Home Loan Questions - part 2

We have quite a few questions that are asked all the time and we thought we would share a few with you. They may be questions that you have and have not yet asked

 

What is Mortgage Insurance?

There are two types: Lenders Mortgage Insurance (LMI) and Mortgage Protection Insurance (MPI). LMI is dependent on the percentage of the property’s value you’ll borrow (i.e. Loan to Value Ratio – LVR). LMI usually applies to loans with an LVR in excess of 80% and covers the lender, not the borrower, in the event of loan default or a capital loss at the time of property sale. This is a once-only payment by the borrower and in some cases can be added to the loan. MPI can insure the outstanding balance or repayments of a loan. It can cover such events as death, temporary/permanent disablement and unemployment. It’s generally not a requirement of the lender.

 

Can my loan be arranged quickly?

Yes, as your home loan expert, I will save you time and the hassle of visiting an endless number of lenders. Secondly, I’ll do the paperwork and, when the time is of the essence, I know which lenders can process loans quickly.

 

How do mortgage brokers get paid?

Mortgage Choice brokers are paid the same commission regardless of which lender you choose, as long as it’s a residential home loan with one of the 28 lenders on our panel.

 

Interest Only repayments – is this a good idea?

There are instances where it’s beneficial to the borrower to make interest only payments rather than making principal & interest repayments. All borrowers should be made aware this is a viable option in some cases, especially new borrowers. Speak to your mortgage broker and financial advisor about what will suit your situation.

 

If you have any questions you would like answered or even to discuss your options then call our office or book an appointment with one of our brokers.

Posted in: Home loans

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