In order to assess which home loans you qualify for, we will need to understand your household income, your expenses, and any existing assets and commitments that you may have. When you contact QuickSelect, we will discuss your objectives and assess your needs so that we can better understand your current situation. From there, we can establish your eligibility for a range of products and identify the best home loan solution to match your individual requirements.
All of our lenders have their own criteria to determine how much you can borrow based on your income, your expenses, what you owe and what you own. When we speak with you, we can quickly and easily give you an indication of how much you will be able to borrow. When deciding how much to borrow it is essential to consider your current lifestyle. Lenders will calculate how much you can afford to borrow (commonly referred to as your ‘Borrowing Capacity’) based on your current financial commitments, however they don’t necessarily consider your discretionary spending. Individual circumstances and spending habits vary, and your plans for the future will obviously have an impact your ability to meet your repayments throughout the term of the loan.
Your choice of loan depends on your current situation and your plans for the future. When you contact QuickSelect, our conversation begins with a detailed assessment of your needs. The information we gather allows us to select a loan structure that best suits your objectives – both now and into the future. Once we’ve identified the loan solution that is right for you, we will present you with a range of options from a variety of lenders and provide carefully considered advice to help you make your choice.
You can contact us either online or by telephone to discuss your goals and needs in order for us to understand your current situation. From there, we can establish your eligibility for a range of products and identify the best home loan solution to match your individual requirements.
All lenders require a minimum five percent deposit, however some lenders will require that the five percent is comprised of “genuine savings”. A small number of lenders will accept non-genuine savings as the five percent deposit, including (but not limited to) - gifts from relatives, funds from the sale of an asset, and work bonuses. In general, a higher deposit will give you more flexibility on the loan. Many lenders will offer a different interest rate on deposits of five, ten or twenty percent. Lenders will often require less information from you with a twenty percent deposit as compared with a five percent deposit. In addition, a wider range of lenders becomes available to you as the size of your deposit increases. Generally speaking, the larger the amount of your deposit, the better. A key consideration is that in order to avoid the additional cost of lenders mortgage insurance you must have at least a twenty percent deposit.
Once we have received all the relevant supporting documentation, we can generally complete your loan application within twenty-four hours. Once the loan application is submitted to the lender we often obtain pre-approval within forty-eight hours. As a general rule of thumb, we suggest that you allow up to a week since the exact timeframe for pre-approval depends on the lender.
Prior to making an offer on any home purchase, we believe it is essential that you go through the loan application process and obtain a pre-approval from the most competitive lender. Pre-approvals (sometimes referred to as conditional approvals) come in many different forms. When purchasing a home the pre-approval you should receive is a documented offer from the lender, and the only condition it should contain is that the lender will undertake a valuation of your preferred property. A pre-approval lasts for three months, and it can be renewed if required. Our recommendation would be to obtain a pre-approval only when it is probable that you will be making an offer on the property in the next three months.
In most cases, the lender will require the first payment on the home loan to be made one month after the date of settlement.
Your minimum repayment will depend on a number of factors related to the specific loan product you select. These can include (but are not limited to) the size of the loan, the interest rate, the term of the loan, as well as any additional features built into the loan. In the simplest of cases, the following calculation can be used as a rough guide. You can use our online calculators to get an idea of minimum repayments.
Making extra repayments over and above the minimum monthly requirements can be a highly effective way of reducing your interest costs and paying off your loan sooner. Your ability to make extra repayments largely depends on the specific features of the loan. Most variable rate home loans include the ability to make extra repayments at any time, while fixed rate loans generally impose restrictions or charge additional fees for doing so.
In order to get a pre-approval, all we require from you is:
- Proof of identity (a certified copy of your driver’s license).
- A recent payslip showing at least three months year-to-date income.
- A copy of your savings account verifying your deposit amount.
We will then assist you in completing the application for your preferred home loan product and lender. Once this is submitted we can generally obtain pre-approval within forty-eight hours. A pre-approval is valid for three months and can be renewed if required.
The lender will use an independent valuer to prepare an appraisal of the property. The valuer will take into account a range of factors, including (but not limited to) recent sales in the area, general market conditions, future trends for the locality, the condition of the property, and the amount that you’ve offered for the property. Since the valuer assumes that you, as a home-buyer, have thoroughly researched market conditions, the valuation they provide will often match the amount of your offer. Valuations are often based on the principle that the offer made by a prospective buyer is generally a good indicator of the true market value of a property.
In the unlikely event of a valuation coming in at less than your offer, you may wish to reconsider proceeding with the purchase. In this scenario, it is possible that you will not be able to obtain the finance you initially anticipated and your offer will become null and void. If this occurs you can simply advise the real estate agent that you haven’t been able to secure finance and they will refund your deposit. Alternatively, you can decide to proceed with the purchase, though this will likely require you to increase the deposit amount you are paying.
Lender’s mortgage insurance (LMI) is a type of insurance cover that allows lenders to offer loans to borrowers with a lower deposit. It protects the lender in case the borrower defaults on their loan and is unable to continue making repayments. Many lenders require you to contribute a twenty percent deposit, but this amount can be reduced by purchasing LMI. The borrower pays a once-only premium at the time of settlement to insure the lender in the event of default.
Lenders will generally require you to purchase lender’s mortgage insurance (LMI) when the amount of the deposit is less than twenty percent. The premium and other details of the insurance are all arranged by the lender during the loan application process.
Your eligibility for the First Home Owner Grant is based on several criteria. Australian citizens or permanent residents are usually entitled to the grant provided that you (or you and your partner) are buying or building your first home in Australia, and assuming that you plan on residing in the property within the next twelve months. When you contact QuickSelect, one of our team of experts can quickly and easily determine your eligibility for the grant.
There are a number of charges associated with setting up a home loan, and these are generally incorporated into the loan itself, and reflected in the comparison interest rate. These can include (but are not limited to) application fees, valuation fees, settlement fees, and ongoing account keeping fees. It is important to take these into consideration when assessing the true cost of a loan over its lifetime. It is a regulatory requirement that these lender fees are reflected in the comparison rate of the loan. In addition to these establishment fees, you may also be liable for additional charges in the form of government stamp duty, lender’s mortgage insurance, mortgage registration, registration of transfer, and land tax. The lender’s comparison rate does not include these external costs.
There are a number of reasons why refinancing your current loan may be a sensible option. Whether you are seeking a better interest rate, more features, or looking to unlock some of your equity, QuickSelect can assist you in weighing up the various costs and benefits associated with refinancing. We will review the various terms, conditions, and fees of your existing loan and assess any potential savings benefits that refinancing may provide. We will then present you with a range of options that best suit your current borrowing needs.
Yes. If you are self-employed and do not have the standard financial documentation (such as tax returns) you may be eligible for a ‘LowDoc’ loan. With a ‘LowDoc’ loan you will not need to supply as many documents to prove your income.
Please call us on 1300 874 871. Our Sydney head office is open on weekdays from 9am – 6pm. Alternatively, you can fill out our online enquiry form and we’ll be more than happy to contact you at a time that is convenient for you.