This is the Credit Guide of Select My Loan Pty Ltd ACN 609 171 486 ("SELECT MY LOANl"), Australian Credit Licence 482 937. We are licensed to arrange loans and leases under the National Consumer Credit Protection Act 2009.
This Credit Guide provides you with important information about Select My Loanand its credit representatives.
Those representatives will provide you with the credit services described in this document.
This document contains the following:
This document should be read in conjunction with an Adviser Profile which will be provided with this document.
This Credit Guide is designed to assist you in deciding whether to use the services we offer.
We will provide you with information on a range of lenders and products. Once you have chosen a loan or lease that is suitable for you, we will help you to obtain an approval.
Select My Loan is licensed to engage in credit activities other than as a credit provider in relation to:
Select My Loanis a member of the Select My Loan Group of companies. Select My LoanFinancial Advisers, Select My LoanProperty Advocates, nor any associated entities (trusts, companies and/or individuals) or service providers, guarantee the obligations or performance of SELECTMYLOAN.
Select My Loan maintains a panel of lenders ranging from major banks, building societies, credit unions, retail lenders and specialist non-banks, through use of AFG. AFG is an aggregator, who acts as an intermediary between credit representatives and lenders. More information about our relationship with AFG is outlined under the heading 'Relationships and Associations Pertaining to Remuneration'
Your adviser may provide credit services in relation to credit or lease contracts with a range of providers. The lenders named below are the lenders with whom we conduct the most business:
There is a more extensive panel of lenders available to our representatives, which comprises of (as at 1 March 2016) approximately 30 different lenders; your Credit Adviser's "Adviser Profile" will list all lenders and financial institutions that they are accredited to utilise, when forming a credit recommendation for you.
Your adviser will only recommend that you apply for, increase or remain in a credit or lease contract if they believe it will help address your needs and objectives.
We are obliged to ensure that any loan or principal increase to a loan we help you to obtain or any lease we help you enter is not unsuitable for you. To decide this, we may need to ask you some questions in order to assess whether the loan or lease is not unsuitable. The law requires us to:
For example, if you can only repay by selling your principal place of residence, it is presumed that the loan will cause substantial hardship unless the contrary is proved. For this reason we must ask you to provide a significant amount of information. It is therefore very important that the information you provide us is accurate.
It is important that the information you provide us is complete and accurate, as if we proceed on incomplete or incorrect information, you may be in breach of your legal obligations to the lender.
We must provide you with a copy of our preliminary credit assessment of your application if you ask within seven years of when we assist you. We are only required to give you a copy of the credit assessment if we give you credit assistance.When providing any credit service, your adviser will not act as your agent or as the agent of the credit provider, except to the extent necessary as part of the application process.
Generally no fees or charges are payable by you to us for our credit assistance. In some instances a fee for service may be required. If so, details of these fees will be set out in a credit quote.
However, you may be charged a lender's application fees, valuation fees and other fees associated with the loan. These fees are not charged by us and will be disclosed to you prior to the credit application. Please note if a valuation is conducted and you choose not to proceed with the loan, you may still be liable for the valuation fees.
We are paid commissions by lenders for introducing customers. The lenders we deal with will usually pay us a commission based on:
We will only be paid this commission if your loan is settled and drawn down.
We may also be paid an ongoing commission by your lender based on the outstanding balance of your loan. The commissions that we are paid by your lender are not payable by you – they are paid to us either directly by the lender, or paid to us by AFG.
If you would like a detailed estimate of how much commission we would be paid by a particular lender for a particular product, we will provide this for you. We will also provide you with a detailed explanation of how this commission is calculated.
AFG may retain a portion of the commission paid by the lender you choose. The remaining payment is paid to SELECT MY LOAN. If you would like an estimate of what your adviser will be paid, and how it is calculated, please don't hesitate to ask and we will provide you with that information.
For loan products, our commission generally ranges between 0.50% and 1.80% of the initial loan balance and 0% to 0.55% of the outstanding loan balance each year.
For example, if your loan balance was $100,000 we would receive between $500 and $1,800 initially and between $0 and $550 pa ongoing. Please note these commission ranges incorporate all potential commission bonuses (which we may or may not receive) and that lenders can change these commission rates at any time.
For consumer leases, we will charge a brokerage fee between 0% and 4.0% of the lease amount sought. For example, if you are seeking $10,000 credit, the cost to you will be between $0 and $400.
In many cases, we gain access to the loan products we recommend to you through the services of AFG. In order to gain access to their panel lenders, AFG charges us a fee. This fee is currently charged by AFG as a share of the commission that is paid by a lender as set out above. If you would like us to provide an estimate of the share of the lender commission that may be retained by our aggregator, and how it is worked out, we will be pleased to provide this to you.
Relationships and Associations Pertaining to Remuneration Because Select My Loan and its accredited credit representatives use AFG aggregation services, we are entitled to participate in bonus arrangements between AFG and individual lenders.
Any payments by lenders to AFG are based on the volume of all new or increased loans placed via AFG, including those loans written by Select My Loan; this includes issues such as 'the quality of loan submissions' (eg: 'application to settlement conversion rate'). AFG then pays Select My Loan a proportion of this bonus payment, according to the amount of business we submitted through AFG during the period. These bonuses are a percentage of the loan balance and are separately negotiated between each lender and AFG. Please note that lenders can change the percentage at any time and not all lenders pay volume or quality bonuses. The commission bonuses are included in the commission ranges shown in Credit Advice Fees.
Typically, we do not pay referral fees to referral partners. However, we do reserve the right to pay a referral fee (i.e. commission) for third party referrals. Referrers will differ and the types of referrers generally include, for example: real estate agents and solicitors. This fee is not payable by you. This fee will be disclosed in the Credit Proposal Disclosure Document given to you. You may on request obtain a reasonable estimate of the amount of commission and how it is worked out.
Select My Loan and your representative may also receive a benefit for referring you to other specialist services. What to do if you have a complaint
If you are unhappy about our advice or services, please write to:
We will investigate your complaint and respond to your concerns as quickly as possible and within 45 days. If we have not responded to your complaint within 45 days or if you feel it has not been resolved to your satisfaction, you may refer your concerns to the Credit and Investment Ombudsman (COSL). They provide a fair and independent dispute resolution service.
Select My Loan is covered by professional indemnity insurance satisfying the requirements under the National Consumer Credit Protection Act for compensation arrangements. Our insurance arrangements cover claims made against us as the licensee and for the conduct of our advisers whilst acting as our Credit Representatives. In addition, the professional indemnity insurance policy covers claims in relation to the conduct of representatives and employees while they were authorised representatives of Select My Loan even if they are no longer a representative under our license subject to the usual terms of the policy in relation to providing indemnity.
You should ensure that you have approved finance before entering a binding contract to purchase. It is important you understand your legal obligations under the loan, and the financial consequences. If you have any concerns, we suggest that you obtain independent legal and financial advice before you enter into a loan contract.
We do not make any promises about the value of any property you finance with us or its future prospects. You should always rely on your own enquiries. Before you accept your loan offer, make sure you read the credit contract carefully to understand full details of the loan. If you have any doubts, you should obtain independent legal and financial advice before you enter any loan contract.
We represent lenders and have obligations to them, in particular not to provide any information we know is misleading or deceptive. We also have obligations under the law to report any fraud, forgery, or other illegal activities. Before using our services, it is important that you understand that we have these obligations to lenders and under the law.