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REIF's FAQ: Finance Edition

Updated: Apr 22

Finance can be complicated. There's a lot to comprehend around the terminology, concepts, and practices of different lenders. For anyone who isn't exposed to the finance world on a daily basis, we understand that it can be confusing, to say the least.


Here at REIF we get asked a lot of common questions relating to finance or accessing finance. We've decided to share our answers to some of our most frequently asked questions.


Q: Can you access lending if you're self-employed?


A: Yes, though, it's important to understand that every lender will have their own terms and conditions around what information they require from you. As a general rule of thumb, to access finance as self-employed, you'll need to show that you have held your ABN for two years. Additionally, you'll need to provide evidence of completed tax returns and financials, and that you're business is making a decent profit.


Q: How long does it take to refinance a home loan?


A: The average refinance process (especially in the current market) takes about 60 days to complete. The first step takes most clients up to four days to complete and that is working on a Fact Find and collating documents. Once this step is completed, our finance specialists will assess your documents within a 48 to 72 hour time frame. This is also dependant on the complexity of your situation. Once your application is assessed, it will be sent to the lender to assess. This process can take up to 21 days to complete. After this, your lender will need to approve your loan, discharge your from your current lender, and take you through settlement.


Q: What is the difference between Principle and Interest and Interest Only Loans?


A: Principle and Interest Loans fund the repayments on your loan with an aim to pay it down. This is suitable for owner-occupiers. When you pay Interest Only you're only funding the interest component. This is suitable for property investors as it can allow you to maximise on your tax deductions.


Q: How do I know whether a re-draw or an offset account is better for me?


A: It's truly only going to depend on your circumstances and we can identify that by working with you. Generally, a re-draw account will allow you to make extra repayments on your home loan and can help you to pay it off quicker. An offset account is a separate deposit account that's linked to your loan. You can use it for every day spending and it can also save you interest. To determine which is more suitable for you, we recommend reaching out to book an appointment with our finance specialists.


If you are applying for a home loan banks will assess your eligibility

Q: What documents do banks require when applying for a home loan?


A: If you're applying for a home loan there are four types of information that the banks will require when they're assessing your eligibility. They are:

  1. Income: 2 years tax returns + 2 pay slips if you're PAYG

  2. Savings: 3 months worth of saving statements

  3. ID: passports, birth certificate and drivers license

  4. Bank Statements: 3 months worth of statements


Other Questions?


If you have a question, don't hesitate to reach out. We would be more than happy to assist you with a range of queries. Additionally, if you would like to book an appointment with a finance specialist to review your current financials, click the button below.









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