FAQ

This page contains some frequently asked questions relating to the applications for loans, including personal loans, car loans and home loans and some tools to help you with your decision making. If you have any questions or need help you can call us on 1300 074 346 or contact us via our Contact Us page.
Car Loans FAQPersonal Loans FAQHome Loans FAQFree Loan Calculators
Who can apply for a car loan?
You must be over 18 years and gainfully employed.
How much can I borrow?
There is no minimum amount that can be borrowed under a New Car Loan and the maximum is $150,000. The amount you can borrow will be assessed and determined by your ability to meet your loan repayments
What term can my loan be over?
Generally speaking up to 5 years, but some lenders offer 7 year loan terms.
Can I buy a car privately or can I only buy from a dealer?
Yes, we can arrange finance for both private and dealer purchases.
What is the interest rate going to be?
The interest rate applicable on the loan is dependent on the strength of the applicant.
Is the interest rate fixed or variable?
The interest rate is fixed.
Can I pay the car loan out early?
Yes, with all our loans you can pay them off early. However depending on who you finance your loan with, there may be an early termination fee payable.
How do I make my loan repayments?
You can choose to make your payments via direct debit or BPAY.
How do I make extra repayments?
Usually you can make extra repayments via BPAY however your personal broker can advise you of the best way to do this.
Will I pay less interest if I payout my contract early?
Yes, interest is calculated daily, therefore the less you owe, the less interest you pay.
I’ve got a bad credit rating. Can you help me with finance?
Yes, We specialise in this area and have numerous lenders who can assist.
How is the interest calculated?
Lenders calculate Interest daily.
Can I pay a deposit?
Yes, if you are using a Hire Purchase, Chattel Mortgage or Consumer Loan you are welcome to pay a deposit towards your new car or equipment.
Can I get a zero deposit approval?
In many circumstances, yes. Depending on your credit profile you may be eligible for a zero deposit approval.
What do I need to apply for a car loan?
Privacy Form/Fact Find completed, 90 day Bank statements, drivers licence and payslips, generally..
Do I need to have insurance on the car?
Yes whenever there is finance on a car you must have a valid insurance policy
How old can the car be to finance?
In most cases, the vehicle cannot be older than 12 years at the end of the loan term.
Can I finance an imported car?
Yes this is possible
Can I get pre-approval before purchasing?
Yes we highly recommend this. That way, you know
How long does it take to get approved?
We can usually get you an approval within a few hours
I have an international or overseas Drivers licence – can I apply for a car loan?
This can depend on the visa/PR conditions individual to you. Please call us to discuss your eligibility.
What happens now that my loan has been approved?
We’ll need to organise a time for you to sign the documents with us, and then – usually within 24hrs you can pick up your new car.
Can I have a balloon payment on my contract?
Yes. The balloon amount can be determined by the age of the car and the term you wish to finance over. There are some requirements for the setting of balloons and such requests are subject to lender lending criteria.
When do I make my first repayment?
Usually it is a month after the settlement date. This depends on the finance company as there are some instances where we may be able to choose your first payment date.
Can I apply for a car loan if I’m on an overseas visa?
If you are living and working in Australia on a 457 Visa, you can apply for a car loan through Best Loans. Please note that the term of your loan does need to end before the expiry of your visa.
Can I have a balloon payment on my contract?
Yes. The balloon amount can be determined by the age of the car and the term you wish to finance over. There are some requirements for the setting of balloons and such requests are subject to lender lending criteria.
What is the maximum term?
Finance terms up to a maximum of seven years may be available for Consumer loans. A further term may be entered into if you wish to refinance a balloon payment.
What is a comparison rate?
A comparison rate includes the interest rate and any fees payable over the life of the loan, giving you a true understanding of how much you’ll be paying. It’s always a good idea when comparing loans to compare based on the comparison rate.
What security is required?
Lenders will take a Bill of Sale over your vehicle as security.
What does 'Loan? Which Loan?' do?
We make applying for personal loans easier. Applying with Loan? Which Loan? takes just a few minutes, and means that, if you meet the basic requirements, your application is paired up with a credit provider able to give you the loan you need.
Who can apply for a personal loan?
There are just a few basic requirements that must be met. You must:

  • Be 18 years old or older
  • Have been paid a regular income into a personal bank account for at least 90 days
  • Be an Australian resident, or have permanent residency
How much can I borrow?
Our lender partners offer personal loans from $4,000 to $40,000 unsecured and up to $50,000 secured. How much you can borrow will depend on your individual circumstances and affordability.
What can I use a personal loan for?
The simple answer is – any worthwhile personal purpose! Our lenders offer personal loans to give you the freedom to do what you want. You can go on holidays, renovate your house, consolidate debts, weddings, almost anything.
What documents do you need from me?
Typically, lenders may require:

  • 100 points ID
  • 90 days of personal banking statements
  • Recent statements of other credit facilities you hold
  • Recent payslips
Are you going to call my boss or colleagues?
Your lender will most likely contact your employer.. Our partner lenders employ well-trained operators who would never disclose any personal information about you or your application to your employer.
How quickly will I get the cash?
Once you’ve been approved and have accepted the loan terms and conditions, you should have your money within 24 hours.
How do I pay my loan back?
It’s important to pay back a personal loan on time so that you don’t incur extra costs or have any defaults added to your credit record! Once your loan is approved, ask your lender to help you set up a direct debit schedule in line with your income – the amount you need to repay and when you receive your monthly payments are important here.
What is credit scoring and what influences my score?
A credit score is used to represent the creditworthiness of the person. Lenders will use credit scores to partly determine who qualifies for a loan, at what interest rate, and what credit limits. Many factors that may impact your credit score can be number of enquires, adverse credit listings and personal information held on credit file.
Are there any credit checks?
Lenders consider many aspects of your application, including your credit history, but that’s not all they look at to make a decision. They like to look at the whole picture because they know not everyone is the same.
How do I make loan repayments?
We will set up automatic repayments by direct debit. The money will be debited from your bank account either weekly, fortnightly or monthly, as you selected when setting up your loan.
How much can I borrow?
We understand that the ‘how much’ question is on the top of most people’s lists. With a few details, we can quickly find out which lenders will let you borrow the money you want.
How do I know which loan is right for me?
Our experienced lending advisers can assist in reviewing your circumstances and tailoring a finance solution that suits you.
Which banks and lenders do we deal with?
Having access to most of Australia’s leading banks and lenders we can tailor a financial solution that suits your personal needs.
What documentation will I need to apply for a loan?
Other than the loan application itself, lenders normally require documentation confirming your identity and substantiating your income. These can take the form of :

  • Drivers licence
  • Birth Certificate or Passport
  • Recent pay slips or proof of income
  • Tax returns or Assessment notices
  • Current Bank statements
What is the First Home Owner’s Grant?
The First Home Owner’s Grant or FHOG is a national scheme funded by the States and Territories of Australia and administered under their own legislation. Those who meet the scheme’s criteria are eligible for up to $10,000. For more information visit www.firsthome.gov.au
What is a personal loan?
This is an unsecured loan available over fixed terms, and each repayment goes towards repaying both the interest and the principal.
Over what period can I take out a personal loan?
Loans can be taken out for terms of 1, 2, 3, 4, 5, 6 or 7 years, allowing you to choose a time period to suit your needs and your budget.
What happens with my personal information?
Our Privacy Policy ensures that any personal information collected by us will be used only for the purpose indicated. We will not give your personal information to other organisations for their marketing purposes.
Do I need a deposit?
Purchasing a property is a major financial commitment. Lenders like to see proof that you are able to put some of your own funds towards a purchase before they will lend money to you at standard rates. In general you are required to have at least 5% deposit of the value of the property being purchased. Obviously, the greater the deposit you can save, the better, and deposit requirements are changing all the time.
Will my other debts affect the amount I can borrow?
The more debt you have, the less you will be able to borrow. The process of finding out how much you can qualify for involves examining your income and comparing it to your debt ratios. These are variables that help determine how much you can borrow. If you have an excessive debt ratio, this reduces the amount of finance eligibility. By examining your credit profile we can give you an idea of what you can borrow. If you have credit card problems, do not be embarrassed to discuss them honestly with us. If you have credit problems we can assist the process by obtaining a copy of your credit report to help in determining your ability to qualify for finance. We can sit down with you and examine your entire financial situation to best position you prior to submitting your loan application.
What is Lenders Mortgage Insurance?
Lender’s Mortgage Insurance (LMI) does not protect the borrower should they be unable to make mortgage repayments. It protects the lender from any losses resulting in the sale of a property due to default by the borrower. 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. Some lenders will allow you to add the LMI premium to your home loan; others require you to pay it up front.
Are there Advantages of Using Finance Brokers over Banks?
Most definitely YES!

Finance brokers will source the best loan for you depending on your financial circumstances from a huge range of products and lenders.
Many bank employees may not have the wealth of knowledge about the loan products available in the market place, as they will be limited to the products available at their own institution.

Although a bank or lender may offer their best available product, they won’t tell you if another bank has an even better product or deal for you. The role of a finance broker is to research the best loan for you (against other products available on the market) and recommend this to you based on your individual financial situation.

Could you imagine trying to work out the difference between 20-30 different loan products? That would take you ages!

This is why brokers get paid for what they do. They invest their time staying up to date with the latest loan products ensuring that you are always given the best loan available for your particular circumstances.

Is the cheapest interest rate always the best?
Not necessarily. There are several things to look at when searching for the right loan. Even though a lower interest rate might be appealing, if the loan is not set up with the correct structure or you are not aware of all the fees and charges, it may actually cost you more in the long run. It is important to seek recommendations from your broker and discuss products such as offset accounts, particularly for investors as they can preserve your future tax benefit.

Also, for self-employed borrowers, there are several lending options available not offered by all banks. Once again, your mortgage broker can discuss the range of strategies and options offered by many lenders as opposed to one or two products that a bank would discuss with you.

Many bank employees may not have the wealth of knowledge about the loan products available in the market place, as they will be limited to the products available to them.

What is a low doc loan?
This is a term used to describe the extent and type of financial information you’re able to provide when you apply for a home loan. If you’re unable to provide payslips or up-to-date financial statements then a low doc loan might suit you better than a more traditional loan (e.g., if you’re self-employed or a contractor).
What is a Loan to Value Ratio?
A loan to value ratio (LVR) is the term used to describe the amount of the loan as a proportion of the value of the residential property, and it’s expressed as a percentage. So, for example, a loan amount of $260,000 on a property with a value of $400,000 would have an LVR of 65%.

The LVR can vary according to the type of loan you choose, your income source and the type of property that’s used as security over the loan.

What is redraw?
A redraw facility gives you easy access to any additional repayments you’ve made on your loan without going through a complete application process. If your loan has a redraw facility, you can request access to these funds online or over the phone and funds are usually credited to your account within 24 hours.
What is a split loan?
A split loan allows you to take more than one home loan type. For example, you might want a fixed rate home loan but also enjoy the benefits of a variable loan. You may be able to split your loan into as many products as you want, to best suit your needs.
Can I transfer my home loan from one property to another?
Several lenders offer Loan portability which allows you to change the property used as security on your home loan. This is a useful benefit if you’re looking to downsize your home.
Can I use more than one property as security for my loan?
In almost all cases the answer is Yes.
What government charges may apply when I buy a home?
Stamp duty is a state tax that is imposed when the ownership of a property changes. Other fees that may apply are land transfer registration fees and mortgage registration fees. For more information about buying a home and stamp duty in your state, visit the Australian Government’s MoneySmart website.
What is meant by ‘Principal and Interest’?
Principal and Interest is the standard type of repayment for most home loans. The borrower makes regular repayments that include a portion of the principal repaid and the interest that is charged on the outstanding loan amount. Over time the principal portion of the repayment will increase and so the outstanding loan balance also reduces.
What is meant by ‘Interest-only’?
This is a repayment type that allows you to make regular repayments that only incorporate the interest charged on the loan, over a set period of time. This means that the outstanding loan balance remains relatively unchanged during the term of the Interest-only period. Lenders generally offer Interest-only periods between one and five years. After the initial Interest-only period the loan reverts to Principal and Interest for the remaining term of the loan.
What is a comparison rate?
The National Consumer Credit Protection Act 2009 (Cth) stipulates that any advertised interest rate must also include a comparison rate. A comparison rate is calculated in accordance with a standard formula which incorporates known establishment, ongoing and discharge fees into the interest rate. It is designed to provide you with the ability to compare the ‘true cost’ of different loans. However, the comparison rate does not include any ‘event-based costs’ such as redraw fees or fees that are not known at the time the comparison rate is provided.
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