FAQs

What does a broker do?

Brokers are lending professionals in the bank & finance industry. They work with you to determine your borrowing needs and how much you can borrow. Brokers help ensure you don’t take out a loan that is too big or the wrong product for you.

Professional brokers only focus on loans. If you have a toothache, you go to the dentist not a florist. If your car is broken you take it to a mechanic not a librarian. You go to someone trained to help you with your specific need. It’s same when you need a loan.

Brokers have access to a wide variety of loans. This mean your broker can find a loan is just right for you.

Do you charge fees for home and investment loans?

Some mortgage brokers charge a fee and some don’t. WE DON’T! When you take out a loan via a Broker – it does not cost you more. That is an absolute myth. Brokers get paid commission by the bank for bringing new business to them, this does not impact your rate or level of service.

Some brokers charge a fee for their service. They must disclose this fee upfront to you so you know what you will be up for if you engage their services.

What is Loan Mortgage Insurance or LMI?

Lenders Mortgage Insurance is one of the ways to achieve the dream of home ownership sooner for borrowers that do not have a large deposit in most instance approximately 20%.

Most banks and financial institutions require you to contribute a deposit based on a percentage of the purchase price of your property. With Lenders Mortgage Insurance, lenders may allow you to borrow a higher portion of the purchase price, allowing you to purchase a property sooner and with a smaller deposit than would otherwise be required. Many lending institutes here in Australia will allow clients to borrow between 90 – 95%.

Lenders Mortgage Insurance should not be mistaken for Mortgage Protection Insurance, which covers your mortgage in the event of death, sickness, unemployment or disability. Lenders Mortgage Insurance protects your lender against a loss should you as a borrower default on your home loan. If the security property is required to be sold as a result of the default, the net proceeds of the sale may not always cover the full balance outstanding on the loan. Should this be the case, your lender is entitled to make an insurance claim for the reimbursement of any shortfall.

Don’t you just recommend the lender who pays you the most commission?

Absolutely not! There is legislation in our industry, called the National Consumer Credit Protection Act or NCCP, that is designed to protect consumers and ensure ethical and professional standards in the finance industry. We tell you upfront what commission we will be getting from the bank. Our job, our only job, is to find the best loan for your needs and serviceability.

Isn’t it more expensive to use a Broker?

NO! Brokers source competitive products for clients and in many cases you can sometimes get a better deal from a broker! At InReach, we work on your behalf to find the most cost effective product based on your needs and circumstances. Give us a call and we can go into your options in more detail, or check out the loan calculators page of our site!

How much can I borrow?

This is typically based on your overall financial picture. There are number of websites and software out there that will give clients an indicative lending figure but general they are “guesstimates”  at best, there is simply no substitute for speak in person to one of our Lending Managers.

Should I go fixed or variable?

I am only allowed to recommend a product based on what you say is most important to you eg “pay my loan off quickly” or “guaranteed repayments”.The only way we can provide you with an answer to a specific question like this is by firstly understanding you current financial picture and completing a fact find to determine what you hope to achieve by lending money.

I do however, live by the following; “if you want flexibility take a variable rate loan, if you want budget certainty take a fixed rate loan, if you want both, then do both”

I am not in your area, can we still work together?
Sure thing! We are mobile so we can come to you.
Which lenders do you deal with?

Our panel of lender consists of major banks, second tier lenders and credit unions. We can source you a loan from the lender of your choice. Our panel consists of approximately 45 home loan lenders and nearly 20 lenders who deal with specialty lending such as personal and business.

We do not have any affiliations with any lenders so we source the most appropriate loan for you.

Who sets interest rates?

The reserve Bank of Australia meet on the first Tuesday every month to determine the official cash rate for the country. The lenders then use this information to set their own rates. Mortgage brokers do not set rates.

Why should I use a mortgage broker if I can go with a bank?

When we talk about a ‘loan product’ we are referring to the thousands of options that are currently available for you for your loan. Each bank (for lender) has loans of different loan options – low doc, package loans, re-draw facilities, plant and equipment loans, fixed, interest only, interested in advance, variable, introductory variable… the issues you face as a consumer is ‘which loan is right for me?’ And that is where a mortgage broker comes in. IF you go direct to the bank, you will only be offered the loan options available through that one lender. As your mortgage broker, we do all the leg work for you. We are across many lenders and all of their loan products and our sole purpose is to find the right loan for your needs.