The Essentials

Loan Basics
#01	Q. What's the one thing I need when I borrow? A. An MFAA member.
#02	Q. What are the basic elements of a loan or mortgage? A. Principal, interest, term & repayments.
#03	Q. Is 'mortgage' just another name for a home loan? A. No, it's actually a little more than that.
#04	Q. Should I have fixed rate, variable rate or split rate? A. That depends on who 'you' are.
#05	Q. What do mortgage repayments cover? A. Generally principal and interest. But interest only home loans do exist.
#06	Q. Why would I use a mortgage broker? A. Because they can save you time and money.
#07	Q. What other lenders are there besides banks? A. There are also non bank lenders or mortgage managers.
#08	Q. How much should I borrow? A. As much as you can comfortably repay.
#09	Q. What are the extra costs of buying a home? A. Application & establishment fees, stamp duty + more.
#10	Q. What is a low doc home loan? A. A mortgage created for the self-employed.

First home buyers
#11	Q. What's the secret to buying my first home? A. Saving for it.
#12	Q. How much deposit do I need for a home loan? A. Usually 20-30%.
#13	Q. What's a simple way to increase my borrowing capacity? A. Reduce your credit card limit.
#14	Q. How many types of home loans are there? A. Hundreds. The key is finding the right one for you.
#15	Q. Where should I start looking for a home? A. (Hint. It's not a real estate agent's window.)
#16	Q. How much is the First Home Owner Grant? A. $7000.
#17	Q. If I need help to buy a home, what should I do? A. Be nice to your parents.
#18	Q. What is a non conforming home loan? A. A mortgage created for people with bad credit.
#19	Q. What should I be aware of when taking out a mortgage? A. Loans that seem too good to be true.
#20	Q. What should I ask my mortgage broker? A. Start with 'Are you a member of MFAA?'

Refinancing and managing your mortgage
#21	Q. How do I pay off my mortgage sooner? A. Pay more, more often.
#22	Q. When would I refinance my mortgage? A. Whenever it makes financial sense to do so.
#23	Q. Why should I have a regular home loan health check? A. Because things change: interest rates, products and you.
#24	Q. What are some other mortgage refinancing options? A. Bridging loan, construction loan & equity loan.
#25	Q. If rates rise, should I move to a fixed rate mortgage? A. Not necessarily.
#26	Q. What should I do if I can't make my repayments? A. Talk to the right people, at the right time
#27	Q. What is a reverse mortgage? A. A way for retirees to unlock the equity in their homes.
#28	Q. What is a home equity loan? A. A way to utilise the equity in your home.
#29	Q. What do I need to know about debt consolidation? A. Not to confuse it with debt elimination.
#30	Q. What is negative gearing? A. When you make a short term loss in the hope of a long term capital gain.

Business finance
#31	Q. Where can I get finance for a small business? A. Talk to an MFAA member.
#32	Q. How can I improve the cash flow of my business? A. Consider factoring, trade finance, leasing + more.
#33	Q. How can I purchase my own business premises? A. With a commercial property loan.
#34	Q. Should I pay cash for capital equipment? A. Equipment leasing might improve your cash flow.
#35	Q. My supplier wants a huge deposit. What do I do? A. Consider a letter of credit.
#36	Q. What are equity finance and venture capital? A. Possible ways to expand without borrowing.
#37	Q. Why would I lease my company cars? A. It might improve your cash flow.
#38	Q. Can a good finance broker save time & money? A. Yes, they're business finance experts.
#39	Q. How can I recognise a good finance broker? A. Choice, comparison, and MFAA membership.
#40	Q. What paperwork will my finance broker need to see? A. Profit & loss, balance sheets, cash flows and a plan.

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