If you're in the market for a Home or Investment Loan then DMC has a loan product to suit, including:
Standard Variable Rate Loan (SVR)
This is one of the oldest variable rate loans offered by lenders. The SVR loan is a fully-featured offering where the interest rate fluctuates up and down usually in line with the Reserve bank. Traditionally, lenders charge an application fee and a monthly fee for this style of loan.
Fixed-Rate Loan (FRL)
As the name suggests, the Fixed-rate loan allows the borrower to set a rate for a pre-determined period knowing that it will not move throughout this time. These loans often restrict additional payments to smaller portions and depending on market rates rising or falling, can sometimes be costly to exit, if the borrower wants to sell the property and or repay the loan before the end of the agreed period.
This is probably the most common loan offered in current times. The packaged loan is the SVR or FR Loan (above) with better pricing and different fee structure. Traditionally, this loan would be at a discounted interest rate, could be split with other types of loans like a fixed-rate loan and would also come with a raft of other features and benefits. It would normally also attract an annual fee, but depending on the loan size is usually much more beneficial than a SVR loan.
Honeymoon Rate Loan
The Honeymoon rate loan is, as the name suggests, a cheaper variable rate facility but usually for only a short period of time. Once again, it is a loan that was commonly used by borrowers in years gone by but nowadays often not sought after.
A split loan is usually a combination of the Packaged variable rate loan and the Fixed-rate loan. A split loan offers borrowers the ability to protect a set portion of the loan using a fixed rate, but the flexibility of a variable rate that can also allow additional repayments at any time without penalty.
Line Of Credit (LOC)
This was a very common loan used by many borrowers before the banking review in 2015. A LOC gave customers the ability to have a predetermined limit to use for whatever purpose they liked at any time in the future. Since the banking review, lenders have been restricted in offering this product because it wasn't seen as being in borrowers best interests having access to large amounts of money at short notice. LOC products are only offered these days at small loan amounts and for specific purposes.
Low Doc Loans
Low Doc Loans are usually only offered to self-employed customers who have the means to repay a loan, but not the completed and lodged tax return to support this ability. Lenders will normally look at the borrowers Business Activity Statements (BAS) to confirm business turnover and or a signed letter from their accountant to support the borrower's income claims.
Other Financial Products and Services
We can also provide advice and assistance with:
- Mortgage reduction
- Wealth creation
- Savings plans Budgeting Lender deposit requirements
- Poor credit histories
- Chattel Mortgages
- Hire purchase
- Personal loans
- Deposit bonds
- Income and mortgage protection
- General insurance
- Locating and securing the right investment property
The Application Process
- From the initial enquiry, we will collect interim details and forward you via email a list of items to prepare for our meeting.
- At our first meeting, we will spend some time with you to establish what your goals and requirements are.
- We will discuss your needs and show you what products and services will be most appropriate to achieve these goals.
- We will present to you a report highlighting these products and making a recommendation about what would be the most suitable.
- When you have decided which lender and product(s) you wish to proceed with, we gather all the details and put together your application and a submission to the lender highlighting why your application should be approved.
- Once approved, we again meet with you to go over the loan documents and answer any questions you might have.
- Your loan documents are returned to the lender's solicitor where they are checked and certified for settlement.
- Your loan is settled and you take possession of your new home or investment property.
Throughout this process, our processing and settlement department will continuously be in contact with you and your conveyancer so that all parties are aware of what is happening at all times.
Home Buyers Frequently Asked Questions
We’re all unique when it comes to our finances and borrowing needs. For a specific estimate on how much you could borrow leave your name and contact details and "Request a call back" to the side of this page.
How much can I borrow?
How much you can borrow is calculated by looking at your net income less any existing loan repayments and ongoing living expenses. The lenders will then estimate from the remaining income how much you can commit towards any new loan repayments. You can estimate your borrowing capacity here by completing our Borrowing Power Calculator with your details.
How do I choose the loan that’s right for me?
This can only be decided after talking with us and looking at your individual circumstances and requirements.
How much do I need for a deposit?
Usually a minimum of 5% of the purchase price plus costs. Sometimes (especially for first home buyers) borrowers might use family equity to assist them with being able to purchase a home if they only have a limited deposit. Contact us today to discuss if this might work for you.
How much will regular repayments be?
Your loan repayments will be based on your rate, term and loan amount. You can use our Loan Repayment Calculator to estimate your repayments but for specific figures please contact us and we will be happy to run through the numbers with you.
How often do I make home loan repayments — weekly, fortnightly or monthly?
Most lenders offer flexible repayment options to suit your pay cycle. Aim for a minimum of fortnightly repayments (at half the minimum monthly amount) instead of monthly, as you will make an additional one months repayment over the course of a year. This strategy can save you years and thousands of dollars in interest over the life of your loan.
What fees/costs should I budget for?
There are a number of fees involved when buying a property. To avoid surprises, the list below sets out all of the usual costs:
Government Stamp Duty: This is the big one. All other costs are relatively small by comparison. Stamp duty rates vary between state and territory governments and also depend on the value of the property you buy. You may also have to pay stamp duty on the mortgage itself. To find out your total Stamp Duty charge, visit our Stamp Duty Calculator.
Legal/conveyancing fees: Generally around $1,000 – $1500, these fees cover all the legal rigour around your property purchase, including title searches.
Building inspection: This should be carried out by a qualified expert, such as a structural engineer before you purchase the property. Your Contract of Sale should be subject to the building inspection, so if there are any structural problems you have the option to withdraw from the purchase without any significant financial penalties. A building inspection and report can cost up to $1,000, depending on the size of the property. Your conveyancer will usually arrange this inspection, and you will usually pay for it as part of their total invoice at settlement (in addition to the conveyancing fees).
Pest inspection: Also to be carried out before purchase to ensure the property is free of problems, such as white ants. Your Contract of Sale should be subject to the pest inspection, so if any unwanted crawlies are found you may have the option to withdraw from the purchase without any significant financial penalties. Allow up to $500 depending on the size of the property. Your real estate agent or conveyancer may arrange this inspection, and you will usually pay for it as part of their total invoice at settlement (in addition to the conveyancing fees).
Lender costs: Most lenders charge establishment fees to help cover the costs of the establishment of your loan. We will let you know what your lender charges but allow about $600 to $800.
Valuation Fees: These are usually between $200 - $300 per property. Often lenders will build this into their fee schedule.
Moving costs: Don’t forget to factor in the cost of a removalist if you plan on using one.
Mortgage Insurance costs: If you borrow more than 80% of the purchase price of the property, you’ll also need to pay Lender Mortgage Insurance. If you buy a strata title, regular strata fees are payable.
Personal Insurance: We strongly recommend that you consider insuring yourself in the event that you are unable to work and may struggle to meet your loan commitments. We will always suggest that you speak to our people about how you can personally mitigate this misfortune.
Ongoing costs: You will need to include council and water rates along with regular loan repayments. It is important to also take out building insurance and contents insurance. Your lender will probably require a minimum sum insured for the building to cover the loan, but make sure you actually take out enough building insurance to cover what it would cost if you had to rebuild. Likewise, make sure you have enough contents cover should you need to replace everything if the worst happens.