Understanding the Legality of Digital Signatures for Mortgage Quote Request in Australia

How to eSign a document: digital signature lawfulness for Mortgage Quote Request in Australia

so you've saved money for a deposit and you're interested in buying a property but what happens next welcome to the finance hub and networks your one-stop shop for all things home loans applying for a home loan can be an overwhelming process especially if you've never gone through it before and that's where a mortgage broker can help a mortgage broker is a go-between who deals with banks or other lenders to arrange a home loan for you in this video series we want to introduce you to what you can expect when consulting a mortgage broker in the early stages of the process the first step would be to speak with your mortgage broker so that they can obtain a clear understanding of your financial position and the purpose of the loan you're applying for it's crucial to establish exactly what your goals objectives and milestones are because taking out a home loan can affect all of this there is no one-size-fits-all strategy when it comes to home loans so your broker will try and understand the why behind your objectives this is the most important step in creating a real connection with the client because the broker will be in a better place to provide the right advice bring a list of all your requirements and future plans and come prepared with lots of questions get the broker to explain how each loan option works what it costs and why it's recommended to you if you're not happy with any option ask the broker to find an alternative you don't have to take the first loan you're offered you may have a preference for a particular lender such as your current bank ask to see loans from other lenders as well so you can compare a home loan is a long-term debt so even a small difference in interest adds up over time if you can get a lower interest rate from another lender you could save thousands of dollars your mortgage broker will not only be able to assist you with your current requirements but also potential future property purchases and refinancing whether it's an investment property or a commercial property once your mortgage broker is up to date with your requirements the second step of the brokering process would be to investigate your borrowing capabilities in today's episode of the mortgage brokering process we'll look at how your broker will complete a preliminary assessment of your financial situation the preliminary assessment is a very detailed process where the mortgage broker will identify any possible problems from a lending point of view they'll look at your income and expenses your banking behavior and ability to fulfill your commitments as well as your saving patterns they'll also calculate your borrowing capacity or borrowing power your borrowing capacity is the amount of money a lender will loan to you lenders calculate your borrowing capacity using an assessment rate to examine your application generally they have their own assessment rate based on how much risk they're willing to take on this is why your borrowing capacity may vary from one lender to another some lenders might also require you to add a buffer to your home loan this buffer helps protect you and the lender from uncertainties in the future to avoid defaulting on your loan or if you were to face financial hardship due to various factors to calculate your borrowing capacity you will likely need to provide information about the number of applicants applying for the mortgage the number of dependents you have how much your annual salary is before tax including other regular income from investment properties for example they'll also look at your living expenses other financial commitments and your combined limit of credit cards store cards and overdrafts let's look at an example sandy would like to apply for a mortgage herself she has two dependents and earns 82 000 annually before tax sandy doesn't have any other income aside from her annual salary and her monthly living expenses amount to two thousand five hundred dollars and her monthly repayments total to one thousand dollars she also has credit cards store cards and overdrafts with a combined limit of one thousand five hundred dollars based on that a lender calculated that sandy could borrow two hundred and twenty six thousand and twenty two dollars based on a five percent interest rate over 25 years remember this is only an estimate of sandy's circumstances you need to consult your lender to get the exact amount you can borrow from there your mortgage broker can assess which lenders can assist and compare the most suitable loans at the lowest interest rates stage three of the mortgage brokering process involves seeing if you qualify for any government concessions and grants in today's episode of the mortgage brokering process we will look at the different grants and concessions on offer to first home buyers across australia please note that the information provided is current as of the time this video was created let's start with the first home owners grant this is a one-off government payment designed to encourage and assist would-be first-home buyers across the country to purchase a property it's a national scheme funded and managed by each state and territory under its own legislation so the size of the grant and the eligibility criteria attached to it differs in each state and territory but in most places it applies to first-time property owners who are either purchasing an existing home that has never been lived in or building an entirely new home you'll generally have to plan to live in the property as your home for at least six months each state government's website will have all their first home owner grant conditions listed so make sure to visit the website below for more information the grant is not means tested which means your eligibility isn't subject to financial considerations such as your income also several australian states and territories also offer eligible first-time home owners reduced rates or exemptions on stamp duty which could further reduce your costs stamp duty is the one acquisition expense that is likely to poke a big hole in your budget so it's worth checking with your mortgage broker if you qualify for this concession as well next we have the first home loan deposit scheme which launched on the 1st of january 2020 under this scheme the government partially guarantees some low deposit home loans each year for eligible low income and middle income earners who have saved up at least a five percent deposit if you don't have a 20 deposit you would usually need to pay lenders mortgage insurance so under this scheme eligible applicants would need to cover 5 of the deposit and the state government will provide a guarantee to the lender of up to 15 percent of the loan the scheme does have property price thresholds so it's important to check if the price bracket you're aiming for falls below the cap there are generally only 10 000 scheme places available in a financial year however the 2021 federal budget added an additional 10 000 places to the scheme and updated the price thresholds better reflecting the property values in capital cities for more information please visit .nhfic.gov.eu and navigate to the first home loan deposit scheme as shown on screen now that it's time to choose a product how do you choose the right loan product for your situation in stage 4 of the mortgage brokering process your broker will lay out the framework for your next purchase once you've rerun through your goals and objectives your broker will move on to an explanation of your loan options and an eventual recommendation you'll go through the deposit requirement what banks will lend to you based on policy what rates and features may be most appropriate and how to structure your home loan to be most flexible and cost effective remember these options are based on your borrowing capacity assessment results in stage two of the process a mortgage broker will help you decide whether a fixed variable or even a split loan is ideal based on your circumstances a fixed rate loan simply means the interest rate is fixed for a set period usually between one to five years a variable rate home loan means the interest rate rises and falls over the life of your mortgage this may happen in response to the reserve bank changing the official cash rate or it may merely be a business decision by your financial institution another example could be if you're already an owner occupier so you own the property you're living in but now you're looking to purchase an investment property if your owner occupier property is almost paid off the lenders will likely suggest that you use your home as security leverage to secure the new loan in cases like this finance hub and networks have helped their clients avoid needing to pay lenders mortgage insurance by using their existing property to secure 20 of the loan either way your broker should always look at the minimum amount of risk you should take to meet your objectives and goals understanding your options is the most important step of the process so once your mortgage broker has run through the different options and recommendations take some time to go over all the options again consider all the pros and cons as well as the recommendation from your mortgage broker so you've met with your mortgage broker and gone through all your loan options now it's time to prepare and submit your application to the lender in today's episode we'll cover the final part of the mortgage brokering process and explain how loan applications and processing works after choosing your home loan product the next step in the home loan application process involves completing the bank application form lenders also generally require a broker to ensure that you complete a privacy consent form that allows them to collect and disclose personal and credit information about you you'll also need to submit documents disclosing your income expenses assets and liabilities once your mortgage broker has all your supporting documents and application in order they'll submit it to the lender and wait for conditional approval at the conditional approval stage which can last up to three months you've met most of the bank's lending policies subject to a few conditions typically it means that you still have to find a property so your home loan will only be approved once you've completed a property valuation after the valuation subject to meeting or the lender's requirements the lender will generally give you unconditional approval on your loan this is when the lender has everything they need and can confirm that they are willing to approve your loan they will issue a letter confirming their approval so at this stage you can relax once you've signed the loan contract your broker will return it to the lender with any requirements that they need to settle the loan once the lender has certified that all of your documents are in order they can then advance the loan funds they'll call your solicitor or conveyancer who will book a settlement time and date as soon as the loan is advanced the settlement has occurred and you're officially a homeowner mortgage brokers typically provide ongoing service to their clients long after the initial loan has been settled we can help review your interest rate switch loan products and monitor your property's value so you can make good decisions about accessing equity if you're looking into buying an investment property and there you have it the five stages of applying for a home loan with your mortgage broker make sure to like and subscribe to learn more about what's involved in your property purchasing journey [Music]