FAQs.

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FAQs

Here you’ll find answers to some of our frequently asked questions.

If there’s a question you have that’s not in the list, please don’t hesitate to let us know. We’ll get back to you as soon as we can.

What is a First Home Owner’s Grant?

A First Home Owner’s Grant is a government funded one-off payment of $7,000 to assist first homebuyers if they are eligible.

What makes me eligible for the First Home Owner’s Grant?

Will Mint Money process the First Home Owner’s Grant for me?

Mint Money will help you to complete your First Home Owner’s Grant application; arrange all the required supporting documents; and liaise with the bank and solicitor to ensure it is processed in time.

What is stamp duty?

Stamp duty is a tax based on the property’s selling price set by state governments.

What is Lender’s Mortgage Insurance (LMI)?

Lender’s Mortgage Insurance is protection for lenders if they borrow more than 80% of the property’s value.

Do I have to pay Lender’s Mortgage Insurance (LMI)?

You pay Lender’s Mortgage Insurance (LMI) where the LVR (Loan to Value Ratio) is above 80% (in most cases). There are some circumstances where it is waived, for instance, for certain high earning professions such as doctors. Some lenders provide cheaper alternatives although conditions apply.

How much experience does Mint Money have as a mortgage broker?

Johnny Sukkar, Principal Broker at Mint Money, has six years experience as an independent mortgage broker and a total of 1 years’ experience in mortgages. He also has worked in banking for 11 years before specialising in mortgages.

Why should I use a mortgage broker rather than going to a bank?

Range of services

Mint Money offers a much greater range of products than any one bank. As a mortgage broker we have a range of over 35 lender options with different products, interest rates and lender policies to find the best solution for our clients.

Client focus

Our focus and loyalty is first and foremost the client. In contrast, the banks’ first loyalty is to their shareholders and therefore meeting their monthly lending target. Branch lenders tend to be transaction-focussed. They are concerned with optimising their income from the application at that moment and on-selling additional services.

Long-term goals

Mint Money focuses on our client’s future plans and the optimum loan structure for the medium to long-term. We educate our clients on why it’s important to set up loan facilities correctly to plan for future financial ambitions.

Relationship-based

Mortgage brokers and Mint Money now manage the client relationships that banks have neglected. You have a relationship with your Mint Money mortgage broker that your parents once enjoyed with the local branch manager.

We know our clients and have a long-term relationship with them. You don’t have to tell your story to a stranger every time they require financial assistance as you do with the banks.

Is MM a member of the Mortgage Finance Association of Australia (MFAA) or Finance Brokers Association of Australia (FBAA)?

Mint Money is a member of the Mortgage Finance Association of Australia (MFAA). The MFAA is the peak national body providing service and representation to over 10,000 professional credit advisers (mortgage and finance brokers, mortgage managers and aggregators) to assist them to develop, foster, and promote the mortgage and finance industry in Australia.

The MFAA represents and lobbies for professional credit advisers, delivers services that support their career paths, and positions them as the professionals of choice in the mortgage and finance industry for both consumers and regulators.

Does MM have its own Credit License?

Mint Money has a Credit Licence. [EDITOR: explain … are you a Credit Representative?]

How do I decide which loan is best suited to my personal situation?

We take time to understand your goals and current financial position and then choose and tailor a product to meet your needs.

What commissions does Mint Money get paid for writing my loan?

We are paid an upfront commission on the total loan amount. It is percentage based and ranges between 0.45-1%. We are then paid an ongoing monthly trail commission ranging between 0.1-0.35% of the current loan balance. Please note, this is paid by the bank not the client. We consider the trail commission a service fee to provide ongoing support for the client, this is why we position ourselves as the clients personal banker.

Do you provide loans from a range of different lenders?

We have a range of over 35 lender options with different products, interest rates and lender policies to find the best solution for our clients.

How much of a deposit do I need to obtain a loan?

Sometimes a deposit can be as little as 5% of the purchase price. It depends on a number of factors.

What impact will my credit card limit have on my borrowing capacity?

The full repayment amount is factored into a lender’s servicing calculations. So, for example, if someone has a limit of $10,000 but only owes $2000, the minimum repayment set by the bank on that month’s statement may only be $50 calculated at 2.5% of the balance. However, on a loan application, the repayment calculation will be $250 based on repayment amounts on the full limit (ie $10k x 2.5%). This may reduce the clients lending capacity.

What fees will I incur when taking out a home loan?

Fees vary from bank to bank. A basic loan may have an application fee and no ongoing fees. A packaged loan will have many features and a monthly or annual fee. It is a user pays system.

What is a comparison rate?

A comparison rate is a tool to help consumers identify the true cost of a loan. It factors in the interest rate, fees and charges and displays a single percentage rate that can be used to compare various loans from different lenders.

What features are included in my new loan?

There are basic, no frill loans with no fees that come with few banking features. However, full-featured, packaged home loans generally incur monthly or annual fees.

What information do I need to provide to obtain my finance?

Obtaining a loan

  • evidence of income (this varies if self-employed or PAYG)
  • evidence of savings
  • identification – it depends on the type of application.

Refinancing and consolidating debts

  • statements
  • pay out figures

Buying a property

  • a copy of the purchase contract
  • evidence the client has the ability to settle the loan (i.e. meet their contribution) by providing savings statements showing their savings.

[EDITOR: … Draft stated “Please refer to the list provided which shows an extensive list of lender requirements”. DO WE NEED THESE DETAILS] Lenders’ policies vary with some requiring applicants to show evidence of their debts while others may not.

What procedures do I need to follow to obtain my finance and settle my loan?

Please refer to the Mint Money Home Buyers Guide [ED: ??] … … and Property Purchase Timelines …

Can I choose to fix my interest rate at a later stage?

You can choose to fix your interest rate at a later time but conditions may apply whether a fee is charged or not (e.g. if a packaged loan, a switch fee may not be charged).

If I choose to take out a fixed interest rate can I lock it in before settlement?

It is possible to lock your fixed interest rate in before settlement. Normally when a fixed rate is selected at application the rate may change before settlement if the lender changes its rate. To avoid this, an applicant may pay a Rate Lock Fee (which varies from bank to bank) which locks in the fixed rate at the application stage.

How long will it take to obtain a finance?

The loan approval time varies depending on circumstances. Generally Mint Money can have an approval within a week, which includes meeting with the client, discussing options, taking the application (data & supporting documents) and submitting the application to the lender. A refinance or consolidation loan approval can, in some instances, be concluded within five weeks [EDITOR: compare loan with refinance. Is this correct?].

If I have a default on my Credit Report will this affect my ability to obtain a loan?

A default on your Credit Report may affect your ability to obtain a loan. It depends on the status and the amount of the variation. In some instances Mint Money can mitigate the affect by providing reasons for the default, if the amount is not substantial and it has been paid.

Some lenders will accept applications from defaulters but require higher application fees and interest rates. Where this occurs we set up a plan to refinance the product into a cheaper mainstream cheaper loan as soon as possible.

I have a question that’s not in the list.

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