Cute Girl


What You Should Know

I always make sure my clients are satisfied and totally onboard with everything I do. If something isn’t clear after going through my site, take a look at these commonly asked questions regarding mortgages, refinancing, and other related subjects.

Definition of some terms.

  • Amortization - The process of paying off debt over time in regular installments of principal and interest sufficient to repay the loan in full by its maturity date.  

  • Appraisal - A estimation of the value of property, such as real estate, a business, collectible, or an antique, by the estimate of an authorized person.

  • Comparison Rate - A more accurate representation of the rate of your loan. It takes into consideration extra fees of the loan; Interest Rate + Setup Costs + Loan Approval Fee + Ongoing Fees + Discharge Fees. 

  • Conditional Approval - The loan has been assessed and approved in principle. The lender however, still requires more information.

  • Debt-To-Income (DTI) Ratio - A personal finance measure that compares an individual’s monthly debt payment to their monthly gross income.  

  • Discharge - The removal of a home loan from the title of the property through either fully paying off the loan or refinancing the loan to another lender. 

  • Discharge Fee - A charge for ‘breaking’ out of the loan term during the fixed period. This fee varies depending on the amount owed, the interest rate you were locked into, the current interest rate and the duration of your loan.

  • Establishment Fee - A cover for the lender’s cost of preparing the necessary documents for your new home loan. Also known as application, up-front or set-up fee.

  • Interest Rate - A basic representation of the amount a lender charges for the use of their assets. Also known as Annual Percentage Rate (APR).

  • Loan-To-Value Ratio (LVR) - The size of your home loan as a percentage of the value of the purchasing property.

  • Mortgage Discharge Fee - A compensation to your lender for the revenue it may lose due to the contract break. Also known as a settlement or termination fee.

  • Negative Gearing - When rental return is less than interest repayments and other property-related expenses.

  • Offset Facility - A savings account linked to the home loan account. The balance is ‘offset’ daily against the home loan balance, and as a result interest is only charged on the difference between the total loan balance and the amount offset. 

  • Positive Gearing - When rental return is higher than interest repayments and other property-related expenses.

  • Pre-Approval - A pre-qualification of a loan. It provides an insight to the borrower's potential loan size and interest rate. While beneficial, obtaining a pre-approval does not guarantee a mortgage. A pre-approval lasts 3 months.

  • Private Mortgage Insurance (PMI) - An insurance financed by the borrowers if less than 20% of the property's cost is put down as deposit. This is paid until there is enough property equity for the loan to be deemed not high-risk, i.e. LVR falls below 80%. Also known as Lenders Mortgage Insurance (LMI).

  • Redraw Facility - A facility that allows access extra repayments made on your home loan. It maintains an available redraw balance which can help reduce interest on the home loan.

  • Settlement - The process of passing the ownership of the property from the seller to the purchaser. The date is set within the Contract of Sale (CoS). 

  • Stamp Duty - The difference between the original loan amount and the refinanced loan amount. This is only paid when loan purpose for making the switch is to increase your loan amount.

  • Unconditional Approval - A 'no strings attached' approval of your loan. The lenders approve your loan and mortgage documents are issued.

  • Valuation - The analytical process of determining the current (or projected) worth of an asset or a company

What are the benefits of utilizing a Mortgage Broker?

As the home loan market becomes increasingly complex, more people are turning to mortgage broker. Here is why;

  • We can save time - The choices now available in the mortgage market can seem limitless and completely overwhelming. You can choose to research the subject, the lenders and their products yourself, or work with us who already has that knowledge.

  • We provide choice - All mortgage brokers have a panel of Lenders from which they recommend a loan. We must become accredited with the lender to offer their product, and are required to keep up-to-date with their latest offers.

  • We can help find the right loan - The best deal is not necessarily the cheapest rate. We will examine your circumstances and future plans to recommend a loan that is right for you. Having an appropriate loan which works for you can help you build wealth.

  • We do not charge you - We don't charge a fee for our service as the lenders pay us a commission for the loans we write. 

  • We can help you avoid pitfalls - Many products seem to offer a great deal but they could have penalties, fees and charges you may not be aware of. Or, they may not offer the flexibility you require in the future. We can help you avoid taking out a loan you might later regret.

In Momentum Intelligence’s Consumer Access to Mortgages Report, a study was performed comparing clients' satisfaction levels when acquiring a mortgage from a mortgage broker and from the lender directly. 96% from the study group were satisfied with the brokering service they received, while 67% were satisfied with the bank's service. Furthermore, 95.8% of those who used a mortgage broker in the past mentioned that they would use their services again. Comparatively, only 32% of those who directly went to the lender would do the same.

What are the costs of utilizing a Mortgage Broker?

There’s no such thing as a free lunch, but that doesn’t mean you will receive lower levels of service or expertise from a finance broker who doesn’t charge you. It just means that someone else is paying for it. While each business will have its own reasons for its revenue model, and each structure offers different advantages, here at Endeavour Financial, we believe that you deserve the best service possible at the lowest fee possible. This means that there is no cost for you!

What information and documentation do I require?

What information and documentation is required is dependent on the type of loan sought. Generally, we require:

  • Personal identification, e.g. Driver's Licence, Passport, etc.

  • Income details, e.g. payslips, bank statements, individual tax returns, etc.

  • Assets and liabilities, e.g. Superannuation, credit cards, etc.

What is the home loan application process?

There are two general steps in obtaining your loan:

Mortgage Preparation

  1. You complete application form.

  2. You supply necessary documentation, e.g. ID, payslips, bank statements. etc.

  3. We complete and supply a preliminary assessment.

  4. You select appropriate lender.

  5. We submit the loan to the selected lender.

Loan Application

  1. The loan is conditionally approved.

  2. A property valuation is ordered and performed.

  3. Unconditional approval is achieved.

  4. Loan offer documentation is issued.

  5. Settlement takes place.

How long does it take for my loan to be approved/settled?

The amount of time it takes for you to receive a response to your home loan application can vary. An answer is usually received between two days to two weeks, depending on a range of factors.
Before offering conditional approval, your potential lender will need to make an assessment of your application and conduct a valuation of the property. Of course, having a valuation that is acceptable to the lender done in advance will expedite the process.
The lender will also assess your capacity to repay the loan amount you have requested. This is where all of the information about your salary and liabilities come into consideration, and where accurate and complete information is essential.
Your potential lender makes an overall judgement of you as a borrower and the complexity of your financial history will affect how long this takes.
Following the submission of an application, you can expect your mortgage broker to be in touch with you to update you on progress, and to notify you of the outcome. If your application is approved, your broker will also advise you of when to expect a formal letter of approval from your lender.

What lenders are on your lender panel?

We are accredited with 31 lenders. They are:

  • Adelaide Bank

  • Allianz

  • ANZ

  • Bank of Melbourne

  • Bank of Sydney

  • BankSA

  • Bankwest

  • Better Choice Home Loans

  • Bluestone

  • Firefighters Mutual Bank

  • Health Professionals Bank

  • Heritage

  • ING

  • La Trobe

  • Latitude Financial Services

  • Liberty FS

  • Macquarie Bank

  • ME Bank

  • MKM Capital

  • MyState

  • NAB

  • Paramount

  • Pepper Money

  • Prospa Advance

  • Qudos Bank

  • Resimac Prime

  • St George

  • Suncorp

  • Teachers Mutual Bank

  • UniBank

  • Westpac

Still can’t find what you need? Don’t hesitate. Get in touch for direct advice on home loans and refinancing options.