Measure to fit – how to get the right loan for you.

imageAs well as interest rates being at historic lows, therefore  a great time to look for a loan to purchase a home, refinance or invest, there continue to be a range of special incentives from different lenders. Examples include Lenders Mortgage Insurance (LMI) for $1 where certain criteria are met, an interest rate offer of 4.39% (4.4% comparison rate)  – with no application fee or ongoing monthly fees, and 4.69% (4.71 % comparison) variable with 100% offset, 3 year fixed term from an initial rate of 4.59% (comparison rate 4.83%), and 5 year fixed term from an initial rate of 4.98% (comparison rate of 4.95%). Which of these would work for you can be difficult to know. Some lenders are great for people in small business – some even if you only have one years of financials, others specialise in other areas. That is where having a mortgage broker on your team will make the difference. All the work is done for you and the best options and why these are your best options  are presented to you.

Elkins Finance is based in Melbourne, with offices in Blackburn and Campbellfield, but fully mobile and flexible  to suit you. Call 1300 355 467 or use the contact us form to request we contact you.

Or if you are interested in knowing more about mortgage brokers? Read on……..

WHAT IS A MORTGAGE/FINANCE BROKER?

Brokers are now the number one choice for consumers who are seeking a home loan or to refinance their existing loan. Businesses too use finance brokers to help them with their finance needs from car and equipment leasing to loans to help their businesses expand.

WHAT BROKERS DO

Brokers work with clients to determine their borrowing needs and ability, select a loan suited to their circumstances and manage the process through to settlement.

Some benefits of using a broker:

·         We do all the legwork for you

·         Access to a wider range of loans

·         Experts in a wide range of loans

·         More flexible

·         Greater expertise as they focus on loans only

TYPES OF BROKING

Brokers can specialise in areas such as:

·         Residential Loans/Mortgages

·         Reverse Mortgages/Equity Release

·         Equipment Leasing

·         Chattel Finance

·         Car and personal loans

·         Business Loans

·         Debtor Finance

·         Commercial Property Finance

PANEL OF LENDERS

Brokers can only offer loans from the lenders they are accredited with. They call this their panel of lenders. Lenders will normally range from the large banks through to specialist non-bank lenders and mortgage managers. The size of a panel of lenders will vary from broker to broker.  Elkins Finance display our panel of lenders on our website.

WHY USE AN MFAA MEMBER

MFAA members must adhere to the industry Code of Practice which requires high professional standards, fair business practices, ethical behaviour and compliance with both the letter and the spirit of the relevant laws and regulations – all in the interest of you, the borrower.

MFAA sets the highest standards in the industry for its members:

·         Industry experience

·         Education standards

·         Ongoing education to maintain accreditation

·         Probity checks

·         Professional indemnity insurance

·         Membership of an external dispute resolution service

LEGAL REQUIREMENTS FOR BROKERS

New national regulation for the credit industry, including mortgage brokers commenced on 1 July 2010 and is known as the National Consumer Credit Protection Act (NCCP).  Changes include that credit for residential property, including residential investment property, is regulated nationally by the Australian Securities and Investments Commission (ASIC). Note that some state laws and regulations continue to exist, such as maximum interest rate caps in ACT, Qld, NSW and Victoria.

Finance broking contracts (FBCs), have been mandatory in NSW and Victoria until 31st December 2010.  However, from 1 January 2011, a new phase of the NCCP is in effect that requires that Credit Guides and Credit Quotes be provided to potential borrowers.  These documents are designed to give borrowers pertinent information about their rights and obligations under the NCCP.

Another very important aspect of the NCCP is the concept of “responsible lending”, because it requires all persons involved in the provision of credit for ‘personal, domestic or household use or consumption’ to make sure that the borrower is able to make repayments on a loan (or lease) without substantial hardship.  In other words, loan products must be ‘not unsuitable’ based on the objectives and needs expressed by a borrower.

Elkins Finance is based in Melbourne, with offices in Blackburn and Campbellfield, but fully mobile and flexible  to suit you. Call 1300 355 467 or use the contact us form to request we contact you.