The dos and don'ts of applying for finance
1. Don’t pay upfront brokerage fees!
With so many mortgage brokers offering their services to help you find a loan to meet your needs, it is not necessary for you to pay a brokerage fee! The mortgage brokers are paid by remuneration by the lender with whom they arrange your finance purchase with.
Accomplish Finance will help you find a loan that suits your needs from our panel of lenders as a complimentary service.
2. Do make sure that you deal with an Accredited Mortgage Consultant.
To check if you are dealing with an Accredited Mortgage Consultant with (MFAA) Mortgage and Finance Association of Australia you can visit www.mfaa.com.au to find Leah Peters please type in ‘Leah-Anne’ which is her full name.
3. Don’t fall into the trap of ‘Honey-Moon Rate Specials’
Honey-moon rates are offered by some lenders to attract new customers. Not all honey moon rates are beneficial, after the honey-moon period is over your rate may convert to the standard variable rate at the time which may be a higher rate. That’s not to say that all ‘honey-moon’ rate products are not worth considering, Accomplish Finance will sort through our panel of lenders to help you find a loan that may offer ‘honey-moon rate products’ that may have an ongoing long term benefit to you.
4. Don’t forget to check the comparison rate schedule.
By law under the Uniform Consumer Credit Code (UCCC) it is a requirement that you are provided with a comparison rate schedule to accompany your loan proposal and or application. The comparison rate schedule is designed to give you the true cost of the product that you are selecting, by allowing for upfront fees and charges and ongoing fees on top of the interest rate offered into one rate. This will help you compare the true costs of different products offered by different lenders allowing you to make an informed decision as to which product will meet your needs. A comparison rate schedule will state a warning to make you aware that other fees and charges may not be included in the comparison rate schedule that you may need to take into consideration when selecting a product.
Warning; this comparison rate applies only to the example of warning or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. Fees and charges are payable.
5. Do ask about early termination fees.
Early termination fees are better known as ‘Deferred Establishment Fees’ (DEF). If you choose to repay/ or refinance your loan within a certain period after you obtain your loan, you may have to pay a (DEF). This fee can vary from lender to lender and may depend on your chosen product. Accomplish Finance will disclose to you if a (DEF) that is ascertainable at the time of your application is applicable to the product you choose, to help you decide on the right product from our panel of lenders. Other conditions, fees and charges may apply.
6. Do make sure that you seek independent legal advice from a solicitor.
It is advisable to seek independent legal advice from your solicitor before signing a contract to purchase. Your solicitor will let you know what special conditions you may need to be aware of.
7. Do disclose correct information on your application.
To help us, help you with your application it is better to disclose all relevant information upfront. If you let us know of any problems such as paid or unpaid defaults, we may still be able to help you find a lender that meets your needs from our panel of lenders. Remember you are signing a declaration.