Without the right advice and support, purchasing property can be a stressful and overwhelming experience. You are likely to have many questions which need to be answered - How much can I afford to borrow? What deposit will I need? Which lenders best fit my goals and objectives?
From friendly initial advice, through to settlement and beyond, Finance Ferret will be there with you, adding real value at every stage. Being accredited with a wide panel of lenders, you can have peace-of-mind knowing that you will be able to find the right solution to your unique circumstances - and without having to do weeks of legwork.
Perhaps best of all, you can generally enjoy the full benefits of our service for FREE! This is possible because our fee is provided in the form of a commission from the lender. In those cases where a fee-for-service is applicable, we will be sure to get your agreement in advance.
Following the simple steps below, let Finance Ferret guide you through the property purchase process.
If you're interested in discussing applying for a home loan, our friendly team are waiting to hear from you.
You can phone us on 1800 FERRET or send us an email at email@example.com. Alternately you can submit an online enquiry through the Contact Us page on this website.
Once you get in touch, one of our credit advisers will promptly schedule an obligation FREE initial consultation, which usually takes around an hour and a half.
At this meeting we will discuss:
(a) Whether now is the right time for you to apply for a mortgage.
(b) What loan structure is most appropriate for your goals and objectives.
(c) Any questions that you may have, such as how much can I afford to borrow? And, what deposit will I need?
This initial appointment is an information session for your benefit. Unless you need an approval quickly, we don’t ask you to make a decision at our first meeting.
After your initial consultation we will prepare our recommendations and schedule a follow up meeting.
At this meeting we will discuss those lenders which, from our wide panel of lenders, we belive represent the best value for you.
Once you have had some time to think through your options and you have decided to proceed with an application, we will then need to meet and complete an application.
We will have prepared a list of the documents we require copies of to proceed with the application. These mainly relate to verifying your income and establishing your deposit.
After completing the application, we will then submit it to the bank. Accompanying every application is a professionally prepared Loan Summary which is a discussion of the key points of the application and why we believe the loan should be approved. This is a key document.
Once the lender has approved the loan, they will send the loan documents to you. Although we can assist you in signing the loan documents, in some cases it is important that you also review the documents with your solicitor.
After you sign the documents and return them to the bank, settlement of the loan will take place shortly after.
This is only the beginning of our relationship. It is critical that you understand how to get the most out of your home loan as it is an important part of your life.
We are always available for you to call whenever there is a change in your circumstances and you may need to adjust your loan structure.
Even if you have a fairly basic question about your mortgage we are happy to discuss it with you.
Standard variable rate home loans offer a high degree of flexibility and often include additional features such as an offset account, redraw facilities, and the ability to make extra repayments. As the name suggests, the interest rate will move up and down according to the market throughout the life of the loan.
Most lenders in Australia will have a standard variable rate home loan product, with terms up to 30 years.
Basic Variable Rate loans are sometimes referred to as "no frills" loans and tend to offer a lower interest rate, but with less features and flexibility than Standard Variable Rate loans. This means you are not paying for features you may not need.
The interest rate will move up and down according to the market throughout the life of the loan.
Fixed Rate loans allow you to fix your interest rate and therefore your loan repayments. They can provide security and predictability for terms ranging from one year to five years. At the end of the fixed term, there is usually an option to either roll over or revert to the current variable rate.
Fixes Rate loans generally have fewer features than Variable Rate loans, can be costly to break by repaying early or refinancing to another loan, and may attract a higher interest rate.
Interest Only loan repayments only cover the interest component, reverting to principal and interest at the end of the interest only period. This type of loan is generally utilised by investors who are looking for capital gains. Interest Only loans offer most of the same features of standard loans, with the added benefit of lower monthly repayments.
A Split loan divides your borrowing into various different types of loan products. This allows you to take advantage of a variety of fixed and variable rates, as well as various loan features. Split loans can offer you the flexibility to choose loan options which suit your needs.
These types of loans usually offer a low interest rate for the first year of the loan. The rate may be fixed, variable or capped. Once the introductory or honeymoon period is finished, the interest rate usually reverts to the standard variable rate.
An Equity Line of Credit involves a lender assigning you a credit limit, secured against your property. When you need cash, you draw against that limit - usually by writing a cheque or using a special debit card. Much like a "large credit card", as you repay the loan, the money becomes available to you again.
Construction loans are usually short-term finance, used to finance the building of a new home. In this type of loan, a lender will make progress payments to the builder at regular intervals. Typically, borrowers will make interest only payments on those funds which have been dispersed, converting the loan to a Standard Variable loan once the construction is complete.
A Bridging loan allows you to cover the financial gap when purchasing or building a property before the existing one is sold. This type of loan saves the borrower from having to live in a rental property and move twice in a short period.
Lenders will require security over both properties and because of the short term nature, bridging finance can be more expensive than other types of loans. Usually borrowers have up to 12 months to sell the existing property.
A debt consolidation loan can allow a you to combine existing debts such as credit cards, store cards, personal loans and car loans into one loan, secured against your property. These existing debts generally attract a much higher interest rate and by consolidating them into a home loan, you can take advantage of a lower rate, resulting in lower repayments.
Professional Packages, which attract an annual fee, are designed to offer an all in one solution. A professional package will generally offer interest rate and fee savings on home loans, credit cards and transaction accounts. Professional packages can also offer a great deal of flexibility as many lenders will waive product switching costs.
For those who have a small deposit or no deposit, Limited Guarantor loans can help by allowing established family members to guarantee all or part of your loan, using the equity in property that the family member already owns. Some lenders will also permit your guarantor to provide assistance with loan repayments, boosting your borrowing capacity.
Many lenders have specific policies for lending to non-residents, such as expats, foreign investors or new migrants. These policies include restrictions around the Loan to Value Ration (LVR) and what is acceptable as security.
Non-conforming loans, which attract a higher interest rate than mainstream loans, are designed for those with a poor credit rating. While lenders are willing to overlook prior credit problems, they will still want to see evidence of your ability to repay the loan.