FAQ

MORTAGE BROKER

Why would you use a mortgage broker?

A Kin Financial mortgage broker is an expert in home loans and they have access to a host of lenders & hundreds of mortgage solutions. We are unbiased in our approach and help you find the right solution aligned to your short & long-term goals.

When is the right time speak to a mortgage broker?

There really is no ‘right’ time. You can speak to us at any time in your home & financial research journey. Whether you are one year away from buying, still saving for your first deposit or next purchase, if you have found a home to buy, signed a contract of sale for a property, assessing if you have equity in your exiting property, thinking about refinancing – you can book in a no obligation appointment at a time that suits you.

 

We can assess your current situation, understand your short & long-term goals, and determine what the best approach is moving forward aligned with your future plans. We will research the market and find the right solution for you.

Do you charge for this service? What’s the catch?

We are reimbursed by the financial institution. Our services is free of charge to you.

 

We are reimbursed by the financial institutions because we introduce new business to them and they are able to save on marketing costs, administrative costs, staff costs, branch overheads, and other costs associated with acquiring & retaining customers.

HOME BUYERS

How much money can I borrow?

This varies from lender to lender. Other impacts to your borrowing capacity include your income, expenses, assets, and liabilities. You can book an appointment with us or we can send you through a Fact Find to assess your borrowing capacity.

There are so many home loan products. How do I choose the right one?

Each home loan product may vary in facilities, features, and interest rates. Kin Financial can help you short list a few solutions that will be right for you, by understanding your needs and your future plans.

Do I have enough for a deposit, stamp duty, and other potential costs?

The deposit amount can vary from 5% to 20% of the purchase price of the property. Stamp duty can vary from state to state. Email or call us to discuss your options for a deposit. You may be able to access equity, guarantor options, and other alternative solutions.

How frequently do I make my mortgage repayments?

Most financial institutions offer flexible repayment options. Generally, the options are weekly, fortnightly, and monthly pay cycles. We can help you objectively assess what may be right for you.

How much will my mortgage repayments be?

This will depend on the frequency of the repayments, interest rate, loan set up, and other possible costs. Call or email us to discuss what the right loan set up will be for you to minimise your costs.

REFINANCING

What is the benefit of refinancing?

Home loan products are an ever changing landscape. What was the best solution for you at the time of obtaining your home loan, may not be the best solution for you today. You may be able to obtain lower interest rates & annual fees, access equity in your existing property, and access a more flexible variety of features (i.e. offsets, redraw facilities, line of credits etc). Call or email us to discuss your options.

Is it possible to consolidate other debts i.e. credit card, personal, and other debts into your home loan?

This is one of the reasons many people refinance. Providing you have sufficient equity in your property, you may be able to consolidate all your debt(s) on your home loan. The advantage is that you pay a much lower interest rate on a mortgage than for most other forms of debt – e.g. credit cards, overdraft facilities, personal loans etc.

 

If you take this option though it is important to make sure you maintain your repayments at their current level or you could end up paying more over a longer period of time. Call or email us today to discuss your individual circumstance in further detail.

INVESTING

What is the difference between an investment loan and owner occupier home loan?

Most investment loans and owner occupier home loans will have similar features. Investment loans may incur higher interest rates & costs depending on the financial institution and perceived risk of your investment.

Can I use equity in my existing home or investment property to purchase a new investment property?

Yes. If you have equity in your existing home or investment property, most financial institutions will accept equity to fund your deposit & other costs (stamp duty, legal fees etc) for your next investment property without having to contribute any cash. However, this can have positive & negative impacts. Email or call us to discuss if this approach is right for you.

What is negative gearing?

Negative gearing is when the cost of owning an investment property outweighs the (rental) income it generates each year. This creates a taxable loss, which can normally be offset against your other income including your salary or wage, to provide tax savings.

What is positive gearing?

Positive gearing occurs when the investment property income exceeds your interest expenses and other possible deductions (property management fees, maintenance, insurance etc). Note that you may be subject to additional tax on any income derived from a positively geared investment.