FAQ

At EMC Finance, we’re dedicated to answering all your questions, whether you’re a new or existing customer. Below are some common inquiries to help you navigate your home loan journey with confidence.

Mortgage brokers, like EMC Finance, are legally required to act in your best interest. Over 70% of Australian home loans are now written by brokers because we offer access to a wide range of lenders and products, tailoring solutions to meet your specific needs.

What truly sets us apart is our ongoing service. We provide annual reviews to ensure you stay informed about your interest rate and aren’t paying more than necessary. This peace of mind is invaluable, especially for first-home buyers navigating the complexities of securing their dream home.

In most cases, our services are free for home loans because we’re paid by the lender upon settlement. If a fee applies—for example, for commercial, SMSF, or equipment finance, or certain home loans—we’ll outline this clearly during our initial consultation.

Lenders pay brokers because we simplify the process by preparing complete loan applications and liaising with you throughout, saving them time and costs. However, if a loan is repaid early (usually within two years), lenders may reclaim their payment, and a service fee might apply. We always discuss this upfront to ensure transparency.

Lenders typically offer two main options:

• Basic Home Loans: These come with competitive rates and minimal fees but fewer features, such as no offset accounts. Additional services, like switching from variable to fixed rates, may incur fees.
• Package Home Loans: These products generally include ongoing fees but offer greater flexibility, such as offset accounts and easier rate renegotiations. They also allow changes like switching between variable to fixed rates without extra charges.

• A variable rate provides flexibility, as it fluctuates with market conditions and typically allows extra repayments without penalties. Offset and redraw facilities are often available with variable loans, helping reduce interest over the loan term.
• A fixed rate offers stability, normally with a locked-in interest rate for 1–5 years, giving you certainty over repayments. However, fixed loans may include limitations, such as penalties for early repayment or restrictions on features like offset accounts.

Principal and interest repayments reduce the loan balance over time, helping you build equity. Interest-only repayments, often used for investment loans, involve paying only the interest for a set period, usually 1–5 years, but result in higher overall interest costs.

Offset accounts and redraw facilities reduce the interest paid on your loan. While both achieve similar outcomes, offset accounts are separate and often come with fees, offering greater accessibility and budgeting flexibility. Redraw facilities are attached to the loan and usually fee-free but are subject to lender discretion, potentially limiting access.

If your savings or salary payments are not kept in an account that offsets interest (such as an offset or redraw account), weekly repayments can be advantageous. By reducing the loan balance more frequently, you lower the amount of interest calculated daily, which can help save money over the life of the loan compared to monthly repayments.

At EMC Finance, we make the complex simple, guiding first-home buyers and seasoned borrowers alike through the loan process. With access to over 40 lenders, we’ll find a solution tailored to your unique needs.

Contact us today and take the first step toward achieving your homeownership dreams.