top of page

Application Process

Refinancing Central Coast

The Initial Meeting

Pre-Approval

Formal Approval

Mortgage Documents

Settlement

After Settlement

THE INITIAL MEETING

We will meet with you to discuss your requirements, your home loan goals and your current financial situation either via zoom or a location of your choice.

 

Following our meeting, we will ask you to provide your personal information and supporting documents in our secure Client Portal which makes the process quick and easy! Once we receive this information, we will complete a Preliminary Assessment and provide you with options for us to discuss and for your consideration.

PRE-APPROVAL

Once we have decided on your preferred lender and product, we will prepare the lender application for you to sign. Once submitted, we will liaise with the lender to arrange your pre-approval which can take 3-10 business days depending on the lender. Make sure you let us know if you need a fast approval as this will help in determining the lenders we recommend.


Pre-approval will be valid for 3 months after which time, we will require updated documentation.

FORMAL APPROVAL

Once you have found a property, please let us know so that we can arrange a valuation and provide the lender with any other
outstanding documentation so that formal approval can be issued.

 

This is when the lender commits to providing you finance for a specific property.

MORTGAGE DOCUMENTS

Following formal approval of your loan, you will receive mortgage documents and we can make arrangements with you to go
through them together and sign them. The documents will be issued by post or electronically with some lenders.


The documents will include the loan agreement, direct debit forms and the mortgage to be registered with the Land Titles Office. You may also wish to seek independent legal advice regarding your documents.

SETTLEMENT

For a purchase, settlement usually takes place 6 weeks after exchange (unless agreed otherwise). For a refinance, settlement
will take place approximately 3 weeks after documents have been returned.


Settlement is when your loan comes into effect and if you have purchased, you can pick up the keys to your new property.

AFTER SETTLEMENT

Following settlement of your loan we will be in touch to confirm details of your payment and new accounts. You will also hear
from the bank confirming your loan settlement. One month after settlement is usually when your first payment is due.


We will stay in touch throughout the life of your loan to make sure that everything is running smoothly and you can always call
or email us, anytime, with any questions that you have.

Basic Home Loan
BASIC HOME LOAN

"Basic' home loans are generally variable rate loans that often come with a cheaper rate though less features than a 'standard' loan. The definition of 'basic' varies widely between lenders so it’s worth checking carefully which features are available with any loan the lender describes as basic.


The important thing is to only pay for the loan features you are likely to use now or in the near future. Note too, some features can help you pay off the loan sooner, and this will mean saving money over time so the cheapest loan isn’t necessarily the one that's best for you.

Professonal Package
PROFESSIONAL PACKAGE

A 'Professional Package' loan is a more fully featured loan product which comes with a number of benefits which can include a discount on both fixed and variable rates, an offset account, the ability to make changes to your loan without cost, waiver of annual fees on credit cards and discounted insurance products.


This type of product will usually attract an annual fee which covers all of the above features. This type of product is suitable for customers wishing to borrow more than $250,000 and who require flexibility.

Bridging Loan
BRIDGING LOAN

A bridging loan can be used to cover the finance gap that can happen when a buyer purchases a new property before selling an old one. Higher interest rates are usually charged for this form of finance but whilst interest is charged on the full amount being borrowed (for both properties), repayments are only made on the amount the lender deems as being the 'end debt' (allowing for various buffers). Bridging finance has an agreed term to be paid back, usually 6 or 12 months.

Construction Loan
CONSTRUCTION LOAN

Construction loans allow customers to borrow funds for major renovations/construction. The value of the work can be considered to determine an 'on completion' value which can then be used by the lender to calculate the loan to valuation ratio. A fixed building contract and council approved plans are required for a construction loan. 

 

An 'Owner Builder' construction loan has some restrictions, please discuss with us if required.

Product Options

VARIABLE LOAN

This is the most popular type of loan in Australia. The interest rate you pay may vary in line with the movements in market rates, so you can expect the repayments to vary (up and down) over the course of the loan.

FIXED LOAN

With this type of loan the rate - and the loan repayments, are fixed for a set period, usually between one and five years. This makes it easier to budget for repayments and you are protected from increases in market interest rates.

SPLIT LOAN

Many lenders will let you fix one part of your loan, while the  remaining portion has a variable rate. This can give you the best of both worlds – some protection from rising rates though still with the ability to benefit from any rate cuts.

PRINCIPAL AND INTEREST REPAYMENTS

Principal and Interest repayments are calculated so that the loan is repaid in full within the loan term (usually 30 years). Repayments are calculated using the current rate and if you have a variable rate loan repayments will fluctuate according to interest rate changes. If you have a fixed rate loan repayments will be set for that period but may change when your loan becomes variable.

INTEREST ONLY REPAYMENTS

Interest Only repayments are when you only pay the interest off your loan each month. Attractive to investors or those seeking reduced repayments, the balance of your loan does not reduce unless you are also making separate lump sum payments off the principal.

HONEYMOON RATES

Honeymoon rates are offered by some lenders and are reduced interest rates for a certain period of up to 3 years. It is important to review these types of loans after the 'honeymoon' period is complete to ensure that the rate reverted to is competitive.

REDRAW

Redraw is the additional repayments you make into the loan account itself and the act of taking these funds out again. On a variable rate loan most lenders allow redraw and depending on your loan product, usually at no cost. 

 

Fixed rate loans have restrictions on additional repayments and redraw. Redraw is usually done online, where funds are transferred into your linked bank account.

OFFSET

An offset account is a savings or transaction account that is linked to your home loan. Instead of receiving interest on the balance of the offset account and paying separate interest on the full
balance of the outstanding loan, the balance of the offset account in deducted from (or 'offset' against) the value of the loan for the purpose of calculating interest.


For instance, if you have $20,000 in the offset account and the value of the loan is $350,000, you will only pay interest on a loan value of $330,000. This can make an offset account a real money saver if you have some spare cash.

FAMILY GUARANTEE

Family guarantee allows a family member to offer their property as additional security so that the borrower can avoid lenders mortgage insurance and/or the need for a deposit. If your family member already has a mortgage against their property, your lender may take a second mortgage if they have sufficient equity.

 

This option is generally available to first home buyers and is a great way for families to assist without the need for a cash gift.

Best Home Loans Eastern Suburbs

Purchase Types

PRIVATE TREATY

Under a 'Private Treaty' sale, the owner, with the help of their real estate agent will set a price for the property from which negotiations with prospective purchasers can occur. Exchanging contracts takes place once a price has been agreed to. This may or may not involve a cooling off period and this will depend on whether there are other purchasers vying for the property.

 

The cooling off period may be 5 days and in this time, the purchaser can seek legal advice, arrange relevant inspections and speak to their broker to arrange formal approval. If a cooling off period is not approved, exchange occurs under auction conditions (see below) and it is important to have all checks carried out before hand.

 

A 10% deposit is required to exchange however, your legal representative may be able to negotiate a 5% deposit. We can assist with a deposit bond if you do not have the cash deposit on hand. 

AUCTION

Auction of property is particularly popular in Sydney and in markets where there is a lot of competition from prospective purchasers.

 

At an auction, purchasers bid for the property which is placed 'on the market' once the pre determined reserve price is reached. The highest bidder is bound to exchange contracts unconditionally (without a cooling off period) upon completion of the auction. It is important to have all checks carried out prior as there is no opportunity given post auction if you are the highest bidder.  

 

As a valuation and therefore, formal loan approval, is not possible prior to auction, the best way to be prepared in terms of your finance is to have a pre-approval with valuation the only outstanding condition. 

COSTS TO CONSIDER
  • Stamp Duty

  • Legal Fee's

  • Govt Charges

  • Property Inspections

Purchase Process

Best Home Loans Eastern Suburbs

Pre-Approval

Property Search

Seek Legal Advice & obtain Property Report

Make an offer

Consult your Mortgage Broker

Exchange of Contracts (Purchase)

PRE-APPROVAL

As outlined in APPLICATION PROCESS we will arrange your Pre-Approval so that you can have confidence in beginning your property
search and that your chosen lender has indicatively approved your application subject to the valuation.

PROPERTY SEARCH

There are many tools available to assist in your search including property sales websites and apps, property investment websites and
we are also able to provide RP Data reports for any properties you are interested in.


We recommend you build relationships with local real estate agents and a Buyers Agent may also be a service you wish to consider.

SEEK LEGAL ADVICE AND OBTAIN PROPERTY REPORT

It is important to seek legal advice from a licensed conveyancer or solicitor so that they can ensure that your proposed purchase is
legally in order. In addition to reviewing the contract of sale, your legal representative will also assist in arranging a pest and building
inspection if you are buying a house or a strata report if you are buying a unit. These checks must be carried out prior to you signing a contract on any property.


We would be happy to recommend a conveyancer if needed.

MAKE AN OFFER

When you have found a property you like, you can make an offer to the real estate agent for them to pass on to the vendor. This may
begin a negotiation process and will hopefully result in you having an offer accepted.


If the property you are interested in is going to auction, you can also speak to the agent about whether they will consider a pre-auction
offer.

CONSULT YOUR MORTGAGE BROKER

Once you have found a property and/or had an offer accepted please let us know so that we can progress your loan approval to 'Formal Approval' stage with your lender.

EXCHANGE OF CONTRACTS (PURCHASE)

If you are purchasing a property by 'PRIVATE TREATY' you may be able to exchange contracts after formal approval, pending agreement from the real estate agent/vendor (as opposed to prior to formal approval which is sometimes required if there are multiple parties vying for the same property).


If you are purchasing at 'AUCTION' exchange of contracts will happen prior to formal approval as a valuation is not possible pre
auction.


As mentioned above, regardless of whether you purchase private treaty or auction, it is very important to have the contract reviewed
by your solicitor/conveyancer and relevant checks carried out.

Lounge chat.png

Refinance

REASONS FOR REFINANCING
  • Better Rate

  • Better features

  • Better overall service

POTENTIAL COSTS FOR REFINANCING
  • Lender Discharge Fee - estimate $350

  • Discharge of Mortgage Registration Fee - $109.50

  • Registration of New Mortgage Fee - $109.50

  • Estimate Settlement Fee for new lender - $200

These fees can often be included in the new loan amount.

steps to buying a house australia

Following Settlement

FOLLOWING SETTLEMENT

Following Settlement it is a good idea to check online to ensure your interest rate is correct, there is a repayment setup and the offset account is linked if applicable.

We will also send you a letter with the details we have been able to obtain from your new lender. 

If you have any questions, feel free to call us or your lender on the below number. 

LENDERS CUSTOMER SERVICE PHONE NUMBERS
  • Adelaide Bank 1300 652 220

  • AMP 13 30 30

  • ANZ 13 13 14

  • AMP 13 17 19

  • Aussie Home Loans 1300 445 566

  • Bankwest 13 17 19

  • CBA 13 22 21

  • Citibank 1300 361 922

  • Heritage Bank 13 14 22

  • Homeloans 13 38 39

  • ING 13 34 64

  • La Trobe 13 80 10

  • Liberty Financial 13 11 33

  • Macqaurie Bank 1800 806 310

  • ME Bank 13 15 63

  • NAB 13 22 65

  • Pepper Money 1300 650 931

  • St George 13 33 30

  • Suncorp 13 11 55

  • Teachers Mutual Bank

  • Westpac 13 20 32

bottom of page