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.
A First Home Owner’s Grant is a government funded one-off payment of $7,000 to assist first homebuyers if they are eligible.
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.
Stamp duty is a tax based on the property’s selling price set by state governments.
Lender’s Mortgage Insurance is protection for lenders if they borrow more than 80% of the property’s value.
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.
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.
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.
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.
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.
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.
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.
Mint Money has a Credit Licence. [EDITOR: explain … are you a Credit Representative?]
We take time to understand your goals and current financial position and then choose and tailor a product to meet your needs.
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.
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.
Sometimes a deposit can be as little as 5% of the purchase price. It depends on a number of factors.
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.
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.
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.
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.
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
- 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.
Please refer to the Mint Money Home Buyers Guide [ED: ??] … … and Property Purchase Timelines … …
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).
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.
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?].
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.