FAQs
ABOUT US
Questions & Answers
Benevolence Financial Group exists to challenge the current framework of the finance sector. The status quo of the finance industry has been strongly focused on profit maximisation. While we understand that this leads to an economic benefit for businesses, we have recognised that this comes at the cost of huge problems in income equality and climate change. At BFG, we use your biggest financial purchase to redistribute wealth and support other families without a home. We call this home for a home – help ensure you receive the best deal on your mortgage whilst financially supporting other families to build a home.
There are many reasons why a mortgage broker may be more beneficial to you than going directly through a bank. As a client of a mortgage broker,
Benefits that come with using a mortgage broker include:
- Mortgage brokers have access to usually 30+ banks and so have different rates and products that those banks provide. So this will make sure you get the best deal now and ongoing
- Mortgage brokers will provide you with advice and guidance to choose the right structure, product and bank that will meet your requirements. Banks have different policies so they will find the right one that will approve your loan and help you maximising your loan amount (if that is your requirement)
- Services are free of charge and they are independent – working for you, not for the banks
- Mortgage brokers conduct annual reviews to make sure that your loan is still competitive
If you are thinking about securing a loan or refinancing, enquire online and speak to one of our experienced brokers today or schedule a consultation for a later date.
We have proven that our model works. As a social enterprise mortgage broker, the home loans funded help people like you meet their home buying needs while transforming lives.
This could range from ending homelessness in our streets to world hunger. We are the bridge that makes it possible for you to solve big world problems simply and effectively.
A mortgage broker is a qualified professional who can compare different loan products from a wide range of lenders to try and secure a product which is best suited to your individual personal and financial circumstances. They can guide you through the application process and talk to banks on your behalf to try and secure the best loan for you.
At Benevolence Financial Group, we do not charge any fees whatsoever to our customers.
We are paid commission by the lenders.
our brokers are ex-bankers who worked with the big banks and have extensive experience. Instead of attaining just the required Certificate IV to operate; they have a minimum of a Diploma in Financial Services.
We know the importance of every decision you make along the way. We embed careful decision making in partnership with your accountant and financial planner to ensure you have the best structure in place.
Benevolence Group Australia Pty Ltd trading as Benevolence Financial Group (ABN 52634 787 312) is a Credit Representative Number 490057 authorized under Australian Credit License Number 390261, Finance Brokers Association of Australia Limited Member Number: M-345414, and registered with the Australian Financial Complaints Authority Limited. For Privacy Policy and Feedback, please contact us at Info@bfg.org.au
OUR SOCIAL IMPACT
Questions & Answers
Benevolence Financial Group exists to challenge the current framework of the finance sector. The status quo of the finance industry has been strongly focused on profit maximisation. While we understand that this leads to an economic benefit for businesses, we have recognised that this comes at the cost of huge problems in income equality and climate change. At BFG, we use your biggest financial purchase to redistribute wealth and support other families without a home. We call this home for a home – help ensure you receive the best deal on your mortgage whilst financially supporting other families to build a home.
According to Social Traders, social enterprises are businesses that trade to intentionally tackle social problems, improve communities, provide people access to employment and training, or help the environment.
As Benevolence Financial Group, we solely exist to benefit the public and improve our communities!
If you are thinking about securing a loan or refinancing, enquire online and speak to one of our experienced brokers today or schedule a consultation for a later date.
Whilst revenue is critical for sustainability and growth, our model is innovative in how we operate. Our primary objective is supporting Australians with their finances first and then supporting other people. We aim to disrupt the status quo of profit maximisation at the cost of people outcomes.
We have various revenue streams to support our sustainability and growth to maximise both business and social impacts. Through our partners, we offer other services such as accounting, legal and financial planning.
We also have a product range that includes insurances and commercial lending. Furthermore, we are supported by various entities including councils, accounting firms and charity organisations.
Our rates from the banks in our panel are exactly the same rates offered by other brokers and banks. There’s no added cost to you whatsoever.
As we operate like any other mortgage broker; our primary objective is to strengthen your financial position and identify opportunities for financial growth.
By simply rethinking banking, our model allows us to effectively support you and put social impact at the forefront. By choosing us, you do not miss out on anything, and you will be empowering families in need, one home at a time.
We qualify our charity partners and prove their effectiveness based on effective altruism principles. This takes into account:
- Importance: scope – how many people are affected and by how much?
- Neglected-ness: How crowded is this area?
- Tractability: How easy is progress?
We guarantee transparency by:
- Sharing the tax deductible gift receipt with the total donations from the registered charities we partner with at the end of the financial year. As part of our process, we are transparent about the income we receive from each transaction and provide a copy to our customers.
- Screening charity partners to ensure they are effective and efficient in their operations and aligned with the United Nations 17 Sustainable Development Goals (SDGs).
FIRST HOME BUYER
Questions & Answers
The amount you’re able to borrow depends on your personal and financial circumstances and how much risk the bank is willing to take on. A bank will consider how much money you earn, how much debt you already have, how much your monthly living expenses are and what assets you own.
Generally, banks will allow you to borrow up to 80% of the value of the property. However, if you qualify for the first home deposit scheme, you may be eligible to borrow up to 90% of the purchase price.
The first home owner grant is a one-off payment of $10,000 to help you save some money on your mortgage. To be eligible for the first home owner grant, you must be:
- Over the age of 18
- An Australian citizen or permanent resident
- You or your spouse must not have owned a home in Australia or have previously received
- You will need to live in your first home for at least six months within 12 months of buying your home
Still confused? Speak to one of our brokers to see if you are eligible for the first home owner grant.
The deposit amount required varies depending on the situation. The absolute lowest requirement is 5%, subject to the bank’s lending criteria. Stamp duty may also be applicable if you are not a first home buyer. Deposit requirements are based on your purpose of the loan – investment loans usually need 10% deposit whilst owner occupied are 5%. Please note that there are other costs applicable such as lenders mortgage insurance, stamp duty, conveyancing, removalist etc.
Fixed loans have a period of time whereby the interest rate for your repayments will be ‘locked in’ during the fixed-interest term. This enables you to budget more effectively as repayments will remain constant and allow you to secure low interest rates without the risk of them rising. Note that there is a fee to lock in your interest rate which varies from lender to lender.
Variable home loans have an interest rate that moves with the market. These loans often have smaller fees than fixed but carry more risk for the individual taking out the loan as the interest rate may increase in the future. An increase in the interest rate will increase the monthly repayments on your home loan.
To better understand which product is right for you, please speak to a mortgage broker or financial advisor so that they can assist you based on your personal preferences and financial circumstances
First Home Loan Deposit Scheme is a government initiative to support first home buyers purchasing their home sooner. Usually, First Home Buyers with less than 20% of their deposit need to pay a fee (Lenders Mortgage Insurance). Under the scheme, eligible First Home Buyers can purchase with a deposit as little as 5%. This is because the government guarantees to a participating lender up to 15% of the value of the property purchased
The first home super saver scheme allows you to save for your first home within your super fund. This will allow you to save much faster with the concessional tax treatment of your super.
If you are eligible for the first home super saver scheme, you are able to make voluntary concessional (before-tax) and non-concessional (after-tax) contributions into your super fund to save for your first home. You can then apply for your contributions to be released to help you with your purchase.
To be eligible, you must:
- Be over the age of 18
- Have never owned a property in Australia
- Have not previously requested for a first home saver scheme release
Still confused? Speak to one of our brokers to see if you are eligible for the first home owner grant.
Yes, a home loan can be taken jointly. When you are considering co-owning a property, you must also consider who is going to co-own the property and how it will be co-owned. Typically, there are two structures for co-ownership – joint tenancy and tenants in common.
- Joint tenants will own an equal share of the property. If you elect for joint tenancy, if one party dies, the surviving tenant(s) will absorb their share.
- Tenants in common can have unequal distribution of ownership. The difference is that each owner can leave their interest in the property to a beneficiary through their will rather than passing their ownership to the surviving tenant(s).
A comparison rate helps you identify the true cost of a loan and compare loans and services offered by different lenders. It provides you with a more accurate representation by taking into consideration the additional costs that come with taking out a loan such as the loan approval fee and any up front or ongoing fees.
RIFINANCE
Questions & Answers
Refinancing is a process of taking out a new mortgage on an existing loan. Normally you do this intending to modify the conditions of the loan because of a change in personal or financial circumstances.
Most lenders will typically require you to be up to date with your payments within the past 6 months. The requirements of each lender will vary depending on which bank you intend to refinance with, but most lenders will require you to be clear from any defaults for a certain period of time. If you are late on your repayments, it is best for you to check the policies of the lender as it could vary depending on how much you are behind on your repayments and for what reason.
ommon reasons for refinancing include:
- Seeking lower-interest repayments
- Switching to a fixed, variable or split loan product.
- Using the equity in your home to take out as cash
- Adjusting the term of the loan
- Consolidating debt
LMI
Questions & Answers
Lenders Mortgage Insurance (LMI) is a banking insurance policy you will pay to the lender if you intend to borrow more than 80% of the value of your property. It is the insurance banks take out for the mortgage to protect themselves in the event that you fail to repay your loan.
As a purchaser, you may avoid LMI if you qualify for the first home loan deposit scheme or if you retain a guarantor against your loan.
A guarantor guarantees your lease, by promising that if you fall behind on payments, they will also be responsible for the payments
To find out whether you qualify for the first home deposit scheme speak to one of our mortgage brokers here.
The cost of LMI will depend on your loan to value (‘LVR’) and the loan type and amount. Generally, the larger the deposit you have, the less your LMI fee will be.
