A mortgage broker serves as an intermediary between the borrower and the lender, utilising
their expertise and advanced tools to find competitive rates and ensure a seamless journey
to settlement. Acting in the borrower’s best interests, the mortgage broker manages the
entire process, keeping the borrower informed at every stage and handling all necessary
steps to secure the best possible mortgage terms..
With a vast array of mortgage products available, comparing them can be overwhelming. A
mortgage broker simplifies this process by explaining the differences between options and
helping you choose a loan that perfectly suits your needs. Once you’ve selected a product,
the broker ensures everything stays on track and keeps you fully informed at every step.
Our services are free oc charge to you. We receive a commission from the lender you
choose, which is fully disclosed upfront (government and lender fees and charges may
apply). Initially, your mortgage broker will provide you with our Credit Guide, outlining our
general remuneration. Once you decide to proceed with us, we will give you a Credit
Proposal Disclosure document, detailing the exact amount the lender will pay us after your
loan settles.
There may be things outside the box that require an additional fee- Example bridging loan
with no end debt but this is certainly something that we will talk to you about and how this
process works
Our advice is always based on what is best for you, regardless of our commission. Ensuring
our clients’ satisfaction is our top priority, as we depend solely on your reviews and referrals
to sustain our business. This dedication is reflected in our nearly 500 5-star reviews.
Using a mortgage broker offers several key advantages:
Access to Multiple Lenders: Mortgage brokers have a broad network of lenders, including
major banks, credit unions, and non-bank lenders, helping you find a loan that suits your
specific needs.
Expert Guidance:As licensed professionals, mortgage brokers provide expert advice, helping
you understand your options and make informed decisions.
Time-Saving: Brokers do the legwork for you, researching and comparing loan products to
find the best options, saving you time and effort.
Negotiating Power: Mortgage brokers can negotiate better interest rates and loan terms on
your behalf.
Personalised Service: Working one-on-one with you, a mortgage broker understands your
unique financial situation, ensuring a smoother and more comfortable home loan process.
Absolutely not! Our industry is governed by the National Consumer Credit Protection Act
(NCCP), which ensures ethical and professional standards to protect consumers. We disclose
our commission from the bank upfront. Our sole focus is to find the best loan that meets
your needs and financial situation.
When it comes to finding the right loan, you have thousands of options available. Each bank
or lender offers a variety of loan products, including low doc loans, package loans, redraw
facilities, plant and equipment loans, fixed and variable rates, interest-only loans, and more.
As a consumer, it can be overwhelming to determine which loan is right for you.
This is where a mortgage broker can make a significant difference. If you go directly to a
bank, you’ll only have access to that bank’s loan products. As your mortgage broker, we do
all the legwork for you. We have access to many lenders and their wide range of loan
products, allowing us to find the perfect loan to meet your unique needs and financial
situation.
At Mynt, our commitment to you doesn’t end at settlement. We receive an ongoing trailing
commission from your chosen lender, which ensures we’re always available to answer your
questions and make any necessary adjustments to your loan, such as fixing or switching
products.
Every year, your broker will review your loan to ensure it continues to meet your needs. We
will also compare it with offers from other institutions and negotiate with your current
lender to secure the best possible rate for you
At Mynt Financial, we don’t charge a fee for our services. However, there are other costs you
may incur during the mortgage process, typically involving lender and government fees.
For property purchases, common government charges include stamp duty, land transfer
registration, and discharge registration fees. Additionally, you might face loan application
fees or lender legal charges, although your broker will work to minimise these costs. You’ll
also need to budget for conveyancing and council rates or body corporate fees.
When refinancing, the costs are generally lower. You won’t need a conveyancer, and there’s
no stamp duty or land transfer registration fee. You’ll only be responsible for registration and
discharge registration fees, plus any applicable lender fees.
A pre-approval is confirmation from the lender that they are willing to lend you a specified
amount based on the information your broker has submitted. This approval is conditional,
meaning it depends on certain criteria being met. Common conditions include:
● A satisfactory property valuation
● Employment verification
● Formal acceptance from the mortgage insurer (if applicable)
Typically, a pre-approval is valid for 90 days. If you haven’t made a purchase within this
period, your broker will contact you to renew the pre-approval.
When you sign a contract to purchase a property, your broker will convert your pre-approval
into full approval.
Here’s the process:
- Document Submission: Your broker will collect the fully signed contract and Section
32 and send them to the lender. A property valuation is usually ordered. - Unconditional Approval: Once the valuation is accepted and all other conditions are
met, the lender will issue an unconditional approval along with a formal loan offer. - Loan Offer Signing: Your broker will schedule an appointment to thoroughly explain
the loan offer. Once you’re comfortable with the terms, you’ll sign the loan offer. - Settlement Coordination: Within 3-4 days of receiving the signed loan offer, the
lender will move your file to their settlements department. They will coordinate
directly with your conveyancer to schedule the settlement on the agreed date.
Once the signed loan offer is received, your lender typically moves your file to their
settlements team within 3 to 4 days. This team will coordinate directly with your
conveyancer to schedule the settlement for the agreed date.
About a week before settlement, your conveyancer will calculate the exact amounts for
council rates and water rates. They’ll inform you of any shortfall, which you’ll need to cover
via bank cheque or transfer from your account. On settlement day, your conveyancer will
work with the lender to transfer ownership of the property into your name. All you need to
do is pick up the keys from the agent!
Yes, it’s highly recommended to have a conveyancer when you get a home loan, especially if
you’re purchasing property. A conveyancer is a legal professional who specialises in the
transfer of property ownership. Their role is to manage the legal aspects of the transaction,
ensuring everything is done correctly and that your interests are protected.
Here’s why a conveyancer is important when getting a home loan:
1. Contract Review: They review the contract of sale to ensure there are no
unfavourable terms and that everything is in order.
2. Searches and Due Diligence: Conveyancers conduct property searches and due
diligence to identify any potential issues with the property, such as unpaid rates,
zoning restrictions, or legal disputes.
3. Coordinating with Lenders: They liaise with your lender to ensure that all mortgage
documents are correctly prepared and signed, and that the loan funds are available
in time for settlement.
4. Settlement Process: On the settlement day, your conveyancer coordinates with the
seller’s conveyancer and your lender to finalise the transaction. They ensure that all
payments are made and that the property title is transferred into your name.
5. Legal Compliance: They ensure the transaction complies with all legal requirements
and that the transfer of ownership is properly registered with the relevant
authorities.
While it’s technically possible to handle the conveyancing process yourself, it can be complex
and time-consuming, with significant risks if not done correctly. Most people choose to hire
a conveyancer to ensure a smooth and legally sound transaction.
A Section 32, also known as a Vendor’s Statement, is a legal document provided by the seller
(vendor) of a property to the prospective buyer before a contract of sale is signed. The term
“Section 32” comes from the section of the Sale of Land Act 1962 in Victoria, Australia,
which mandates the provision of this document.
The Section 32 statement is crucial because it discloses important information about the
property that may affect the buyer’s decision to proceed with the purchase. It includes
details that might not be immediately apparent, such as:
1. Title Details: Information about the title, including any encumbrances, easements,
covenants, or restrictions on the property.
2. Zoning Information: The zoning of the property, which determines how the land can
be used (e.g., residential, commercial, or mixed-use).
3. Rates and Outgoings: Information on any rates, taxes, and outgoings associated with
the property, such as council rates, water rates, and owners’ corporation fees.
4. Building Permits: Details of any building permits issued for the property within the
last seven years.
5. Services: Information on the services connected to the property, such as electricity,
gas, water, and sewerage.
6. Notices and Orders: Any notices or orders issued by authorities that may affect the
property, such as orders to repair or demolish a structure.
7. Insurance: If the property is part of an owners’ corporation (body corporate), the
Section 32 may include details about insurance coverage.
8. Planning Information: Relevant planning information that may affect the property’s
future use or development potential.
The Section 32 is designed to provide transparency in the property transaction process,
giving buyers the necessary information to make an informed decision. It’s important for
buyers to review the Section 32 statement carefully, often with the help of a conveyancer or
solicitor, to ensure there are no hidden issues that could impact their purchase.
When buying a house, the process can vary significantly depending on whether the property
is being sold by private sale or auction. Here are the key differences between the two
methods:
Private Sale:
- Negotiation
- In a private sale, the buyer and seller negotiate the price and terms of the
sale. The seller usually sets an asking price, and potential buyers can make
offers either at or below this price.
- The negotiation can involve back-and-forth discussions between the buyer,
the seller, and their respective agents, potentially over several days or weeks.
- Cooling-Off Period:
- In most Australian states, buyers have a cooling-off period after signing the
contract during a private sale. This period, typically around 3-5 business days,
allows the buyer to reconsider the purchase and withdraw from the contract
with minimal financial penalty – please check with your state regarding
cooling off requirements.
- Conditions:
- Buyers can make their offer subject to conditions, such as finance approval,
building and pest inspections, or the sale of another property. These
conditions must be fulfilled for the sale to proceed.
- Less Pressure:
- The e private sale process is generally less pressured than an auction. Buyers
have more time to consider their offer and can seek advice from their
conveyancer or solicitor before committing.
- Price Transparency:
- The asking price is often advertised, but the final sale price can be negotiated
and may not be disclosed until after the sale is finalised. Buyers might not
know what other potential buyers are offering.
Auction:
- Competitive Bidding:
- An auction involves potential buyers bidding against each other in a public
forum, with the property being sold to the highest bidder. The auctioneer
manages the process, and bids are called out openly.
- Bidders must usually be registered before the auction starts.
- No Cooling-Off Period:
- If you are the successful bidder at an auction, the sale is typically
unconditional. There is no cooling-off period, meaning the buyer is legally
bound to proceed with the purchase immediately after the auction
- Buyers need to have their finances arranged and any necessary inspections
completed before the auction.
- Unconditional Sale:
- The sale at auction is unconditional. There are no contingencies, such as
finance or inspection clauses, so the buyer must be ready to settle the
purchase as specified in the contract of sale.
- Transparency and Finality:
- The auction process is transparent, with all bids made in the open. Buyers
know exactly what they need to offer to secure the property
- The final price is determined by the highest bid on the day, and if the reserve
price (a minimum price set by the seller) is met, the property is sold.
- Potential for Overbidding:
- Auctions can create a competitive atmosphere, leading to higher prices as
buyers compete with each other. This can sometimes result in buyers paying
more than they initially intended so make sure you are clear on what you are
prepared to pay and stick to your limit, it can get very emotional so be careful
you don’t get carried away.
- Pre-Auction Offers:
- In some cases, the seller may accept pre-auction offers. However, this is at
the seller’s discretion and typically happens when the offer is strong enough
to encourage them to sell before the auction.
Summary
- Private Sale: Involves negotiation, allows for conditions, and typically includes a
cooling-off period. The process is generally more relaxed and less pressured.
- Auction: Is a public competitive process with no cooling-off period, requiring
immediate commitment from the buyer. The final price is determined on the spot,
and the sale is usually unconditional.
The choice between private sale and auction often depends on the market conditions, the
type of property, and the seller’s preferences. Buyers should consider their comfort level
with each process and ensure they are well-prepared, especially when participating in an
auction.
*always get legal advice for your own personal situation
Lenders Mortgage Insurance (LMI) is a type of insurance that protects the lender (not the
borrower) in the event that the borrower defaults on their home loan. LMI is typically
required by lenders when the borrower is unable to provide a large enough deposit, usually
less than 20% of the property’s purchase price. Here’s how it works:
How LMI Works:
- Purpose:
- LMI is designed to protect the lender against financial loss if the borrower is
unable to repay their loan. If the property is sold for less than the outstanding
loan amount due to the borrower’s default, the LMI policy covers the
shortfall.
- When It’s Required:
- LMI is usually required when the loan-to-value ratio (LVR) is above 80%,
meaning the borrower is borrowing more than 80% of the property’s value.
For example, if you’re purchasing a property worth $500,000 and you have a
deposit of $50,000 (10% deposit), your LVR is 90%, and LMI would likely be
required.
- Cost:
- The cost of LMI can vary depending on the size of the loan, the LVR, and the
lender’s policies. It can be a significant expense, often amounting to
thousands of dollars. The LMI premium is usually paid as a one-off fee at the
time the loan is settled.
- In some cases, borrowers can choose to pay the LMI premium upfront, or it
can be added to the loan amount, in which case it would be repaid over the
life of the loan.
- Less Pressure:
- The e private sale process is generally less pressured than an auction. Buyers
have more time to consider their offer and can seek advice from their
conveyancer or solicitor before committing.
- Price Transparency:
- The asking price is often advertised, but the final sale price can be negotiated
and may not be disclosed until after the sale is finalised. Buyers might not
know what other potential buyers are offering.
A parent can assist their children in avoiding the cost of Lenders’ Mortgage Insurance (LMI)
by using a portion of their home equity to reduce the lender’s risk. Typically, if your loan
doesn’t exceed 80% of the property value, you can combine your deposit with the equity
from your parent’s home or investment property to stay within this safe margin (your broker
can explain the details!). It’s important to note that parents acting as guarantors should seek
independent legal advice to fully understand their rights and responsibilities.
Yes, it can be disheartening when a loan application is declined, but it doesn’t mean all
options are off the table. Your application may not have aligned with the specific credit
policy of the bank you applied to, but that doesn’t mean you won’t be eligible elsewhere.
We work with a diverse panel of lenders, each with their own unique credit criteria, so there
may be other options that are a better fit for your financial situation.
As finance brokers, our expertise lies in understanding the nuances of different lenders’
policies and matching you with the right loan products that align with your individual needs
and circumstances. We can assess your situation, identify any potential issues, and
recommend alternative lenders who may be more likely to approve your application.
Additionally, we can provide guidance on improving your financial profile, such as addressing
credit report issues, reducing existing debts, or saving a larger deposit, which can increase
your chances of approval in the future. Our goal is to work with you to find a solution that
helps you achieve your financial goals, even if the first attempt didn’t go as planned.
It can be frustrating when your bank’s credit policy limits the amount you can borrow, but
don’t lose hope. Each lender has its own unique method for calculating borrowing capacity,
meaning the amount one bank offers may differ significantly from another. Just because
your current lender can’t meet your needs doesn’t mean you’re out of options.
As experienced credit advisors, we specialise in navigating these differences across lenders.
We understand the varying criteria and calculations used by different financial institutions,
allowing us to identify lenders who may offer higher borrowing limits that better align with
your financial goals.
We can analyse your financial situation and recommend lenders and loan products that are
tailored to your individual needs. This personalised approach not only increases your
chances of securing the loan amount you require but also ensures you’re matched with a
lender whose terms are most favourable to you.
Additionally, we can advise on strategies to potentially increase your borrowing capacity,
such as consolidating debts, adjusting your financial profile, or exploring different loan
structures. Our goal is to find a solution that not only meets your borrowing needs but also
aligns with your long-term financial wellbeing.
As a first home buyer, limited savings can feel like a significant hurdle, but your parents may
be able to provide valuable assistance through a Guarantor Support arrangement. This
option allows your parents to use their own property as additional security for your home
loan, which can offer several key benefits.
By leveraging their property, your parents can help you potentially borrow more than you
would otherwise be able to on your own. This can be especially helpful if your savings don’t
cover the usual 20% deposit. Additionally, using a guarantor can enable you to avoid Lenders
Mortgage Insurance (LMI), a cost that typically applies when your deposit is less than 20% of
the property value.
As a guarantor, you are not necessarily tied to the loan for its entire duration. You can seek
to be released from your guarantor obligations once the loan has been sufficiently reduced
or when the property’s value has increased enough to lower the Loan to Value Ratio (LVR) to
an acceptable level for the lender.
There are a couple of key ways this can be achieved:
- Paying Down the Loan:
- Once your child has made enough repayments to significantly reduce the loan
balance, it may no longer be necessary to have additional security. At this
point, you can request the lender to release you from the guarantor
arrangement.
- Increase in Property Value:
- If the property’s market value increases over time, the LVR will naturally
decrease. For example, if your child’s property increases in value to the point
where the LVR falls below 80%, your guarantor obligation may no longer be
required. At this stage, you can apply to be released from the guarantee.
It’s important to regularly review the loan and property value, as changes in these areas can
affect your status as a guarantor. To initiate the release process, your child will typically need
to request a property valuation from the lender and demonstrate that the LVR is now within
the acceptable range without the need for a guarantor.
Additionally, once released, it’s advisable for you and your child to consult with the lender to
ensure all formalities are correctly completed and that there are no remaining obligations.
Yes, there are some lenders who allow guarantors who are not directly related to the
borrower. While most lenders prefer guarantors to be parents, children, spouses, de facto
partners, or close relatives such as aunts, uncles, or parents-in-law, there are a few lenders
that even accept friends as guarantors.
When a guarantee is required, it is crucial for the guarantor to seek independent legal
advice. This step is important for understanding the obligations and risks involved and may
also be a mandatory requirement by the lender.
The most common type of guarantee today is a security guarantee. In this arrangement, the
guarantor offers their property as additional security for the loan, often secured by a first or
second mortgage. This type of guarantee is typically used to help the borrower avoid
Lenders Mortgage Insurance (LMI) by reducing the loan-to-value ratio.
Income support guarantees, where the guarantor’s income is used to supplement the
borrower’s application, are less common today. Most lenders require the borrower to
demonstrate that their own income is sufficient to service the loan, even with the additional
security provided by the guarantor.
Yes, some lenders allow the guarantor to keep their property with their existing bank, even if
it differs from the bank issuing the loan. In these cases, the new lender may take a second
mortgage on the guarantor’s property, so there’s no need to switch banks or refinance
existing loans.
