What is a Traditional Lender?
Traditional lenders are banks, credit unions and building societies. You can go directly to a traditional lender for a loan (though they also supply loans through professional accredited mortgage planners). Each lender has their own policies and lending criteria that must be met in order to receive a home loan through them.
What is a Non-Traditional Lender?
Non-traditional lenders differ from traditional lenders in that they obtain their funds from different sources such as investors, financiers or trust funds. Although non-traditional lenders have their own policies and lending criteria, they are generally more flexible than traditional lenders.
What is the difference between a 'principal and interest' home loan and an 'interest-only' home loan?
A 'principal and interest loan' is one in which both the principal and the interest are paid during the term of the loan. An 'interest-only' loan is one in which the principal is paid back at the end of the term; only interest is paid during the term. These loans are usually for a short period of time, generally 1-5 years.
Why would I take out an 'interest-only' loan?
Normally, because the repayments are a lot less. With an interest-only loan, you are only paying off the interest that is accruing on the amount borrowed. These type of loans are usually taken out over a normal term (i.e. 25 years) with the interest-only option being 1-5 years and then renegotiated after that time.
Can I get a home loan and use the funds for my business?
Yes.
Traditional lenders are banks, credit unions and building societies. You can go directly to a traditional lender for a loan (though they also supply loans through professional accredited mortgage planners). Each lender has their own policies and lending criteria that must be met in order to receive a home loan through them.
What is a Non-Traditional Lender?
Non-traditional lenders differ from traditional lenders in that they obtain their funds from different sources such as investors, financiers or trust funds. Although non-traditional lenders have their own policies and lending criteria, they are generally more flexible than traditional lenders.
What is the difference between a 'principal and interest' home loan and an 'interest-only' home loan?
A 'principal and interest loan' is one in which both the principal and the interest are paid during the term of the loan. An 'interest-only' loan is one in which the principal is paid back at the end of the term; only interest is paid during the term. These loans are usually for a short period of time, generally 1-5 years.
Why would I take out an 'interest-only' loan?
Normally, because the repayments are a lot less. With an interest-only loan, you are only paying off the interest that is accruing on the amount borrowed. These type of loans are usually taken out over a normal term (i.e. 25 years) with the interest-only option being 1-5 years and then renegotiated after that time.
Can I get a home loan and use the funds for my business?
Yes.
What is Lenders Mortgage Insurance (LMI)?
LMI protects the lender if a borrower cannot make their repayments on the loan and is forced to sell. The LMI will cover the difference between what the property has been sold for and the amount borrowed; this is a one-off premium. The costs depends on the amount of the loan, value of the property, stamp duty and the type of loan. LMI is generally required when the borrower provides less than 20% deposit or when the loan is not of a 'usual' nature.
What information will I need to provide AFS?
The type of information required will be determined from our initial meeting.
How long will it take for my application to be approved?
Generally, it will take 48 hours to gain pre-approval. A formal approval, with valuation completed and all the necessary checks and balances done, will usually take one week.
What does 'LVR' mean?
Loan to Valuation Ratio. LVR is the ratio of the amount lent calculated against the valuation of the property.
What if my credit history is not perfect or my current mortgage loan is in arrears?
Depending on the nature of the credit history or arrears, there are lenders that we can talk to for your particular situation.
Have a question that's not on our list? Please contact us here.
LMI protects the lender if a borrower cannot make their repayments on the loan and is forced to sell. The LMI will cover the difference between what the property has been sold for and the amount borrowed; this is a one-off premium. The costs depends on the amount of the loan, value of the property, stamp duty and the type of loan. LMI is generally required when the borrower provides less than 20% deposit or when the loan is not of a 'usual' nature.
What information will I need to provide AFS?
The type of information required will be determined from our initial meeting.
How long will it take for my application to be approved?
Generally, it will take 48 hours to gain pre-approval. A formal approval, with valuation completed and all the necessary checks and balances done, will usually take one week.
What does 'LVR' mean?
Loan to Valuation Ratio. LVR is the ratio of the amount lent calculated against the valuation of the property.
What if my credit history is not perfect or my current mortgage loan is in arrears?
Depending on the nature of the credit history or arrears, there are lenders that we can talk to for your particular situation.
Have a question that's not on our list? Please contact us here.
