What is a mortgage broker?
Mortgage Brokers help the consumers find the right loan to suit their needs and circumstances. They are able to offer their clients a wide range of choices across a large number of financial institutions. Mortgage Brokers establish the loan the same way a bank does with the exception they don’t underwrite or fund it.

How does your service work?
We start by learning about your financial goals and future plans; we assess your needs and create a tailored package to suit your short and long term financial and lifestyle objectives. Once you are happy with the package we help you to complete the banks application. We handle every step from submission to approval and follow it through to settlement. We offer an ongoing support.

Will you charge me for your service?
No. we are paid direct from the financial institution that we write your loan through.

What’s in it for the lenders?
Lenders find mortgage brokers are a cost effective mean for lenders to obtain new business. Many financial institutions have set up a special processing area whose main objective is to support mortgage brokers like ProMortgage. This results in better service for their customers.

What is the advantage of using a mortgage broker?
There are many advantages to using a mortgage broker; we are able to offer you more choice in your finance options. You also have the benefit of many years of experience in the industry, we have the knowledge to evaluate your needs make comparisons and negotiate the better terms and conditions available to you. We will also liaise with all parties from time of submission through to approval and settlement.

Should I get a Pre-Approval for a loan?
If you want to buy, it makes sense to find out how much you can borrow. If you apply for a loan and get "pre-approval", you'll know how much you can afford, you'll strengthen your position as a buyer and you'll have a basis to compare different loans and make the best choice for you, which may mean tremendous savings over the life of the loan. It also makes sense to secure a lender's commitment as soon as you know that you want to buy - especially in a hot market, when houses are selling fast.

What is the First Home Owners' Scheme?
From 1 July 2000, eligible first home buyers will receive non means tested assistance of $7,000. This scheme will be administered by the States and Territories. The scheme covers only the purchase of your first home in Australia.

If you are married or living in a de facto relationship, you must make a joint application for the grant with your spouse or de facto. Neither of you can have owned a home previously, whether individually or with any other person.

You will be eligible to apply if you: are buying or building your first home are an Australian citizen or permanent resident intend to make the home your principal residence, and start living in the home within a reasonable time. The payment will be the same regardless of your income.

Why do purchasers like Deposit Power Guarantee?
Many of today’s purchaser’s have the 5 – 10% deposit required to enter into an contract tied up in the current home, investments, or they are borrowing to include the deposit. This means that purchasers would need to look into bridging finance or borrowing from a finance company at high rates. Guarantee’s offer an efficient alternative which saves time and money.

Can I use the Guarantee at Auction?
Yes. A Guarantee can be organised and issued prior to the auction. The Guarantee amount is fixed, but property and vendor details remain blank, this enables you to attend a number of auctions. When you are the successful bidder you simply fill in these details.

Will the vendor accept the Guarantee?
The Guarantee is legal and available in all states; however it is the sole discretion of the vendor to accept it. It is recommended that a Suggested Special Condition (found on the back of the Guarantee Certificate) is inserted or annexed to the Contract of Sale. This condition will amend the deposit provisions and allow the Guarantee to be used.

When does the Guarantee expire or terminate?
The Guarantee ceases when the Contract of Sale is completed, terminated, rescinded or the expiry date occurs, whichever happens first. The Guarantee also terminates when a claim is paid by the Insurance company, the guarantor.

Can I obtain a refund if I don't use the Guarantee?
Yes. If the unused, original Guarantee Certificate is returned within 30 days of issue the fee will be partially refunded. An administration fee will be deducted and then the balance mailed to you.

What is the Comparison Rate Schedule?
In order to help customers better understand the true cost of borrowing, all credit providers are required by law to issue Comparison Rate Schedules when advertising interest rates for consumer credit loans, such as home loans and personal loans.

The Comparison Rate Schedule is a tool to help you identify the true cost of a loan and to compare different loans. Interest rates generally only indicate the cost of interest payments for the loan. The comparison rate goes one step further; using a standard formula, the comparison rate adds in certain fees and charges such as upfront and ongoing fees, as well as the interest payments over the life of the loan. The payments are then converted to an annual percentage rate – which gives us the comparison rate.

Customers can now see at a glance how expensive some of the “honeymoon” and “special” offers from other lenders can actually be over the term of the loan once fees and charges are included.

How do I use it?
The comparison rate is used to compare the cost of a loan, between loans. It is a tool to help you understand the impact of fees on the overall cost.

Make sure that when you look at any Comparison Rate Schedule that you pick the most appropriate amount and term for you. If you are comparing more than one product, or loans from different companies, make sure that you always use the same amount and term so you are comparing ‘apples with apples’. You will see that as the amount and terms increase, fees have less impact on total cost, and so the comparison rate is lower.

It is important to remember that the comparison rate is only based on current information, and therefore it is likely to change over the life of the loan as interest rates change.

How does the comparison rate affect me?
Interest is charged at the rate shown in the header section of the table. The comparison rate information merely enables you to see at a glance how much our loans cost once the effect of fees and charges are taken into account.

What rate am I actually charged?
You will be charged interest at the annual percentage rate identified in the column header. The comparison rates shown below are for comparison purposes only - to enable you to judge one loan against another.

How is the comparison rate calculated?
The Comparison Rate is calculated in accordance with a standard formula, which takes into account the interest rate plus fees and charges such as upfront and ongoing fees. It does not include:

• government charges (eg stamp duty or mortgage registration fees) as these charges will be the same regardless of which financier or loan product the customer chooses;
• fees and charges which cannot be ascertained at the time that the Comparison Rate is calculated; and
• fees and charges which may or may not be charged, because they depend on some event which may or may not occur
  (for example, fees for early termination or redraws).

What else should I consider?
There is a lot more to a loan than just cost. You will need to weigh up the other features of a loan including access, convenience, flexibility, whether there are any fees for redraws and/or availability of phone and internet banking. Features like these add to the value of the loan, and should be taken in account when making your final decision.