FAQ's

Below are some questions, we at Finance Connect are frequently asked.

If you can’t find the answer to your question here, please feel free to call or email us and we will be more than happy to assist you with your enquiry.

What is a pre-approval and how long does it take?
Generally we can acquire a pre-approval within 48 hours (sometimes quicker!) it all depends on how organised you are with supplying us all the information required upfront including details or liabilities, assets, identification and so forth.

How long does the entire loan process take?
This can vary depending on queries raised by the Bank, you getting back to us with information, settlement times and so forth.  Generally speaking a straight forward purchase settlement is 6 weeks and a refinance about 4 weeks.

Should I sell before I buy?
We highly recommend all of our clients sell their current home before they commit to another property.

Can you help me with a Deposit Bond?
Yes, Finance Connect can purchase a deposit bond on your behalf through a company called Deposit Power.  Please go to Deposit Bonds for more information.

What is a 5 day cooling off period?
A five day cooling off period is the time frame in which you first sign a Contract of Sale (and hand over a holding deposit of 0.25% of the purchase price) until you then exchange on the full deposit amount (be it 5% or 10%) of the purchase price.

It is during this 5 day cooling off period

• we instruct the Lender to carry out a valuation on the property to ensure it conforms to their policy and that they will accept the property as security,
• we finalise your formal loan approval,
• you as the purchaser can withdraw from the sale (most likely at a loss of your 0.25% deposit) due to an unsatisfactory building or pest inspection report or any other unforeseen circumstance which may arise.

What is Mortgage Insurance?
Mortgage insurance is a form of insurance that you must pay to the bank should you borrow more than 80% (LVR) of the property’s value.  Mortgage insurance is an added assurance required by the Lender to ensure that should you default on the loan or no longer be able to meet repayments they have recovered part of their financial loss.

What is an LVR?
An LVR is a Loan to Value Ratio used to assess your borrowing capacity against a property purchase price.