Accreditations with the vast majority of Home Loan lenders in Australia gives Fraser Financial Services access to a wide variety of the products on offer. We are able to assist you with the purchase of your first home or your 10th home. You may even be thinking about your Investment Property Portfolio to create wealth in later years.
Fraser Financial Services (Qld) Pty Ltd is a Full Member of the Mortgage and Finance Association of Australia (MFAA) and the Finance Brokers Association of Australia (FBAA). These are the peak industry bodies and as members we must adhere to a strict code of practice. If a dispute arises, we are also members of Credits & Investments Ombudsman (CIO), a body designed to handle such matters.
Whether you are an employee or Self Employed we can help you with our base of products to choose from.
Choosing the right loan is important not only in thinking of your current purchase but also in selecting a product that will help you in the future to achieve your goals.
Home loans today have many features such as portability, extra repayments, redraws, internet access, etc. Some of these have benefits for you, some don't.
But basically you have 3 types of Home Loans to choose from:
Standard Variable Rate (SVR)
This product has an interest rate charged that moves with interest rate increases and decreases as set by the Reserve Bank of Australia, plus the Loan providers margin. You normally take a Principle & Interest (P&I) repayment over the loan term of between 25-30years. These products generally have the features as mentioned above, for example allows for extra repayments that will reduce your loan term and more importantly reduce the interest charged on your home loan.
This product is great for the budget conscious people as it gives you a fixed repayment for the term of the loan you have fixed for. Generally the fixed period is 1, 2, 3, 4, 5 or 10 years. Some of these products do allow for extra repayments.
Line Of Credit (LoC).
This product is basically a very large credit card. Your loan is approved to a set amount and you can repay and redraw up to that amount. Repayments are normally based on an Interest only payment on the outstanding balance of the loan. With this product you need to be very disciplined, but the advantage to you is the direct crediting of your wages to the account which reduces the interest charged on your loan balance.
All lenders have different calculations to determine how much you can borrow. Things affecting how much you can borrow will include children, credit cards, existing loans and what type of income verification you produce. The lowest rate loan you can get is a fully verified income, while those without tax returns can use the options for a Low Doc or No Doc loans.
Fully verified Loans
If you are an employee generally, 3 current pay slips, a copy of last year's tax return and 2 months personal bank statements are all that is needed to confirm your income. If you are Self Employed the lender will ask for 2 years full tax returns and Notice of Assessments.
Low Doc Loans
These loans are for the Self Employed who has not yet completed their Tax Returns. For income verification you will require : a combination of 3 months business bank statements, Accountants Declaration and ATO Business Activity Statements. The lenders will generally charge a small premium for such loan, but some have reducing rates that reward you for your proven manner of conduct of the loan.
Are available in Fully verified or Low Doc as above. Alternatively, a Lease Doc may be available to 65% LVR.
TO DISCUSS YOUR NEW PURCHASE PROPERTY
Documentation Required to complete a Loan Application
The documentation will vary slightly if you are an Employee or Self Employed, but you will need:
- Last 3 payslips
- 3 months personal bank statements
- Copies of Last years Tax Return including your Group Certificate
- If you are Self Employed, you will require the last 2 years Tax Returns for both personal and your business including your Balance Sheet and Profit and Loss statements. If these are not available remember we have Low Doc & No Doc loans to fit.
- 100 points ID eg. Birth Certificate 70 pts, Passport 70 pts, Drivers Licence 40 pts, Medicare Card 25 pts. There is other forms of acceptable documentation if you don't have the above, please discuss with our consultants on what's acceptable.
Other supporting information we will require includes:
- Evidence of Savings
- Copy of your completed purchase Contract
- Copy of Rates Notice (if re-financing)
- 6 months Home Loan statements (if re-financing)
- F.H.O.G. completed and signed (if applicable and you can get from our consultant)
FOR MORE INFORMATION:
Glossary of Terms Used
LVR - Loan to Value Ratio.
This calculation is used by the lenders to determine the exposure they have on the property and is also used to calculate your Loan Mortgage Insurance (LMI). For example you are buying a property worth $100,000 and need to borrow $90,000, your LVR is 90%.
DSR - Debt Service Ratio
This calculation is used by the lenders to determine how much you can borrow. It measures your total income against your total debts. Most lenders are looking for no greater than 35%.
LMI - Lenders Mortgage Insurance
This Insurance premium is something that you as the customer get to pay to ensure that the lender is insured incase you don't meet your obligations. Generally for loans 80% LVR and below there is no LMI, and for loans above 80% LVR this premium is charged. Some lenders LMI all their loans but do not charge you for 80% LVR or below. This allows the lender to lend more readily and the borrower to borrow more easily.
FHOG - First Home Owners Grant
This grant is to assist those first home owners purchase their first house. If one person has already purchased a house, then it is not available.
Means that you, as the borrower, have missed a loan repayment. You will be charged penalty interest, higher than the interest charged on your loan, until such time as you make that missed payment.
I Only - Interest Only Repayments
Whereby you make the repayment on the interest only to the lender. This way the loan balance will always remain at the same amount. It is mainly used by Investors.
P & I - Principle & Interest Repayments
Whereby your monthly repayment includes both the Principle & Interest on the loan. This way the loan balance will gradually decrease over time.
Val. - Valuation
Is used by the lenders to confirm that the sale price is in line with the Value of the property. Lenders will use it to determine your LVR.
CONTACT OUR EXPERIENCED TEAM FOR MORE INFORMATION: