Here are some common questions (FAQs) we get asked along with the answers. If you would like more information, or have any other specific questions, please get in touch with us.
What is a mortgage manager?
It describes an organisation that can offer its clients custom-designed loans to suit their individual needs. A mortgage manager can approve your loan in-house, manage every aspect of your loan throughout the term and provide wholesale interest rates to save you money.
What does this service cost?
There is no fee for finding the right loan for you – it’s a free service to you. Mortgageport (the company) gets paid a commission from the lender – though please note, our consultants are salaried staff members. They are not paid solely though commissions for the loans they arrange, like some other brokers out there. Your interests are really at the heart of what they do.
What does a mortgage broker do?
A mortgage broker acts an intermediary between you as a borrower and a number of lenders. The broker’s role is to assess your personal circumstances, find a suitable loan product for you and then negotiate the successful approval and settlement of the loan.
Why would I use Mortgageport instead of a bank?
Mortgageport offers competitive products and interest rates and will always strive to provide a positive and rewarding experience. Unlike a bank, we provide a personalised service where you can ask for someone by name, and you have your own mortgage consultant.
We specialise only in home loans, and have a wide range available from more than 14 major banks and retail mortgage providers – so we offer a greater choice of loans than any bank. Please note though, you can get many major bank loans through Mortgageport, and it costs no more to arrange them through us.
For what purposes can I borrow money?
- to buy a home
- to buy a residential investment property
- to refinance an existing home loan
- to refinance an existing loan and consolidate your other debts
- for investment purposes (other than property) where you provide enough equity in residential property as security
- most other purposes (such as buying cars, holidays, weddings, school fees) secured by your home.
At Mortgageport we can assist you with residential home loans, where we have access to a broad variety of loan products through many different lenders. Determined by your circumstances, we use our unique MATCH selection system to identify the best loan for you and back this up with our Future Proof Loan Commitment to make sure you feel secure in your future financial loan situation.
Where does Mortgageport source its loan funds from?
As a mortgage broker Mortgageport does not usually lend our own money out as we arrange loans for our clients with major banks and other lenders. In some cases Mortgageport may also act as a mortgage manager, the difference to you is who you deal with during the loan approval process and after your loan settles.
Mortgageport acts as a mortgage manager for 2 major institutions, the first is Advantedge, a wholly owned subsidiary of the National Australia Bank and the other is the Bendigo and Adelaide Bank. Our role in these cases is to approve your loan, arrange for your loan to settle and then deal with any inquiries personally after the loan has settled.
How much income do I need to qualify for a home loan?
This will depend upon your circumstances, what loan product you are looking for and the purpose of the loan. Working through our MATCH selection system we analyse and identify your needs and then look for the best solutions for your individual needs and circumstances.
How much deposit will I need for a home loan?
Each lender has different rules about how much deposit you will need to have but as a general rule, you will now need at least 5% deposit in addition to other purchase costs.
In some cases a lender will ask you to show that you have saved the deposit yourself to demonstrate that you have the savings history. This acts as a good indicator that you will be able to afford your home loan repayments. If you offer less than a 20% deposit you will also be required to take out mortgage insurance to protect the lender.
What is mortgage insurance?
Mortgage insurance covers the lender in the unlikely event that you default on your loan. It does not cover you, the borrower.
Your mortgage consultant will advise you if you require mortgage insurance and the costs involved. We may be able to structure your loan to avoid, or minimise the need for mortgage insurance.
How quickly can the loan be settled?
There is no simple answer to this, but some lenders tend to offer quicker service than others. It usually takes between two and three weeks for you to get your money from the date we receive your application. The speed of this process often depends on your personal situation and which lender is selected.
What’s the difference between fixed and variable rates?
With a variable rate loan, the interest rate you pay can change at any time, either up or down, in line with official interest rates set by the Reserve Bank of Australia. Market circumstances and competition between lenders can also lead to interest rate changes, which can affect the interest rate of your loan.
The interest rate of a fixed rate loan is just that – fixed (or set). It remains unchanged, for a specified period, often a number of years, regardless of changes to interest rates generally.
Should I choose a fixed or variable interest rate?
This depends on whether you think interest rates will rise or fall in the coming years. If you think interest rates will rise in the coming years, you may want to fix your rate at today’s lower rate.
Be aware though, predicting future interest rate levels is very uncertain. You may fix a loan at today’s rate, only to see future interest rates fall – in which case having a variable rate loan, whose interest rate would also fall – would have proved to be the better option.
How do I know which loan is best for my needs?
This is best answered by meeting one of our mortgage consultants. Through the website you will see there are many factors to consider which is best for your individual needs.
What is a split loan?
A split loan is where one part of the loan is at a variable rate, and the remainder is at a fixed rate. It may be split 50% variable/ 50% fixed, or some other ratio such as 60/40. This type of loan effectively takes an “each way bet” on which way future interest rates are considered likely to go by the borrower.
Check our calculator here.
What is a comparison rate?
A comparison rate reveals the cost of a loan, allowing you to compare ‘apples with apples’ when choosing a loan. The comparison rate takes into consideration the costs associated with setting up a loan, including the interest rate, the loan approval fee and any other up front or ongoing fees. It excludes government fees and charges, because they are standard across all loans.
The comparison rate can be compared against the rates of other loans and loans with other lenders. It is also important to consider the features of a loan rather than just the interest rate when comparing loans. No monthly fee, repayment flexibility and money saving features such as 100% mortgage offset, can make a huge difference to the final cost of a loan.
Is there support available for me if my financial situation changes?
Mortgageport recognises that people’s circumstances change, for this reason, we offer ongoing service to help make sure your home loan can change to meet your needs.
Sometimes however your financial circumstances can deteriorate (loss of income, loss of job, sickness etc) and you may need support through these difficult times. All lenders we deal with comply with the Uniform Consumer Credit Code (UCCC) which sets out various levels of protection to consumers and obligations on lenders, which includes conduct surrounding support through financial hardship. We can assist you if needed by being a conduit between you and the lender. You should also be aware that under the UCCC, protection is provided to make sure lenders deal with you fairly in times of hardship.