Frequently Asked Questions
- Why use Faraday West to take out a loan?
- What identification will I need to provide?
- How do I know if I can get the First Home Owner’s Grant (FHOG)?
- What is the difference between a principal and interest home loan and an interest-only home loan?
- Why would I take out an interest-only mortgage?
- How long will it take for my application to be approved?
- How long will it take before the funds are available?
- What if I have defaults on my credit history, or my current mortgage is in arrears?
- What is Lender’s Mortgage Insurance?
- What is settlement?
- What is the Faraday West policy on privacy?
- What is meant by ‘personal information’?
- How does Faraday West collect my personal information?
- Why does Faraday West collect my personal information?
Faraday West is an established mortgage management company with offices in Victoria and Western Australia. Having been in operation for over 10 years, the people at Faraday West have an intimate knowledge of the business of lending.
Faraday West is both a leading non-bank lender and bank lending broker, providing the best of both worlds. We offer mortgage management – a complete service from application to account administration.
Faraday West is a full member of the Mortgage Finance Association of Australia (MFAA). Membership requires ongoing evaluation of accreditation criteria, ensuring that Faraday West is up to date with all forms of industry training and development. Therefore, you can be secure in the knowledge that you are dealing with professionals under the MFAA Code of Practice.
At Faraday West, we combine the security of a national presence with impressive experience and industry knowledge.
You will need to provide us with sufficient identification. For example, your driver’s license, passport, your credit card, a Medicare card, or your birth certificate.
How do I know if I can get the First Home Owner’s Grant (FHOG)?
As a basic rule, you are eligible if you are an Australian citizen or permanent resident, buying or building your first home in Australia , with the intention of occupying the property as your principal place of residence, within 12 months of settlement. Please note that, if you are purchasing the property in conjunction with others, they must meet these same criteria for you to access the FHOG.
When you take out a principal and interest loan, you must make repayments against both the amount borrowed (‘the principal’) and the interest charged on this amount. If you take out an interest-only home loan, then you need only repay the interest component (in the short term). Please consult with a Faraday West Mortgage Manager to determine what best suits your needs and circumstances.
Investors may choose to take out an interest-only loan to maximise the tax benefits (i.e. negative gearing). Interest payments on investment properties from which you make an income are tax deductable.
At Faraday West we can sometimes give approval on the same day. However, in most cases it will take up to 3 days to be pre-approved.
Normally up to 3 days from the signing of mortgage documents, although in some cases it will be sooner.
Faraday West understands. We have a range of flexible products and application procedures for people in your circumstances. Speak with one of our Mortgage Managers to find out more.
Lenders Mortgage Insurance (LMI) does not, as some people think, protect the borrower should they become unable to make repayments. Rather, LMI protects the lender from losses resulting in the sale of a property, due to the borrower’s failure to service the loan. LMI premiums are payable by the borrower when the amount borrowed is above a certain percentage (usually 80% of the lender’s valuation of the property). Your Mortgage Manager can advise you on whether or not you will need LMI.
Settlement is the completion of the sale, when the borrower takes possession of the property and the mortgage takes effect. Settlement usually takes place 4 – 6 weeks from the date that the home loan is formally approved.
We at Faraday West respect the privacy of our customers. We undertake to protect your personal details, and for that reason we have explained below how we use your details. Our policy follows the National Privacy Principles for the protection of personal information, as set out in the Privacy Act 1988 (as amended).
Personal information means any details or opinions about you, from which your identity is apparent or your identity can be uncovered.
We always try to collect your personal information directly from you.
The reason we collect personal information about you is to assess your financial and credit position when you apply for loan, or to contact you about products and services in which you may be interested.