Frequently Asked Questions

1Can I get a Car Loan pre-approved before I find a vehicle?
Yes a pre-approval is a great way to ensure that you know your budget and future repayments before deciding on a vehicle.
2Can I live in my SMSF property?
You cannot purchase your family home through your self-managed superannuation fund. You also can't rent a residential property owned by your SMSF to fund members or to any related parties of those fund members.
3What is a balloon or residual payment?
A balloon or residual payment is a lump sum payment usually paid at the end of the loan term. It reduces the repayment figure throughout the term of the loan. Not all of the principle of the loan is paid off during the loan resulting in a balloon payment at the end the loan term. The balloon amount can either be paid off in full at the end of the loan or refinanced.
4What is a Comparison Rate?
A Comparison Rate reflects some of the costs of a loan into a single interest rate. The aim of the Comparison Rate is to help you make a more informed decision on the costs associated with a loan, and help you to compare various loans and services offered by financial institutions.
5What is Lender’s Mortgage Insurance?
An insurance premium paid by the borrower at settlement generally only on loans where the (LVR) is greater than 80%. The amount of the premium can vary quite considerably between banks.
6What is Loan to Value Ratio (LVR)
The Loan to Valuation Ratio is simply the loan amount divided by the value of your property.
7What is Stamp Duty?
Stamp Duty is a state government duty payable when a property is purchased or transferred. Stamp Duty is calculated on the purchase price of the property and is paid by the buyer. Each State and Territory has a different rate of duty Stamp Duty is a state government duty payable when a property is purchased or transferred.
8What is the difference between a fixed rate loan and a variable rate loan?
A Fixed Rate Home Loans have interest rates and loan repayments that remain the same for an agreed period of time, and then at the end of the term, reverts to a variable rate. A Variable Rate Home Loan has an interest rate that can move up and down.
9What is the difference between the principal and interest?
A principal & interest loan means that each loan repayment you make gradually pays off the amount that you borrowed (the principal), as well as the interest on the loan. With an Interest Only loan, you are only paying the Interest.