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Basic Common Questions are answered below. Individuals are encouraged to ask their own question from our EXPERTS.
Our ADVISE for you is not to struggle trying to obtain best loans by your self. Contact Experts who could guide you. Whether you try your self and get a loan or go through a broker, COST of your MORTGAGE is the same. So, why not get a better mortgages through BROKERS?

What documents necessary to prove your income

Full Doc Mortgage need 2 years tax returns, 3 pay slips and or a letter from employer. Lenders may decide whether they need less.

Low Doc Mortgages need 2 years ABN & GST registration, BAS & Business Bank Statements (there are loans with 6 months ABN and without BAS, conditions apply)

A list of documents required as minimum (certified copies)
 

What is L.V.R?

 

L.V.R. when referred to a mortgage is the short form of Loan to Value Ratio. This is a ratio, expressed as a percentage the size of the mortgage loan required compared to the value of the property that you are contemplating to buy.

Lower LVR will be a easy loan to get approved as there will be no insurer involved in decision making. Lenders Mortgage Insurance is necessary over 60% Lo Doc & 80% Full Doc. Some banks may accept to Capitalize LMI, please find out your options from your consultant.

When LVR is higher and if you have defaults to your credit history, you are expected to pay high interest on your LOAN, simply because Risk Factor associated with them are higher.

What is the L.V.R I could get?

 

There are loans to 95% plus LMI. If your financial credibility is high you can expect a loan at ninety five percent. More the risk to lender, lower the Loan to Value Ratio you will get.

What is a D.S.R. related to a mortgage?

D.S.R. is the debt to service ratio. This ratio express an applicants ability to repay the subject home loan, based on their total income and commitments. This may vary from lender to another, there is no acceptable norm.

Normally total debt repayment to gross income 30-35% is a fair indicator of your loan serviceability but there could be variations applicable to each customer. Other part of income is for your living, tax liability etc.

What is bad credit

Bad credit is defaults recorded in your Baycorp file. Visit www.mycreditfile.com.au to find your file records. You have the right to request to remove any wrong entries. There is a maximum period they will appear in this file including paid defaults & discharged bankrupt records as well. When you apply for a loan you give authority to the lender to check your records. It helps them to analyse whether the risk they take is worthwhile, if not to decline a loan.

Can someone with a bad credit history still get a loan at reasonable rates?
As long as you are truthful with us (declare your position correctly), we will put our best to getting you a loan, regardless of your past credit history. Lenders have ways and means of checking, and the lenders need to know that whether you're likely to repay the loan.

Risk to lender has strong relation ship to the mortgage rates they charge from a particular customer. As a result obviously you may have to pay a rate for higher risk initially for a qualifying period, then there is a good chance that your interest rate will be reduced to normal variable rate.

Those customers fallen to arrears or late payments and need a refinance, we will try to help you.

What is the lowest interest rate I could get?

Loans are offered at standard variable rate or at fixed rate for a longer period. To attract customers lenders may offer discounts on variable rates.

Some lenders will offer a discount for a very short period. May be 3 months with 3% reduction. These are termed as Honeymoon rates. Once the initial period is over loan will revert to higher than standard variable rate. These loans will stipulate a minimum period during which bank will recover more than what it would otherwise.

There are other attractive packages for professionals (Loan amounts over 250k) and lender may consider 0.5% off from standard variable rate. Some mortgage loans are offered more than 0.8% as the size of the total loan is huge. This help lenders to retain good customers.

Best answer to this question would be - your eligibility. Confidential analysis of your current financial situation will tell us what products available to you and related interest rate for each of them, this will enable you to pick cheapest.

Which home mortgage loan is best for me ?

Fixed or variable? Principle and interest or Interest only or Line of credit mortgage facility. You certainly have a lot of HOME LOANS to choose from.

The loan that satisfy your requirements best is the one most suitable for you. An independent mortgage home loan broker is more likely to direct you to a correct lender as they have no special obligation towards one lender against the other.

How can I pay out my Mortgage Loan sooner ?

There are ways that will work to pay out your mortgage sooner.

  1. 1) By making a higher amount than required mortgage debt repayment periodically, we mean $100 or so not thousands.
  2. 2) Refinance your home loan with lower interest rate, specially bad credit refinancing, use this interest reduction to repay your capital.
  3. 3) Don't make withdrawals on your loan unless it is a must.
  4. 4) Buy a smaller, cheaper property to begin with (Lower end of your need), try to repay an extra dollar when you can.
  5. 5) Shop around for better home loans and look for best mortgage refinance, move if it is beneficial to you.
  6. 6) Compare mortgage interest rates and get a cheap home loan with a lower comparison interest rate that has low on-going fees and charges.
  7. 7) Line of credit facility help you obtain funds when required either to pay off all credit cards & high interest loans or to invest when opportunities arise.

Refinance could include mortgage, personal loans, credit cards & car loan. This may help you to wipe out bad credit history in the long run.

How can a broker assist us when BANKS unable to do so

A bank speak for themselves. They have limited products, therefore your options are limited too.

A mortgage broker work for many lenders. He will have a broad knowledge of products, by listening to you, he will assess your need and recommend a few suitable products. They will come from different lenders. All home loan lenders pay a commission to brokers, therefore there is no reason for them to be biased in their opinion, fee paid by lender is not an additional cost to you.

We have products with

  • Access to mortgage minimization software

  • Offset facility @ loan interest rate

  • Loan splits to suit your investment strategies such as share trade

How can I obtain a loan when one bank said NO to me

We need to know why BANK SAY NO to you. We can help you most times . We take you to a probable mortgage lender who may say yes. This is the advantage of dealing with many lenders rather than one.

What is Full Doc Loan Application?

A loan application that is supported by verifiable documentary proof for income are full doc loans. Since the risk is less on such loans, once 105% loans were possible on them. A comparable mortgage interest rates were lower as well.

What is Lo Doc Loan?

Normally customer has to submit proof of income a way of PAYG or Tax Returns. A self certification of income confirming an undertaking to repay and ability to pay home loan is acceptable normally from self employed with ABN registration. Credit application acceptable to a lender in this manner is called a Low Doc Mortgage.

What is No Doc Loan?

No documents necessary to obtain this type of a loan. Since risk is high LVR on such loans may be lower, maximum 50% of security value. Also it will attract higher interest rates. READ MORE - Non conforming Loans. Since lately BAS statement is a minimum requirement, thus it is not a No Doc Loan.

Advantage with a Non Bank Lender?

They help you when you cannot meet major bank criteria to obtain your loan. Non bank lenders will have less criteria to qualify for loans. As a result, they may have a mortgage specifically designed to those do not qualify for Bank Lending.

You are expected to pay higher rates for these high risk products although most times they have competitive products where lender competition is high (some times similar rates from a bank).

Why I should not apply online

Can you talk to a machine/computer? Computer has set answers per the program. A question that fit in to the program will get an answer.

If you are happy with all details outlined online, it is comfortable to obtain mortgage online. But you know lenders have fine prints, terms & conditions hidden. That is the catch on these home loans. When you have a question, no one to answer, you are alone to solve your problem. Unexpected fees & charges may result and finally making you to pay more than the savings you may obtain from the lower interest rate advertised. Therefore we will not recommend them.

What Mortgages Sydney Mortgage Loans can offer

Most loans that are available with lenders

 

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