FINANCE - FAQ’s

At the Intuitive Group, we can help you find which of the hundreds of home loans will best suit your needs. The structure of your home loan has a massive impact on the amount of wealth you create through property.

It is our passion to be strategic and get you into the perfect home loan for your unique circumstances.

An Intuitive Group broker can help you find which of the hundreds of home loans will best suit your needs. The structure of your home loan has a massive impact on the amount of wealth you create through property.

We are passionate about securing you the perfect home loan for your unique circumstances.

The deposit you’ll require depends on the type of home loan, the strategy and the lender you select.

But typically, as first home buyer, you’ll need at least 5%, but in most cases 20% of the purchase price as a deposit.

This is determined by your lender and loan contract. Typically, the interest cost of your loan is calculated daily on the outstanding balance.

For example: daily interest on a $300,000 loan with a standard variable rate of 3.5% p.a. Is:

($300,000 x 7%) ÷ 365 = $28.76

Most loan types require the actual loan amount (principal) to also be paid back.

This amount will be added on top of the interest payment. To find out what your repayments will be, use our mortgage repayment calculator as a guide.

Stamp duty is a tax levied by all Australian states and territories on property purchases. The stamp duty a buyer pays is based on the property purchase price, location and loan purpose. Some states charge different rates on investment properties to those charged on places of residence.

Use our stamp duty calculator to get an idea of what you will need to pay.

There are a number of government incentives that are available to eligible first home buyers. These include the First Home Buyer Stamp Duty Concessison, First Home Buyers Grant, First Home Loan Deposit Scheme & First Home Super Saver Scheme.

Each of these government incentives have different eligibility criteria, but if avaiable to you, can put thousands of dolars back in your pocket.

Speak to your Intuitive Group broker today to find out if you could benefit from any of these!

Lenders Mortgage Insurance is insurance you’ll pay to the lender if you borrow more that 80% of the value of your property.

It’s the insurance the lender takes out for the mortgage to protect itself, but it also allows the borrower to get into the market with a smaller deposit.

The bigger the deposit you have, the less your lenders mortgage insurance will be.

Depending on the loan type and amount, some lenders will allow you to add the cost of this insurance onto the loan so that you don’t have to find the money upfront to pay for it.

For most lenders, pre-approvals last for three to six months. This is because lenders have an expiry date as a borrower’s financial situation and the property market can often change over a few months.

When applying for a pre-approval, we will ask your lender about the expiry date and what will happen if you do not find a property within that timeframe.

When you make additional payments above the minimum amount into your mortgage to reduce the interest calculated, it goes into ‘redraw’. Depending on the lender, these extra payments can be accessed, or drawn on at any time, but if you do access those extra funds, it will affect the balance of your mortgage and interest payable.

Your offset is when you hold these additional payments in a separate transaction account – you aren’t reducing the balance of the loan but you’re still getting interest reductions, enabling you to pay off your home loan sooner.

A guarantor is a third party to a home loan, helping you to get a loan by offering additional security as support. Guarantors are generally limited to spouses or immediate family members.

Many lenders allow a family member to help you to buy your own home by providing additional security. The person providing this assistance is known as a guarantor. This is different to being a co-applicant or co-signer.

A co-applicant is included on the loan and will be responsible for the entire loan until it’s repaid in full.

A guarantor, on the other hand, is linked to a loan by a guarantee. This guarantee can be released and the guarantor’s responsibility stopped without the loan being repaid in full. To use a guarantor, you must be able to service the entire loan on your income.

A guarantor allows the equity in his or her own property to be used as additional security for your loan.

The primary security for the loan will be your property, but the lender will also take a mortgage over your guarantor’s property.

This mortgage will not support the loan directly but will be used to support a guarantee from your guarantor.

A limited guarantee simply means the guarantor only needs to secure a part of the loan, rather than the entire amount.

This will benefit the guarantor from unnecessary risks as they won’t be liable for the entire loan.

Lenders will be able to release the guarantor once the loan falls below a certain percentage of the property value (generally 80%).

This can be achieved by a combination of capital growth in the property and principal repayments off the loan balance.

Only some lenders offer limited guarantee and a person is only eligible to be a guarantor if they have sufficient equity in their collateral.

If you’re unable to pay back the loan according to the terms of your contract, the lender can take legal action against you – and in some circumstances, against your guarantor.

Your guarantor will be liable for the amount specified in the guarantee.

Anyone who is considering being a guarantor for a property loan should seek independent legal and financial advice before accepting the role. Most lenders will insist on this, prior to accepting a guarantee.

It is important to note that a guarantor’s ability to borrow will be reduced after they have agreed to act as a guarantor.

Every property sale requires a contract of sale, which is a legal document between the seller (vendor) and buyer (purchaser) and includes the agreed sum.

The contract of sale often includes: a sewage diagram, a copy of the certificate of title for the property, a zoning certificate from local council and copies of documents relating to any other registered interests over the property.

Yes, every buyer should have a conveyancer. Once you’ve found a property, the agent should send the contract of sale to your conveyancer for review.

They will also help with the settlement process and exchange of title documents.

When the Intuitive Group assist with a finance application, we are paid an upfront and trail commission by the lender for helping facilitate your loan.

The commission paid is almost identical between each lender, with the exact amount being disclosed to you in writing through our Credit Proposal Disclosure document. We will only ever retain our full commission if the loan recommended is held for more than two years, so you can be sure that our only concern is on finding you the best loan product for your needs.

As our personalised services come at no additional cost to you, today is the perfect time to take advantage of an Intuitive Group brokers’ time, skill & expertise.