Central Mortgage Credit Guide - online V4
1. ABOUT THE CREDIT GUIDE
Issue date: 12/12/2020
This document provides you with information relating to our finance/mortgage activities and those of our credit representatives. It contains information about the steps in the mortgage process, documents required various fees and charges that may be payable by you to us, as well as about certain commissions we may receive when we are acting as your credit representative, or we pay to certain third parties. It also contains information about what you should do if you have a complaint or dispute in connection with our services or one of our lenders.
What is a Credit Representative
A ‘credit representative’ is a person who has been authorised by a credit licensee to engage in specified credit activities on behalf of the licensee. Our licensee is Central Mortgage Pty Ltd.
What is Credit assistance
We give you credit assistance when:
i. We assist you to apply for or increase, a particular loan or lease
ii. We suggest you apply for or increase, a particular loan or lease
iii. We suggest you remain in (or increase) your current loan or lease.
The assessment we need to do before giving you credit assistance
Before we provide credit assistance to you, we assess whether the particular loan or lease is suitable for you. To do this, we need to make reasonable inquiries and verify that:
The loan or lease or increase will meet your requirements and objectives, and you can meet the proposed repayments without hardship.
We won’t be able to give you credit assistance if our assessment shows that to meet the proposed repayments this will cause substantial hardship, or the loan or lease won’t meet your requirements or objectives.
Getting a copy of our assessment
If we provide you with credit assistance, we’ll provide you with a copy of our assessment. Also, we can provide you at any time up to 7 years after we provided you with this credit assessment, a copy. To request a copy of this, please contact us, we will provide it to you within 14 business days after the day we receive your request.
CREDIT LICENCE DETAILS
Licensee Name Central Mortgage Pty Ltd
Australian Credit Licence Number (ACL) 384143
Phone Number 03 9717 5993
Main Office Address Suite 5, L1, 101 Hazel Glen Drive Doreen VIC 3754
Central Mortgage is independently owned by our Director Warren Minnette and managed by our appointed credit representatives.
Our agreement with National Mortgage Brokers (nMB) ACN 093 874 376 Australian Credit Licence: 286596. Is to obtain mortgage aggregation services. nMB provides services at arm’s-length to our business which include IT systems, loan information and lodgment systems, training and development, commission processing, conferences and professional development events, and assistance with regulatory and compliance obligations. In consideration of the services nMB gives us, nMB retains some of the commission panel lenders pay on loans we arrange.
2. The steps of our credit services
We’ll provide you with a credit assistance proposal, explaining how we plan to assist you. If you accept our proposal and supply all documents required, below is our typical process for this home loan submission.
• First of all, we’ll invite you to our Salestrekker program and ask you to start adding initial information.
• Once you have added as much info as you can including uploading ID documents, let us know.
• We’ll then invite you to an online video meeting, at which point we will formally identify you.
• In this meeting we’ll also discuss your Needs and Objectives. Plus, your next steps to move forward.
• To move forward we’ll ask you to sign this credit guide, agreeing to commence with our services.
• Great now we are working for you and this document is signed, we can start our full assessment.
• We’ll ask you at this point to upload to us copies all your income and employment documents
• We’ll order copies of your credit files so we can discuss any findings from these reports relevant.
• We’ll also order copies of your bank statements to discuss your living expenses from these statements.
• At this point if we are missing any info, we will also ask you for this to complete all our assessments.
• Once the assessment is completed, we will look at your product options. (Lenders suiting your needs)
• Next, we’ll book a Video meeting to explain these options and get your agreement on these options.
• We’ll send you these options also in a formal credit proposal to sign before we start your application.
• Once you have signed your credit proposal, we’ll get you to sign the lender's application forms.
• Where possible, we’ll order a property valuation upfront and get from you any missing documents.
• If all has gone to plan at this point, your mortgage loan application will have been now submitted.
• Of course, we need to let the Bank assess your application, so we will follow them up after a few days.
• There may be extra items they will ask for, so we will let you know as they request this.
• Everything going to plan we will get a conditional approval within this week after submission.
• With all extra questions answered to the bank we would then hope for a formal approval soon after.
• We’ll call and/or email you notice of Formal Approval so you know this has been completed.
• We’ll discuss final details of the conditions to formal approval with the lender’s assessment team.
• The lender's solicitor will be instructed to prepare and send you mortgage documents.
• A discharge notice should be sent to your current lender if we are changing lenders
The process after you receive loan documents
• You should contact us once loan documents are received from the lender’s solicitor
• We can assist you to complete and return loan documents to the lender’s solicitor
• Once documents are received back completed, the solicitor books settlement
• If this is a purchase your solicitor books your settlement with the lender’s solicitor
• We contact you at this point and update you of the progress and outcome to date
• With a settlement date confirmed we work with all solicitors in the settlement process
• At settlement we let you know it’s now complete. (If purchasing it’s now your home!)
What happens after your loan settlement?
• 1 week after settlement the lender will have sent your mortgage account information
• You should contact us if you have any problems accessing the new accounts
• 1 Month after settlement is normally the first payment, the schedule date can typically be changed
• Post settlement we recommended from time to time you book in with us for a review. Simply so we can make sure the lender is keeping their end of the deal and arranged loans still are working as required.
3. Commissions – how we get paid
These are not fees payable by you Central Mortgage Pty LTD has appointed National Mortgage Brokers as its agent to receive commissions from lenders and lessors and to pay us commission in relation to loan contracts or leases for which we act as a credit representative and provide credit assistance. The total amount of commission we may receive in relation to your loan or lease may vary depending on the lender or lessor, the term, the features, the amount of the loan or lease you ultimately choose and the amount and timing of the repayments that you make.
Upfront commission payable by lenders in relation to loans is calculated as a percentage of the loan amount and is generally in the range of 0.5% and 1% of the loan amount. It is usually paid after settlement of the loan by the lender to us for providing services to you These are not fees payable by you.
Trail commission payable by lenders in relation to loans is generally calculated regularly (monthly, quarterly, bi-monthly or annually) on the outstanding loan balance and is paid in arrears. The trail commission payable by lenders is generally in the range of 0% per annum and 0.25% per annum of the outstanding loan amount.
Upfront commission payable by lessors in relation to leases is calculated as a percentage of the lease amount and is generally in the range of 1% and 4% of the lease amount. It is usually paid after settlement of the lease. Trail commission is generally not payable in relation to leases.
Further details of the commission earned by us will be included in the credit proposal disclosure document we will provide to you at the same time as we provide you with credit assistance.
You can request information from us about the fees that we are likely to receive, how those fees are calculated, and our reasonable estimate of the fees or commissions that will be payable in arrangements.
Volume-based arrangements: Our broker group might have volume bonus arrangements in place with Lenders. From time to time we or our broker group may receive a benefit, directly by way of cash bonus or additional commissions or indirectly by way of training, professional development days or sponsorship if we or our broker group write a particular volume of loans offered by those lenders.
Broker benefits disclosures: In the interest of transparency and good customer outcomes, we keep a register of benefits received from any lenders or aggregators to the value of $100 or more. Over a rolling 12-month period and housed for 3 years. You may request a copy of this register to ensure there are no lender conflicts.
Commissions payable by us: If a third party has introduced you to us or referred you to us, we may pay them a commission or a fee. We obtain referrals from a range of sources, including real estate agents, accountants, financial planners or other people.
Further information about referral commissions, including our reasonable estimate of the amount of any commission payable and how it is calculated is available from us on request and will be included in the credit proposal disclosure we will supply to you when we provide you with our credit assistance.
4. Fees payable for credit services
Fee for service (See conditions below) *$4,400
Payable only by clients wanting mortgage services that will be paid out in less than two years.
*Please advise us when sorting your mortgage or loan services, if you’re planning on paying this out within two years? Clients not planning to pay out their mortgages within two years, of course, there is no charge from us for our services.
Priority request, we will endeavour to do all lending in a timely manner, but if you want our priority, there may be additional costs. Please always let us know your urgency. We may also have other costs for applications with Guarantors, Bridging Finance, Construction, SMSF, Commercial, Non-conforming, Mortgages less than $200,000. These costs will depend on your lending needs and urgency.
Other fees and charges: You may have to pay other fees and charges (such as application fees, valuation fees and other fees) to the lender, lessor or other parties. You should review the disclosure documents and your loan contract or lease for further details of any such fees and charges. Our Credit Proposal Disclosure document sets out the fees and charges payable by you (included in the amount financed or paid separately) and commission paid to us if you enter into a Credit Contract. If you do not enter into a Credit Contract with us, there are no fees, charges or commissions payable by you to us or any other third parties. Note: all amounts disclosed on this document are GST inclusive.
The following are the top six residential lenders we’ve written loans to in the 2019/2020 financial year
Warren Minnette % Jacci Haynes %
Macquarie 40 CBA 31
Adelaide Bank 19 ING Direct 21
ME Bank 13 BOM 12
ING Direct 5 ME Bank 8
CBA 5 Heritage 6
Heritage 4 Macquarie 5
We are able to assist you to obtain loans and leases; from a broad range of lenders and lessors through our broker group (Subject to you meeting credit criteria). Of which we can access over 2,000 loans from over 30 lenders. But we stress no Broker has access to every lender in Australia and there may be other lenders and products available to you that we may not have compared. If you have a particular lender you wanted to be compared please let us know. We will also let you know if this lender was one, we have or have not compared. Or if we did not have access to their services.
If you are in any doubt please seek legal or financial advice prior to entering into agreement for us to assist. Always the final decision to commence finance is yours. In proceeding, you appoint Central Mortgage and their licenced credit representatives as your agents to act as per the terms in this credit guide. You accept finance can only be arranged if finance if found as not-unsuitable to your needs. Repayment of arranged mortgage facilities, services and any other associated settlement costs are of course your responsibility; as are extra costs as a result of any settlement delays.
5. Disputes and Complaints
We are committed to providing our customers with the best possible service. If at any time we have not met our obligations – or you have a complaint about any of our services – please inform us so we can work towards a resolution. We will endeavour to deal with your complaint promptly, thoroughly and fairly.
How to make a complaint and the complaint process
If we have a complaint, we request you follow these steps:
1. In the first instance, please contact us are your credit assistance provider.
2. If your complaint has not been resolved to your satisfaction within 5 business days, please contact our Complaints Area as detailed below
• Telephone: 03 9717 5993 Monday to Friday 9am to 5pm (AEST)
• Mail: Complaints, Suite 5 L1 101 Hazel Glen Drive Doreen Vic 3754
3. We may ask for additional information and request you to put your complaint in writing to ensure your issue is properly investigated
4. In cases where your complaint will take longer to resolve, we will update you progressively.
Third-party products and services
If your complaint relates to a product or service acquired through a third party (for example, a lender) we may ask you to contact the relevant third party. They will deal with your complaint under their complaint’s resolution process.
If you are not satisfied with the resolution of your complaint by the third party under their complaint’s resolution process, you are entitled to have your dispute considered by their External Dispute Resolution Scheme. Please contact the third party for further details.
Keeping you informed
Our Complaints Manager will acknowledge receipt of your complaint within five business days. If unable to resolve the complaint/dispute to your satisfaction within five business days, they will write to you advising the procedures we will follow in investigating and handling your complaint.
Within 45 calendar days from the date, you lodged the complaint with us, we will write to you advising you the outcome of the investigation and the reason/s for our decision, or if required, we will inform you more time is needed to complete the investigation.
If you do not think we have resolved your complaint to your satisfaction, you may take the matter – free of charge – to the relevant External Disputes Resolution Scheme (provided it is within the scheme’s terms of reference) as detailed below. You may also refer the matter to the relevant External Disputes Resolution Scheme at any time, but if our internal process is still in progress, they may request that our internal processes be complete before considering the matter further.
Our external dispute resolution service provider is:
The Australian Financial Complaints Authority (AFCA), which can be contacted via:
• Telephone: 1800 931 678 Monday to Friday 9am to 5pm (AEST)
• Mail: GPO Box 3 Melbourne VIC 3001
6. Privacy Disclosure
As it’s your responsibility to ensure you meet all on-going repayments of any arranged services; should the unforeseen happen. You can request us to refer you to a financial advisor or to issue you a quote for a loan protection plan via ALI Insurance Group. Below is a link to their ‘product disclosure statement and policy document’ and we can provide you with a copy of their current Financial Services Guide upon request.
What information do we collect and how do we use it?
As a service provider, we are subject to requirements to obtain and hold detailed information, which personally identifies you and/or contains information about you (“personal information”). In addition, to provide you with a comprehensive service we need to obtain certain personal information about you or your clients.
We use personal information only for the purpose of providing you with credit assistance.
We use your information to send you requested product information and promotional material and to enable us to manage your ongoing requirements, e.g. further information regarding specific job and our relationship with you, e.g. invoicing. We may use your information internally to help us improve our services and help resolve any problems.
How do we hold and protect your information?
We keep personal information only for as long as is reasonably necessary for the purpose for which it was collected or to comply with any applicable legal or ethical reporting or document retention requirements.
We have access to the information collected from you using a secure external online server facility powered by our software partners. We will strive to maintain the privacy of this data for our part, but we encourage you to ensure you practice the highest level of online security for your personal logins when using these software packages.
We ensure that your information and information you provided to us is safe by limiting access to your personal data to your assistant/bookkeeper and his/her associate as requested. An External Auditor may request access to any of our files for the purpose of a compliance audit by our aggregator or ASIC. Our client files are stored on our own servers, backed up to Dropbox, Salestrekker, lender submission portals and National Mortgage Brokers aggregator systems.
Will we disclose the information we collect to anyone?
We do not sell, trade, or rent your personal or your client personal information to others.
We may disclose to, and obtain from, the following organisation's personal information about you to for the purposes described above (as well as otherwise permitted by the Privacy Act): nMB, Equifax, banks and finance organisations, valuation companies, mortgage insurers, real estate agents, settlement agents, solicitors, your Accountant, information technology companies, loan processors, bookkeepers, compliance auditors and mailing organisations. Plus anyone you have given us permission either in writing or verbally.
We may provide your information to others if we are required to do so by law or under some unusual other circumstances which the Privacy Act permits.
Disclosures to overseas recipients
Some of the recipients to whom we may be required to disclose your personal information are based overseas. It is not practicable to list every country in which such recipients are located but it is likely that such countries will include the United States of America, United Kingdom, New Zealand, Indonesia and Serbia.
How can you check, update or change the information we are holding?
By calling the contacts listed in this document and providing enough information to allow us to identify you, we will disclose to you the personal information we hold about you. We will also correct, amend or delete any personal information that we agree is inaccurate.
You may complain to us about a breach of the Australian Privacy Principles by writing to our address listed on our website. We will review your complaint and notify you within 48 hours of outcomes of such review.
If you are a customer or a potential customer, from time to time we may contact you with information about products and services offered by us, which we think may be of interest to you. When we contact you, it may be by mail, telephone, email or SMS.
You may opt-out of receiving promotional communications from us by using the unsubscribe link within each email or emailing us to have your contact information removed from our promotional email list or registration database. Although opt-out requests are usually processed immediately, please allow ten (10) business days for a removal request to be processed. Even after you opt-out from receiving promotional messages from us, you will continue to receive messages from us regarding our services.
7. Acceptance to commence with services in credit assistance
I/We in agreeing with the terms in our credit guide and privacy disclosure, request the commencement of credit services. I/we consent to the collection, use and disclosures to personal information provided for the purposes of providing these services as requested. I/we declare that we have reviewed confirm personal information provided is to the best of my/our knowledge true, correct, complete and accurate.
You can request a copy of this Credit Guide above for your record – Online V4 – 12/12/2020 - Last edited - WM