Frequently Asked Questions (FAQs)
Q: "How does my broker choose which bank I obtain a loan from?"
There is more to consider rather than simply offering you the cheapest interest rate out there. Your broker will evaluate your needs and calculate your borrowing capacity, and will use this to compare your options and provide you with a shortlist of lenders that best meet your individual circumstances.
Your broker will also take into account any specific issues that may be treated differently according to a particular lender’s credit policies. For example, treatment of income when a spouse is about to return to work after maternity or paternity leave, how bonus income is treated and acceptability of guarantees or gifts.
Your broker will provide you with expert advice to assist you in making the final decision on which loan is best for you.
Q: "How much does it cost to get a loan?"
We charge an advice fee of between $440 and $660, which is usually, except in unique cases, all you will need to pay John Alam & Partners to secure your loan. This fee includes the advice we will provide you leading up to your decision to proceed with the loan application. This fee also includes the work we will do in preparing your loan application and following it through to settlement.
There are a range of third-party fees that you may be charged depending on your situation, which may include, but are not limited to; a valuation fee, the solicitor/conveyancer's fee and government/security fees. These third-party fees typically tend to be paid using the money you borrow.
Q: "What does my loan advice meeting entail?"
The loan advice meeting is something we have with all our clients before we proceed with assisting them to obtain a loan. It includes gathering all of your information which will be used to establish whether your situation is suitable to apply for a loan, and which lender and product you should proceed with. The advice meeting is more than just gathering information. As your broker, we will take into account your individual circumstances and advise you on how you should move forward financially in regard to the money you will be borrowing. For example, what assets you should consider selling, budget considerations and so on.
Q: "How long will it take for me to get a loan?"
As each loan is different, there is no fixed time period for a loan to be approved and reach settlement. There are a number of variables that will affect the speed at which a loan is finalised. Examples include any past dishonours or overdrafts you might have, how long it takes you to provide us with any outstanding information, the processing speed of a particular lender and any third-party involvement, such as solicitors for example. We will prepare and submit your loan application as fast as possible, but much of what is involved time-wise in obtaining your loan is out of our hands.
Q: "What are the steps in the application process?"
First we use the information gathered to choose a suitable lender and product for you. This is followed by an application to receive conditional approval from the lender. Once this is received, we will need to satisfy the conditions of this approval to achieve formal approval, for example by providing clarification of proof of income or paying off an overdue bill you might have overlooked. Once formal approval has been received, we check your loan contracts and send them to you for signing. Once these are returned to us, we send them to the lender and book in a date for settlement.
Q: "Will credit card debt or other loans affect my ability to get a loan?"
Yes, in all likelihood they will. A lender will check your personal credit history when assessing whether or not to approve your application and will estimate your debt serviceability or ability to repay the loan based on your credit card debt, credit card limit and other pre-existing loans.