Time to purchase your new home?
Looking to invest in property?
Wondering how you'll afford your new car?

FAQs

We are always being asked the same questions….so to help you out, we have compiled the most common things people ask us on this page:

What does a mortgage broker do?

Mortgage brokers are professional in the home loan industry. They work with you to determine your borrowing needs and how much you can borrow. Brokers help ensure you don’t take out a loan that is too big for you.

Professional Mortgage Brokers only focus on loans. If you have a toothache, you go to the dentist not a florist. If your car is broken you take it to a mechanic not a librarian. You go to someone trained to help you with your specific need. It’s same when you need a loan.

Brokers have access to a wide variety of loans. This mean your broker can find a loan is just right for you.

Do you Charge fees for home and investment loans?

Some mortgage brokers charge a fee and some don’t. When you take out a loan via a Mortgage Broker – it does not cost you more. That is an absolute myth. Brokers get paid commission by the bank for bringing new business to them, this does not impact your rate or level of service.

Some brokers charge a fee for their service. They must disclose this fee upfront to you so you know what you will be up for if you engage their services.

Don’t you just recommend the lender who pays you the most commission?

Absolutely not! There is legislation in our industry, called the National Consumer Credit Protection Act or NCCP, that is designed to protect consumers and ensure ethical and professional standards in the finance industry. We tell you upfront what commission we will be getting from the bank. Our job, our only job, is to find the best loan for your needs and serviceability.

Isn’t it more expensive to use a broker?

This is dependent on how much you have saved for a deposit and what you current expenses are. Give us a call and we can go into your options in more detail, or check out the loan calculators page of our site!

Some Brokers charge a fee for their service which they must disclose to you up-front before you engage their services.

How much can I borrow?

How much you can borrow will depend on 2 key factors -

1) Your Income: including how much income you earn from wages/salary, rental income and income from other sources.

2) Your Equity: this is how much you have to contribute towards the loan. Cash from savings, or equity in your existing home or investment property can make up part of this.

Should I go fixed or variable?

This is a personal decision that only you can decide. We can recommend a product based on what you say is most important to you eg “pay my loan off quickly” or “guaranteed repayments”.

We do however believe that the following guideline will serve you well: "if you want flexibility take a variable rate loan, if you want budget certainty take a fixed rate loan, if you want both, then do both”

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

Absolutely! We are happy to come to see you at your work or home – or even on your boat!

Which lenders do you deal with?

Centra Money has access to a large panel of lenders including all the major banks, second tier lenders and credit unions - as well as specialist private lenders. We can source you a loan from the lender of your choice.

Who sets interest rates?

Mortgage brokers do not set rates....interest rates for various types of loans are usually determined by the lenders themselves. This will largely depend on the cost that lenders obtain their funding for, the underlying market conditions, the loan to value ratio and of course the risk assessment of the mortgagee.

Why should I use a mortgage broker if I can go with a bank?

When we talk about a ‘loan product’ we are preferring to the thousands of options that are currently available for you for your loan. Each bank (for lender) has loads of different loan options – low doc, package loans, re-draw facilities, plant and equipment loans, fixed, interest only, interested in advance, variable, introductory variable… the issues you face as a consumer is ‘which loan is right for me?’ And that is where a mortgage broker comes in. IF you go direct to the bank, you will only be offered the loan options available through that one lender. As your mortgage broker, we do all the leg work for you. We are across many lenders and all of their loan products and our sole purpose is to find the right loan for your needs.

Resources to Help You
How else we can help you

CENTRA MONEY Pty Ltd (ABN 96 167 497 305) is a Credit Representative (#452523) of BLSSA Pty Ltd ACN 117 651 760 (Australian Credit Licence 391237) and trades as CENTRA MONEY. It is part of "The CENTRA WEALTH Group" | www.centrawealth.com.au.