to make your minimum home loan repayments, but also allows you to purchase a home with as little as 5% + costs of the purchase price. Please give us a call to ask how you can reduce or eliminate your LMI premium!

 

How much deposit will I need to save to get a loan?

You will generally need to save at least 5% deposit to purchase your first home. To avoid LMI, you should have at least 20% deposit in the form of savings and/or equity. 

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Do I need a Pre-Approval before going to an auction?

To minimise approval risk, our recommendation is to get you pre-approved before going to an auction. Pre-approvals are usually valid from between 3 to 6 months, and provide you with confidence that you can borrow a certain amount, assuming your circumstances do not change.

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What is the difference between fixed and variable rate loans?

A fixed rate loan has a fixed interest rate for the term of your fixed rate period, usually 1 to 5 years. Fixing your repayments provides stability of your chosen period, but it comes with repayment restrictions and early exit fees.

A variable rate loan is a loan whereby the rate fluctuates given market forces. The lender is guided by the Reserve Bank of Australia but can change interest rates at any time. Keeping your rate variable provides flexibility to make additional repayments and payout your loan sooner than expected.

Please give us a call to discuss your specific needs and we can explain these different features in more detail.

 

How do I qualify for the First Home Owner Grant?

To qualify for the First Home Owner Grant in Victoria, you must be an eligible first home buyer building or buying a new home. 

For more information, please complete the questionnaire on the State Revenue Office’s website: www.sro.vic.gov.au/are-you-eligible-first-home-owner-grant

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Can I use my First Home Owners Grant as a deposit?

If you can demonstrate at least 5% deposit that you have saved consistently over at least 3 months, you can use your First Home Owners Grant to add to your deposit. Please give us a call to discuss if any exceptions to this rule apply to you.

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Can I rent a property I have received the First Home Owners Grant for?

If you have lived in the property for a continuous period of 12 months, within 12 months of completing the property, you may be able to rent out the property.

Please contact the State Revenue Office or our office for further information.

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What is “Rentvesting”?

Rentvesting is the strategy of buying an investment property while continuing to rent. This strategy allows you to buy a property where you can afford and rent a property in your desired location.

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What is an offset account?

An offset account is a transaction account linked to your home or investment loan, that helps offset the interest charged on your loan. The more savings held in an offset account, the greater the interest saved.

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Can I get a loan to renovate?

Borrowers can tap into their available equity to use towards renovating costs that are of a cosmetic nature.

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Do you charge fees?

We generally do not charge fees to our clients. We are remunerated direct by the lender. This commission is not charged to you or added to the total amount of your loan and does not impact your interest rate in anyway.  Should a fee be payable, we will discuss and disclose any applicable fees upfront to you.