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Apply for a loan in Five easy steps.
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All of our services are obligation free and are also free of any brokerage fees or other hidden costs. Simply use our Online Enquiry Form and tell us your situation and we'll have one of our experienced and qualified loan consultants call you back. Your may also call us direct to discuss your options on 1300 736 976. Please note that our office is currently AVAILABLE TO TAKE PHONE ENQUIRIES Mon-Fri 8:30am to 5pm AEST to Callers. |
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Once we have agreed on a suitable solution, we will then ask you to complete some preliminary paperwork to ensure that there are no obvious impediments to you applying for a loan. This is usually a single Form requiring 2 minutes of your time (which we will email or fax to you for completion) ... this Form is then faxed back to us for assessment. Our philosophy is that we don't want to waste your time by asking you to "formally" apply for a loan until we have determined that your chances of being successful are extremely high. |
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Following our preliminary checks (which takes about 10 minutes), we will call you to advise the outcome and to arrange a suitable time to complete the paperwork "over the phone". This will usually take around 30 minutes of your time. |
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Once the paperwork is completed, we will normally email (or express post) the package to you for signature. Included in the packet will be specific instructions on what you need to do to complete the Application. |
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Once you return the Application Pack, we will then submit the information to the appropriate Lender (along with our covering notes and recommendations) and advise you of the outcome. |
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Do you charge any fees for your services?
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No. You will not be out of pocket by applying through us instead of lodging an Application directly with the Lender.
Our service is usually FREE - we do NOT generally charge Application or
Brokerage fees unless the Lender dictates otherwise. We are paid a commission by the Lender once your loan settles.
The interest rate, fees and charges that the Lender applies are the same,
regardless of whether you apply directly through the Lender or via
our website. It is highly unlikely that you will get an interest rate reduction by applying with
the Lender direct. The interest rates that we quote are the same as the Lenders
published rates (available on their respective web sites). We DO NOT (and
cannot) add an interest rate loading or increase the Lenders published
fees.
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Do you favour one Lender over another?
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No. Commissions paid to us vary little between Lenders. Having said this,
for convenience and "comfort" reasons, we will generally try and place your
business with a major bank (PROVIDED that the interest rates are competitive,
that this is acceptable to you and that the loan is suitable for your needs).
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You deal with most of the major banks, why can't I just apply directly with them?
You can apply for a loan at your local branch, but your likelihood
of success is limited. Typically you will be asked to complete an Application
Form and the bank will then assess the loan based on the information disclosed
therein. What you don't know is that there are many internal policies that will
determine whether or not your application will be successful. These include (but
are not restricted to):
The amount you want to borrow as a percentage of the offered Security
property/s value.
The age of the Borrowers (some Lenders WILL shorten the loan term depending
on your age).
Whether you can service the debt based on your self certified income.
Mortgage Insurance issues (policy and loan limits).
The location of the Security property/s.
The zoning and size (acreage) of the Security property/s.
Loan conduct on existing loans.
Current debts.
Credit rating.
Self employment and ABN status. We do not assess loans this way. We ask
you a series of very specific questions which will immediately tell us
WHICH lending institution is more likely to assess your application in a
favourable light (we are aware of each Lenders internal policies with respect to
Low Doc lending). We do NOT start any paperwork unless we are 95% +
certain that your application will succeed. In a nutshell, we simply save you
time and frustration by selecting the right Lender FIRST
TIME.
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Can I apply for a loan from within any state within Australia??
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Yes. Most Lenders have mechanisms in place where we can complete
Applications remotely and then email/post the Application Pack to you for signature.
We normally have an initial telephone conversation and then agree on a suitable
product to suit your circumstances. Once a decision has been made, we then
complete the Application Form over the phone and forward it to you
together with a very specific set of instructions detailing what needs to be
done to finalise your Loan Application. The process is very simple and
relatively quick, as all of the paperwork has been filled out in advance.
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I've heard the Tax Dept is taking an interest in Low Doc
loans, will this impact me?
It is possible that the Tax Department may randomly scrutinise Income
Declarations lodged with Low Doc Applications and compare the declared
figures
against actual Tax Returns lodged by borrowers.
Disclaimer ... you must not rely
on the following
anecdotal opinions when making a decision on how applying for a Low
Doc Loan may
impact your tax affairs. If you are at all concerned, then you should
seek legal
and/or financial advice from an independent, appropriately qualified
practitioner.
1. If you do not lodge Tax Returns (or have not done so for
several
years), then there is every likelihood that you may be subjected to a
tax audit
if the Tax Department's matching process reveals that this is the
case. By law,
you must lodge Tax Returns every year (even if they show zero income).
If you
have not been doing this, then you are already in breach of your
obligations and
there is the possibility that you will eventually be identified in any
case.
2. If you have been lodging Tax Returns, it is possible that
the Tax
Department's matching process may reveal a discrepancy between your
self declared
income on the Lenders' Income Declaration Form and the actual figures
as per
your Tax Returns. You may, of course, have perfectly valid
explanations for this
(business add-backs, legal tax minimisation strategies etc). However,
it is
possible that the Tax Department may require a detailed explanation
and may even
subject you to a formal tax audit. If you are audited, then the Tax
Department
may employ a "reasonableness" test when first assessing your level of tax
compliance.
This simply means that they may look at your assets and ask for an
explanation
of how you paid for them. They may also look at your monthly outgoings
(mortgages, living allowances, loans etc) and ask you to explain how
you have
been servicing them. If your taxable income as declared on your Tax
Return fully
services the monthly outgoings and assets level (or you can explain
how you are
meeting them), then the Tax Dept may be satisfied that you are
conducting
your tax affairs in a satisfactory manner.
3. Due to the very definition of a Low Doc Loan, the Lender
will
accept the income that you declare on the appropriate income
declaration form
without question. The Lender does not ask to see income proof and does
not ask
to see Tax Returns. For this reason, the onus lies on the applicant to
ensure
that they understand the possible tax implications when declaring
income figures
to a Lender. The Broker or Lender cannot be held responsible for any
discrepancies between
declared and actual incomes that may arise as a result of a tax audit.
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What is an LVR (Loan to Value Ratio)?
A Loan to Value Ratio (LVR) describes how much you can borrow as a
percentage of the value of the offered security property(s). For example:
You are offering 2 houses as security worth a combined $500,000. You
wish to borrow $350,000 in total. The LVR is then 70% ($350,000 divided by
$500,000 times 100).
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What is Lenders Mortgage Insurance (LMI)?
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Lenders Mortgage Insurance (or LMI) does not protect the borrower
in any shape or form. It is an insurance policy taken out by the Lender in case
you are late with your payments or default on the loan. If this occurs, the
mortgage insurance company will pay the lender the shortfall and will then
recover this amount from you. Mortgage insurance is normally payable by
borrowers on all loans with a Loan to Value ratio exceeding 80% on standard (documented loans). Some loans are
slightly different depending on the lender. As you can see from our product
range, mortgage insurance is only payable under certain circumstances. As at Oct
2009 there were only 2 mainstream mortgage insurance companies in Australia -
Genworth Financial (GE) and QBE.
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What is the UCCC (Uniform Consumer Credit Code)?
The Uniform Consumer Credit Code (UCCC) is legislation that regulates
credit that is provided to personal customers and strata corporations by banks
and other lenders that provide credit as part of their business. When
does the UCCC apply? The Uniform Consumer Credit Code applies to the
provision of credit if, at the time the credit contract is entered into:
1. The borrower is a natural person or a strata corporation (Body
Corporate) and the credit is provided, or is intended to be provided wholly or
predominantly for personal domestic or household purposes and a charge is made
for providing the credit. 2. The lender provides credit in the course
of a business providing credit or as part of or incidentally to any other
business of the lender. Who does the UCCC apply to? The Uniform
Consumer Credit Code applies to nearly everyone who lends money for personal
purposes, including banks, building societies, credit unions and their agents,
mortgage brokers, originators and managers, finance brokers, insurance
companies, finance and leasing companies, retailers providing credit facilities
and any other person or company providing credit. For more information,
visit www.creditcode.gov.au.
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What is a Regulated Loan?
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If you are buying a home to live in or if you are refinancing an owner
occupied home where the majority of the released funds are for personal use,
then the loan is regarded as "regulated" (covered) under the UCCC (Uniform
Consumer Credit Code). Additionally, the borrower(s) must be an individual,
individual trustee, unincorporated association, sole proprietor, strata
corporation or a partnership to be covered by the Code.
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What is an Unregulated Loan?
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If you are buying an investment property or if you are refinancing a home where
the majority of the released funds are for business or investment use, then the
loan is regarded as "unregulated" (not covered) under the UCCC (Uniform Consumer
Credit Code). If the borrowing entity is a a Corporation / Company, the it is
not covered by the Code.
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Does it matter if I am protected by the UCCC?
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The UCCC provides a framework for dispute resolution and / or recourse in unjust
dealings with a Lender. All of our loans are written under the UCCC regulations
provided that they qualify. If a loan is "unregulated" (see definition above),
then the loan (by definition) will not be covered by the UCCC. Generally you are
required to sign a "Declaration of Loan Purpose" which will determine whether
the loan is regulated or not. This Form should be accurately completed,
otherwise you may lose your protection under the Code. Where appropriate, this document will be
provided with the Application package.
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