Tips & FAQ

Getting ready

In order to make the most efficient use of your valuable time, there are a few things that you can do to prepare yourself and get the ball rolling.  Different lenders may require different and/or additional information over and above the items listed below however we will discuss these items with you on an individual basis.

1. We will need your last two payslips, or for self employed people, your financials and personal tax returns for the last two years.

2. We will need 100 points of I.D. (photocopied).  Some lenders require colour photocopies.  We will need to cross reference the photocopies with the originals, so have the originals handy also.

3. We need all related address details (last three years history).

4. We will need a signed contract of sale (not required for pre approval), or similar stating the required funds (for refinances, 6 to 12 months loan statements on all loans or debts being refinanced).

5. You will need to supply a valid Certificate of Currency from your insurer.

6. You will need to verify your income and bank balance with photocopies of bank statements (last six months) pay slips, previous tax returns, Business Activity Statements, Financials, government allowances etc. (generally two years worth for self employed). We will need to cross reference the photocopies with the originals, so have the originals handy also.

7. We will need the details and balances of any other current loans, as well as any credit cards, store cards etc. and a copy of the last three months statements.

CHECKLISTS

This is a general checklist and additional to the documentation noted in Getting Ready. Some of the documents may not apply to you or you may be required to provide more than noted. Your broker will confirm which documents you need.

If self employed you may also need
  • Rental income statements or bank accounts showing rental income for any investment properties
  • Proof of share dividends or interest earned
  • Centrelink letter confirming family tax benefits
  • Centrelink letter confirming permanent government pensions
  • Private pension group certificate or statement
  • Proof of any other regular, ongoing income.
Additional documents for refinancing
  • Documentation on your existing loan including the date the loan commenced, loan period and any financial penalty payable if you exit the loan early
  • Statements for the last six months for any existing home loans and personal loans
  • The most recent Council Rates Notice and current valid building insurance policy on the property or properties being offered as security.
  • Credit cards - If you have credit card debt, statements for the last six months.
  • If you don’t owe anything on your credit card, the most recent statement.
Additional documents for First Home Buyers
  • Statement for your First Home Saver Account, if you have one.
  • Statements for the last six months to show your savings/investment history. This could include share certificates, term deposit statements, etc.
  • If other funds are being used for the purchase, evidence showing where the funds are held.
  • If other funds are being given to you, which are not already in your bank account, you will need a Statutory Declaration from the person giving you the money.
  • Your most recent credit card statement.
  • Copy of the Contract of Sale for the property being purchased.
Additional documents for investors

If you already have investment property/ies:

  • Evidence of income such as rental statements.
  • A copy of the tenancy lease.
  • A current Council Rates Notice.
  • Copy of the Contract of Sale for the property being purchased.
  • A letter from a property manager indicating likely rent for the new property.

Additional documents for borrowers seeking a construction loan:

  • A copy of a valid builder’s fixed price tender, including all specifications.
  • A copy of Council approved plans.

 

FAQ

Why should I use Select Financial Services rather than finance through my bank or credit union?

Select has access to multiple lenders and more buying power than you as an individual so can often source a much better deal than you can on your own. Your personal Select representative will also take care of all the leg work and documentation making your finance approval and settlement process much easier.

I've never had a loan before, are you able to help?

We most certainly can; we can also arrange a pre-approval so you can go shopping with confidence.

I have credit defaults or judgements, am I able to get a loan?

Select has specialist advisors that deal with these issues on a daily basis.  In a lot of cases we are able to get you a finance approval where others could not.  If you have been declined for loan or suspect you have some credit impairment contact us today and you may be surprised at what we can do for you.

How much can I borrow?

As a very rough guide, you can borrow around four times your annual salary. Of course, lenders take many other factors into account when assessing your loan application, such as what other debts you have (car/personal loan/store credit cards) and whether you have any dependent children. For a better estimate of your borrowing capacity, use our borrowing calculator, or call us with your questions.

What are the Fees and Charges do I have to pay?

The fees and charges of Select Financial Services are for the running costs associated with the processing of your loan application. These fees are not a part of the Banks Fees & Charges but are only the fees for the company Select Financial Services.  We will provide complete disclosure with a written quotation clearly outlining any fees and/or commissions paid to financial institutions. Banks themselves have varying Fees & Charges however below is  a guideline of those generally charged on a house mortgage:

Application Fee; Valuation Fee; Settlement Fee; Establishment Fee; Ongoing Fee; Lenders Risk Fee.

Can I have an Interest Only Loan?

Yes. Interest only home loans are generally utilised by investors and as a result the principle balance borrowed is not reduced and the loan reverts to a principal and interest loan at the end of the interest only period. Interest Only is usually a long term option for customers who are looking for property values to go up rather than reducing the principle.

What is stamp duty?

Stamp duty is the tax you pay on the sale of a property to cover the legal costs of the transaction. It can vary based on the state you reside in. Use our simple stamp duty calculator to find out how much you’ll pay.

How do I know which lender to choose for my mortgage?

Choosing a lender can be tough. From a distance, they all seem to have great offers, but when you try to compare apples with apples, you find the fine print impenetrable, and they all use different jargon. That’s where your Select Financial Services Home Loan Specialist comes in. They know that the advertised interest rate isn’t always the best indicator of whether a loan is right for you. They take into consideration set up and exit fees, ongoing fees and a myriad of additional product features and conditions.

What are the benefits of using a Finance Broker?

More choice

When you engage an experienced, professional finance broker, you get a whole lot more choice. Select, for instance, gives you access to over 30 lenders — all established and reputable.

Save money

Naturally, when you’re comparing hundreds of loans from dozens of lenders, you’re far more likely to identify the best deals available, in terms of interest rates and fees. So you’re far more likely to save money.

The right fit

Plus, you don’t have to make the decision alone. You benefit from professional guidance, so the loan you end up with is the loan that suits you.

The importance of informed decision-making can’t be underestimated. There are hundreds of mortgage options out there alone, but what one is best suited to your particular situation and preferences? Every lender seems to use different terminology and product features, and of course every loan is accompanied by reams of terms and conditions. So between the sheer variety of options and the overwhelming fine print, even making an ‘apples-for-apples’ comparison of lenders is a daunting task, let alone making an actual decision!

A good broker will carefully assess your situation, then call upon years of knowledge and contacts to identify exactly the right loan for you.

Less chance of refusal

If you’ve been refused a mortgage by one lender for example, you won’t necessarily be refused by everyone. But knowing what lenders are more lenient and what lenders are very strict, and in which areas, requires more than just a comparison of their websites. All lenders have different credit policies and overarching restrictions on who they’ll lend to. By engaging a broker with specialist knowledge of lender policies, you significantly reduce the risk of being refused a loan.

Save time

A quality broker will do all the legwork on your behalf. This includes liaising with lenders, conveyancers, settlement agencies, real estate agents — the lot.

No fuss

Finance brokers work with lenders and home loans every day of the week. Assuming you choose a quality broker, the entire process will go smoothly.

Avoid pitfalls

When you find a great broker, stick with them. With the right guidance and advice, you’ll understand exactly what you’re signing up for, so you're fully aware of everything you need to know.

Enjoy the benefits of using a broker

Enquire now to have a finance broker contact you back within 24 hours. They’ll run through the whole process with you, and you’ll quickly see the benefits of a broker for your situation.