Will I get paid?
All introducers of new mortgage business to Aussie f&p will be paid an introduction fee when a loan is ultimately settled by a lender for a minimum amount of A$100,000, and once any upfront loan procurement fee is paid to Aussie f&p by the lender.
What are the typical lender application fees or arrangement fees charged by the lender to my client when they apply for a loan?
Typically high street lenders in Australia charge around A$600 for a loan application fee. This usually includes costs for valuation. It is usually deducted only at settlement time, from the loan proceeds available to the client. However where the client takes up a loan package type product, these application fees are often waived, and instead the lender charges an annual fee for the package. This annual fee commences upon settlement, deducted from loan proceeds, and is typically around A$400 p.a.
What are the mortgage arrangement fees charged by Aussie f&p to my client ?
For arranging non-resident and expatriate loans on Australian property Aussie f&p will charge a Loan processing fee and a Mortgage Arrangement fee. The Loan processing fee is A$650 payable by the client after preapproval and prior to obtaining full approval.
The Mortgage Arrangement fee is 1% of the loan amount for standard loans, with a minimum fee of A$1500 (£995). For complex loans involving trusts, companies, complex financial statements or loan structuring, etc the Mortgage Arrangement fee is 1.5%. The Mortgage Arrangement fee is payable at full approval prior to mortgage document preparation.
What does my client receive for this?
Aside from loan preassessment, loan sourcing services and selection, application processing, loan administration and settlement coordination, clients will receive:
*Access to a panel of 20+ lenders including local lenders and offshore and UK lenders not ordinarily available to Australian based brokers
*Protection: A licensed and regulated broker who is responsible to be compliant with the Australian government body charged with regulation and oversight of the mortgage industry in Australia (ASIC) and therefore the consumer is safeguarded from non-regulated practices
*Additional, comprehensive services: As part of the My Financial Life business, clients will receive loan structuring and taxation advice as well as relevant financial services advice if required, from My Financial Advice Pty Ltd, who is authorised to provide Australian financial services advice, as Authorised Representative of Patron Financial Advice, AFSL 307379. Please note this service relates to ancillary mortgage advice and does not include preparation of financial plans, investment strategies or such unrelated services.
Please also see Why Use an Australian Specialist?
Which lenders do you deal with?
We deal with all the major banks, Australia’s largest regional banks, international banks, non banks and some building societies, as well as specialist lenders. The result is a panel of over 30 lenders available to us.
What mortgage loan terms are available for my client?
You can choose almost any loan term that you desire. The most common loan terms are 5, 10, 15, 20, 25, 30 years. The 30 year mortgage term is the most common loan term used for home mortgage financing and it will be used consistently to calculate your client’s estimated repayments per month, unless you tell us otherwise.
Australian lenders will not discriminate on age of the borrower, provided there are sufficient retirement funds or assets that exhibit ability to payoff the loan in retirement.
Do Australian mortgages have offset accounts?
Yes, and they are available for non-residents.
Can my client obtain mortgage funds by Equity release, or “cashout” using their equity in Australian property?
Most Australian lenders that lend to non-residents will allow some amount of cashout, however since the Global financial crisis that amount is not significant. For higher amounts (above say $25,000) cashout will be very difficult to obtain where the borrower’s situation contains one or more of the following characteristics:
*offshore or non-resident borrowers and non-Australian Citizens
*cashout required for several purposes
*cashout required for unacceptable purposes (generally non property related or non investment related)
*large cashout requests where the lender cannot control where the funds are going
*in addition where the applicant’s are self-employed and there is any difficulty in obtaining evidence of at least 2 recent consecutive years business financial statements and tax returns displaying consistent net profit plus owner salary.
Will Australian lenders use rental income proposed for investment property, to service the debt?
Yes, Australian lenders incorporate 75-80% of gross estimated rental income, as estimated by the valuer, or evidenced by current actual rental income, in serviceability calculations. However it should be noted they will generally look to see evidence the applicant can service all of their current loans from all available income sources.