How much deposit do I need?

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Most lenders ask for 5% of the property value as a deposit (genuinely saved) but you need to factor in purchase costs like stamp duty, settlement agent fees and the impacts of lenders mortgage insurance (LMI). In general, the more you have saved, the more options you have and the easier the approval process becomes. If you don’t have 5% we do have lower deposit options available.

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What does Genuine Savings mean?

“Genuine savings” is simply money you’ve personally put aside over a period – usually a minimum of three months.

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What is LMI?

Lenders Mortgage Insurance (LMI) is a one-off, non-refundable, non-transferrable premium that's added to your home loan. It's calculated based on the size of your deposit and how much you borrow. This is charged when the deposit is less than 20% of the property’s purchase price.

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What is LVR?

The term LVR is an acronym for Loan to Value Ratio and is also sometimes referred to as ‘LTV’.

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The LVR is the amount you are borrowing against the property value being used as security for the loan, represented as a percentage.

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Lenders place a large emphasis on the LVR when assessing your loan application. The lower the LVR, the lower the risk is to the bank, hence you’re likely to get better rates with a low LVR and you pay less LMI.

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Why use a Finance Broker?

Brokers play a critical role in ensuring consumers have choice, transparency, and confidence in the market. Individual Lenders only have a limited number of loan options they can offer. Brokers work with a variety of different lenders to ensure you get the absolute best loan suited to your individual needs. The purpose of a trailing commission is an ongoing incentive to nurture the relationship they have with their clients and review a client's holdings when required.

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How can we be sure that you will recommend a suitable loan?

It is a common misconception that mortgage brokers recommend unsuitable loans for their clients to try to maximise their incentives. At Verve Finance Services, we will recommend several suitable loans for you and then let you decide which one you would like to apply with. As a holder of an Australian Credit Licence, it is against the law for us to assist you with applying for an unsuitable loan.

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How does applying for a loan work?

The team at Verve Finance Services does all of the hard work. All you will be required to do is fill out the application and supply the required documentation. We can then complete a preliminary assessment and give you some options to choose from. Once we know which lender you would like to proceed with then we lodge the loan online directly into their system for a quick approval.

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How does a Finance Broker get paid?

Mortgages
Brokers are paid via an upfront and trail commission based on the loan balance introduced to the lender. The amount of commission can vary across each lender. It is a cost incurred by the lender and does not impact the interest rate or repayments on your loan. Brokers can charge a fee for service; this amount would be disclosed to you by way of Credit Quote and would be presented prior to carrying out any dealings with you.

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Vehicle Loans
Brokers will charge a Brokerage Fee/Origination Fee which is our fee for service. This amount will be disclosed to you and can be paid upfront or included in the finance amount. The commission paid on a loan is determined by the 'flex amount' – which is the difference between the base rate and the interest rate of the loan sold to the consumer.

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Personal Loans/Debt Consolidation
Brokers will charge a Brokerage Fee/Origination Fee which is our fee for service. This amount will be disclosed to you and can be paid upfront or included in the finance amount. The amount of commission can vary across each lender. It is a cost incurred by the lender and does not impact the interest rate or repayments on your loan.

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