1. Brokers offer the same products, rates and fees as banks, scouring the market for you at no cost.
2. No call centres, speak to the same locally based person from start to finish.
3. Lender promotions vary, be it refinancing rebates from $1000 to $6000 with different minimum loan sizes, or rate specials based on varying LVRs, or $1 LMI offers, knowing who is running what and for how long often can save you thousands.
4. Brokers research lender niches, i.e., ING consistently low rates but will typically allow a smaller home loan than other lenders, or NAB doesn’t provide Guarantor loans, or specialist professions can receive LMI waivers with participating lenders with each having different income requirements.
5. Lender borrowing capacities can vary greatly from lender to lender. Each Bank treats income, and in particular overtime, allowances, secondary incomes, rental income or employment status differently, leading to different maximum loan sizes.
6. Lenders Mortgage Insurance can vary vastly by lender and is likely the biggest cost variance outside of the rate.
7. Brokers review around 30 lenders for the most suitable offer, vs banks selling the best of what they have.

Lenders Mortgage Insurance (LMI) is insurance for the lender, not the borrower, in the event repayments aren’t met forcing sale of the property.
If the borrower is unable to meet the loan payments and the property is sold for less than the outstanding loan balance, the insurance covers the gap between sale price and loan value.

Critically incurring LMI results in additional thresholds in the loan application process.
The LMI cost varies by lender, a $750k purchase with a 10% deposit results in an LMI cost of between $15k and $18.5k presenting the biggest cost saving outside of the interest rate.

Lenders Mortgage Insurance can be avoided in some circumstances, whether it’s first home guarantee eligibility, a professional waiver or potentially a $1 LMI offer, speak to us about your eligibility to avoid LMI.

Whilst Lender’s Mortgage Insurance is typically applicable to LVR’s below 80%, some professionals, and first home buyers will be eligible to LMI waivers, through government offers, or lender promotions. Speak to us about whether or not your situation meets the eligibility criteria.

There are 4 types of Pre-approval, but only 1 that really counts.
– PAYSLIP ASSESSMENT, typically provided on the spot  in a bank branch where typically calculating payslips income against a loan size.
– INCOME SERVICING, typically provided on the spot in a branch where someone asks for the income (or payslips) and liabilities against the loan size.
– SCENARIO ASSESSMENT, where a loan application is submitted to the lender to assess all documents, id, payslips, salary credits, savings history and liabilities.
– FULL ASSESSMENT, where a loan application is submitted to the lender to check all documents, id, payslips, critically income type, salary credits, savings history and liabilities.

Crucially it’s only the FULL ASSESSMENT  where a pre approval has been fully assessed by the lender.

Speak to us about whether or not a pre approval suits your circumstances.

On the shortest scale, a pre approval can be turned around in a week.
A full mortgage approval, assuming there is a property secured in as low as 3 weeks.

There are 2 main variables though.

1.  Speed of supplying supporting documents for the lender.
2. Lender lead times, which vary based on time of year, and demand for the lender, typically the more competitive the lender’s rate and offer, the longer their lead time.

The steps

1. Broker/Client scenario objective discussion.
2. Broker provides Preliminary assessment outlining scenario and potential products.
3. Clients provide statements confirming: deposit/purchase, savings, income and any other liabilities, id’s, work and address history.
4. Broker will provide a Summary of requirements, to be followed by the actual loan application for client signatures.

1. Loan application to lender.
2. Lender lead time to pick up.
3. Document & financial assessment.
4. Unconditional or conditional approval, conditional requiring further information.
5. Loan contract generation.

Why do mortgage applications take so long?

Lender’s Mortgage Insurance varies depending on loan size, deposit size/LVR and by lender, so each scenario should be considered closely on lender fit when considering LMI.

Using a $600k purchase, as an example:

A 15% deposit results in LMI of $5.2k to $7.7k depending on lender.

A 10% deposit increases LMI to $9.5k to $15.5k.

A 8% deposit incurs LMI of between $14k and $23k.

Larger loan sizes result in larger LMI, let us do the research to reduce your Lenders Mortgage Insurance costs.