Frequently asked questions

Frequently asked questions

Working With You First Finance

To enhance your prospects of a successful loan application and foster a positive outcome, it is imperative to align yourself with a finance broker committed to absolute transparency. Choosing a broker who not only communicates openly but also furnishes clear and comprehensive information will significantly bolster your confidence as you strive to achieve your financial objectives.

A finance broker acts as an intermediary between borrowers and lenders, helping individuals and businesses secure loans or other financial products.

Finance brokers typically earn commissions from lenders for successfully facilitating loans. The commission is usually a percentage of the loan amount. Generally, this means, a broker’s aim is to obtain the best loan for the burrow’s requirements as there are no additional financial incentives.

Finance brokers can assist with various loans, including mortgages, assets financing, personal loans, business loans, construction loans and car loans.

It depends. Some brokers charge upfront fees, while others rely solely on commissions. Make sure to clarify this with your broker before engaging their services.

Look for brokers with good reviews, industry certifications and affiliations. Ask for referrals from friends or colleagues.

Brokers typically require details about your financial situation, credit history and the purpose of the loan.

The timeframe varies, but it can take anywhere from a few days to several weeks, depending on the complexity of the loan and the lender’s processes.

While brokers can offer advice, improving your credit score is primarily your responsibility. They can guide you on actions that may positively impact your credit.

Yes, brokers often work with various lenders, including banks, credit unions, and alternative lenders, providing a range of financing options.

Yes, finance brokers can assist with refinancing to potentially secure better interest rates or terms.

A fixed interest rate remains constant throughout the loan term, while a variable rate can change based on market conditions.

Some loans have early repayment penalties. It’s crucial to understand the terms of the loan agreement to avoid unexpected fees.

The amount you can borrow depends on various factors, including your income, living expenses, existing liabilities and the type of loan. Your broker will be able to provide an accurate figure.

Yes, many finance brokers specialize in helping self-employed individuals secure loans by connecting them with lenders who understand their unique financial situations.

The LVR ratio represents the loan amount as a percentage of the property’s appraised value. It is important as the higher the LVR, the more risk there is for the lender. Generally, when borrowing more than 80% LVR, you will have paid a fee called Lenders Mortgage Insurance.

Yes, some government programs and incentives exist, such as first-time homebuyer programs. Your broker can provide information on available options.

Yes, finance brokers can help consolidate multiple debts into a single loan, simplifying payments and potentially reducing interest rates.

Pre-qualification is an estimate of how much you may be able to borrow, while pre-approval is a more in-depth process involving a credit check and verification of financial information.

Interest rates can change based on economic factors. Generally, interest rate changes occur after the Reserve Bank of Australia increases or decreases the cash rate. If you are on a variable rate, the lender is legally allowed to change your interest rate whenever they want.

It may be challenging, but some lenders specialise in working with individuals with lower credit scores. Your broker can help explore these options.

Secured loans are backed by collateral (e.g., property or a car), while unsecured loans are not. Interest rates and approval criteria can vary between the two.

Yes, your finance broker can often negotiate on your behalf to secure more favorable terms, such as lower interest rates or reduced fees.

It’s challenging but not impossible. Some lenders specialise in working with individuals who have a history of bankruptcy. Your broker can help identify suitable options.

LMI is typically required when the down payment on a home is less than 20%. LMI is an insurance for the lender to protect them in the event where the borrower defaults on the loan or can’t make loan repayments. LMI is generally capitalised on your loan amount.

Yes, finance brokers can assist with securing loans for investment properties, helping you navigate the unique requirements for such transactions.

Gather your financial documents, be ready to discuss your goals and come prepared with any questions you may have about the loan process. Alternatively, give us a call or email and we’ll walk you through the entire process.

Missing loan payments can result in late fees and negatively impact your credit score. It’s crucial to communicate with your lender and broker if you foresee any issues.

Yes, certain loans may have tax implications. Please refer to an accountant to understand how your specific loan situation may affect your tax liabilities.

The validity of pre-approval varies but is typically around 60-90 days. Some lenders allow up to 180 days. It’s essential to check with your broker or lender for the specific timeframe.

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