Our Answers to Some Popular FAQ's
We have categorised our FAQ’s according to the type of loan, as well as some “General” FAQ’s that either fit All or None of the loan type categories.
If you can’t find the answer to your question, then please call us today to find out more.
General FAQ's
Can Vermont Finance help self-employed clients who can’t prove income traditionally?
Yes. We are aware of the "Alt-Doc" loans for business owners. Instead of traditional tax returns, you can often use Business Bank Statements or BAS to verify your income. We navigate niche lender policies to find a solution that recognises your true borrowing power.
I’ve just moved to Australia and have no local credit record. Can I get a loan?
At Vermont Finance, we understand that establishing your footprint in a new country can come with unique financing challenges. If you hold a qualifying visa, a lack of local credit history shouldn't automatically stop you from buying a home. By assessing your specific residency status and global financial standing, we work to identify lenders who take a holistic view of your situation to find a suitable mortgage solution.
What is a pre-approval and why do I need one?
A pre-approval confirms the maximum amount a bank is willing to lend you. We will guide you through this process so you can negotiate with confidence, knowing exactly what you can afford. It makes you a "cash-ready" buyer in the eyes of agents.
How does a client apply for a loan with Vermont Finance?
We handle the entire process for you. Using advanced broking software, we compare hundreds of rates and hidden costs to find the best value. From the first application to the final settlement, we do the legwork so you don’t have to.
What is a mortgage broker?
A mortgage broker acts as a professional advocate who negotiates with banks on your behalf. We serve as the bridge between clients and a vast network of lenders, doing the legwork to find a home loan that fits your specific goals. Rather than walking into one bank and seeing one set of products, we use advanced software to compare various options, ensuring the client gets the right rate and a smooth path to settlement.
Can the loan application process be completed online?
Yes. Vermont Finance is fully equipped to manage the entire process digitally for the client’s convenience. We provide a secure online application platform and utilise email and digital tools for all documentation and clarifications. This ensures a fast, efficient, and paperless experience, allowing the client to progress their application from anywhere at any time.
Why shouldn’t I just go directly to my bank?
A bank is restricted to its own products. We provide an independent advantage by assessing your unique situation against a vast panel of major banks and private lenders, ensuring you get a competitive rate across the entire market.
What is the Loan to Value Ratio (LVR)?
LVR is the percentage of a property’s value that a client borrows. For example, borrowing $400,000 for a $500,000 home results in an 80% LVR. We use this figure to determine a client's risk profile; a lower LVR often unlocks more competitive interest rates and better loan features.
Granny Flat Loans FAQ's
How can I finance a granny flat if the supplier requires upfront payment?
Traditional construction loans don't typically allow for large upfront payments before work starts on-site. In these cases, we will identify alternative solutions-such as an Equity Release from your current home or a specialised Personal Loan. This provides you with the "ready cash" needed to pay the supplier upfront, allowing the kit to be manufactured and delivered for on-site assembly without bank-imposed delays.
Can I use a Personal Loan to cover the upfront costs of a portable unit?
Absolutely. For clients who don't want to refinance their mortgage, you may be able to secure an itemised Personal Loan. This is often the fastest way to get the necessary funds into the supplier’s hands, ensuring your unit is prioritised for delivery and on-site assembly while keeping your main home loan untouched.
What is the benefit of using an "Equity Release" instead of a construction loan?
By tapping into the existing equity in your home, we can provide you with a lump sum at home-loan interest rates. This gives you total control over the funds, allowing you to meet the supplier's upfront payment demands and manage the costs of on-site assembly yourself, rather than waiting for a bank to approve "progress payments".
How can we help if you need the money before the unit arrives?
We focus on the timing of the funds, working with lenders who understand that modular and assembled-on-site units require a different cash flow. By selecting the right loan product, we ensure you have the capital available to secure your order and start the assembly process on your timeline.
Home Loans FAQ's
I’ve just moved to Australia and have no local credit record. Can I get a loan?
Absolutely. We understand that a lack of local credit history shouldn't stop you from buying a home. By leveraging your residency status and global financial standing, we identify lenders who take a holistic view of your situation to help you secure a mortgage.
Is it possible to include loan-related fees in the total mortgage amount?
In many cases, yes. Depending on your property value and loan type, we can help you "capitalise" costs like Lenders Mortgage Insurance (LMI) into the loan. This helps preserve your upfront cash for other expenses.
What is a "Low Doc" home loan?
A Low Documentation (or "Low Doc") loan is a specialised solution for clients who cannot provide the standard two years of tax returns or financial statements. We typically utilise these for self-employed borrowers or investors whose tax filings are not yet up to date. By using alternative evidence—such as BAS or bank statements—we can verify a client's income to help them secure a home loan that a traditional "Full Doc" process might otherwise decline.
What is a "Split" home loan?
A split loan allows a client to divide their mortgage into multiple portions—typically one at a fixed rate and the other at a variable rate. This strategy provides the stability of fixed repayments while maintaining the flexibility of a variable loan, such as the ability to use an offset account or make extra repayments.
We work with clients to determine the ideal ratio for their split, which does not have to be an equal 50:50 divide. This tailored approach allows clients to manage interest rate risks while still benefiting from market fluctuations and loan features that suit their lifestyle.
How much can a client afford to borrow?
Borrowing capacity varies significantly between lenders. We perform a comprehensive assessment of a client’s income, existing debts, and living expenses to provide an accurate borrowing limit. This ensures the client focuses on properties within a realistic and sustainable price range.
How long does the loan approval process take?
While turnaround times vary by lender, we work to ensure applications are ‘decision-ready’. Typically, a conditional approval can take between 4 to 10 business days. We manage all follow-ups with the bank to keep the process moving as quickly as possible.
Does it cost anything to use your services?
In most cases, no. Our professional services are typically paid for by the lender via a commission after the loan settles. This means clients receive expert, personalised advice and access to advanced software without an upfront service fee.
What is the difference between a Fixed and Variable interest rate?
A Fixed Rate offers certainty with locked-in repayments for a set term, while a Variable Rate can fluctuate with the market but often provides more features, like offset accounts and extra repayments. We explain the pros and cons of each to help the client choose the right fit for their lifestyle.
What documentation does a client need to get started?
Generally, we will require proof of identity, recent payslips or business financials, and bank statements showing savings and current debts. We provide a clear, personalised checklist to each client to make gathering these documents simple and stress-free.
Can we help if a client has a less-than-perfect credit history?
Yes. We have access to specialist lenders who look beyond a simple credit score. By understanding the story behind the numbers, we can often find a path to finance for clients who have been declined by major banks.
Refinancing & Debt Consolidation FAQ's
What exactly is debt consolidation?
Debt consolidation is the process of combining multiple high-interest debts—such as credit cards, store cards, or personal loans—into a single, more manageable loan. We can restructure these into one monthly payment, typically at a lower interest rate, to help clients regain control of their finances.
Can you roll high-interest debt into a home loan?
Yes. For clients with existing home equity, we can often refinance the mortgage to include other debts. This allows the client to pay off high-interest debt at a much lower home loan rate, which can reduce total monthly outgoings and improve cash flow.
What are the main benefits of consolidating debt with Vermont Finance?
The primary benefits may include a potentially lower overall interest rate, simplified budgeting with just one repayment, and the potential to become debt-free sooner. We will personally calculate the potential savings to determine if the consolidation provides a financial advantage for the client
Will consolidating debt affect a client's credit score?
Initially, applying for a consolidation loan may involve a credit check, but the long-term impact is often positive. By making one manageable repayment on time rather than juggling multiple due dates, we help clients build a more consistent and reliable credit profile over time.
How does a client know if consolidation is the right move?
We conduct a detailed "Debt Health Check" to compare current interest costs against the proposed consolidated rate. If the total interest paid and the monthly fees are lower under the new structure, we manage the transition to ensure the client is in a better financial position.
What is the "cost of switching" and is it worth it?
Refinancing involves minor costs such as discharge fees from the old bank and registration fees for the new mortgage. We perform a Break-Even Analysis to ensure the interest savings from the new rate will outweigh these setup costs, ensuring the move makes genuine financial sense.
Can we help a client switch from a Fixed to a Variable rate?
Yes. We can assist clients in navigating the transition when their fixed-term expires, or by calculating the "break costs" if they wish to switch early. This allows clients to move to a more flexible product—like one with an Offset Account—if their lifestyle or financial goals have changed.
What is "Equity Release" during a refinance?
If a property has increased in value, we can help a client refinance for more than their current debt. This "releases" cash equity that can be used for home renovations, deposit for an investment property, or consolidating other debts. We will ensure this is structured correctly to maintain a healthy LVR.
Does a client need a new property valuation to refinance?
In most cases, yes. The new lender will want to confirm the property's current market value. We manage this process, often utilising digital "desktop" valuations to speed up the approval, ensuring the client has an accurate picture of their borrowing power before the switch occurs.
Investment Loans FAQ's
What is the difference between an owner-occupier loan and an investment loan?
Investment loans are specifically for properties that will be rented out rather than lived in. These loans typically carry slightly higher interest rates and different lending criteria, but they may unlock tax-deductible interest benefits and flexible repayment structures, such as interest-only terms for eligible applicants.
Can a client use existing home equity to buy an investment property?
Yes. This is a common strategy where we help clients tap into the "unused" value of their current home to fund a deposit and costs for an investment. This can often allow a client to purchase an investment property with little to no physical cash deposit.
What are "Interest-Only" repayments, and are they beneficial?
Interest-only repayments allow a client to pay only the interest on the loan for a set period, which keeps monthly outgoings lower and can potentially help with tax deductions. We can discuss whether this strategy aligns with your cash flow needs and long-term investment goals.
How does "Negative Gearing" affect an investment loan?
Negative gearing occurs when the costs of owning an investment property exceed the rental income it produces. We work with clients on their new build to ensure the loan is structured correctly to account for these potential tax offsets while maintaining a sustainable repayment plan.
How many lenders do we compare for investment loans?
We use advanced software to compare products from a vast panel of over 20 lenders, including major banks and specialist investment firms. This ensures the client receives a loan with the right features-like offset accounts and redraw facilities-at a competitive market rate.
FHOG Loans FAQ's
I’ve just moved to Australia and have no local credit record. Can I get a loan?
We understand that a lack of local credit history shouldn't stop you from buying a home. By leveraging your residency status and global financial standing, we identify lenders who take a holistic view of your situation to help you secure a mortgage.
What is the First Home Owner Grant (FHOG)?
The First Home Owner Grant is a government initiative designed to help eligible clients purchase or build their first property sooner. In Western Australia, the government provides a $10,000 grant for those buying or building a new home. We assist clients in determining their eligibility and managing the application process to ensure they access the government support available for their first home.
Am I eligible for the First Home Owner Grant (FHOG)?
Eligibility in Western Australia generally requires the property to be a newly built or buy off-the-plan, for the use as a principal place of residence. We help clients confirm they meet the following core requirements:
- Residency & Age: At least one applicant must be an Australian citizen or permanent resident and at least 18 years old.
- Ownership History: Applicants must not have previously owned a home in Australia or received a FHOG in any state.
- Entity Type: The home must be purchased by individuals, not a company or trust.
- Occupancy: At least one applicant must live in the home for a continuous six-month period within the first year of settlement.
We personally review each client’s situation to ensure all supporting documentation is submitted correctly and within the required 12-month timeframe.
Western Australian Government First Home Owner Grant Portal.
Can a client receive the FHOG if they are buying an existing (established) home?
In Western Australia, the $10,000 grant is specifically reserved for newly built homes or those being built. If a client is purchasing an established (existing) property, they will not be eligible for the cash grant; however, we can check if you still qualify for substantial Stamp Duty concessions, which can save you thousands of dollars upfront.
Does a "de facto" partner’s past home ownership affect eligibility?
Yes. If a client’s partner (spouse or de facto) has previously owned a home in Australia or received a FHOG, the client is generally ineligible for the grant. We will review the history of both applicants to ensure there are no "hidden" disqualifications before submitting the application to the Office of State Revenue.
What happens if a client moves out of the home before the six-month residency requirement?
If a client fails to live in the property as their principal place of residence for at least six continuous months within the first year, they may be required to repay the grant. We will ensure all clients understand these strict residency obligations to avoid future penalties or demands for repayment from the government.
Can the FHOG be used as part of the initial deposit for the loan?
This depends on the lender. While the grant is government-funded, some lenders allow us to use the anticipated $10,000 as part of the client’s "genuine savings" or towards the final settlement costs. We identify specific lenders whose policies are "first-home buyer friendly" to help clients bridge the gap to their deposit goals.
Personal Loans FAQ's
What can a personal loan be used for?
Personal loans are versatile and can be itemised for specific needs. We assist clients in securing dedicated funding for Car Loans, Wedding Loans, home renovations, or travel. By tailoring the loan to the specific purpose, we ensure the terms and rates are optimised for that purchase.
What is the difference between a secured and unsecured personal loan?
A secured loan uses an asset (like a car) as collateral, which often results in a lower interest rate. An unsecured loan doesn't require an asset but may have a slightly higher rate. We explain both options to help the client decide which fits their risk comfort and financial goals.
How fast can you get a personal loan approved?
At Vermont Finance, we streamline the path to your financial goals by utilising modern, digital-first solutions. Our advanced online platforms allow us to secure fast conditional approvals, ensuring you have access to funds precisely when opportunities arise. We combine this cutting-edge efficiency with tailored guidance, delivering a seamless, transparent, and compliant borrowing experience designed around your unique needs.
Are the interest rates fixed or variable?
Both options are available. A fixed rate provides the certainty of knowing exactly what the repayments will be for the life of the loan, while a variable rate may offer more flexibility. We compare the latest market rates to ensure the client gets a competitive deal.
Can a personal loan be paid off early?
Yes, many of the lenders we work with allow for early repayments. We specifically look for loan products that offer the flexibility to pay the balance sooner without heavy "exit fees," helping the client save on interest over the long term.