FAQs

Can I change my mind?
Can I switch loans?
Do I need a loan approval first?
How long do loan approvals take?
How much can I borrow?
I have a default. What can I do?
Irregular incomes & loans
Is TAMS cheaper than banks?
What can I afford to borrow?
Who sets interest rates?


Can I change my mind?

If you have had a loan approved and decide not to go ahead with a purchase, you may incur a cancellation fee.

Can I switch loans?

Making the decision to change loans or refinance, is difficult as there are hundreds of loans available from hundreds of lenders. On top of that, there are other factors to consider such as how long do you want your loan period to be, or how much you can afford each month?

Some loans have early pay out penalties and other costs you will need to consider. Sometimes re-financing is not the answer, so speak to one of our Mortgage Specialists to ascertain if refinancing is the right option for you.

Do I need a loan approval first?

Yes, it's usually best.

Having a loan already approved (usually subject to a valuation of the property you buy) means that you will know how much you can afford to pay for a home. It also lets you make a quick purchase decision, which may be a useful negotiating tool with the owner or agent; or at auction time.

How long do loan approvals take?

The loan approval process depends on the borrower, the lender and the type of loan.

The average loan can usually be approved in 48-72 hours after we receive your completed application.

How much can I borrow?

This depends on a range of factors including your personal circumstances, the price of the property and any valuation that may be required (a bank valuation may not be the same as the purchase price).

Depending on the lender, they may be prepared to lend up to 95% of valuation, depending on your ability to repay. It's worth noting that loans of more than 80% valuation often require mortgage insurance, which the borrower pays for.

I have a default. What can I do?

A default listing will remain on your file for a period of five years. So whilst you can't change history, the best approach would be to ensure the rest of your credit history is 'spotless'.

If you would like a copy of your credit record, you can contact a credit reporting agency to ensure your default is listed as paid. Veda Advantage is Australia's largest credit reporting agency and can be contacted via http://www.vedaadvantage.com or by calling (02) 9464 6000.

Irregular incomes & loans

In the past an irregular income, or lack of records, could make getting a home loan very difficult.

Fortunately, today our Mortgage Specialists can tell you about a range of options, such as Lo Doc Loans and similar loans designed for borrowers in your situation.

Is TAMS cheaper than banks?

In some cases it may be, in others the advantages lie in getting the loan that best suits your needs.

A bank typically has a limited range of loans to choose from - just the loans they offer.

When you come to TAMS, we help you choose the loan that's right for you from hundreds of loans available from a huge range of lenders. We also believe in the concept of customers for life and will work with you now or in the future, regardless of which lender provides the loan you need.

What can I afford to borrow?

How much you can afford to borrow to buy a home depends on a range of factors relating to the property itself, your lifestyle requirements and other personal circumstances.

There's no point living in the home of your dreams if you can't afford to do other things you really want to do!

Who sets interest rates?

Interest rates are based on decisions made by the Reserve Bank of Australia (RBA) on behalf of the Federal Government. The RBA meets every month to decide whether interest rates should be changed. Lenders then use these decisions as a basis for setting the interest rates for their individual loan products and will usually alter interest rates a day or two after any RBA announcement.

Generally, when the economy is in a trough (that's when unemployment is high and consumer spending is low) the RBA reduces interest rates to stimulate economic activity. The reverse is the case in a 'boom' situation and rates are increased to curb inflation.