Your relevant loan options.

FAQ

Q?Does it cost to use the services of Turning Point Finance?
A.

Turning Point Finance is a free Australian mortgage broking service for you. We will find you a suitable loan, relevant to your requirements, hassle and cost free. Our fees are paid for by the lender, with no impact at all on your loan in terms of the interest rate and lender fees.

Q?What is a pre approval and should I get one?
A.

There is no cost to you in getting a pre-approval. If you are actively looking at properties with a view to purchase, it is usually worth considering a lender pre approval. To get a pre-approval you will need to complete an application form and supply supporting documentation. A lender will then assess your application and if the relevant criteria are satisfied, approve finance subject to certain conditions. Most commonly this involves a suitable valuation of the purchase property. It is not guaranteed finance. Pre-approvals are usually valid for 3–6 months, depending on the lender.

Q?What documents do I need to get a loan approved?
A.

Proof of income: two most recent payslips as a minimum and the most recent financial year PAYG Summary. If you have started with a new employer a letter might also be required, even if to clarify that you’re no longer on probation. If you are self-employed you will need two years business and personal tax returns and financial statements.

Proof of savings: many lenders like to see at least 3 months history of any savings for any loans involving an LVR of over 85%. Savings maintained for this period of time at a level around 5% of the purchase price of the property.

ID verification (100 points ID): a copy of any two of your passport, birth certificate or drivers licence will suffice. Other documents may be required depending on the circumstances: rental income statement, council rates notices for any properties you own or recent statements for any existing loans you have.

Q?How much can I borrow?
A.

Every customer situation is unique. Every lender has their own set of policy calculations, meaning your maximum lending capacity varies from lender to lender. Many online “How much can I borrow” calculators can be misleading. Contact Turning Point Finance for an accurate assessment of your borrowing capacity.

Q?What size deposit do I need?
A.

It is generally a minimum requirement to have saved at least 5% of the purchase price. A 10% deposit will increase the number of lender options and also increase the chance of obtaining a lower interest rate. A 20% or greater deposit (or equivalent equity in another property) will avoid the mortgage insurance premium and further increase the likelihood of the lowest possible lender interest rate.

Q?What is Mortgage Insurance?
A.

Lenders will take an insurance policy to insure themselves against higher lending ratio loans. Lender’s Mortgage Insurance (LMI). In most instances, if you borrow greater than 80% of the purchase price, a mortgage insurance policy is taken out by the lender. You as the borrower will be liable to pay the premium. Lender’s Mortgage Insurance (LMI) covers the lender, not the borrower. The higher the LVR (Loan-to-Value Ratio) the higher the % of the LMI paid in a given loan.

Hence, the greater the deposit you have, the lower the premium you will pay. If you have a deposit of 20% or greater, you will pay no mortgage insurance. In some instances Turning Point Finance can arrange finance to 85% of the purchase price without you paying mortgage insurance.

Q?Do I qualify for the first home owners grant?
A.

As a basic rule, you are eligible if you at least one applicant is an Australian citizen or permanent resident, buying or building your first home in Australia, with the intention of occupying it as your principle place of residence within 12 months of the settlement and living in it continuously for at least 6 months. If you’re buying the property in conjunction with others, they must also meet criteria for the grant to be applicable. Each applicant and their spouse must never have received a first home buyer’s grant in Australia.

Q?How much money will I need to set aside for stamp duty?
A.

Stamp duty is a state government tax based on a property’s selling price. Each state or territory has different rules and calculations; some states offer discounts to first home buyers. Stamp duty can be a significant additional cost when buying property. Please see the Australian government site below for the different amounts based on state and value of the purchase.

http://australia.gov.au/content/land-transfer-calculators
Alternatively, contact Turning Point Finance for an accurate assessment.