K R Consulting

FAQ's

What are the different home loan options available to me?
How much can I borrow?
What Documents I need to apply for a home loan?
What is the minimum deposit I need to buy a house?
How much does it cost for Stamp Duty?
What are the grants available to the first home Buyer?
What is mortgage Insurance?
How is Mortgage Insurance charged?
Do you offer lines of credit?
Do you provide construction funding?
How can Brokers services be free? Are there any hidden costs involved?
Why should I use K R Consulting instead of going directly to the financier?

What are the different home loan options available to me?

Many people are surprised to learn that there are literally thousands of home loan products available. Australia's lending market is very competitive with a seemingly endless choice of home loans available from local and international banks, building societies, credit unions and specialist lenders. Depending on what is most appropriate for you and your borrowing power you can choice from Standard variable loans, Basic variable loans, Discount Variable/Honeymoon, also known as Introductory loans, Fixed rate loans, Combination/ Split loans, Line of Credit/Equity Loans, Low Documentation loans, No Documentation loans, Non-conforming Home Loans and No deposit Home loans. At KRC we can offer you all of these plus more.

How much can I borrow?

Your borrowing capacity depends on a number of factors such as loan value ratio, income and types of income, e.g. casual vs full-time, other loans, credit card limits, loan terms, number of dependants and their situation, loan products, tax rates and rental income.  As a rule of thumb, most financiers will draw the line at allowing your repayments to be no more than 40% of your gross income. Click here to find out how much you can expect to borrow for a home loan based on your current salary and existing financial commitments.

What Documents do I need to apply for a home loan?

Each financier is slightly different, but the following list is pretty much what you will need in most cases.
If you are a (PAYG) employee, you'll need:

  • Bank Statements showing your saving history for the past 6 months
  • Two most recent Pay slips or Group Certificates for the past 2 years
  • Originals (& copy) of 100 points ID Check
    • Passport with photo - (70 points)
    • Current Drivers License - (40 points)
    • Credit Card, Medicare Card, Utilities Bills in your name - (25 points)
  • Evidence of shares and other investments
  • Contract of sale/purchase for the property if available

If you are self employed, you will also need:

  • Last two year's P&L statements and balance sheet
  • Personal and Business Tax Returns

Other circumstances - additional information:

  • Investment property - lease, rent appraisal or evidence of receipt of rental income
  • Re-financing - past 12 months statements for existing loan(s), copies of rate notices and insurance policy
  • Building - provide a copy of plan, specifications and builder's tender

What is the minimum deposit I need to buy a house?

Financiers used to require a 20% deposit on a house. These days, financiers will accept as little as 0% deposit on a home in certain circumstances. And the interest rates and loan terms might be more competitive than you think. There are two distinct categories here in terms of potential loan offerings

  1. 100% product (or 0% deposit loan)
  2. Up to 95% products

How much does it cost for Stamp Duty?

Stamp Duty is applied according to the law of the state the property is. Click here to calculate the stamp duty payable in your state.


What are the grants available to the first home Buyer?

If you are a first home buyer, a $7000 grant is available to go towards the purchase of your property. The First Home Owners Grant comes from the Commonwealth government but the grant scheme is administered by the state and territory governments. Each state is different, but first home buyers in New South Wales and Victoria get a further bonus from their state governments. Other states offer various benefits such as stamp duty concessions to first home buyers.

What is mortgage Insurance?

Mortgage insurance is a one-off payment by the borrower to the financier (or financier's insurer) to 'insure' the loan. It insures the financier for any short fall on a loan, so if your property were sold up because of defaults, it covers the difference between what your property is sold for and the amount still owing. 

How and why is Mortgage Insurance charged?

Whenever you have less than 20% deposit, you will almost always have to pay mortgage insurance or LMI. On 100% loans, dependent on the financier and the risk, mortgage insurance can cost up to 3% of the amount you are borrowing. Up to 95% loans (or 5% deposit), the amount would typically be up to 1.2% - 1.5% of the loan amount. As you get closer to 80% home loan (or 20% deposit), the cost usually discounts substantially. If you have 20% or more deposit and all other factors are in line, LMI is generally not charged on standard loans.

Do you offer lines of credit?

Yes, a line of credit can be arranged against a residential or commercial property and is drawn only to the extent required by the borrower. These structures provide commercial and business borrowers with the flexibility of an overdraft at the lowest wholesale interest rates.

Do you offer construction funding?

At KRC we offer development finance for the improvement of land and buildings in order to create enhanced end value. All stages of development are catered for, ranging from vacant land and new construction to the refurbishment of existing buildings. Our construction funding provides competitive interest rates and flexible funding structures from a wide range of financiers.

How can Brokers services be free? Aren't there any hidden costs involved?

Financiers work with Mortgage Brokers because they effectively give the financier a bigger 'shop front' without carrying a traditional employee overhead. The financier pays the broker fees or commissions for your business so you are not paying anything for the broker's services to you. Just as if you were dealing with a bank manager or financier, these fees do not change the interest rate you pay on a home loan.

Why should I use K R Consulting instead of going directly to the financier?

It's all about options. When you apply for a home loan with K R Consulting you are effectively applying for a loan with all the financiers on our panel. If you only applied to one financier, you may be lucky and get the same match, but you would certainly never have been able to consider the same range of financiers. Money is a commodity. The cheaper you "rent" it and the harder you make it work, the better off you will be. At KRC we aim to get you the best possible deal, with the right features, specifically catered to your financial circumstances.

So contact us anytime on 1300 79 63 69 or click on the Make an Obligation Free Enquiry link below and one of our experienced consultants will be in touch with you within 24 hours.