5 Reasons Why You're Better Off with a Finance Broker

Posted by Nathan Drew on 23 May 2021
5 Reasons Why You're Better Off with a Finance Broker

The world of Finance has changed in recent years. There are now literally thousands of different home loan options out there in the market. Knowing which home loan is right for you can be confusing, so getting the right home loan advice is crucial.

When it comes to your banking (banks), unfortunately loyalty does not necessarily count for much anymore.

Banks are busy going about their business of acquiring new clients and delivering dividends to shareholders... and they know that we Aussies traditionally like to stick with the brands we know.

At Fox Home Loans, what we see in from our side of the fence is that Banks can be guilty of taking their current clients for granted. Just because you may have a long-term savings account that your pay gets paid into with a bank does not guarantee you a great loan deal. Nor does having all of your banking in one place.

Loyalty is a characteristic that we value for good reason, but when it comes to home loans or any other loan for that matter, it could end up costing you more in interest and repayments than is necessary.

Often customers who have been with the same bank for a while can be easily swayed by the offers put right in front of them and could be tempted to go with the first offer they receive.

We all lead very busy lives, so it is easy to understand why we would want to make something like applying for a loan as simple as possible, isn't it?

Here are 5 simple reasons why you will love a Fox Home Loans Lending Specialists more than you love your bank....

1. On January 1, Best Interests Duty (BID) started to apply to Finance Brokers, not banks. This means, you will have a professional that can access literally hundreds of different loan products who is legally obligated to work and act in your best interests - and no one else's.

2. We will search high and low, across thousands of products, all the best known and emerging banks and lenders to find your loan. A Fox Home Loans broker is part of a family owned company, we genuinely want what's right for you.*

3. You will have your very own qualified professional with you for the long haul, regularly checking in on you and ensuring your loan remains in alignment with your goals and to advise on rates, repayments, incentives, and contracts.

4. You can contact us at any time, not just during the restricted working hours of a normal bank.

5. Oh, and did I mention that having a Fox Home Loans Lending Specialist comes at no cost to you?**

Do you have someone experienced in your corner?

Fox Home Loans is one of Australia's leading personalised financial service organisations. We have spent many years getting things right so that you can rest assured that you are getting the very best financial advice available on the market today. We work for you, not the banks, plus we can help you get pre-qualified for your home loan the same day!

As a Fox Home Loans Client, you have access to your very own Accredited Mobile Home Loan Specialist along with access to your very own Qualified Financial Planner. Our team comprises of specialists with many years' experience in Home Loans, Investment Loans, SMSF Loans, Commercial Property Finance and more. Yes, we have a large team here at Fox Home Loans ready to help you.

We pride ourselves on the unique personalised service that we provide our Clients. Your Loan Specialist can help you either over the phone, via email, at your home, at your work or at your own business. You get their direct email address and mobile number, which makes it easy for you to stay in contact with them when you have questions.
If you are keen to learn more or you are ready to act now, you can contact us on 1300 665 906 or you can get started here.

Important to note that not all lenders are available to all brokers. The exact details of the lenders your broker has access to is disclosed within the Credit Guide your broker gives to you when providing credit assistance or is available upon request.**There may be occasions where you may be charged a fee by your broker. This document has been created by Fox Property Finance Pty Ltd. (ABN 28 648 057 498) It provides an overview or summary only and it should not be considered a comprehensive statement on any matter. Before acting on or relying upon this information take steps to seek independent professional lending or taxation advice as appropriate specific to your objectives, financial circumstances or needs.

 

How to get pre-approved for a home loan

Posted by Nathan Drew on 5 April 2021
How to get pre-approved for a home loan

Home Loan Pre-Approval

Before you race out to the open homes to make an offer, it makes sense to have already carefully considered all of your home loan options. With the thousands of different home loan options currently on the market, this can be quite confusing.

Some of the questions that we commonly hear are, what is a good deal, what are my fees, is it flexible enough for me to make changes to my repayments in the future if I need to.

Getting a home loan pre-approval in place can give you the peace of mind, plus it puts you in a position of bargaining power when you find your perfect home.

What is conditional home loan pre-approval?

Conditional pre-approval is an indication from a lender that you are eligible to apply for a home loan up to a certain limit. A Fox Home Loan pre-approval costs you nothing and commits you to nothing. You are under no obligation to take the loan, and the lender has no obligation to lend you that amount, but it can put you in the box seat and show sellers that you are serious about buying.

In order to give you an indication of what you can reasonably expect to borrow, we need to consider your personal financial situation and the price range of properties that you are looking at.

Calculate what your home loan repayments could be with our simple online home loan calculator.

What are the advantages of home loan pre-approval?

Not only does rolling up to the open home with a home loan pre-approval in place show sellers that you are serious, but it also helps to be well advanced with your finance as soon as you find your dream home. This can reduce the amount of time between sale and home loan settlement. Effectively, you could get to move into your new dream home faster.

Another advantage of a home loan pre-approval is that if you are early on in your home buying journey, getting conditional pre-approval can help you focus your property search and give you a clear idea of what you are likely to be able to afford based on what a lender is prepared to loan you. This helps you set your new home budget which can save you time and help you not overspend.

How do you apply for home loan pre-approval with Fox Home Loans?

You can apply online, call us on 1300 655 906 or make an appointment to speak with a Home Lending Specialist.

It is our job to do all of the running around for you to ensure that you are offered the very best home loan offer on the market that suits your needs and budget. We do this all day every day, and our Home Loan Lending Specialists are constantly scouring the market for the best deals for our customers.

When you speak with us, it can help if you have an idea of the following:

  • Price range of properties you are interested in

  • How much of your deposit you have saved

  • Your current income

  • Your living expenses

  • Your current loan repayment on other loans

What then?

If you are conditionally pre-approved for a home loan with one of our Lenders, once you find your perfect home, we will verify your financial position and then provide you with a formal home loan approval so that you can finalise things with the sellers.

We are here to give you guidance throughout your home buying journey, speak with us for more information today on 1300 665 906.

 

What Do The Banks Think About Credit Scores

Posted by Nathan Drew on 23 March 2021
What Do The Banks Think About Credit Scores

 

Understanding Your Credit Score Is Critical

Getting your credit score from some online website is one thing, but trying to understand what the score means and how it came to be that way is another thing altogether. Here is our helpful guide to let you know where you stand.

How To Understand Credit Scores

Your credit score is a number between 0 and 1200 that relates to how likely you are to repay debt. Banks and lenders use it to decide whether they'll approve you for a credit card or loan.
What's a good credit score?

Basically, the higher your Credit Score, it is viewed that the less likely it is that you have had an adverse credit event recorded on your file. Lenders will view this as you are being a lower risk for them.  The lower your credit score the higher risk you will appear as a potential borrower.

In addition to your Credit Score, most lenders will apply their own lending criteria, so having an experienced Loan Consultant in your corner for this is imperative. Why is it imperative? The more enquiries you make on your file (the more applications you make) the lower your score can become. You want to ensure that you are applying to the best lender the first time, which takes having some knowledge about which lenders are offering the best deal for your individual situation at any one time.

 

Here is a Guide to Credit Score Ranges

Below average to average (0-509). Lenders view people in this range as more likely to have an adverse event being recorded on their file in the next 12 months. You are in the bottom 20% of Credit's credit-active population.

Average (510-621). If your credit score falls in this range it some lenders will still, consider that it's likely that you will incur an adverse event in the next 12 months. Your score places you in the bottom 21-40% of the credit-active population.

Good (622-725). For people that fall within this range lenders tend to feel that it is less likely to have an adverse event in the next 12 months. You fall in the mid-range (41-60%) of Credit's credit-active population.

Very good (726-832). Most Lenders believe that potential customers that have a credit score in this range are unlikely to have a negative event recorded on your credit file within the next 12 months. Your score places you in the second-highest percentile range of the credit-active population (61-80%)

Excellent (833-1200). At the top of the list is where a lender would feel that it's highly unlikely to have a negative event recorded on your file within the next 12 months when compared to the average Australian. The odds of no adverse events occurring on your credit file in the next 12 months are five times better than the population average and you are in the top percentile range (81-100%).

How is Your Credit Score Calculated?

Type of credit provider. There may be different levels of risk when approaching different lenders. A non-traditional lender may have a different level of risk than a bank or credit union.

The size of credit requested. Both the type and size of the loan or credit limit your requesting can affect your Credit Score. Mortgages have a different level of risk compared to credit cards for example as the lend is view as secured lending against unsecured.

The number of credit enquiries. Every time you apply for a credit product, the credit provider obtains a copy of your file and the application is noted. If you've shopped around for credit and applied at a number of places in one space of time, it flags you as a higher risk. The pattern of credit enquiries over time also affects the level of risk.

Directorship information. If you're a director or proprietor, it may impact your Credit Score so it's important to check both the individual and commercial sections of your credit file.

Age of credit file. The date your credit file was created. A new file may indicate a different level of risk compared to an older file. For example, if you are 45 years old and applying for credit for the first time the lender may feel that you are applying under a new name as it isn't the norm these days that someone goes through life without touching their credit file a few times.

Personal details. Your Credit Score will consider your age, length of employment and how long you've lived at your current address.

Default information. Any personal or business credit such as overdue debts, serious credit infringements or clear-outs could negatively affect your Credit Score.

Court writs. Default judgements or court writs may convey you as an increased risk and negatively impact your Credit Score.  

How To Improve Your Credit Score

Your credit score is generally recorded over a 2-year period, so for example payment defaults, court judgments and defaults that are recorded during this period can affect your score. Bankruptcies can take up to 5 years to stop affecting your credit score.

But don't get disheartened, there are ways to manage your credit score and start to improve your credit score over time.

Here are some tips on what you could do to help improve your credit score:

  • Make loan repayments on time. If you think that you will miss a payment, don't hide from it, let your lender know.

  • Always pay your commitments on time. This includes but is not limited to your telephone and internet bills, electricity bills, rates notices, water bills. Setting up direct debits can help you not forget to make these payments.

  • Pay off any outstanding debts or defaults. This can then be shown as paid on your credit file and go some way to helping your credit file look better in lenders eyes as you have then shown intent to pay.

  • Don't make too many enquiries for credit and limit your applications to when you are in a better credit position. Speaking with a qualified Lending Specialist can help you make some good decisions around this.

  • Pay off your credit card and store card balance each month and consider lowering your limits. If you don't use that $20,000 limit each month, reduce it to a manageable limit to improve your debt-to-credit ratio.

 

Would you like to know more about your Credit File?

The team at Fox Home Loans are experts in helping people understand the information on their credit file. We also provide you a copy of your detailed credit file as a free service, because we believe that it's super important to really understand everything they need to know about their credit file and credit score. You can rest assured that speaking with one of our team and having us help you understand your Credit File and Credit Score will not negatively impact on your current score.

As we are not a lender, with your permission, our enquiry that we can make on your behalf to retreive your Credit File does not affect your file in the same way a bank's or alternative lender's does. This is why it is so important to speak with one of our qualified Lending Specialists before you make any enquiries to the bank or any other lenders. It is likely that we will have access to these banks and lenders on our panel anyway, so if you do choose to proceed with a finance application at some point with us, we can help you get the best loan deal from over 50 banks and other lenders that we have access to.

Do You Have Someone in Your Corner?

Fox Property Finance is one of Australia's leading personalised financial service organisations. We have spent many years getting things right so that you can rest assured that you are getting the very best advice available on the market today.

If you would like to know more about what your Credit Score is today, click here to get started!

Learn more about the Author Nathan Drew.

 

Why Use A Finance Broker

Posted by Nathan Drew on 23 March 2021
Why Use A Finance Broker

 

Who Do You Have In Your Corner?

We are currently experiencing an unprecedented time with Home Loan Lending. Home Loan Rates are at historic lows, but what do you need to know to make sure that you are getting the best deal? Or is it a case of who you know and not what you know?

There has been alot of noise in the media around the wrong doings within some of the major banks over recent times. This has given some consumers a lack of confidence in "the system" across the board.  Who can you trust?  Who is on your side?  Who is in your corner for the long-term future of your family and or your business?

If you have the right Finance Broker in your corner, you can gain access to non-biased, qualified advice from someone who lives and breathes finance 24/7.  Also, the right Finance Broker will come to you, so you can get access to this experience from the comfort of your own home, work or business. They will give you their direct email address and mobile number, which makes it easy for you to stay in contact with them when you have questions.

It has got to be said that it is hard enough to keep up with the changes in lending policy and which financiers are offering the best deals when you live it every day as a Finance Broker, let alone when you only need to think about it every couple of years or so as a consumer. 

So, outside of getting the very best loan approval for their Clients, what does a Fox Home Loans Finance Broker do all day?

Here are just a few of the things that an Accredited Fox Home Loans Finance Broker will do day to day to ensure that they can offer the best advice suited to you;

  • Meet with their Clients on a regular basis to ensure that they still have the most competitive loan set up on the market today and offer suggestions of how they could save you money and help you pay off your home or investment sooner.

  • Negotiate with a number of Lenders to ensure that their client is receiving the very best home loan deal on the market that meets their needs.

  • Meet with a family that is investing in their first home or an investment property to help them work through a budget and work out what their lending capacity could be before they hit the open homes this week end.

  • Speak with Clients about their upcoming purchases and what their lending criteria would be for their home loan, investment or commercial purchase.

  • Sit down with a family to help them work through what's involved in consolidating some of their debts into one easy repayment to reduce their weekly loan commitments and potentially save them money in the process.

  • Speak with their in-house Financial Planner about a Client's scenario around superannuation and life insurance policies so they can jointly work out ways to plan for retirement, better protect their Client and their family, protect their assets and hopefully save them money along the way.

  • Keep updated on any new Lenders hitting the market and any new products being offered by Financiers - there could literally be hundreds of loan options available.

  • Study which Lenders have tweaked their lending criteria to target a specific demographic within the market - a Lender's appetite can change monthly and if understood properly could save a Client thousands of dollars.

  • Attending Personal Development sessions to improve their knowledge and expertise within a certain industry, for example Reverse Mortgages, Home Re-finance, SMSF Lending or to find out which Banks are offering deals on Standard Fixed Home Loan Rates today.

  • A good Finance Broker understands that their Client's needs are changing and just being an experienced Finance Broker isn't enough to ensure that you can offer the best and most relevant advice today. 


The team at Fox Home Loans have spent more than a decade building up their high performing team of industry experts so that you can rest assured that your best interests are at the heart of everything we do. You are also assured that you will always receive the best quality advice available not only today but also long into the future.

Ask yourself these questions:

1)  Do you have future aspirations and plans in place to build on your family's wealth, so that you can retire comfortably? 

2)  Do you have plans to buy your first home or maybe upgrade / downsize from your current principal place of residence? 

3)  Are your current weekly commitments holding you out of the property market?

4)  Do You Have Someone Experienced in Your Corner?

Fox Property Finance is one of Australia's leading personalised financial service organisations. We have spent many years getting things right so that you can rest assured that you are getting the very best financial advice available on the market today. We work for you, not the banks, plus we can have a loan pre-approved ready to go the same day!

As a Fox Property Finance Client, you have access to your very own Accredited Loan Specialist along with access to your very own Qualified Financial Planner. Our team comprises of specialists with many years' experience in Home Loans, Investment Property Finance and more.  

We pride ourselves on the unique personalised service that we provide our Clients. Your Loan Specialist can help you either over the phone, via email, at your home, at your work or at your own business. You get their direct email address and mobile number, which makes it easy for you to stay in contact with them when you have questions. 

If you are keen to learn more or you are ready to act now, you can contact us on 1300 665 906 or you can get started here.

Learn more about the Author Nathan Drew.

 

Record low home loan rates! Could you be taking advantage of this?

Posted by Nathan Drew on 14 March 2021
Record low home loan rates! Could you be taking advantage of this?

Money has never been cheaper to borrow

It is not just first home buyers are relishing in the low-rate home loan environment that we are currently in.
We have found that the Lenders on our panel are also scrambling to offer our customers historic deals as we negotiate on behalf of our customers that have an existing mortgage right now. 

Here is something crazy that I heard the other day

Despite interest rates dropping to historic lows, less than ten percent of mortgage holders in Australia have yet re-financed their old high-rate home loan.
What does this mean? Millions of mortgage holders right now here in Australia are paying more interest than they really need to.
For me, that is the definition of crazy! Especially when you have a Finance Professional like Fox Finance Group in your corner willing to do all the heavy lifting for you to capitalise on these savings.

Ask yourself this question

What is my home loan interest rate right now?

If you answered, "I don't' exactly know", you are not alone, but there is a solution.
A 10-minute conversation with one of our Home Lending Specialists will quickly establish if you could be saving money right now.  If you are already on the best deal, we will also let you know of that as well, giving you peace of mind that you are in the best possible loan position right now.

Need more convincing?

Here are some great reasons to chat to us about re-financing your home loan:

  • Lock in a lower rate before they rise again, so you can put some more money back in your pocket right now.
  • Leverage your hard earnt equity to enable you to purchase an investment property. 
  • Keep your repayment at the same level, or even increase your repayment slightly so you can get ahead and pay your loan off sooner.
  • Find a Lender that is a better fit for you and what you want to do in the future. This can be a great chance to consider a different loan product type, consolidate other debts you may have, or access the latest exclusive deals.

Sad but true

Your Bank will not reach out to you and say, "Hey, did you know that we are offering other customers a better deal than you are on right now?"
As part of our process, we can literally hundreds of the most competitive home loan offer on the market right now.
Give us a call on 1300 665 906 and start a conversation with our team that could set you up even better for the future. 

Disclaimer:

This article was prepared by Fox Property Finance Pty Ltd (ABN 28 648 057 498). Any refinancing is subject to normal lender-imposed terms and conditions including but not limited to loan serviceability, valuations, and confirmed capacity to service both any existing and revised lending arrangements. The information provided on this site is on the understanding that it is for illustrative and discussion purposes only. Whilst all care and attention is taken in its preparation, we encourage readers to make their own enquiries and research to ensure its relevance to your specific personal requirements and circumstances.