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Fast Repay Home Loan

FAQ

1How can I pay off my mortgage earlier?
There are many ways to pay off your mortgage earlier, we will look at your individual circumstances and recommend the best strategy for you.
2 Is paying off more towards the principal the only way to pay off your loan quicker?
Paying more towards the principal is one way to pay off your loan quicker but certainly not the only way.

For some borrowers who are already on a tight budget and stretched to their limits this strategy will not work.

However with the correct loan structure and education, borrowers can still reduce their mortgage term by paying it off years earlier without the need to pay any extra repayments.
3What about getting a low Interest Rate?
Interest Rates will determine your monthly repayments but it will not determine the cost of your loan. You need to look at other factors like fees, charges, how flexible is your loan, does it allow you to change repayment cycles, pay extra, redraw funds, does it come with an offset account, Visa debit card etc…..

Chasing the lowest Interest Rate might end up costing you more because interest rates can fluctuate up or down any time! (You need to have a strategy in which YOU ARE IN FULL CONTROL and not relying on Interest Rates, this is a variable that you most definitely cannot rely on).
4If your strategy is so good why hasn’t my lender told me about it?
At Fast Repay Home Loan we work on a ‘Win-Win’ strategy. That is ‘we put you first’. Our number one priority is to put you in a loan that best suits your circumstances not one that best suits shareholder’s interests?
5What is your Interest Rate?
At Fast Repay Home Loan we differentiate between interest rate and interest cost. We need to assess individual situations to determine the exact interest rate but generally speaking our interest rate is pretty much as every other lender. But our interest cost is one of the lowest.

We tailor products that suit your individual needs. Our goal is to structure a low interst cost product that’ll allow you to pay off your mortgage years earlier, saving you tens of thousands of dollars in interest costs, fees and charges. Do you know how much your loan is costing you?
6What is interest cost?
Interest cost is what you’ll end up paying over the term of the loan. For example a $300,000 loan on an interest rate of 8% over 30 years, you’ll pay around $492,466 in interest costs, not to mention other different fees and charges.

So interest cost is bit over 164%. Do you know how much your loan is costing you?
7How is interest calculated?
Interest is calculated on the daily outstanding balance of your loan. You can reduce the interest payable by making extra repayments or depositing additional funds into your loan account or offset account to reduce your balance.

You may be able to redraw these funds as and when you need them. Make sure there is no redraw fees as this defeats the purpose.
8What is Compound Interest?
INTEREST that is calculated on both the sum of money lent or borrowed and on the unpaid interest already earned or charged

Compound interest is a fundamental component in the laws of money.

If people were taught it at school as part of a money management unit, I doubt that 95% of retirees would require the govt. pension for support as they do today. If all who learned it applied it, far more than the current 5% of people would attain financial independence.
9What is the benefit of consolidating credit card debt and other loans together?
By consolidating various smaller debts like credit cards or personal loans into one large debt, you may be able to lower your monthly repayments and be able to track your repayments more effectively.
10What is Lenders Mortgage Insurance (LMI)?
Contrary to what many borrowers may think, Lenders Mortgage Insurance does not protect the borrower should they be unable to make mortgage repayments. Rather it protects the lender from any losses resulting in the sale of a property due to default by the borrower. LMI premiums are payable by the borrower when the amount borrowed is above a certain percentage, usually 80% of the lender’s valuation of the property.
11What documentation will I need to apply for a home loan?
In conjunction with the submission of your official home loan application you may need to provide supporting documentation that confirms your identity and substantiates your income. Documents can include:

- Drivers License

- Birth Certificate

- Recent Pay slips

- Tax returns

- Bank statements

Rates notices (if you own existing property)
12What is a Lo Doc loan?
A simple, quick and comparatively trouble-free finance product called a low-document loan.

This type of loan caters mainly for self-employed borrowers who are unable to provide full financial statements and other evidence of their income.

There is a growing range of lo-doc products on the market with many lenders offering standard and premium lo-doc loans with the choice of fixed or variable interest rate. Borrowers also get access to a range of loan features and options never previously available.

However, most lenders require lo-doc borrowers to take out lenders’ mortgage insurance when borrowing up to 80 per cent of the property value. Some lenders also charge a higher interest rate for these products. These rates may be reduced after a certain time period or when you are able to provide tax returns.

The challenge is to find the best loan with the best features for your particular circumstances. That’s where your Fast Repay Home Loan Finance Coach can help.
13What is Settlement?
Settlement is the completion of the sale, when the borrowers take possession of the property if they’re purchasing a new property and when the new mortgage takes effect if the borrowers are refinancing.
14When does settlement occur?
Settlement usually takes place 2 – 4 weeks from the date the home loan is formally approved.
15How often can I make payments on my mortgage?
You can choose to pay weekly, fortnightly or monthly. The repayment can therefore be matched to your pay cycle.
16Can the loan repayments be reduced if we make a large lump sum payment?
That depends on whether your loan has interest only or principal and interest repayments. Interest only repayments go down should you significantly reduce the balance of your loan. The principal and interest repayments stay the same no matter how much extra you put in. Those extra payments simply shorten the term of your loan.
17If I pay extra, can I then stop repayments for a few months?
The answer is no. You still need to meet the minimum monthly repayments no matter how much extra you have paid. To take a “repayment holiday” you can redraw the extra repayments from the loan and use that money for the monthly payments. That way you can temporarily stop using your own money for the loan repayments.

Or if your loan offers an offset account and your loan repayments are direct debited from your offset account then you can simply deposit extra funds into your offset account and it’ll be direct debited from there as normal.
18Should I have a fixed interest rate home loan?
Fixed rate mortgages offer certainty over the interest rate, but they take away some flexibility. Look at the fixed rates as a protection strategy. Will you lose the property if your variable rate mortgage rate went ridiculously high? Do you prefer to make money on a variable rate mortgage when the rates go down or rather be on a fixed rate when the rates go up? How much flexibility do your require? Depending on your answers you may decide to fix the entire mortgage, split between fixed and variable or leave it all on variable. It is a part of our service to help you determine what works for you.
19If I take out a loan, can I protect myself against a situation where I cannot pay the mortgage?
Yes, we have income protection insurance or even a life insurance that will give you protection; however, you need to ask us about it during loan application process.
20How much commission will you get paid if I take a loan through you?
Under the Australian law we must disclose the amount of commission payable to us and also commissions we share with other parties. We disclose that at the loan application stage after you have chosen to go ahead with one of the options we presented to you.
21What is a comparison rate?
The comparison rate gives you an idea of the cost of your loan taking into account the annual interest rate, any honeymoon periods as well as fees and charges. The comparison rate is a good way to compare the all in cost of borrowing across different products and providers.
22What will my repayments be?
Your repayments take into account the annual interest rate, loan term, repayment frequency and loan amount.
23What’s an ‘interest only’ home loan?
An Interest-Only Loan means for an initial period of up to ten years your repayments only cover the interest on the loan. At the end of this period you will still owe the full amount you borrowed. The advantage is the repayments are very low during this early phase of the repayment schedule. This loan is ideal for people who are borrowing for investment purposes.
24Can I use my Fast Repay Home Loan to purchase shares?
Yes. You can redraw funds from your Fast Repay Home Loan to invest in shares, property or whatever you choose. You can even redraw funds for personal use.
25What is a property valuation?
A valuation is a professional assessment of how much a property is worth.
26Who determines the value of my property?
An independent property valuer will inspect the property, consider all the factors that affect the value and provide a professional property valuation report.

Disclaimer

Fast Repay Home Loan does not accept any liability for any decisions made on the basis of this information. This web site does not constitute financial advice and should not be taken as such. Fast Repay Home Loan urges you to obtain professional advice. The above is a guide only. All products are subject to lenders’ terms and conditions, and can change anytime. Please read our Terms of Use AND Privacy Statement.