FAQ - North Shore Mortgages

How can North Shore Mortgages help me more than going direct to a lender?

Convenience, experience and wider choice. Leading loan consultants, such as those from North Shore Mortgages, have a wide range of financial institutions on their lending panel, thus they can offer you hundreds of loan products to choose from at the one time, while one lender can only offer a limited range of its own loans. Finding the most suitable loan available on your own can be difficult. What's more, most loan consultants do not charge customers for their services - North Shore Mortgage loan consultants certainly don't.

Can my loan be arranged quickly?

Yes. Firstly, a loan consultant saves the time and hassle of you knocking on the doors of an endless number of lenders. Secondly, they handle all the paperwork and their experience saves you time. Thirdly, when time is of the essence, the loan consultant knows which lenders process loans quickly and efficiently.

Will I have to pay up front fees?

Depending on the property loan product you select, you may need to pay fees up-front to cover the loan application and/or valuation of the property. Reputable loan consultants will not charge fees for their service to the client.

How does that work?

North Shore Mortgages loan consultants earn their money from standard commissions paid by their parent company, which is paid by the lender at loan settlement. The company passes on a percentage of the payment, with the same commission rate applied regardless of loan product or lender chosen by the borrower.

Won't it cost me more than going direct?

No. A number of banks and other financial institutions support the services provided by reputable loan consultants, who handle around 30% of all mortgage loans (according to the Market Intelligence Strategy Centre - MISC) settled in Australia. Using loan consultants such as North Shore Mortgages consultants saves the lenders costs they could incur themselves in promotion and providing equal localised face-to-face customer service.

What if I don't qualify for the loan size I want?

Different lenders' policies mean they all calculate the amount of money they will lend differently. A key advantage of a loan consultant is that they can actually tell you the maximum you can borrow from each lender.

I'm not married. Can I take out a loan with a friend, family member or partner?

Particular property loan products make this possible. However, you should get legal advice on how any exit process from the joint loan would work.

Can I have my loan approved before I look for a property?

Yes. Many people do this. It also reassures real estate agents that you are a serious buyer. This is called 'Pre-approval' and it is normally valid for three months at a time, with a possibility of extension. This approval has conditions that usually require a valuation of the property and the verification of the information provided in that application.

What is Mortgage Insurance?

There are two types: Lenders Mortgage Insurance (LMI) and Mortgage Protection Insurance (MPI).

LMI is dependent on the percentage of the property's value you'll borrow(Loan to Value Ration - LVR). LMI usually applies to loans with an LVR of 80% or higher and only covers the lender, not the borrower, in the event of loan default or capital gains loss at the time of property sale. This is a once only payment by the borrower and in some cases can be added to the loan.

MPI insures the outstanding balance or repayments of a mortgage. It can cover such events as death, temporary/permanent disablement, and unemployment, depending on the selection by the customer. Generally not a requirement of the lender, it should be considered by the borrower.