Frequently Asked Questions
What is a finance broker?
A finance broker is a person or an entity that has access to a variety of financial institutions and providers (panel lenders).
Its job is to:
* understand the client's financial needs and position;
* search through products available to find the best deals;
* offer the selected options to the client and explain features and advantages;
* assist in completing and lodging an application to the chosen lender;
* offer further assistance should the client have inquiries after the loan settled
Should I choose a fixed or variable rate?
If you choose a variable rate loan, naturally the interest rate can rise or fall depending upon the cost of funds and therefore your repayments will rise or fall in line with rate movements. For many customers, the variable rate loans are popular as a means of owning their home quickly. Extra payments can be made at any time while also taking advantage of periods of low interest rates.
Choosing a fixed rate loan means you can lock your interest in at a set rate for a predefined number of years. So if you think interest rates have hit rock bottom or that rates may rise you can add certainty to your loan by taking this option. Some borrowers like a bet each way. We can help you to fix a portion of your loan and leave the remainder as variable. This way you get the best of both worlds.
Can I get a home loan even if I have been declined by a bank?
Our Lenders understand that not everyone "fits the box" and have on offer a flexible product range that caters to borrowers with unique situations. When assessing any home loan application our most important consideration is benefit to the borrower and their ability to repay the loan. Being declined by a bank is not a ruling factor.
What’s Loan pre-approval?
Pre-approval generally means gaining an estimate from the lender of how much you may be able to borrow, based on your financial circumstances.
Why should I get pre-approval for a loan?
If you want to buy a property, it makes sense to find out how much you can borrow. If you apply for a loan and obtain "pre-approval", you will:
know how much you can afford
strengthen your position as a buyer
have a basis to compare different loans and make the best choice for you. And that can mean tremendous savings over the life of the loan
It also makes sense to secure a lender's commitment as soon as you know that you want to buy – especially in a hot market, when property is selling fast.
What is Lenders’ Mortgage Insurance?
Generally speaking, if you borrow more than 80% of the security property’s value you will need to pay Mortgage Insurance. However Honey Home Loans also have access to lenders that will lend up to 90% without mortgage insurance.
Lender’s Mortgage Insurance insures the lender against any loss incurred in the event the security property is sold for less than the balance of the loan. The borrower still remains legally responsible for repaying the shortfall.
The insurance premium is paid by the borrower at settlement or funding, from the loan account...
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