Category: FAQ
Ability Finance is a finance broker specialising in low deposit and no deposit home loans.
Contact Ability Finance Broker using the form on their website or by phoning +61 2 8002 4035
If desired but is far better to have Ability Finance lodge a loan application for an approval in principle or home loan pre-approval prior to making an offer on a property.
This ensures that your home loan application is conditionally approved by the lender, if the application is successful.
Conditional approval is usually based on a condition that an acceptable property to the lender is chosen. Click to Read more
Generally there will be an answer in about 48 hours from the time the home loan application is lodged.
Some banks have an online home loan application system which Ability Finance are authorised to access and this type of home loan application lodgement can sometimes provide an answer within minutes.
We have seen some lenders take more than a month to look at a home loan application.
Ability Finance brokers help you avoid these delays wherever possible.
Serviceability is a calculation which takes into account an applicants total income and total commitments such as day to day living expenses and other financial commitments to determine if there is any available surplus of money that could be used to repay a proposed loan.
Loan to value ratio is the percentage of a property a borrower owns compared to the loan size a lender has secured against the property.
For Eample, if a $100,000 house is purchased with $20,000 deposit and the purchaser borrows $80,000 for the rest the loan to value ratio would be 80%.
If the purchaser only had $20,000 and had to borrow the purchase costs as well to complete the sale then the loan to value ratio would be closer to 85% based on a general purchase estimate by a non first home buyer in New South Wales.
When loan to value ratio increases above a certain amount the lender may require that the loan is mortgage insured to cover the increased risk that is involved.
The level varies depending on many factors and most loans are subject to LMI when there is less than 20% deposit or owner equity involved in the security property.
Some loans may require LMI even if there is more than 20% equity level and some lenders mortgage insure every loan. Click to Read more
Most finance brokers do not charge you anything for organising a home loan.
Ability Finance is a finance broker who do not charge clients any extra for organising a home loan.
The commission earned by the broker is paid by the lender, to the finance broker after the loan has been drawn down. Click to Read more
Before a finance broker can arrange finance on your behalf with a bank or lender the broker must be accredited with that bank or lender.
If the broker is not accredited they are unable to introduce or arrange finance for you with that lender.
