FAQ’s

Frequently Asked Questions

Do you do home loans and investment loans in Cranbourne, Clyde and Lyndhurst?

Yes, we do home loans and investment in Cranbourne and Lyndhurst areas We can refinance home loans and investment loans in Cranbourne, Clyde and Lyndhurst

Should I take a fixed rate home loan or variable rate home loan?

Mortgage brokers can only recommend products based on what you say is most important to you. When it comes to interest rates, we recommend the following; “if you want flexibility, take a variable rate home loan, if you want repayment certainty then choose a fixed rate home loan, if you want both, then use a split rate home loan.”

What does a Mortgage Broker Do?

Mortgage brokers are qualified professionals in the home loan industry. We work with borrowers looking for a home loan, investment loan, or refinance home loan. We help borrowers determine their home loan needs and help them understand how much they can borrow.Brokers help to ensure that home loan borrowers don’t take out a loan that is not right for their financial circumstances or needs.

Professional, qualified mortgage brokers are experts in home loans, investment loans and the refinance of home and investment loans. If you need legal advice, you go to a solicitor who is a specialist in the law. If your pipes are leaking, you go to a specialist in plumbing. It’s the same when you need a home loan.

I have bad credit can I still qualify for a home loan?

Yes! It’s possible to secure a home loan even with bad credit. While traditional lenders may have strict credit score requirements, we have access to specialised lenders who offer loans tailored to individuals with less-than-perfect credit histories. We work with a network of lenders who consider various factors beyond just credit scores, such as your current financial situation, income stability, and the reasons behind your credit issues. Keep in mind that loans for those with bad credit often come with higher interest rates, so it’s important to carefully review and understand the terms. We can help you explore your options, assess eligibility, and guide you through the process to find a suitable home loan that meets your needs.

I am self-employed and can’t verify my income in the traditional way, can I still qualify for a home loan?

“Yes, self-employed individuals who can’t verify their income through traditional means can qualify for a home loan using alternative income verification methods. We work with lenders who specialise in loans for self-employed borrowers and understand the unique challenges you may face in documenting income. These lenders often consider alternative methods to assess your financial stability, such as bank statements, BAS statements and other financial records. While the process may differ from traditional employment verification, we can help you navigate through the options available to secure a home loan that suits your needs. It’s essential to provide a clear picture of your financial situation, and we’ll work together to find a solution that aligns with both your homeownership goals and the lender’s requirements.”

I’m self-employed, can you assist?

Yes! We can help with home loans and investment loans for the self-employed.

Do you provide pre-approvals and how long does a pre-approval last?

Yes, we provide pre-approvals for home loans, investment loans, and first home buyers and second home buyers. They are usually valid for between three to six months. If your pre-approval expires before you find a property, then we can apply for an extension.

How can we be sure that you will recommend the best home loan for us?

Mortgage brokers are regulated by ASIC under the National Consumer Credit Protection Act and must either hold an Australian credit licence or be an authorised credit representative of a mortgage aggregator (or any other entity) that holds an Australian credit licence.This means it is against the law for us to assist you with applying for an unsuitable loan and must act in your best interest.

If a Mortgage Broker does not act in YOUR best interest, fines can be applied that exceed $1 Million.

It is also in the Mortgage Brokers best interest to ensure they find you the right loan for you. This is why Mortgage Brokers will recommend several suitable loans for you and then let you decide which one you would like to apply for.

I am not in your area; can we still work together?

Yes, we work with clients throughout Victoria. We are licenced to work as Mortgage Brokers in all states of Australia.

How much deposit do I need to purchase my first home?

The First Home Loan Deposit Scheme (FHLDS) was first introduced on January 1, 2020.The scheme was established to assist eligible first home buyers in entering the property market with a lower deposit, specifically by providing support for deposits as low as 5% without requiring the payment of Lender’s Mortgage Insurance (LMI).

The scheme aims to make home ownership more accessible for first-time buyers by helping them overcome the barrier of saving a large deposit. Keep in mind that details and eligibility criteria for government programs can change, so it’s advisable to check for the most recent information.

I’m a first home buyer, what are the costs in purchasing my first home?

Purchasing your first home involves various costs beyond the actual purchase price of the property. Here are some common costs associated with buying a home.

Deposit:

The deposit is a percentage of the property’s purchase price that you pay upfront. In Australia, a minimum deposit of 5% of the property’s value is typically required.

Loan Establishment Fees:

Lenders may charge a fee for setting up your home loan. This can vary between lenders.

Government Fees:

Stamp Duty: A state government tax on property transactions. The amount varies depending on the property value and location. For first Home Buyers there is usually an exemption on Stamp Duty on the property. There is also Stamp Duty on the Value of the Mortgage.

Transfer Fees:

These fees cover the legal transfer of the property’s title into your name.

Legal and Conveyancing Fees:

You’ll need a solicitor or conveyancer to handle the legal aspects of the purchase, including property searches and the transfer of ownership.

Home Loan Lender’s Mortgage Insurance (LMI):

If your deposit is less than 20%, your lender may require you to pay LMI to protect them in case you default on the loan. If you qualify for the First Home Loan Deposit Scheme (FHLDS), you may avoid paying Lenders Mortgage Insurance completely.

Building and Pest Inspections:

It’s advisable to conduct inspections to identify any potential issues with the property. You may hire professionals for building and pest inspections.

Home Insurance:

Lenders typically require you to have home insurance in place before settlement to protect against damage or loss.

Title Insurance:

While not mandatory, some buyers choose to purchase title insurance to protect against issues with the property’s title.

Utilities and Council Rates:

You’ll need to cover the costs of connecting utilities (water, gas, electricity) and may need to pay council rates.

Moving Costs:

Budget for the expenses associated with moving your belongings to your new home.

Home Maintenance and Repairs:

It’s a good idea to have some funds set aside for any immediate maintenance or repairs needed in your new home.

Keep in mind that these costs can vary based on factors such as the property’s location, value, and your individual circumstances. It’s essential to budget carefully and, if possible, seek advice from financial professionals during the home-buying process. Additionally, consider any government grants or incentives for first-time home buyers that may help offset some of these costs.

When should I look to refinance my mortgage?

Deciding when to refinance your mortgage depends on various factors and your financial goals. Here are some common situations when you might consider refinancing:

Interest Rates Have Dropped:

If interest rates in the market have decreased since you initially took out your mortgage, refinancing could allow you to secure a lower interest rate, potentially saving you money on your monthly payments and over the life of the loan.

Change in Financial Situation:

If your financial situation has improved (e.g., increased income, reduced debt, or improved employment stability), you may be eligible for better loan terms.

Fixed Rate Mortgage Term Expires:

If you have a fixed rate mortgage and the term is coming to an end, it is a good time to consider your options, where you could potentially reduce your monthly repayments.

Shortening or Extending Loan Term:

Refinancing allows you to adjust the length of your loan term. If you can afford higher monthly payments, refinancing to a shorter term can help you pay off your mortgage faster. Conversely, if you need to reduce monthly payments, extending the loan term may be an option.

Accessing Home Equity:

If your home has appreciated in value, refinancing can help you tap into the equity to fund home improvements, education, or other major expenses. This is often done through a cash-out refinance.

Consolidating Debt:

If you have high-interest debt, such as credit card balances, you might consider refinancing to consolidate and pay off that debt with a lower-interest mortgage.

Life Changes:

Major life events, such as marriage, divorce, or the birth of a child, may prompt a evaluation of your financial goals and necessitate a mortgage refinance.

Before deciding to refinance, it’s essential to carefully consider the associated costs, including settlement costs and fees. Evaluate how long it will take for the potential savings to outweigh these costs.

We want to upsize from our apartment to a house, do we need a deposit or can we use our equity from our apartment?

If you’re looking to upsize from your apartment to a house, you can potentially use the equity from your apartment as part or all of the deposit for the new property. Equity is the difference between the current market value of your property and the outstanding balance on your mortgage.

Here’s how the process typically works:

Calculate Equity:

Determine the current market value of your apartment and subtract the remaining balance on your mortgage. The resulting figure is your equity.

Deposit for the House:

The equity from your apartment can be used as a deposit for the new house.

Lender’s Loan-to-Value Ratio (LVR):

Lenders assess the risk by calculating the Loan-to-Value Ratio (LVR), which is the ratio of the loan amount to the property’s value. The lower the LVR, the lower the risk for the lender. Using equity from your apartment as a deposit can help reduce the LVR and save money as you may avoid having to pay Lenders Mortgage Insurance.

Mortgage Approval:

Your ability to use the equity from your apartment as a deposit will depend on the lender’s policies, your creditworthiness, and the overall financial situation.

Additional Funds (if needed):

Depending on the equity available and the purchase price of the new house, you may need additional funds for the deposit. This could come from savings or other sources.

Mortgage for the New Property:

You’ll likely need a mortgage for the new house. The terms and interest rates will depend on various factors, including the size of the deposit, your credit history, and the lender’s policies.

Sale of the Apartment (if necessary):

If you haven’t sold your apartment yet, you might consider selling it to unlock the equity. The proceeds from the sale can then be used for the deposit on the new house.

Do I have to refinance to get a lower interest rate?
No, you don’t necessarily have to refinance your mortgage to get a lower interest rate. There are a few alternative options you can explore before deciding to refinance:
Negotiate with Your Current Lender:

Contact your current lender and inquire about the possibility of negotiating a lower interest rate. Explain that you are considering refinancing and have received offers with more favourable rates. Lenders may be willing to work with you to retain your business.

Explore Rate Reduction Programs:

Some lenders have programs that offer rate reductions for borrowers who meet specific criteria, such as making on-time payments for a certain period. Inquire with your lender about any rate reduction programs they may offer.

Variable Rate to Fixed Rate Conversion:

If you have a Variable Rate Mortgage and are concerned about potential interest rate increases, you may inquire with your lender about the possibility of converting to a fixed-rate mortgage without a full refinance.

Keep an Eye on Market Conditions:

Interest rates can fluctuate based on economic conditions. Monitor the market, and if you see a significant drop in interest rates, it might be worth reaching out to your lender to discuss potential rate adjustments.

While these options can be effective for some homeowners, it’s important to note that not all lenders offer the same opportunities, and the success of negotiations may vary. Additionally, the decision to refinance or pursue alternatives depends on your specific financial situation, goals, and the terms of your existing mortgage. Before making any decisions, consider consulting with your current lender, a mortgage broker, or a financial advisor to assess the most suitable course of action for your circumstances.

Is there insurance I can take out to cover my mortgage?

Yes, there are insurance products designed to help cover your mortgage payments in certain circumstances.

Mortgage Protection Insurance (MPI):

Mortgage Protection Insurance is designed to help cover your mortgage repayments in the event of certain unforeseen circumstances, such as disability, illness, involuntary unemployment, or death. The coverage can vary, but it is generally meant to provide financial support during times when you might struggle to make mortgage payments. It’s important to carefully review the terms and conditions of the policy to understand the coverage and any exclusions.

What else does a Finance Broker do?

Business Consultation:

We offer advice and consultation services to help businesses assess their financial needs and choose the most suitable financing options.

Lender Relationships:

We have established relationships with a network of lenders and financial institutions, which allows us to connect businesses with the most appropriate lenders and negotiate favourable terms.

Application and Documentation:

We help businesses navigate the application process, gather necessary documentation, and submit loan applications to lenders.

Tailored Solutions:

We work closely with businesses to understand their unique requirements and provide tailored financing solutions that match their specific needs.

Ongoing Support:

Dahiya Mortgage & Finance Brokers offer ongoing support, including assistance with refinancing, restructuring loans, or adjusting financial strategies as business needs change.

Are commercial Finance Brokers subject to regulation?

Yes, Dahiya Mortgage & Finance Brokers in Australia are subject to compliance with the National Consumer Credit Protection Act (NCCP). The NCCP is a federal law that regulates credit activities in Australia to protect consumers and ensure responsible lending practices. While the NCCP primarily focuses on consumer credit, it also covers some aspects of credit provided to businesses, including small businesses.

Under the NCCP, commercial finance brokers must:

Hold an Australian Credit License (ACL): Commercial finance brokers who engage in credit activities, even for business purposes, are generally required to obtain an ACL from the Australian Securities and Investments Commission (ASIC).

Comply with Responsible Lending Obligations:

Brokers must assess the suitability of credit products for their clients, taking into consideration their financial situation and needs. This assessment ensures that borrowers are not provided with credit that they cannot afford.

Are there additional regulations a Finance Broker needs to adhere to?

Yes.

Provide Disclosure:

Brokers must provide borrowers with key information about the credit products they offer, including interest rates, fees, and terms and conditions, to enable informed decision-making.

Keep Records:

Brokers must maintain thorough records of their credit activities, including client assessments and loan documentation, to demonstrate compliance with the NCCP.

Adhere to Codes of Conduct:

Brokers should follow industry codes of conduct and best practice guidelines to ensure ethical and professional conduct.

Comply with Other NCCP Provisions:

Commercial finance brokers must also comply with various other provisions of the NCCP Act, such as dispute resolution processes and requirements related to advertising and marketing.

While the NCCP primarily aims to protect consumers, it also promotes responsible lending practices for business purposes.

What financing options do you provide for car purchases?

We offer flexible car finance options tailored to your needs, including low, medium, and full documentation loans with competitive rates.
What is the difference between low, medium, and full doc loans?
Low doc loans require minimal documentation, while medium and full doc loans require more extensive documentation. We can help you choose the option that suits your financial situation.

What types of business loans does Dahiya Mortgage & Finance Brokers provide?

Dahiya Mortgage & Finance Brokers offers various business loan options, including short-term loans, term loans, equipment financing, and lines of credit.

Are Dahiya Mortgage & Finance Brokers’s services suitable for small businesses as well as larger corporations?

Yes, Dahiya Mortgage & Finance Brokers’s services are designed to meet the financial needs of businesses of all sizes.

What sets Dahiya Mortgage & Finance Brokers apart from traditional banks when it comes to lending and financing?

Dahiya Mortgage & Finance Brokers provides flexible and personalised financing solutions with a focus on quick approvals and tailored service.

How does Dahiya Mortgage & Finance Brokers determine the eligibility for financing or lending services?

Eligibility is determined based on various factors, including your business’s financial health, creditworthiness, and specific needs.

Are the interest rates competitive with other lending institutions?

Dahiya Mortgage & Finance Brokers offers competitive rates and terms, and we will work with you to find a solution that aligns with your financial goals.

What is the application process like for obtaining financing from Dahiya Mortgage & Finance Brokers?

The application process is straightforward and efficient. You can contact Dahiya Mortgage & Finance Brokers, and we will guide you through the application steps.

How quickly can I expect to receive funding from Dahiya Mortgage & Finance Brokers once my application is approved?

The time it takes to receive funding varies depending on the type of financing and your specific circumstances. Dahiya Mortgage & Finance Brokers aims to provide quick access to funds.

Can I refinance existing business loans with Dahiya Mortgage & Finance Brokers to improve my financial situation?

Yes, Dahiya Mortgage & Finance Brokers offers business refinancing options to help you improve your financial position and reduce interest costs.

What industries or sectors does Dahiya Mortgage & Finance Brokers typically work with?

Dahiya Mortgage & Finance Brokers serves a wide range of industries, including manufacturing, retail, healthcare, and more.

How can I get in touch with Dahiya Mortgage & Finance Brokers to discuss my specific financial needs and explore their services?

You can contact Dahiya Mortgage & Finance Brokers through our website or by calling us on 0404 129 000.
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