We have compiled the Frequently Asked Questions (FAQs) regarding mortgage, finance, lending, and other related topics in this page. If you are a first homeowner, an investor, a developer, or a business owner, you will certainly benefit from knowing the answers to your questions.
What is the first homeowners grant and am I eligible to apply?
The First Home Owners Grant is a type of grant that the Federal Government gives to first home buyers.
All Australians need to know about the eligibility criteria between states and the benefits involved.
Aside from the location of the borrower, other details that affect your grant are:
- Whether the house is new or you will build it yourself
- If it is an established property
- Purchasing a vacant land
- Building type
- Purchase price of the property you want to buy
To discover more in relation to the First home owners grant and eligibility in Western Australia please visit our First Home Owners Grant page.
What is the First Home Loan Deposit Scheme?
The First Home Loan Deposit Scheme is essentially a way for first home buyers to secure the home they want to purchase with a five per cent deposit. The scheme eliminates the requirement of paying the mortgage insurance premium of the lender.
Who is Plan Australia? And What is an Aggregator?
It is not always easy to start a business. Often, the most important things are overlooked while others are done merely to meet the regulatory requirements. However, only successful mortgage brokers know the power of choosing the most suitable aggregator. The right broker aggregator can fit appropriately into the existing business model.
Who is Finance Brokers Association of Australia (FBAA)?
When you work with Quantum Finance Australia, you may see our association with other organisations. One of which is with the prestigious Finance Brokers Association of Australia (FBAA).We take pride in being a recognised firm by the FBAA, and we would like you to understand why.
What Can a Mortgage Broker Do for Me?
A mortgage broker can help you in many ways. However, the most important task for every broker is to help arrange a home loan that works for you. It means that the mortgage broker will discuss with you what your financial goals and requirements allowing them to help you to find options that suit your unique situation.
Frequently, consumers do not know how much they can and should borrow. To avoid getting too much or too little from a specific deal, a mortgage broker will help you figure out how much you can afford to borrow. If you have any questions, especially with regards to the loan, fees, and process, a mortgage broker will readily answer and explain how the loan works, along with its features and costs.
Why Should I Use a Mortgage Broker?
If you plan to purchase a house, you know that shopping for a mortgage is part of the process. Getting rates from various mortgage professionals, however, is not always easy. It requires a certain amount of legwork and can take up a lot of your time. Instead of going through the process by yourself, you can use a mortgage broker.
How Do Mortgage Brokers Get Paid?
Mortgage brokers receive a fee from a lender for recommending and facilitating the loan process with them. That means the customer or borrower is not responsible for paying the broker.
What Should I Look for in a Mortgage Broker?
Mortgage brokers are different from one another, even though they offer similar services. Mortgage broking is a significant part of the country's home loan marketplace. Therefore, you have hundreds of choices in Australia. Critical criteria to check are both their reputation and experience with both borrowers and lenders.
You should not forget to look for the person's licence. The broker should be qualified and recognised by law to provide you with credit advice and recommendations.
Aside from accreditation, the company or broker should be associated with recognised associations in Australia. Quantum Finance is a member of the Finance Brokers Association of Australia (FBAA) and PLAN Australia.
Do Mortgage Brokers Simply Help Get to Settlement or Will I Get an Ongoing Service?
It is true that some mortgage brokers will assist you in finding the loan and lender that go well with your financial objectives. And their service should not stop when the loan has settled.
At Quantum Finance we will continue to be there for you, especially when you have questions that require immediate answers.
At any stage for a variety of reasons; you may need to change certain parts of the loan. For example, you wish to switch products. If the lender allows any modifications, we will be able to help you.
Every year, brokers also review your loan to ensure that it still suits your requirements. We can also compare your current loan to other products from other institutions. That way, we can negotiate with your lender to help you secure a better rate if you're eligible.
Why Do I Need a Mortgage Broker's Help When I Can Just Go Straight to the Bank?
There are many reasons why working with a mortgage broker is more beneficial than making a deal with a bank. Mortgage brokers assess all the loans available from many lenders. In comparison, banks are restricted to their product range.
Quantum Finance often talks about "loan products," which refer to more than one or two options. We have a strong relationship with 40+ lenders with various loan products.
As a consumer, you want to know, "Which is the right loan for me?" It is easy to get lost with all these loan options. As brokers, we do all the legwork for you. With connections to lenders, banks, and institutions, we can help you get you the loan that exactly suits your needs.
What is Private Lending?
Private lending has existed for many years now and is even dubbed as the “oldest form of mortgage lending.” It is when the lender is outside of banking and regular lending institutions lends their wealth on a structured agreement with a borrower typically for the purpose of temporarily financing a medium to a large property or business venture.
Usually, when a consumer deals with banks, an investor will deposit the funds, and the borrower will get the financing through the bank. This particular investor will receive a conservative rate of return.
Private lending, on the other hand, operates differently and is in a non-bank environment. It means that investors provide the capital for specific loans. In its purest form, one investor can give the funds for one particular borrower.
Check out our Private Lending page, which gives you a comprehensive view of our offers, rates, and more.
What is the Process When Borrowing From a Private Lender?
A huge benefit of dealing with a private lender is the simplicity of the process. Delays can sometimes occur, due to a variety of reasons, including an issue with the submitted application. However, if the private receive's a well thought out and complete application, it increases the likelihood of quicker access for funding in the project.
First, as the borrower, you will need to submit a scenario, which will be reviewed by Quantum Finance Australia. From there, an indicative quote will be provided for confirmation of the deal’s feasibility. If you agree with the quote, the application will commence with all the needed documents.
After reviewing the application, you will receive a notification, whether it is approved or not. Quantum Finance Australia will complete the underwriting process. Finally, you will sign the agreement, which consists of the settlement details, fees, and possible penalties.
How Long Does It Take for the Application to Be Approved?
The speed of the approval process will depend on a few factors. The most important is the quality of your application.
Compared to banks, however, the assessment can be much much quicker but can also depend on the private lender you are applying though as they are have different experience and rules associated with their service.
If you have submitted all the required documents, you can get pre-approved within a few hours if the lender likes what they see. A 24-hour loan exists where you get approved within the day. It is known as a Caveat Loan, which provides access to funds fast. However, it always pays to do some research first before taking out this type of loan.
To make sure you get approved, you should know how to structure your application, including outlining the genuine purpose of the loan. This is where Quantum Finance Australia's experience comes in handy! You should also define whether it is coded (domestic or individual use) or non-coded (business purpose).
Is a Private Loan Secured or Unsecured?
A private loan can either be secured or unsecured, which provides flexibility to the borrower. Most of the time, however, the loan is secured, which means that you need to provide collateral. Typical, your existing property or business is the collateral.
There are, however, some private lenders who are also comfortable to lend money against future income and equipment. They can be difficult to find, but they do exist.
If you apply for a secured loan from a private lender, some assets that they may accept as security include residential and commercial properties. If you have land or agricultural assets, they may also be honoured.
It is possible for lenders to turn down your application even if you have an asset declared as collateral. It could be due to a variety of reasons, including your risk profile as a borrower.
If you cannot find the questions that you would like to ask, please do not hesitate to reach out to us and submit your query.