FAQ

Why should I use Central Mortgage for help with my financing needs?

Unlike Banks we can access dozens of different lenders and 100’s of different loan products to find the most suitable loan for our customers.

Central Mortgage is not owned by any particular lender and therefore we work solely for our customers.

We have expertise in all types of financing needs and we make sure the hassle of applying for a loan is minimised to you, our valued customer.

  • We believe that every client should have the opportunity to obtain personal or business financial choices to improve their lives regardless of current financial situation.
  • We offer finance broking services focussed on residential, commercial, asset or personal financing needs with professionalism, efficiency, integrity and customer focus.
  • We will develop a range of flexible lending solutions and ensure that your experience will exceed their expectations.
  • We will conduct regular reviews of your financing needs based?

 

How do I contact Central Mortgage?

The easiest way to get in touch is to book an appointment with us via our online booking system at www.centralmortgage.com.au . You can also come see us in our Head Office at level 1 101 Hazelglen Drive Doreen, Victoria. You can also phone or email us. Please don’t hesitate to contact any of the Central Mortgage brokers.

Do you hold a credit licence?

Yes, Central Mortgage is fully licensed with an Australian Credit License (ACL) as required by regulation.

All our brokers are members of the Mortgage and Finance Association of Australia (MFAA) and the Credit and Investments Ombudsman (CIO). We comply with all regulatory requirements of the regulatory bodies including ASIC.

I live in rural Victoria or interstate; can Central Mortgage still help me?

Yes, as brokers we can operate in any state of Australia. There are special processes that we take to ensure we are compliant with all regulations and lender policies.

 

What types of financing can I get through Central Mortgage?

Central Mortgage can help you with all forms of finance including mortgage loans, commercial finance, asset finance, car loans and personal loans. Whatever your needs let Central Mortgage assist you in procuring the optimum loan product.

Do you offer other services?

Central Mortgage is a finance broking business but we have a large network of preferred partners providing services such as real estate, buying services, accounting, legal/conveyancing through to various trades. Whatever the service you need do not hesitate to let Central Mortgage help you find a reliable and quality source for your particular needs.

How do I apply for a mortgage loan?

Central Mortgage will review your financial situation and provide you with loan options. We will talk you through all your available options including rates, fees and enable you to make an informed decision. Once you have decided which option to go with, Central Mortgage will complete with you all the necessary paperwork for your mortgage application to ensure your home loan application has the optimum chance of success. We then do all of the negotiation and consultation with the lender through to unconditional approval.

 

What is a loan Pre-Approval and when should I get one?

A loan pre-approval is a conditional approval given by a lender based on your current financial situation. It is based on the application documents and gives you an estimate of your borrowing capacity. It should be used to confirm your borrowing limit before you start your purchasing process as it provides you with limits to purchase and allows you to negotiate with vendors/agents in an informed manner.

I am self-employed; can I still get a loan?

Numerous options are available to self-employed customers to get finance. We have access to multiple lenders who provide not only mortgage products but can be accessed for asset finance or commercial loans.

What is Lenders Mortgage Insurance?

Lenders Mortgage Insurance (LMI) is a type of insurance that covers the lenders risk (not the borrower) associated with a loan where the loan is more than 80% (generally) of the value of the purchase. It covers any shortfall in the event that the borrower defaults on the loan and that the net proceeds of the sale of the security do not cover the outstanding balance of the loan.

What is the First Home Owners Grant (FHOG)?

The FHOG is a program that provides a tax free payment to first home buyers in Australia. Only one FHOG is available and varies from state to state and has specific criteria that must be met for eligibility.

To be eligible for the grant:

  • You must be an Australian citizen or a permanent resident of Australia.
  • You are aged 18 or older.
  • You or your spouse/partner have not previously received the FHOG.
  • You or your spouse/partner have not previously owned a home in Australia, either jointly or separately, prior to 1 July 2000.
  • You or your spouse/partner have not previously occupied, for a continuous period of at least six months, a home in which either of you acquired a relevant interest on or after 1 July 2000 in Australia.
  • You or your spouse/partner intend to live in the home as their principal place of residence (PPR) for at least 12 continuous months, commencing within 12 months of settlement or completion of construction

The FHOG does vary from state to state and your Central Mortgage broker can provide information on the specific grant that applies.

There is also Stamp Duty concessions (vary by state) that you may be eligible for as a first home buyer. These also have specific criteria that must be met.

When should I review my current loans?

Central Mortgage provides no obligation Home Loan Health Checks and we recommend that you review your loans at least every 2 years. By having regular check of your loans you can ensure that you continue to source the most appropriate loan product throughout the loan life cycle.

Should I refinance my home loan?

There are a number of considerations when looking to refinance your home loan. Your Central Mortgage Broker will review your current situation and provide options for you to consider. Some of the common reasons our customer look to refinance are changes in personal situation, reduce monthly payments, release equity for use in other things, looking for more competitive and appropriate loan products are available, consolidate debt etc.

What are the other costs that I need to allow for when I look to buy a home?

There are a number of other costs that you may have to have available funds for when purchasing a home. These costs can vary dependent upon the unique situation. Your Central Mortgage broker will assist you with this and explain each cost. The costs that you need to allow for include:

  • Legal/conveyancing fees.
  • Application fees
  • Valuation fees.
  • Conveyancing costs.
  • Government charges (Stamp duty, registration of title, title search etc.)
  • Adjustment to rates.
  • Lenders Mortgage Insurance.

 

What is LVR that I keep hearing about?

LVR is the acronym for loan to value ratio and is expressed as a percentage. For example if a home has a value of $500,000 and the loan size is $400,000 then the LVR is 80%.

What is a guarantor loan?

The main guarantor loan available in the market is one where an additional security (Security Guarantee) is provided in support of a loan application. This is often called a Family Pledge Loan.

This type of loan is quite commonly used to reduce lenders mortgage insurance to enable lending to a much higher loan to value ratio than was possible without the guarantor.

The guarantor is generally a family member but it can also be others parties and the combined LVR for the property to be purchased and the guarantor’s security is 80%.

What are genuine savings?

The term genuine savings is used by lenders to describe funds to be used as a deposit for the purchase of a property by a borrower that have been genuinely saved over time. 

Generally 5% of the purchase value is required to be genuine savings when borrowing more than 80% of the value of the property. Whilst some lenders can differ a little on what genuine savings are genuine savings are generally the following types of funds.

  • Cash savings in bank account held for 3 months.
  • A savings pattern established over 3 months.
  • Equity in an existing property or from the sale of a property
  • Shares held for 3 months
  • Non-refundable gift held for 3 months.
  • Term deposit held for 3 months.
  • Inheritance held for 3 months.

Note that the FHOG does not qualify as genuine savings.

What happens if I have already been declined credit or have credit defaults?

Central Mortgage will review your particular situation and discuss potential options for you. We have access to specialist lenders that operate in this particular area so we will search for a lender that may be able to help.

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