We're a mobile mortgage broker offering consultations throughout the Tweed Shire and online Australia-wide
A home loan is an amount of money lent to a person from a bank or other lender to fund a property purchase. The borrower must pay back the money in instalments over time, plus an extra sum called interest. 'Repayments' refer to the money you'll need to pay back to the bank or lender. Mortgage repayments are usually made every week, fortnight or month. The interest you need to pay on your home loan will depend on the loan option that you choose and the structure of your loan. A mortgage broker is the best person to help make sense of the many lending options that are available, and to guide you to the best choices for your circumstances.
How do home loans work?
Mortgage brokers work on behalf of clients who are looking to borrow money. More than this, brokers advise and educate borrowers about their choices when it comes to selecting a loan. A good broker takes the time to understand your requirements and objectives before recommending a loan for you. From there your broker will research the most appropriate options for you, negotiate interest rates on your behalf direct with the banks, and then provide you with a shortlist comparison report and their recommendation. When you’ve decided which option you want, the mortgage broker will oversee the entire application process.
What does a mortgage broker do?
No, you don’t need a mortgage broker to get a loan. However, just like you don’t need an accountant to do your taxes, and you don't need a real estate agent to sell your house – you outsource these tasks to professionals who know their industry inside out, so you can leverage their experience and insights. With so many lenders out there, each offering many different products, it can be a hard slog doing your own research on which lender is best for you and then convincing them to lend to you. A mortgage broker simplifies the whole process.
Do you need a mortgage broker to get a home loan?
Nearly 70% of Australians use a mortgage broker to secure their home loans. Why? Because if you deal directly with a single bank, they can only offer you their loans, whereas a mortgage broker can offer you loans from a wide range of lenders. A mortgage broker can compare your options and filter out the noise so you don't have to.
Mortgage brokers understand which banks like lending to which types of customers, for example, first home buyers, investors, or those who are self-employed. Comparison websites are okay for finding cheap rates, but they're no match for a human strategist who can factor in your unique situation and requirements to match with banks that actually want to lend to you. What use is finding a cheap rate online only to go through the application process and find you don’t qualify for that product? A mortgage broker removes all that hassle for you.
Trying to find a loan without a broker can be an extremely stressful process – particularly if you've found a house you want to buy and you're in a rush to secure it. Without a broker, the bank you apply for a loan through may decline your application, delaying the buying process. You would then need to research new lenders and start from scratch with another lengthy application process. Meanwhile, someone else's offer may be accepted instead. It makes sense to work with a broker.
Mortgage brokers are required to adhere to a strict ethical code of practice and are bound by legislation known as 'Best interests duty' (BID). The purpose of BID is to ensure the broker always acts in the best interests of borrowers – something that banks aren’t required to do. With a broker, you know you’ll always get a fair deal.
Why should you use a mortgage broker to get a home loan?
Most mortgage brokers don’t charge a fee (including us) – so how do we get paid? Mortgage brokers are paid a commission from the bank/lender after you buy your house. Most banks/lenders offer brokers comparable commission payments, which helps assure customers that loans recommended to them aren’t influenced by the payment to the broker.
How does a mortgage broker get paid?
Although a pre-approved home loan isn't essential to place an offer on a property, they're highly recommended.
A pre-approved loan will tell you how much money the bank/lender will be willing to lend you (as well as how much deposit you’d need for a particular sale price, and what your monthly home loan repayments would be).
Having this information before you start your property search will tell you which properties you can seriously consider buying. And when you find the property you want to buy, the loan application process will be faster as the bank has in principle already given approval for your loan. This also gives you a potential advantage over other applicants.
Think of a pre-approved loan as a loan application that you just need to give the green light to, once you find the right house.
There are four main stages to securing a loan with a pre-approval: 1) gathering your personal information 2) analysing loan options 3) applying for your loan and 4) buying your property.
1. We'll have an initial conversation to discuss your requirements and objectives. We'll send you a list of the information and documentation required from you, and you can return the information digitally.
2. Next, we'll use specialist software to collate your loan options from a range of lenders. We'll present your options along with recommendations based on market knowledge and your personal circumstances. This process usually takes only a couple of days.
3. Once you’ve chosen your pre-approved loan we’ll take care of the application process for you, including liaising with the bank, completing paperwork, uploading supporting documents and lodging the application online. Depending on the lender, it will take between a few days and a few weeks for the application to be assessed. If you're in a rush we can opt for a lender with a faster turnaround time.
4. Your pre-approved loan is ready and waiting until you find the place you'd like to buy. Pre-approvals are typically valid for 90 days, although most banks allow extensions. Once you've found the property and your offer has been accepted by the real estate agent, you'll sign the contract of sale and pay a deposit. At this point you'll call us so we can finalise the loan and settlement process for you. The good news is that most of the administrative work is already out of the way when you have a pre-approved loan. We'll order a valuation of your new home (so the bank can confirm that you've paid a fair price) and complete the loan documents with the particulars of the property. Finally, we'll reach out to your solicitor or conveyancer to ensure the accuracy of all documents and financial information prior to settlement, which is when the real estate agent hands over your keys.
What's involved in getting a pre-approved home loan?
Although a pre-approved home loan is recommended (see previous FAQ) sometimes things move quickly and the pre-approval scenario isn't possible. If you've found your house without pre-approval, here's the home loan application process you can expect:
1) Finding your house and having your offer accepted 2) working with us to collate personal information for your loan application 3) analysing loan options 4) applying for and settling your loan.
1. Once you’ve placed an offer on a house and the offer has been accepted, you’ll sign a contract of sale and pay a deposit.
2. Let us know as soon as possible after you've placed an offer on a property and definitely once it’s been accepted. We’ll need to move quickly to organise your loan so you’re not financially disadvantaged (for example, you can be charged penalty interest if settlement is delayed). Beyond this, we'll discuss your requirements and we'll send you a list of the information and documentation required from you. You can return the information digitally. While you’re doing that, we'll order a valuation of your new home (so the bank can confirm you've paid a fair price).
3. Next, we'll use specialist software to collate your loan options from a range of lenders. We'll present your options along with recommendations based on market knowledge and your personal circumstances. This process usually takes only a couple of days.
4. Once you’ve chosen your preferred loan option, we'll take care of the application process for you, including liaising with the bank, completing paperwork, uploading supporting documents and lodging the application online. Depending on the lender, it can take between a few days and a few weeks for an application to be assessed. Given that time is of the essence when you don’t have a pre-approval, we can opt for a lender with a fast turnaround time if you choose. Once your loan application has been approved we'll reach out to your solicitor or conveyancer to ensure the accuracy of all documents and financial information prior to settlement.
How do you get a home loan (without a pre-approval)?
Once we've established your objectives and you've sent us the information we need (which will include identification, family circumstances, and records of income and expenses) it will usually only be a couple of days before we send our loan recommendations for you to choose from. Once you make your choice we'll work with you to have your loan application lodged ASAP.
Depending upon the complexity of the loan and which lender you choose, it can take anywhere from a day to a few weeks for your loan to be approved. We’ll give you an indication of how long your chosen lender might take before lodging your application; if time is of the essence, we can stick to lenders with a faster turnaround time.
Here’s a bonus tip: it’s a good idea to start working with a mortgage broker about three months before you want to buy. This time will enable us to make sure all your ducks are in a row to present yourself to the lender. You can use this time to cut back on spending, cancel unnecessary subscriptions and memberships and increase your savings – all the things that banks love to see.
How long does it take to get a home loan?
No, not all banks will lend the same amount. That's why working with a mortgage broker is so worthwhile. We can quickly compare multiple lenders for you so that you don’t have to waste your days calling several banks and tying to unearth their different lending policies.
Will all banks lend the same amount?
Unless you have expertise in this area you'll want to engage a solicitor (or conveyancer) to complete the purchase of a property on your behalf.
Conveyancing covers the legal aspects of buying a house and transferring the property title from the vendor's name to yours. The conveyancer will examine the contract of sale and check for any unpaid rates or land tax owing. They'll also look into local government records to check for any planned developments or unresolved disputes that could affect the property.
Whilst you can find cheap DIY conveyancing kits online, this is a complex task and a job best left to experts if you want it done properly. As far as finding a conveyancer goes, the selling agent may recommend a solicitor or conveyancer when you buy your property. As with anything though, personal recommendations are valuable for this service. If you need any direction or recommendations from us, you're welcome to ask.
Do you need a solicitor to buy a house?
We're Tweed locals, but we don't have a shopfront. We operate a mobile, 100% digitally enabled business. We can conduct all consultations online or over the phone, or, we can meet face-to-face at a convenient location, whether that be a local cafe between Coolangatta and Pottsville, or at your home, if that's easiest for you.
Where is Tweed Coast Home Loans located?
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