ethical finance broker

Frequently Asked Questions

Finance Brokers & Loan Process

A finance broker serves as an intermediary between you and a wide array of lenders, providing access to financing options that are typically unavailable to the public. By navigating the competitive asset finance market, brokers help you secure the best deals and rates.

Lenders value finance brokers because brokers know how to present loan applications in the most favorable light. By understanding your needs and crafting a compelling case, brokers enhance your chances of quick approval. Their expertise in lender assessment criteria is crucial for successful loan approval.

Finance brokers have a deep understanding of each lender’s unique policies and requirements. This knowledge allows them to identify which lender is best suited for your specific financial situation, avoiding potential obstacles and streamlining the application process.

Finance brokers vary in their approach:

Rate Promisers: Some brokers advertise low rates and quick pre-approvals but may later explain why you don’t qualify for the advertised rate.

Contact Detail Sellers: Other brokers may sell your contact details to multiple companies, resulting in unwanted calls and emails.

Transparent Brokers (My Approach): Unlike others, I offer transparent, 24/7 access to the best deals tailored to your profile. There are no hidden rates or gimmicks.

When working with me, you can explore various financing options with no upfront cost. My service is free unless you proceed with a loan, where my below-average fee can be included in the loan amount. I focus on presenting diverse financing options, helping you make an informed decision without pushing specific products.

Select Your Loan and Submit Documentation:

Choose your preferred loan using our quote tool. Then, email or upload your license and the last two payslips (for consumer loans).

Application Review:

I will review your application to identify and resolve any potential issues.

Submit to Lender:

Your application will be submitted to the most suitable lender based on your needs.

Provide Car Details:

Once your loan is approved, provide car details. For dealership purchases, forward the dealership contract. For private sales, send a link to the ad or the seller’s contact information.

Submit Required Documents:

Provide a tax invoice from the dealership or an inspection report from the seller (usually requested by me).

Obtain Fully Comprehensive Insurance:

Finance companies require fully comprehensive insurance before issuing loan contracts. The insurance must list the registration (Rego) number or VIN number, your name, and the finance company’s details.

When getting a quote from insurers like AAMI, Youi, or Budget, select “yes” for the asset being financed and choose our approved lender.

Forward Insurance Policy:

After purchasing the insurance, forward the policy email to me. Finance companies do not accept screenshots or policy numbers alone.

Receive and Sign Loan Contracts:

I will send you the loan contracts, most of which can be signed electronically for your convenience.

Loan Settlement:

I will upload the signed contracts to the lender, who will then settle the loan and pay the seller.

Some lenders pay the seller in real-time, while others may take overnight.

Payment Confirmation:

I will email the remittance advice to the seller as proof of payment.

The speed of this process can vary. Each lender has different approval and settlement times, which will be indicated in the quote tool.

Loans can be approved with funds potentially in your account within 2-3 hours. However, the entire process typically takes 2-3 days from start to finish. The quote tool on my website provides estimated timescales for each lender, with personal loans generally being processed more quickly.

System-Approved Emails: While my software can generate a system-approved email from a lender within minutes, official approval requires human verification of payslips and IDs, which can take additional hours.

Verification Process: Thorough verification is needed before final approval. This means that while some lenders may advertise quick pre-approvals, actual approval times involve detailed checks.

Rates are displayed transparently when you receive a quote. As you input your details, the rate dynamically adjusts based on the information you provide. My software performs thousands of calculations to predict the likely rate from your chosen lender according to your profile.

Bank Statements & Loan Protection

Bank statements are sometimes needed for personal loans, larger business loans, short-term ABN holders, or if there are discrepancies on your credit file. They provide a detailed view of your financial situation, which can significantly impact the approval process.

Secure Process: I use a trusted service called Ilion, which I’ve relied on for over 6 years without issues. Not every deal requires bank statement details, but some lenders may request them.

How It Works: I’ll send you a secure link via email or text. When you complete the link, I receive a PDF containing your last 3, 6, or 12 months of banking transactions, depending on the specific link used.

Privacy and Security: The reports from Ilion are reliable and securely handled. If these reports don’t support your case, I’ll explore alternative options to help secure the best approval for you.

 

If you’re concerned about entering your online banking details, rest assured that I use a reputable and secure service. You can also review more information about this process on the Ilion website at www.bankstatements.com.au.

As your broker, my goal is always to leverage all available resources responsibly to secure the best approval for you. If you have any concerns or need more details, feel free to reach out to me.

Yes, I can offer loan protection services. However, it’s been some time since I last arranged a policy. Here’s what you need to know:

Specific Coverage: If I set up loan protection for you, it will cover only the loan I arrange. It does not extend to other financial commitments or loans you might have.

Cost-Effectiveness: Typically, it’s more cost-effective for you to obtain loan protection coverage directly online compared to what I can offer. You might find better rates and terms by exploring options yourself.

Existing Insurance: Many people already have insurance coverage through their Superannuation fund. It’s worth checking your Superannuation policy to see if it covers loan protection or other financial commitments.

Switching Providers: If your current Superannuation provider doesn’t offer the coverage or terms you need, consider switching to a provider with better terms.

Evaluate Your Needs: Carefully weigh your options to ensure you have the right level of protection for your financial situation. Assess both your current insurance coverage and any new policies you might consider.

REFINANCE LOAN & CREDIT FILE

Yes, you can refinance your existing loan with my assistance. However, it’s important to consider that setup fees and exit fees charged by dealerships can affect the overall cost of refinancing. Even if my interest rate is 2-3% lower, factors such as the number of payments made and the financed amount can influence whether refinancing with me is the most cost-effective option.

To assess if refinancing will save you money, please provide the following details:

Payout Figure: The amount required to pay off your existing loan.

Contract Signing Date: When the current loan agreement was signed.

Current Payments: Your current payment amounts and schedule.

I will review these details and determine if switching to a new loan would be beneficial for you.

If your goal is to reduce your monthly repayments, I can provide various refinancing scenarios for you to consider. Let me know your priorities, and I’ll assist you in finding the best option to meet your needs.

To get started, provide the necessary information, and I will evaluate your options and get back to you with tailored recommendations. Feel free to reach out if you have any questions or need further assistance.

What is a Soft Check? As a broker, I can perform a “Soft Check” on your credit file. This type of check does not appear on your credit report or affect your credit score.

Benefits of a Soft Check: It provides detailed information, often more comprehensive than what some lenders can access. I’m happy to share this report with you upon request while ensuring confidentiality.

Impact of Pre-Approvals: Most lenders will leave a mark on your credit file with a pre-approval. However, a few pre-approvals within a short timeframe generally won’t significantly damage your credit score.

Proactive Approach: I proactively contact lenders to discuss potential issues before submitting an application. This approach can take more time but helps prevent unnecessary hits on your credit file.

Impact of Payday Loans: Loans under $5,000 from payday lenders like Cash Converters or Wallet Wizard can negatively impact your credit file. These are often considered hardship loans and can affect your credit within the last 6 months.

Afterpay and ZipPay: Generally, services like Afterpay and ZipPay do not cause issues with credit files or finance applications.

Credit Score Impact: Applying for multiple loans in a short period can lower your credit score, which may impact the interest rate you qualify for.

Cautious Application: Be cautious with online applications as some may be lodged unintentionally, potentially affecting your credit score.

I’m dedicated to guiding you through these considerations to protect your credit health and help you secure the best financial options available. Feel free to reach out for personalized advice and support.

SUBPRIME LENDERS & LOAN RATES

What is a Subprime Lender? Subprime lenders offer loans to individuals with low credit scores or a history of defaults. They operate under different regulations, which allows them to be more flexible but usually at higher interest rates.

Rates and Flexibility: Because of the higher risk, subprime lenders typically charge higher rates compared to prime lenders.

Consider Alternatives: If subprime lending is your only option, consider purchasing a less expensive car and paying it off quickly. This approach can help repair your credit file.

Build Credit: After one year of timely payments, you may build “referenceable credit,” which can improve your chances of qualifying for a more expensive car at a lower rate with a prime lender.

Cost Transparency: I am committed to transparency. For example, if you borrow $20,000, you might end up paying back around $40,000 over a 5-year term. It’s important to be aware of these costs upfront.

Recommendation: In many cases, opting for a cheaper car is a practical recommendation to minimize overall costs.

Minimize Spending: The less you spend on the car, the less you’ll pay in interest. Demonstrating a good payment history quickly can help you qualify for lower rates with a prime lender sooner.

Refinancing Considerations: While refinancing at a lower rate after one year is possible, subprime deals often come with higher setup costs. You’ll pay more interest initially, and refinancing may not always be straightforward.

Setup Costs: Subprime loans are costly to set up, and the interest paid in the first year can be substantial.

Refinancing Challenges: Not all lenders will consider a “Mid Term” refinance, and in some cases, the cost of refinancing after a year could be comparable to the initial cost of the car.

Several factors can influence the rate you receive for a loan:

Property Ownership: Individuals who own property generally receive lower rates compared to those who are renting or boarding.

Car Age: New cars typically have lower rates. As the car ages, the rate may increase.

Government Discounts: Some lenders offer government-discounted “Green Fuel” discounts for electric and hybrid cars.

Credit Score: Your credit score plays a significant role in determining your loan rate. Higher scores often result in better rates.

Loan-to-Value Ratio (LVR): Lenders use an LVR calculator to compare the book price of the car to the amount you are seeking to finance. A lower LVR often results in a lower rate.

Loan Term: Loans with terms longer than five years may come with higher rates.

Enter Accurate Car Details: For the most accurate comparison from lenders, provide details about a car that closely matches what you are likely to purchase. This will help in securing the best lender for your situation.

MOBILE NUMBER & BANK STATEMENTS

Competitive Field: In the competitive finance industry, lenders often prefer to keep their rates and fees private. Verifying a mobile number helps in maintaining the lender’s privacy and ensures accurate quoting.

Quote Tool Details: My quote tool displays the lender’s fees and current rates. Providing your mobile number allows me to offer precise and up-to-date quotes.

Single Call: You will only receive one call from me, where I will leave a message and send a text. If you do not respond, I will respect your preference and reduce follow-up calls.

Minimal Contact: If you are a regular visitor, you can expect fewer calls or just a text message. I prioritize existing clients and ensure they receive the best service.

Busy Times: If I am busy, you may not receive a call. My focus is on delivering excellent service to current clients.

Time Efficiency: My new software streamlines the process, saving time and lowering fees. It has direct access to several lenders, allowing for faster approvals than many competitors.

Spam Alerts: Please note that the mobile number I’ve used for the past 15 years may sometimes show up as a spam caller. This is an error and should not impact the legitimacy of our communication.

Security Concerns: I understand that providing your online banking username and password can feel unsafe. I want to assure you that I use a secure and trusted service for this process.

Trusted Service: I use Ilion, a well-established company that I’ve worked with for over 6 years without any issues. This service is used only when necessary, such as for certain lenders who request bank statements.

 

Secure Link: I will email or text you a secure link. Once you complete the process, I receive a PDF with your banking transactions for the last 3, 6, or 12 months, depending on the link provided.

When It’s Needed: Bank statements are typically required for personal loans, larger business loans, short-term ABN holders, or if there’s a discrepancy on your credit file. The information can be crucial in securing the best approval.

 

Confidential Reports: The reports generated are highly useful and can significantly impact the outcome of your loan application. I am happy to share these reports with you upon request while ensuring your information remains confidential.

Additional Information: For more details about the process, you can visit www.bankstatements.com.au.

EMPLOYMENT CONCERNS & VISA

Lender Concerns: Many lenders are cautious about casual employment due to responsible lending guidelines. They may fear non-compliance and potential fines, making it a case-by-case scenario.

Common Sense Approach: Some lenders are more flexible and use common sense when evaluating casual employment. If we can present a strong case and demonstrate stability, it can be worth investigating further.

 

Short-Term Employment: If you have only a few months in a casual job and no previous stable employment, it may be more challenging to get approval from a prime lender.

Minimum Employment Duration: Generally, having at least six months of casual employment can make you eligible with many lenders. This demonstrates a level of job stability that lenders look for.

Call for Guidance: Feel free to call me with your specific scenario. I can provide personalized advice and explore options based on your situation.

Investigation Worthwhile: Despite the challenges, it’s often worth investigating potential options to secure the best loan terms available.

Spam Alerts: Please note that the mobile number I’ve used for the past 15 years may sometimes show up as a spam caller. This is an error and should not impact the legitimacy of our communication.

Centrelink and Pensions: Yes, I can help secure loans for individuals receiving income from Centrelink or pensions. Each case is assessed individually, as various factors, including credit score and serviceability, play a significant role.

Case-by-Case Basis: Due to the diverse scenarios, it’s important to discuss your specific situation to determine the best approach for approval.

 

Student Visas: Unfortunately, we cannot assist individuals on student visas with loan applications. This restriction is due to the nature of student visa conditions and financial requirements.

Visa Expiry: For individuals on temporary visas, the loan term must end at least one month before the visa expiry date. This requirement ensures that the loan is fully repaid before the visa expires.

PPSR SEARCH & E-SIGN

PPSR Search: The Personal Property Securities Register (PPSR) search is a quick and inexpensive way to check if a car has been recorded as damaged or if there is outstanding finance. For $2, you can perform this search on the government website using the car’s VIN number. Budget Direct also offers a free PPSR search.

Purpose: This search helps identify if the car has been previously damaged beyond economical repair or if there is existing finance on it. It is crucial for ensuring the car’s history and avoiding potential issues.

 

Damage Records: The report will indicate if the car has been listed on the damaged register. This register shows cars that have been damaged to the extent that they are considered beyond economical repair by insurance companies.

Finance Status: It will also reveal if there is any outstanding finance on the car. If the car is encumbered (i.e., there is finance owing), it is generally not a problem as long as we obtain a payout letter or proof that the loan has been settled.

Payout Letter: If the car has finance owing, obtaining a payout letter upfront is essential. At settlement, the lender will pay off the outstanding finance and cover the remaining amount to the seller simultaneously.

Settlement Example: For instance, if the agreed purchase price is $30,000 and there is $15,000 finance owing, the finance company will receive $15,000, and the seller will receive the remaining $15,000 at settlement.

 

Lender Restrictions: Cars listed on the damaged register can limit the number of lenders available. Despite the reason for the damage, such as delays in parts or storage costs, the car’s value might be significantly lower, sometimes up to 30% less.

Documentation: Request pictures of the car before the damage, which can be useful when selling the car later. Be aware that flood-damaged cars are generally not roadworthy due to safety and electrical concerns.

Comprehensive Reports: More detailed car history searches, such as those from Carify, offer additional information about the car’s recorded kilometers and history. Carify’s report costs $10 and provides a more comprehensive history.

E-Signing Overview: Most of our lenders now offer e-signing for loan documents, which is a preferred method for many customers due to its convenience. E-signing allows you to electronically sign documents, eliminating the need for physical paperwork.

Availability: While e-signing is widely available, it is important to note that not all lenders offer this option, particularly for business-style loans.

 

Quick and Convenient: E-signing is generally the fastest method for processing loan documents. It streamlines the approval process and reduces delays associated with mailing or faxing documents.

Customer Preference: Many customers prefer e-signing for its efficiency and ease of use, as it allows for remote signing from any location.

 

Signal Issues: One common issue is when clients are in remote areas with poor phone signal, which can prevent the receipt of SMS verification codes needed for e-signing.

Alternative Options: If e-signing is crucial for you or if you prefer not to use it, please let us know upfront. We can explore other options that fit your needs.

 

Alternative Methods: If e-signing is not an option for your loan type, we can discuss alternative methods for document signing. Let us know your preferences early in the process so we can accommodate them.

Have You Got a Unique Scenario in Mind?

Feel free to reach out to discuss any situation you have.

CONTACT ERIC

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