With so many types of home loans available today it's wise to have a list of questions ready to ask your mortgage provider so you know who you're dealing with, what loan you're getting and exactly what you'll be paying.
Questions to Ask About Your Mortgage Provider o Are they a Member of the MFAA? As a member of the MFAA the person or company you are dealing with subscribes to the industry Code of Practice which ensures professionalism, ethical behaviour and transparency in all stages of the loan process.
o What experience and expertise do they have? Don't be afraid to ask how long your mortgage provider has been working in the industry or what their qualifications are.
This person is going to help you make one of the biggest purchases of your life so make sure they are someone you trust and have confidence in.
o What are their fees and commissions? A MFAA member is required under the industry code of conduct to disclose this information, and all Brokers in NSW are legally obliged to do so in a contract.
Most mortgage providers offer their service to the borrower free of charge as they receive their commission/fee from the lender.
Questions to Ask About the Most Suitable Loan for You o What percentage of the value of the property can be borrowed? o Will I have to take out lenders mortgage insurance? o What are the types of loans are available? o Which loan would best suit my needs? o Which loan offers the best variable/fixed interest rate? o What other products can be linked to my loan? i.
e.
credit card facilities, ATMs etc.
o Tip: Do some of your own research on the types of loan products available before your initial meeting.
It'll be of great help when exploring the loan product options.
Visit http://www.
mfaa.
com.
au to get the MFAA Consumer Guide to the Types of Home Loans Questions to Ask About the Loan Product o What is the interest rate on the loan? Is it fixed or variable? Can it be split into fixed and variable? o What are my weekly/fortnightly/monthly repayments on the loan? o How much is the loan establishment fee? And what does it cover i.
e.
valuation and lenders legal fees.
o Are there any ongoing monthly/annual fees? o Will the lender give pre-approval with no upfront fees? o What is the level of service offered by the lender? Do they offer internet banking, branches, EFTPOS and ATM, credit cards etc.
Are there any additional fees for these services, and if so, what are they? o Are there any costs if you discharge the loan, decide to change the loan products, want to increase your repayments or make a lump sum repayment? o If dealing with a Mortgage Broker, can they give you some comparison rates for the same product (factoring in the upfront and ongoing costs).
o Can they provide a full written quotation for the loan stating all the upfront and ongoing costs, interest rates etc.
so there are no surprises after settlement?