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FAQ’s

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Business

  • How much money can our business borrow?
    It is different when looking to borrow for your business. Lenders take into account your profitability after depreciation and interest costs plus any other one-off items that have occurred in the past 12 months. Most lenders look at the last 2 years company profit & loss and balance sheet statements before knowing the maximum amount a business can borrow.
  • How do I choose the loan that matches the company’s cash flow?
    As business owners there are plenty of short and long term funding opportunities. However before you look at this make sure you have forecast repayments into the business cash flow, look at when you are likely to pay it back , and get some good tax advice to know exactly what finance structure best suits.
  • Do I need to provide security for my business loan?
    If you want the best deal in terms of rates or fees, then providing property security to cover the loan is the best approach. However there are a number of different ways without requiring property security such as the funder relying on your cash flow to repay debt quickly, through directors guarantees should the director have substantial assets supporting the guarantee, a debenture charge over the company assets, and leasing where the car or business equipment is taken as security.
  • How much will regular repayments be?
    When having a business, repayment flexibility is the key to managing your day to day operating expenses. Many loan products can be repaid by linking repayments with seasonal requirements such as we see in agriculture, tourism, and property construction. Interest costs can also provide tax deductions in reducing your profitability, so you do have the option of interest only, interest in advance, and principal and interest repayments.
  • How often do I make business loan repayments — weekly, fortnightly or monthly?
    This depends on the type of product you use. If it is an overdraft then all you need to do is cover your monthly interest costs which are calculated daily on what you use and then charged monthly. Commercial Bill or Market Rate products rely on interest up front depending on your season requirements, and Business Loans can be repaid weekly, fortnightly or monthly via principal and interest rate repayments. To ensure you have he right structure make sure you speak with us and your accountant.
  • What fees/costs should I budget for?
    There are a number of fees involved when borrowing for a business.  To avoid any surprises, the list below sets out most costs to look for, although this may not cover  everything as it depends on what the lending transaction you take up.
    • Stamp Duty — This applies if you are buying property and is usually the largest cost outside of the actual property purchase.  Stamp duty rates vary between state and territory governments and this also depends on the value of the property you buy.  You may also have to pay stamp duty on the mortgage itself.
    • Legal/conveyancing fees — Generally around $2,000 – $5000, these fees cover all the legal rigour around your property purchase, including title searches should you borrow in a company name or through a Self Managed Super Fund.
    • Building inspection — This should be carried out by a qualified expert, such as a structural engineer, before you purchase the property.  Your Contract of Sale should be subject to the building inspection, so if there are any structural problems you have the option to withdraw from the purchase without any significant financial penalties. A building inspection and report can cost up to $1,000, depending on the size of the property.  Your conveyancer will usually arrange this inspection, and you will usually pay for it as part of their total invoice at settlement (in addition to the conveyancing fees).
    • Pest inspection — Also to be carried out before purchase to ensure the property is free of problems, such as white ants.  Your Contract of Sale should be subject to the pest inspection, so if any unwanted crawlies are found you may have the option to withdraw from the purchase without any significant financial penalties. Allow up to $500 depending on the size of the property. Your real estate agent or conveyancer may arrange this inspection, and you will usually pay for it as part of their total invoice at settlement (in addition to the conveyancing fees).
    • Lender costs — Most lenders charge establishment fees to help cover the costs of processing their loans.  We will let you know what your lender charges but allow for between 0.50% and 0.75% of the loan amount.
    • Ongoing Lending Costs — For all business lending the funder will always include a monthly or quarterly fee, plus other charges depending on the type of product you take out. Each lender is different, so check with us beforehand to know exactly what you are paying for.
    • Valuation Costs — If you are buying a commercial property make sure you allow up to $5,000 for a valuation. Valuers look at different factors when it comes to assessing the value of a commercial property, and this can take up to 10 working days to complete a report.
    • Ongoing costs — You will need to include council and water rates along with regular loan repayments when purchasing a Commercial property. If there is no property security involved there may be some further legal fees or annual auditing fees to be charged for the security you provide.

Home Loan

  • How much money can I borrow?
    We’re all unique when it comes to our finances and borrowing needs. Get an estimate on how much you could borrow with our Home Loan Quote in 30 seconds.  Or contact us today, we can help with calculations based on your circumstances.
  • How do I choose the loan that’s right for me?
    Our guides to loan types and features will help you learn about the main options available. There are hundreds of different home loans available, so talk to us today.
  • How much do I need for a deposit?
    Usually between 5% – 10% of the value of a property, which you pay when signing a Contract of Sale. Speak with us to discuss your options for a deposit. You may be able to borrow against the equity in your existing home or an investment property.
  • How much will regular repayments be?
    Go to our Repayment Calculator for an estimate. Because there so many different loan products, some with lower introductory rates, talk to us today about the deals currently available, we’ll find the right loan set-up for you.
  • How often do I make home loan repayments — weekly, fortnightly or monthly?
    Most lenders offer flexible repayment options to suit your pay cycle. Aim for weekly or fortnightly repayments, instead of monthly, as you will make more payments in a year, which will shave dollars and time off your loan.
  • What fees/costs should I budget for?
    There are a number of fees involved when buying a property. To avoid any surprises, the list below sets out all of the usual costs:
    • Stamp Duty — This is the big one.  All other costs are relatively small by comparison.  Stamp duty rates vary between state and territory governments and also depend on the value of the property you buy.  You may also have to pay stamp duty on the mortgage itself.  To find out your total Stamp Duty charge, visit our Stamp Duty Calculator.
    • Legal/conveyancing fees — Generally around $1,000 – $1500, these fees cover all the legal rigour around your property purchase, including title searches.
    • Building inspection — This should be carried out by a qualified expert, such as a structural engineer, before you purchase the property.  Your Contract of Sale should be subject to the building inspection, so if there are any structural problems you have the option to withdraw from the purchase without any significant financial penalties. A building inspection and report can cost up to $1,000, depending on the size of the property.  Your conveyancer will usually arrange this inspection, and you will usually pay for it as part of their total invoice at settlement (in addition to the conveyancing fees).
    • Pest inspection — Also to be carried out before purchase to ensure the property is free of problems, such as white ants.  Your Contract of Sale should be subject to the pest inspection, so if any unwanted crawlies are found you may have the option to withdraw from the purchase without any significant financial penalties. Allow up to $500 depending on the size of the property. Your real estate agent or conveyancer may arrange this inspection, and you will usually pay for it as part of their total invoice at settlement (in addition to the conveyancing fees).
    • Lender costs — Most lenders charge establishment fees to help cover the costs of their own valuation as well as administration fees.  We will let you know what your lender charges but allow about $600 to $800.
    • Moving costs — Don’t forget to factor in the cost of a removalist if you plan on using one.
    • Mortgage Insurance costs — If you borrow more than 80% of the purchase price of the property, you’ll also need to pay Lender Mortgage Insurance.  You may also choose to take out Mortgage Protection Insurance. If you buy a strata title, regular strata fees are payable.
    • Ongoing costs — You will need to include council and water rates along with regular loan repayments. It is important to also take out building insurance and contents insurance.  Your lender will probably require a minimum sum insured for the building to cover the loan, but make sure you actually take out enough building insurance to cover what it would cost if you had to rebuild.  Likewise, make sure you have enough contents cover should you need to replace everything if the worst happens.

Investment Loan

  • What’s the difference between an investment loan and an ordinary home loan?
    Most of the same types of home loans and loan features apply for investors as for owner occupiers.  Some lenders may charge higher rates for investment properties if the associated risks are higher.
  • Can I use equity in my home as a deposit for an investment property?
    Many an investor has started out by utilising the equity of their own home.  Banks will usually accept equity in a home (or other property) as additional collateral against which they are prepared to lend. This means you could potentially borrow the full purchase price of the property, as well as all costs (stamp duty and other fees) without having to contribute any cash.  The risk in using your home as collateral is that if you can’t fund the mortgage for the investment property, the investment property and your home are at risk. When we meet, we can go through the options you have available.
  • What is negative gearing?
    This is when the cost of owning a property is higher than the income it produces.  If the rent you get for an investment property is less than the interest repayments, strata fees, maintenance and other costs, your investment is negatively geared, or making a loss.  This loss can be offset against your income, reducing your income tax bill.
  • How much money can I borrow?
    We’re all unique when it comes to our finances and borrowing needs. Get an estimate on how much you could borrow with our fast and clever loan options tool.  Or contact us and we can help with calculations based on your circumstances.
  • How do I choose the loan that’s right for me?
    Our guides to loan types and features (links) will help you learn about the main options available.  There are hundreds of different home loans available, we can recommend the right loan(s) for you.
  • How much do I need for a deposit?
    Usually between 5% – 10% of the value of a property, which you pay when signing a Contract of Sale.  Talk to us to discuss your best options for a deposit. You may be able to use the equity in your existing home or an investment property.
  • How much will regular repayments be?
    Go to our Repayment Calculator for an estimate.  Because there so many different loan products, some with lower introductory rates, contact us for all the deals currently available and the right loan set-up for you.
  • How often do I make home loan repayments — weekly, fortnightly or monthly?
    Most lenders offer flexible repayment options to suit your pay cycle. Aim for weekly or fortnightly repayments, instead of monthly, as you will make more payments in a year, which will shave dollars and time off your loan.
  • What fees/costs should I budget for?
    There are a number of fees involved when buying a property.  To avoid any surprises, the list below sets out all of the usual costs:
    • Duty — This is the big one.  All other costs are relatively small by comparison.  Stamp duty rates vary between state and territory governments and also depend on the value of the property you buy.  You may also have to pay stamp duty on the mortgage itself.  To find out your total Stamp Duty charge, visit our Stamp Duty Calculator.
    • Legal/conveyancing fees — Generally around $1,000 – $1500, these fees cover all the legal rigour around your property purchase, including title searches.
    • Building inspection — This should be carried out by a qualified expert, such as a structural engineer, before you purchase the property.  Your Contract of Sale should be subject to the building inspection, so if there are any structural problems you have the option to withdraw from the purchase without any significant financial penalties. A building inspection and report can cost up to $1,000, depending on the size of the property.  Your conveyancer will usually arrange this inspection, and you will usually pay for it as part of their total invoice at settlement (in addition to the conveyancing fees).
    • Pest inspection — Also to be carried out before purchase to ensure the property is free of problems, such as white ants.  Your Contract of Sale should be subject to the pest inspection, so if any unwanted crawlies are found you may have the option to withdraw from the purchase without any significant financial penalties. Allow up to $500 depending on the size of the property. Your real estate agent or conveyancer may arrange this inspection, and you will usually pay for it as part of their total invoice at settlement (in addition to the conveyancing fees).
    • Lender costs — Most lenders charge establishment fees to help cover the costs of their own valuation as well as administration fees.  We will let you know what your lender charges but allow about $600 to $800.
    • Moving costs — Don’t forget to factor in the cost of a removalist if you plan on using one.
    • Mortgage Insurance costs — If you borrow more than 80% of the purchase price of the property, you’ll also need to pay Lender Mortgage Insurance.  You may also choose to take out Mortgage Protection Insurance. If you buy a strata title, regular strata fees are payable.
    • Ongoing costs — You will need to include council and water rates along with regular loan repayments. It is important to also take out building insurance and contents insurance.  Your lender will probably require a minimum sum insured for the building to cover the loan, but make sure you actually take out enough building insurance to cover what it would cost if you had to rebuild.  Likewise, make sure you have enough contents cover should you need to replace everything if the worst happens.
    • Landlords Insurance - Landlord’s insurance provides standard building and contents cover plus cover for theft or malicious damage to the property by tenants and covers loss of rent in certain circumstances.  It also covers the owner’s liability (e.g. if a tradesperson is injured while working in the property).  Landlord’s insurance is an affordable extra safeguard and strongly recommended for all investors.

Refinancing

  • Can I get a mortgage where I pay less than I’m paying now?
    With lenders adjusting their rates outside of the reserve bank now is a great time to shop around check that you have the right loan for your needs, we are a great starting point. It will depend what interest rate you’re currently paying, what type of home loan you have (e.g. fixed, variable, interest only, line of credit) and what features you want in your loan.  We can quickly explain your options.
  • Can I consolidate credit card or other debts into a home loan?
    This is one of the reasons many people refinance.  The advantage is that you pay a much lower interest rate on a mortgage than for most other forms of debt – e.g. credit cards, overdraft facilities, personal loans etc. Providing you have sufficient equity in your property, you may be able to consolidate all your debt on a home loan. If you take this option though it is important to make sure you maintain your repayments at their current level or you could end up paying more over a longer period of time. Speak with us today to discuss your personal needs.
  • How much money can I borrow?
    We’re all unique when it comes to our finances and borrowing needs. Get an estimate on how much you could borrow with our clever loan options tool.  Chat to us when you’re ready, we can help with calculations based on your circumstances.
  • How do I choose the loan that’s right for me?
    Our guides to loan types and features (links) will help you learn about the main options available.  There are hundreds of different home loans available, we can recommend the right loan(s) for you.
  • How often do I make home loan repayments — weekly, fortnightly or monthly?
    Most lenders offer flexible repayment options to suit your pay cycle. Aim for weekly or fortnightly repayments, instead of monthly, as you will make more payments in a year, which will shave dollars and time off your loan.
  • What fees/costs are involved in switching mortgages?
    Penalty fees could apply if you’re paying off your current mortgage early, especially if you’re exiting a fixed home loan.  But these may be offset by repayment savings when you switch home loans.  We’ll walk you through any fees that will apply in your circumstances.