FAQ

1.Why should I use a Wright Finance Mortgage Broker rather than going to the Lender direct?

Not all lenders are the same. And no two loan requirements are the same. Therefore as your needs (and loan options) evolve, you need regular, qualified guidance. Individual lenders can only offer their products. Whereas Wright Finance evaluate a large lender panel and provide loan structure and product information based on your unique situation, now and into the future. This is reported to you in writing so you can make an informed decision based on what’s best for you, not the bank.

In addition Wright Finance offers you a dedicated Loan Processor in addition to your Loan Consultant. Once your loan is submitted, these office-based professionals manage all communication between you, the Lender, your Solicitor or Conveyancer, and any other party you wish. They ensure your file progresses efficiently right through to settlement. Your Loan Processor will introduce themselves to you, and are always ready to receive your call for any updates or information you require. This service ensures our service to you is of the highest quality.

2. What expertise does Wright Finance have?

All our Loan Consultants:

Have extensive formal training and have achieved at a minimum a Cert IV in Financial Services (Mortgage Broker).
Are MFAA (Mortgage & Finance Association of Australia) compliant with regards to training and education.
Complete on-going education programmes throughout each year to ensure knowledge is up-to-date.
use up-to-the-minute, industry leading software to compare loan options and provide personalised reports to our clients.

3. Who pays the Mortgage Broker?

The lender you choose pays Wright Finance a commission calculated as a percentage of the loan amount for organising the loan. Therefore you pay no fee to Wright Finance on any residential loan we organise for you.

Most lenders will pay between 0.5% - 0.65% upfront and approx. 0.15% per year.

4. What possible costs are involved with my loan?

Fees may include:

Lender upfront application fees, which include the cost of valuations and lender legals. This may be in the vicinity of $600 but can be waived by lenders offering incentives.
Property Stamp Duty is payable to the Office of State Revenue. Visit www.osr.qld.gov.au/calculators/index.shtml to access the Transfer Duty calculator and determine the duty payable on your purchase.
Transfer Registration is payable to the Land Titles Office and is charged for registering the property transfer into your name/s. This is based on the value of the property and is normally in the hundreds of dollars.
Mortgage Registration is payable to the Land Titles Office and is charged for registering the mortgage on the title. To Register or Discharge a mortgage is $124.50
A Lenders Mortgage Insurance Premium is payable when you borrow more than 80% of the value of the security property (Loan to Value Ratio) on loans where your income is proved, or above 60% LVR when you use a low-doc loan. The fee is based on how large your loan is, and what LVR your loan is. This fee can be thousands of dollars and can vary greatly between lenders, so it pays to have your Loan Consultant compare premiums for you.
Lender Mortgage Discharge Fee and Early Repayment Fees may be payable when refinancing a loan from one lender to another. Your outgoing lender may charge a fee to discharge their mortgage and to compensate them if you break a fixed rate loan. Be sure to receive a quote from your outgoing lender before refinancing any loan.

5. How often should I compare my loan with the market?

We recommend that you review your loan once every 3 years to ensure:

the loan structure continues to serve your needs
your loan remains competitively priced

6. What process is involved, and what time frame can I expect, from my initial interview right through until the funding of my loan?

All lenders are different. During the initial consultation Wright Finance will provide up-to-date feedback on specific lender service levels.

However as a general guide, from initial loan submission the following steps may be taken:

Initial Assessment – 2 to 7 working days
Valuation (if required) – 3 working days
Receipt and Review of further documentation (if required) – 3 working days
Lenders Mortgage Insurance approval (if required) – 1 working day
Formal Approval – 1 working day
Loan Offer and Mortgage Documentation – 3 working days

Once you receive the loan offer and mortgage documentation in the mail you should review them in our office or with your legal advisor. Then once you have executed the documents and posted them back to the lender or their solicitor, a lender may take approx. 3 working days to be ready to take a settlement booking.

If the loan is a refinance, then your outgoing lender will require notice to prepare the release of mortgage, sometimes up to 10 working days. Therefore it is best to ensure you sign and submit their discharge form early in the application process to avoid delays. We will assist you with this process.

7. After my loan is established who do I call?

Wright Finance should be your point of contact for any matter regarding your loan structure, loan amount, product switch, property discharge and any other change to your loan or borrowing amount.

If you need to query any transactional or operational matters you should contact the lender direct, as Wright Finance does not keep records of your day to day transactions.

8. Should I get a pre-approval?

Whilst not essential before purchasing a property, pre-approvals are a great way to confirm your borrowing capacity and ensure a lender will accept your application. Wright Finance can provide a Loan Entitlement Certificate for this purpose with the lender you choose.

9. What factors will affect how much I can borrow?

All lenders will assess your capacity to repay a loan. On one side of the ledger is your income. Lenders have different policies regarding what type of income is acceptable and how it is calculated i.e. overtime, commission, casual, self-employed and rental income are examples of income types where lender policy can differ greatly. You will require a lender that looks favourably on your income.

On the other side of the ledger are expenses. Obviously the less expenses you have, the higher the repayments you can afford. Simple things such as lowering your credit card limits, extending your existing loan terms and consolidating your loans into a lower interest rate product will improve your capacity.

Be careful however in using too much deposit funds to reduce debt, as these funds may be required in order for a lender to grant you a loan.

10. Can I make an offer on a property without finance approval?

Yes you can. Simply ensure you have a finance clause on your contract – normally 14 to 21 days depending on the lender you will choose will be sufficient time to organise a formal loan approval.

If you are not able to secure suitable finance during the finance clause, you can withdraw from the contract and have your deposit refunded to you. You will have no further obligation.

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