Frequently Asked Questions
How do I apply for a loan?
Click on Contact Us, fill in your details and one of our friendly staff will give you a call.
We will do a preliminary assessment and obtain all the required documentation from you. We will do all the research and present you with some suitable options according to your situation. Once you’ve chosen the option you wish to proceed with, we will lodge your application online, directly with the lender and seek approval as fast as possible.
How much can and should I borrow?
You can use our online calculator to give you an idea of your borrowing capacity. We will also access your financial situation and lifestyle and ensure your repayments are affordable for you.
How is a broker different to a bank?
When you’re looking for a home loan, you can go to a broker or to a bank. We are industry experts, with access to 30+ lenders, we will take the guesswork out of finding the mortgage or finance product that suits you and your needs, while a bank will only offer its own products. Our focus is YOU.
How long does the application and approval process take?
This can vary depending on the lender and how quickly we get the required documentation from you.
Do I need to see the Mortgage Broker in person?
Technology allows us to do all the necessary documentation over the phone and online. We can do Video conferences with you across various platforms such as Zoom, Microsoft Teams, Google Meet etc. Many lenders now accept electronic signatures on most documents, making the application process very easy. Or we can also see you face to face in your home or workplace, so it’s entirely up to you.
How much do I need for a deposit?
This varies depending on your borrowing capacity as assessed by the lender and your situation; employment history, credit rating and ability to make repayments. In general, if you borrow 80% or more of the property value, you will be subject to Lenders Mortgage Insurance (LMI). If you want to avoid this cost, then you will need a deposit of 20% or more.
Alternatively, if you have a guarantor (eg a parent, who offers additional security for your loan with their property), you will not require a 20% deposit and will avoid LMI.
I am self-employed, can you help me?
Yes, we have access to lenders with specific products for self employed people.
I don't live in Victoria; can you assist me?
Yes, we most certainly can assist you anywhere in Australia.
Does The Loan Machine charge a broker fee?
We currently do not charge a fee.
How does The Loan Machine get paid?
The lender pays us an upfront fee for any new applications and an ongoing fee per annum. These fees are NOT paid by you, they are paid by the lender.
What is a Redraw facility?
Redraw is a feature of a loan, where if you have made additional repayments (above your minimum repayments) on your loan, you are able to withdraw this as often as you like.
What is a Line of Credit?
A Line of Credit is a feature of a loan that allows you to access your funds through eftpos, credit card, cheque etc. This is a great option for clients wishing to access the equity in their home for renovations, buying a car or paying for a holiday.
What is the difference between a Fixed Interest Rate and Variable Interest Rate?
A Fixed Interest Rate is where the rate remains the same, for a specified period, therefore your repayments will remain the same for the same specific period.
A Variable Interest Rate varies as the market interest rate changes, therefore, your repayment amount will vary also.
What is a Split Loan?
A Split Loan is a combination of both Fixed and Variable Rates. This allows you to access the benefit of the security of a fixed rate loan and flexibility of a variable rate loan. The loan can be split however you wish.
What is the difference between Principal and Interest Repayments and Interest Only Repayments?
Principal and Interest Repayments pay off both the amount borrowed (principle) and the interest on the loan.
Interest Only Repayments pay off only the interest of the amount borrowed for a specified period. The principle is not reduced.
What is the Comparison Rate?
A comparison rate helps you identify the true cost of a loan as it factors in the interest rate and fees and charges. It is a legal requirement for all lenders to display the comparison rate when advertising interest rates, this allows you to more accurately compare different loans and lenders.
What is Bridging Finance?
When you are unable to arrange settlement on the sale of your current property to coincide with the settlement on your newly purchased property, a bridging loan can cover the finance gap.