servicesMortgage broker, mortgage BROKING

We have access to over 30 lenders all with different interest rates and policies providing clients with a competitive lending platform

Private Capital Management

WHAT IS MORTGAGE BROKING?

Mortgage broking is quickly becoming the mode-of-choice for Australian’s considering their lending and home loan needs. Private Capital Management supports our clients by acting as an intermediary between the lender and client, meaning we complete all the administration to ensure our valued clients save time and money.  You will engage us as your Mortgage Broker during this process.

As your mortgage broker, we do all the research, find the best rates depending on the client, then support the lending process from start-to-finish. The lender pays Private Capital Management commission to complete the loan process generally meaning clients pay us zilch, zero, to use our expertise.

WHY USE A MORTGAGE BROKER?

There are many benefits using mortgage brokers and Private Capital Management to obtain a home loan. With many changes in lending requirements it is difficult to navigate the complex mortgage market. We research over 30 lenders and ensure the client matches the loan depending on their very different circumstances. We negotiate discounted rates for clients and often obtain rates cheaper than advertised. 

During the home loan process, Private Capital Management acts as a central point of contact between the real estate agent, conveyancer or lawyer and lending institution to ensure all documents are provided and the property purchase or refinance settles on time and without issues. This is something an online mortgage broker can’t do.

HOW WE HELP CLIENTS

There are a number of home loan and mortgage broking services we help clients with, including: Fixed Rate Home Loans, First Home Owner Home Loans, Low-Doc Home Loans, Investment Home Loans, Guarantor Home Loans, Self-Employed Home Loans, SMSF Home Loans, Low Deposit Home Loans (LMI Home Loans) and Australian Expatriate Home Loans. We even help clients who have had bad credit in the past.

Our lending partners

We have access to over 30 lenders ranging from the Big 4 Banks, Credit Unions, White-Labelled Solutions and non-branch lenders such as Virgin Money

Frequently Asked Questions

Mortgage Brokers work with clients to determine their borrowing needs and ability, select a loan suited to their circumstances and manage the process through to settlement and includes: offer a variety of loan options or products, possibly more than one financial institution might offer, assist a customer to select a loan, manage the loan negotiation process through to settlement, complete the ‘legwork’ for the customer and offer advice and experience across a range of products and institutions.

Low-doc and no-doc loans were initially designed for those in business who could not supply two years of trading and financial results. To be eligible for one, an applicant had to supply an Australian Business Number (ABN). Low-doc loan applicants had to provide a statement that their earnings were a certain amount, while no-doc loan applicants simply required a statutory declaration that they could ‘afford’ the loan.

These loans were available to both individuals and private companies.   Under the NCCP Act, no-doc loans to consumers are no longer possible due to the requirement that credit providers make reasonable enquiries about the applicant’s financial position and objectives. There is also a requirement that the credit provider make reasonable enquiries to verify the information provided.

A person who is prepared to take the responsibility for the payment of a debt if the person who is primarily liable fails to perform is called a guarantor. The most likely situation arises among partners who jointly own a property and one party that applies for the loan will require the other partner to be a guarantor. Another likely scenario is when the applicant for a loan is a trust or corporation, and the directors or trustees will be required to be guarantors.

LMI protects the credit provider against a loss should the borrower default on their home loan. If the security property must be sold because of the default, the net proceeds of the sale may not always cover the full balance outstanding on the loan.

Lenders’ Mortgage Insurance (LMI) is a one-off premium that allows purchasers who have only a minimum deposit to apply for and potentially be granted a home loan. It is included in the cost of borrowing and is paid to an insurance company that provides this type of insurance.

With LMI, a credit provider may allow a loan applicant to borrow a higher proportion of the purchase price, that is, to purchase with a smaller deposit than would otherwise be required.

Before LMI was available, borrowers required a minimum deposit of 20% of the value of the property as well as sufficient funds to cover their costs to secure a housing loan. LMI was introduced to make it much easier to obtain a housing loan.

Construction loans are designed for borrowers who are building a home.   With this type of loan, a borrower withdraws funds in stages to pay tradespeople and suppliers. Interest is paid only on the funds used. 

Most lenders offer their construction loans at a variable interest rate. Once the construction is finished, the loan will revert to P&I repayments.

Approval for a construction loan often requires plans, permits and a fixed price building contract.

A fixed rate loan means that the borrower’s interest rate and repayments are fixed or locked in for a set period, usually one to five years.

At the end of this fixed period the customer typically has a choice to switch to a variable rate or fix the loan for another few years. Some fixed loans automatically revert to a variable loan at the end of the term.

Private Capital Management

Mortgage Broking

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