Frequently Asked Questions
Why arrange your mortgage or re-finance with the Mortgage Centre and not with my existing bank?
Your bank is interested in selling "their products only". The mortgage market has a myriad of loan products and is constantly changing. Loan comparisons are complex-especially for those that are time poor and without a financial background. We represent over a dozen financial institutions (including the "big four" banks in Australia). We have no vested interest and provide a level of professional service that is incomparable to that provided by financial institutions. What is the likelihood that your particular bank is offering the 'best rate' or best product? Why narrow your choices to one institution when the 'right' loan product could save Thousands of dollars over the life of your loan?
Bank service, like so many other institutions has become inconsistent. It's difficult to establish long term bank/client relationships where you feel confident you will be dealing with the same person next time you need to arrange funds and where your advisor is easily contactable.
We walk you through the process and make it easy. We demonstrate why a loan product fits your profile and ensure you're satisfied it's the best deal for your circumstances. We're confident you'll come back to us, place trust in our knowledge and seek us out regularly for our advice.
What documentation do I need to apply for a new loan or refinance an existing loan?
Supporting documentation with your loan application requires your last two pay slips, and in some cases your last two tax returns. You will also need to provide identification, either your drivers license or passport with photographs
For Low Doc loans (Applicants that are self employed rather than PAYG) supporting documentation required will mainly be identification. Your mortgage Centre professional will clarify this with you.
Am I able to apply for additional finance (A top up) on the amount required to cover the property loan?
You may be able to apply for additional funds to cover costs such as solicitor's fees and other incidentals. The amount being borrowed in relation to the value of the property will determine whether you are able to borrow additional funds and how much?
Applicants with reasonable home equity are able to access additional funds more easily. Existing home owners refinancing for a better rate or purchasing additional investment property should consider this an opportune time to decide whether they are likely to require additional funds now or in the near future.
That investment property might need some renovation before being rented or you have had some unexpected expenses that have accumulated. That additional money can be used for anything – A car, holiday, credit card debt. As long as you have some equity in your property, the banks will lend against it. Savvy property owners review their loan every 12–18 months to ensure their rate is still competitive and to "unlock" the equity in their property for "cash flow" management and "further investment". Unlocking equity can often produce enough money for a deposit on your next investment property.
If I have credit card and personal debts, what is the benefit of combining all my debts into my home loan?
Juggling cash flow often results in shortfalls that require readily available cash. Credit cards should be used as a short term solution as they attract the highest rate of interest. Unfortunately many people find themselves without the cash to pay it off at the end of the month and end up in a spiral of crippling interest. Personal loans and credit cards can be rolled into the one low rate. There is no cheaper interest rate than your mortgage. At the lower rate, the additional debt that is added to your mortgage will make a much smaller difference to your monthly mortgage repayment than what your Personal loan and Credit card payments are.
Talk to a Mortgage Centre Professional about either a "top up" on your mortgage or setting up a line of credit which will give you cash access as required with a pre arranged limit. This is also referred to as an Equity Access Loan.
Which banks and lenders do The Mortgage Centre represent?
We represent all the major banks in Australia including ANZ, Bankwest, CBA, Homeside, NAB, Westpac, along with AFM, Citibank, Liberty Finance, PFG, and Suburban Management.
What is Mortgage Insurance?
Lenders Mortgage Insurance protects the lender against default from the borrower in case the property has to be sold and there is a shortfall between the sale price and the outstanding mortgage. Lenders Mortgage Insurance is payable by the loan applicant in cases where the bank feels their risk is greater – for example loans that are more than a certain value of the property's value (usually 80% or more). The cost of the insurance is payable by the borrower and either paid up front or incorporated into the loan.
What is negative gearing?
Negative gearing is the difference between the cost of your investment property loan (The annual interest payable on the loan) and the annual rental income. Very few investment properties generate a rental income that covers the loan interest. The negative difference to the investor is a tax deductible cost and a very big tax incentive for investors to choose investment property for wealth creation.
What is the difference between an investment loan and my existing home loan?
There is very little difference between investment loans and home loans. Sometimes the rate for investment loans can be slightly higher but usually only if the bank perceives the loan to be of slightly higher risk.