Question 1

How much income do I need to get a loan?

Accepted Answer

This depends on the size of the loan, your existing financial commitments and whether you have a family, kids and even what postcode you live in.
As this question is very specific to your individual circumstances, we will need to collect some details and complete a preliminary assessment for you.

Question 2

What deposit do I need to purchase a property?

Accepted Answer

Ideally a 20% deposit plus costs*, however it's common for people to use a 12% deposit plus costs*.
If you're buying a home to live in, you can use as little as a 5% deposit. This is often how First Home Buyers purchase their first home.
*Costs are charges on top of the purchase price - stamp duty, transfer fees, solicitor fees etc.. The costs are not included in the 20% deposit.

Question 3

Why should I review my loans frequently?

Accepted Answer

There are many reasons to review your lending at least every 12 months.

1) Ensuring you understand your loan structure and strategy, and that it is working for you. 
2) To address any changes or anticipated changes to your circumstances to your circumstances
3) To stay competitive as lenders rarely offer their existing clients the best rates

Question 4

Is refinancing worth the effort?

Accepted Answer

Unless you've just recently refinanced in the last year or two, yes it most likely is!

We do not refinance clients unless theirs a substantial benefit - moving to interest only payments, reducing interest rates, restructuring and optimising their loans.

If we only focus on cost vs savings, we need to ensure all the costs are covered by the new loans savings. We usually find that we save our clients around $2,000 p/a in savings for a loan of around $450,000.

Question 5

Can I get a loan if I'm retiring soon?

Accepted Answer

Yes, however banks willl want to see a strategy for how you intend to retire debt free.

Some banks are more flexible than others.

MRD Finance works with a lot of pre-retirees, and we've become really good at analysing your current position and demonstrating how you can retire debt free.

Question 6

Can I get a loan if I'm retired?

Accepted Answer

Yes - you just need enough permanent income to service the loan while supporting yourself during retirement.
Permanent income includes ongoing superannuation or pensions that do not expire.

Question 7

Should I refinance or sell my investment property?

Accepted Answer

There are benefits to both:
- Selling might reduce costs (i.e. body corporate fees) while releasing equity that is used to pay off your home loan.
- Refinancing means you continue to receive rent with an asset that will continue to appreciate.

If you feel you need to sell due to costs, but you'd rather keep the property, speak with us and we may be able turn it into a strong investment.

Question 8

Why should I use a broker instead of a bank?

Accepted Answer

Banks can only sell their products - they'll never recommend you go next door if a better deal is available.
Banks have to work within a single, narrow policy, which might not suit your current position

Question 9

What documents do I need to apply for a loan?

Accepted Answer

Lenders will always require your identification and income documents (payslips, rental statements etc).

After that, some lenders will require bank statements for existing loans and your living expenses, while others require council rates for properties you own.

As a brokerage, we are required to collect a minimum amount of documents for our compliance, however we only ever provide the lender with what they require in order to get you approved.

Question 10

Self employed - How many years of trading do I 
need to qualify for a loan?

Accepted Answer

Lenders usually require 2 years of tax returns and your ABN registered for 24+ months in order to offer their prime products.
We do have prime options if you've been trading for at least 12 months, and near prime options if you've been trading for less.

Question 11

How much paper work is involved?

Accepted Answer

MRD Finance is fully digital. The only documents you might be required to print, sign and/or post are some specific lender documents and government documents, such as Mortgage Forms, Statutory Declarations and some Loan Documents.

Question 12

How long does it take to lodge and get approved?

Accepted Answer

This depends on the complexity and purpose of your loan. If you've provided the documents we require, we usually provide a Loan Proposal within 24 hours of confirming your eligibility to borrow.  If your finances are more complex, or if the application is dependant on getting a strong valuation, it can take longer.  Approval is subject to which lender you proceed with - some lenders can approve within 2 hrs of lodgement, while others sometimes take up to 6 weeks to pick up an application. We generally steer clear of the latter, but will fully disclose this if they are one of our recommended options.

Question 13

The bank told me I don't qualify. Can you help?

Accepted Answer

We can definitely try.

Often people won't qualify with one or another lender due to that lenders specific policies, or method of assessing wether your can service the new loan.

MRD Finance has access to dozens of lenders with various different policies that suit a wide range of unique circumstances.

One client approached us after he was declined for a loan from his existing lender because he had leased his investment to a company. His existing lender does not accept rental income if the tenant is a company. We quickly lodged a refinance and got him settled in 10 days - just in time to pay the bills for his wedding the next week.

Frequently asked questions