We’ve been Frequently Asked about…
Ruziean Finance may apply our service fees. See a list of fees that may be applicable to a loan here.
Different lenders have different lending requirements, and those requirements change from time to time. Therefore, even if you think you have a full checklist, we may request further information from you.
HOW MUCH CAN I BORROW?
Instead of calculating your borrowing capacity from your income, we recommend an assessment of borrowing capacity based on repayments that are affordable for you. Access the calculator here.
But be aware this can be different from the actual lenders assessment. Each lender has their own calculator, so the result could be different. Get your free assessment from our team today.
Always plan ahead. Please allow at least 2-3 months before you need a loan (property settlement date), even if the actual processing time sometimes can be less than in two weeks. Starting early can reward you with peace of mind.
WHY USE A BROKER?
Utilising a qualified mortgage broker can offer some significant advantages including access to a broad panel of potential lenders who may provide your loan, experience in completing and lodging your application correctly, assistance for you in managing the paperwork and application process including fielding questions from potential lenders about your application, all at no direct cost to you.
A report that details your credit history, including every time you have applied for credit or defaulted on a repayment. Credit providers use your credit score and report to assess your capacity to repay a new loan, credit card, or mobile phone plan, or if you seek to increase your limit on an existing credit card. A poor credit report could affect any loans or credit you apply for in the future.
Get assistance in obtaining a copy of your credit report by contacting us here.
VARIABLE RATE LOAN
The interest rate on your loan can go up or down, usually in line with a change to the official cash rate (but lenders may make changes independently of cash rate changes).
FIXED RATE LOAN
The interest rate on your loan will remain unchanged for the fixed period. This is usually 2-5 years, after which your loan will usually revert to a variable rate loan.
This is where part of your loan is variable and part is fixed.
A comparison rate is a rate that helps you work out the true cost of a loan. It reduces to a single percentage figure the interest rate plus most fees and charges relating to a loan. The comparison rate allows you to compare loans from different lenders to find out how much it will cost you.
Paying a little bit extra can save you interest and get your loan paid off quicker. However, most fixed-rate loans will limit the amount of extra payments you can make each year. There may also be penalties for paying out a fixed rate portion early.
INTEREST AND PRINCIPAL
Most home loans are principal-and-interest loans, which means that your regular payments will reduce the principal (amount borrowed) as well as paying off the interest. With an interest-only loan, you only pay interest on the amount you have borrowed for an agreed period (usually up to 5 years).
An offset account is a transaction account linked to an eligible home or investment loan. The money you have in this account could offset the amount you owe on that loan, and you’ll only be charged the interest on the net balance of the loan principal outstanding.
A home loan with a redraw facility allows you to redraw principal you have already repaid in excess of your minimum repayments and is usually offered with variable interest rate loans. A redraw facility allows you to be flexible with how you repay the loan. If you have spare money in your savings, you can pay this onto the loan.
LINE OF CREDIT
A line of credit is a loan where a credit limit is set and you can borrow and repay multiple times within that credit limit.