Loan Process Stages
Pre-approval
A conditional approval based on initial documents; not a guarantee. Used to determine borrowing power early.
Privacy Consent
Legal form signed by the client, allowing brokers/lenders to access their personal/financial data. Required before submitting documents.
HEM Calculator
Household Expenditure Measure; used to estimate living expenses based on family size/location, essential for serviceability.
Fixed Rate
A loan interest rate that stays the same for a set period (e.g., 1-5 years). Ideal for borrowers wanting payment stability.
Offset vs. Redraw
Offset: daily reduces loan interest based on account balance. Redraw: allows withdrawal of extra repayments made.
Loan Submission
The stage where the broker formally sends the loan application to the lender via MyCRM or ApplyOnline.
Credit Proposal Disclosure
Outlines the loan product recommended and why it suits the client’s needs. Given before submission.
Servicing Calculator
Tool used to determine whether a borrower can service the loan, based on income, expenses, and liabilities.
Variable Rate
A loan rate that fluctuates with the market. Offers more flexibility, often with features like redraw or offset.
Discharge Authority
A form signed by the borrower to release the current mortgage when refinancing or selling.
Conditional Approval
Preliminary approval given once initial checks are done but before final loan documents.
Commission Disclosure
Document disclosing how much the broker is paid and by whom. Legally required for transparency.
ApplyOnline (AOL)
A system used by brokers to submit loan applications to lenders. Often integrated with MyCRM.
Split Loan
A loan divided into fixed and variable portions. Used to balance certainty and flexibility.
MyCRM
The CRM platform used by brokers and BSEs for data entry, document upload, and communication tracking throughout the loan process.
Formal/Unconditional Approval
Final confirmation from the lender that the loan is approved, subject to no outstanding conditions.
Supporting Documents
Documents such as payslips, ID, and bank statements used to verify a client’s financial status.
Living Expenses
A breakdown of borrower’s actual spending across categories like food, utilities, transport. Used to compare against HEM.
Bridging Loan
A short-term loan used when a client is buying a new property before selling their old one.
Repricing
Requesting a lower interest rate from the lender after settlement, often based on current offers or competitive rates.
Settlement Date
The date the property ownership officially transfers to the buyer. Also when the funds are released.
Loan Contract
The legal document outlining all terms and conditions of the mortgage. Must be signed before settlement.
Refinancing
Replacing an existing loan with a new one, often to get a better rate, release equity, or consolidate debt.
Credit Report
A report showing a borrower’s credit history; used to assess creditworthiness during pre-approval or application stage.