faqs

Frequently Asked Questions

We are a team of experienced financial brokers who are passionate about helping our clients achieve their financial goals. We offer our services by working with a variety of lenders to find the best loan for your specific needs. We have a proven track record of success in getting loans approved, even for clients with difficult situations.

Yes, we are an Australian Credit License holder, as required by the National Consumer Credit Protection Act.

We are committed to complying with all government regulations and maintaining the highest standards of training and education in the industry.

For most of the loans we deal with, we do not charge credit advice fee. For more information call us on 0410 598 828 or email us on czang@bestprofessionalfinance.com.au for free mortgage health checkup or for any loan enquiries.

There are many benefits to working with a broker, including:

  • Convenience: They can shop around with multiple lenders on your behalf to find the best mortgage for your needs. This can save you a lot of time and hassle.
  •  Expertise: They are experts in the mortgage industry and can answer all of your questions about mortgages. They can also help you avoid common mortgage pitfalls.
  • Advocacy: They represent you, not the lender. This means that they will work on your behalf to get you the best possible mortgage terms and rates.

 

If you are thinking about buying a home or refinancing your loans, contact Claire at 0410 598828 or email her on czang@bestprofessionalfinance.com.au to help you find the best mortgage for your needs.

The amount you can borrow depends on several factors, including your income, debt, assets, living expenses and credit score.

For more information call us on 0410 598 828 or email us on czang@bestprofessionalfinance.com.au for free mortgage health checkup or for any loan enquiries.

There are many different types of mortgages available, each with its own features and benefits. And the suitable type of mortgage for you will depend on your individual circumstances and preferences, including your income, debt-to-income ratio, living expenses, credit score, and down payment amount

For more information call us on 0410 598 828 or email us on czang@bestprofessionalfinance.com.au to help you choose the right mortgage for your needs and budget.

You will repay your mortgage in weekly, fortnightly, or monthly installments over the term of the loan. The term of the loan is typically 15, 20, or 30 years. Each month, you will make a payment to your lender that includes both principal and interest or interest only repayments.

For more information call us on 0410 598 828 or email us on czang@bestprofessionalfinance.com.au for free mortgage health checkup or for any loan enquiries.

Yes, many lenders allow you to make extra repayments on your mortgage. This can help you pay off your loan faster and save money on interest.

Getting a suitable home loan involves comparing different options, evaluating how much you can afford to borrow for your desired property, and then applying for a specific home loan. You can apply directly to the lender of your choice or work with a mortgage broker. If your application is approved, the lender offers the money as a home loan, which you repay over time following their terms and conditions.

The amount you can borrow depends on your personal financial situation and the lending policies of the chosen provider. Lenders assess factors like your income, expenses, and credit score to determine the amount they’re willing to lend you.

Generally, having a deposit of at least 20% of the property value is advisable. This is often referred to as an 80% maximum loan-to-value ratio (LVR). A larger deposit can reduce your home loan’s total cost, as interest is charged only on the borrowed amount. Smaller deposits may require payment for lenders mortgage insurance (LMI)

A fixed rate home loan locks the interest rate for a specific period, providing stability in repayments.

A variable rate home loan features an interest rate that can fluctuate based on market conditions and lender decisions.

Refinancing a home loan shares similarities with applying for a new home loan. Borrowers have the flexibility to choose a different home loan and are not obliged to stay with their original lender.
Many lenders offer incentives to individuals refinancing from a different bank. However, it is essential to consider various factors beyond these incentives. Be aware that switching lenders might involve application or switching fees.

For more information call us on 0410 598 828 or email us on czang@bestprofessionalfinance.com.au for free mortgage health checkup or for any loan enquiries.

Your home loan repayments will depend on the following factors:

  • Type of loan: Different loan types have varying repayment structures.
  •  Principal amount: The amount you’ve borrowed
  • Interest rate: The rate at which interest is charged.
  • Repayment frequency: How often you make payments – weekly, fortnightly or monthly
  •  Loan term: The duration of the loan.

 

For more information call us on 0410 598 828 or email us on czang@bestprofessionalfinance.com.au for free mortgage health checkup or for any loan enquiries.

Several costs and fees are involved in purchasing property, including:

  •  Lender costs: Such as application fees, package fees, property valuation, and administration fees.
  • Legal and conveyancing fees: Costs associated with solicitors or conveyancers, varying by state/territory.
  • Mortgage insurance costs: LMI for loans over 80% of the property’s purchase price; larger
    deposits can help reduce this.
  • Building inspection and report: Necessary before purchase; costs vary by property size and location.
  • Pest inspection: Important for identifying pest-related issues before purchase.
  • Stamp duty: A tax charged on property transfers, with rates and thresholds varying by region.
  • Home insurance: Required upon contract exchange, with ongoing premiums and additional charges.

Post-settlement, budget for ongoing expenses like insurance premiums, rates, water charges, and potential body corporate fees for units or townhouses. Don’t forget to include regular home loan repayments in your budget.

For more information call us on 0410 598 828 or email us on czang@bestprofessionalfinance.com.au for free mortgage health checkup or for any loan enquiries

An SMSF loan is used by a Self-Managed Super Fund to invest in property. The returns from this investment, like capital gains or rental payments, go back into the superannuation fund for retirement.

The requirements for SMSF loans when purchasing a property are specific and include:

  1. Residency Restrictions:
    • Trustees or individuals related to trustees are prohibited from residing in residential properties purchased through the SMSF.
    •  Renting out properties bought through the SMSF by trustees or related individuals is also not allowed.
  2. Property Ownership Restrictions:
    • The SMSF is restricted from buying properties already owned by a trustee or anyone related to the trustee.
  3. Sole Purpose Test:
    • The property purchase within the SMSF must align with the ‘sole purpose test,’ which mandates that the primary goal of the investment is to provide retirement benefits exclusively to fund members.

Additionally, it’s important to note that an SMSF can have up to six members, all of whom must act as trustees. Consequently, each member bears equal responsibility for the fund’s decisions and its compliance with relevant laws.
These requirements ensure that properties purchased through SMSFs adhere to specific guidelines and purposes, focusing primarily on the provision of retirement benefits to fund members while outlining restrictions to prevent conflicts of interest or misuse of the investment.

For more information call us on 0410 598 828 or email us on czang@bestprofessionalfinance.com.au for free mortgage health checkup or for any loan enquiries.

  • Residential property purchases through SMSF typically require an 80% Loan-to-Value Ratio (LVR), necessitating a 20% deposit.
  • Commercial property loans via SMSFs usually have a 70% LVR, requiring a minimum deposit of 30%.
  • SMSF loan interest rates are typically higher compared to traditional home loans due to the increased risk associated with limited recourse borrowing.
  • The higher risk for lenders stems from the non-liquidity of property assets within SMSFs. Properties are harder to sell and access for their total equity or value compared to shares, making them riskier assets. Consequently, lenders perceive property within SMSFs as restricting cash access, potentially endangering the fund’s adherence to the sole purpose test.

For more information call us on 0410 598 828 or email us on czang@bestprofessionalfinance.com.au for free mortgage health checkup or for any loan enquiries.

A commercial loan is a financial product tailored to assist individuals or businesses in investing in commercial real estate, supporting ongoing business operations, or acquiring business equipment. These loans commonly use commercial property as security for those seeking to procure business premises or expand their commercial property portfolio

A commercial loan is specifically designed for business-related purposes, such as purchasing commercial properties, funding business operations, or acquiring assets. Unlike residential loans for personal homes, commercial loans cater to business needs and are secured by commercial properties.

For more information call us on 0410 598 828 or email us on czang@bestprofessionalfinance.com.au for free mortgage health checkup or for any loan enquiries.

Commercial loans serve various purposes within a business framework. They can be utilized to facilitate business growth, acquire new assets, invest in commercial property, or consolidate existing business debts. Essentially, a commercial loan offers versatility, enabling businesses to allocate funds toward any meaningful initiative that supports their operations and expansion.

When applying for a commercial loan, you’ll typically need to furnish details about the property or specify the loan’s intended purpose. Alongside this, providing documentation reflecting your current financial situation is essential. The specific documentation requirements may vary depending on the type of commercial loan you’re seeking.

For more information call us on 0410 598 828 or email us on czang@bestprofessionalfinance.com.au for free mortgage health checkup or for any loan enquiries.

Commercial loans can be used to finance various properties, including office buildings, retail spaces, industrial warehouses, shopping centers, hotels, and land development, among others.

Fixed interest rates remain constant over a specified period, providing predictable repayments, whereas variable rates fluctuate with market conditions, potentially offering flexibility but subject to rate changes.

Some lenders may require a liquidity requirement, stipulating that not all liquid assets (cash or shares) in the SMSF should be used for property purchase. They might impose a minimum, such as ensuring the SMSF retains 10% of the property value in either shares or cash after property settlement.