Home Loans

Forward Thinking Finance can assist with your next purchase:

PAYG, Self Employed, Company, SMSF and Trust borrowers

First Home Buyer
Home & Investment Loans
Refinance Loans
Full Doc Loans
Low Doc Loans

What Lenders does Forward Thinking Finance deal with?
Our panel of lenders is made up of more than 25 different bank, non-bank, building societies and credit union lenders. The panel of lenders that Forward Thinking Finance can use are constantly under review by our licensee.

How does Forward Thinking Finance find the right loan for me?
After conducting a fact find of your current financial and life situation our mortgage broker will use specially designed software to identify a selection of loan providers and suitable products.
Our mortgage broker then compares the loan products available and provides assistance in finding the right loan. This is where we discuss available options to you, allowing your input all the way.
We will always consider your long term goals; therefore we are Forward Thinking when it comes to helping you select the right loan product.

Who does the paperwork?
Our mortgage broker will help you complete the loan application form and assist you with obtaining all the documentation you need to submit to the chosen lender.
Most lenders accept electronic copies of application forms and supporting documents.

Do I pay for the use of a mortgage broker at Forward Thinking Finance?
No, we do not charge any fees, we are essentially free to use. We are paid by the lender that you submit an application to. We are only paid by the lender if your application is approved and the loan is settled. We also provide to you in writing how much we will receive.

Do I get the same deal if I go straight to my bank?
By using our mortgage broker at Forward Thinking Finance you get the same great deals, interest rates and product features you would get directly with your bank. Further to this; why not have someone do all the hard work and source the most suitable lenders that suit your current financial circumstances. After all we act on behalf of most of the banks you would speak to anyway.

How much can I borrow?
We request that you contact us to receive an answer to this question. There can be many variables that affect the amount of money you can borrow. Should you wish to see a basic amount then go to ASIC’s money smart website: Borrowing Capacity Calculator

How much deposit do I need?

Usually lenders would allow you to borrow 95% of the purchase price. Again this depends on your current financial circumstances and if you are in a strong financial position. In order to avoid hefty Lenders Mortgage Insurance Premium amounts then a 20% deposit is usually required. Also, the property type and/or location may demand a larger deposit.

What are the costs involved with purchasing a residential property?

Costs involved include:

Lenders costs: Loan Application fee, Valuation fee, Mortgage Insurance (if borrowing more than 80%)
Government Duties: Property Stamp Duty, Mortgage Stamp Duty, Mortgage Registration Fee
Other costs to consider: Conveyancing, Inspection reports and Removalist.

What documentation do I have to provide?

PAYG: Last two – three payslips | Copies of last financial year tax return, including group certificate.

Self Employed: Last two years tax returns for both personal and your business, including your Balance Sheet and Profit and Loss statements. If these are not available due to applying for a loan part way through a financial year; then BAS statements and year to date financials may suffice. For the self employed you do have the option of Low Doc loans should you be unable to provide the appropriate financial documentation.

For everyone 100 points of ID is required: Birth Certificate 70 points, Drivers Licence 40 points, Passport 70 points, Medicare card 25 points.

Supporting documentation:

Bank Statements showing evidence of savings

Credit card statements

Car loan statements

Purchase contract completed

Rates Notice (refinance)

Six months home loan statements (refinance)

First Home Owners Grant (Great Start Grant application form) – we can provide this for you

Rental agreements (investment)

Rental Statements (Investment)

What is a Standard Variable Loan?

A standard variable rate is the basic interest rate used by lenders. It is a rate influenced by the Reserve Bank of Australia (RBA), which sets the target cash rate each month. These rates can fluctuate with increases or decreases set by the RBA.

What is a Fixed Interest Rate?

A fixed interest rate is a rate fixed for an agreed period of time, typically between one to five years. A fixed rate may suit someone seeking a degree of certainty in repayment amounts and can protect from interest rate rises usually experienced by Standard Variable Rates. It’s important to know that the use of a fixed interest rate usually means you can’t make extra repayments or vary the loan. There can be significant penalties if you cancel the loan before the fixed term has expired.

What are Split Loans?

This type of loan structure is a mix of a variable rate with a fixed interest rate loan. You can usually set the amount of loan to be fixed and the amount to remain variable.

What is a professional package?

These loan products allow you to ‘package’ the loan, along with your banking and credit card. There can be benefits such as interest rate discounts for the life of the mortgage, various fee waivers and additional benefits. Usually you have to borrow more than $150,000 and earn more than $50,000p.a.

What are genuine savings?

Genuine savings usually means money that you have saved regularly (deposited) over a three to six month period at a minimum. This period of time is usually a requirement of you by the lender. It proves to the lender that you are capable of saving money; therefore in turn shows you have the capacity to repay a loan.

What are non-genuine savings?

Gifted money, windfalls, inheritance and the sale of an item such as a vehicle can all be seen as a form of non-genuine savings.

Some common terms used in finance:

LVR: Loan to value Ratio. A LVR is calculated by dividing the loan amount by the valuation of the property you are purchasing.

DSR: Debt Serviceability Ratio. This is a calculation of your current income against your debts.

LMI: Lenders Mortgage Insurance. Usually LMI is payable when you borrow more that 80% of the purchase price. This insurance premium can be add up to thousands of dollars extra on top of your loan.

P&I: Principle and Interest. This means you are paying the interest calculated and also contributing money to paying down the loan balance.

IO: Interest only. Interest only terms can range from one to five years and requires you to cover the interest portion of the loan repayment only.

100% Offset account: A financial product (bank account) that is linked to your loan. When funds are held within this account the balance is deducted from the overall loan balance. Interest is then calculated on the difference; therefore saving you money. You can have your pay go into this account so the benefit is calculated immediately.

Line of Credit: A line of credit is a pre-approved loan amount that you can access progressively, or all at once. A line of credit is often used for investment purposes.

Redraw Facility: Loans with a redraw facility allow you to deposit additional funds into the loan account over and above the minimum amount required. This will save you money as the interest is calculated on the loan balance less additional funds deposited. You have the option to withdraw (redraw) the additional amounts you deposited at a later date should you require access to these funds. Some lenders may charge a fee to redraw funds.

Family Guarantee: A family guarantee is a versatile product designed to assist borrowers wanting to enter the property market, trade up or buy an investment property. Family members can offer their home as security for the amount needed to borrow to fund the deposit. This loan strategy can often save the primary applicant costly LMI premiums.