Client FAQs and Fact Sheets
Q: What is a mortgage broker?
A: A mortgage broker acts as the go between with the lender and the borrower. They will not only provide you with the most competitive loan rates based on your current financial status, but will also guide you through every step of the loan application process. From beginning to end, a mortgage broker is vital in explaining the commitment to your loan from associated costs, disbursements and any fees. They also write it all down in a schedule.
Mortgage brokers will also act as your personal agent following up lenders and answering any questions or concerns you may have when settlement is completed
Q: Why should I choose ALIC
A: ALIC is a specialist mortgage broker. We are independent, meaning we have no commitments to any bank and can look for the best loan for you from a range of lenders. Our goal is to provide you with the service you need and the advice you can trust to make your property dreams a reality.
Q: How much do I need to save for a deposit?
A: Generally, deposits are dependent on the value and type of home loan and the lender you choose. Once you have 5% savings, you’re well underway to achieving your goal and our ALIC brokers will be happy to have a discussion with you.
Q: Should I consolidate other debts into my home loan?
A: This option is certainly available, but accessing the equity in our home to pay of Credit Card debt should be carefully considered. Find out more here
Q: Should I get a fixed rate or Variable rate loan?
Q: What is LMI (Lender's Mortgage Insurance) and when do I have to pay it?
LMI is insurance that a lender takes out to
insure itself against the risk of not recovering the full loan balance if the borrower (you) were unable to meet loan repayments.
Q: What is the difference between an Offset and a Redraw facility?
In addition to a full explanation here. Please ensure you speak to your accountant regarding using Redraw facilities against Investment loans or Owner Occupied homes that may convert to investment loans in the future.
Q: What is an Interest Only (IO) Loan?
With an Interest Only loan (IO), your repayments only pay the interest that is due and do not reduce the balance (or the amount you borrowed). Read more here regard IO and Principle and Interest (P&I) repayments and when they may be appropriate
Q: I would like to avoid paying LMI and a friend mentioned they received a Family Pledge.
Many lenders allow parents or someone who is close to you, to use the equity in their property as security for your home in lieu of you saving the full deposit required. Read more here