Common Questions

• What are the advantages of using an on-line lender?
• Can I apply for a loan before I find a property to purchase
• What is a valuation and who completes it?
• How are interest rates determined?
• How does All Ireland Mortgages provide the lowest rates possible?
• Are there any pre-payment penalties charged for mortgages offered by All Ireland Mortgages?
• Is comparing APR's the best way to decide which lender has the lowest rates and fees?
• What is an discounted rate mortgage?
• Here's some detailed information explaining how discounted rate mortgages work.
• Tell me more about mortgage loan closing fees and how they are determined.
• What is Mortgage Protection Insurance?

What are the advantages of using an on-line lender?

If you're looking for a mortgage it may be tempting to pick up the phone book or to visit your local bank, after all that's how people have done it forever. Before you do - check out some of the advantages of shopping on-line for a mortgage.

Faster, easier comparison-shopping

To get an accurate cost comparison of traditional lenders you need to contact each of them and spend time collecting the appropriate data to decide who has the best loan options available. That in itself can be pretty time consuming, and to top it off, interest rates change regularly. If you don't get all your quotes at the same time you still may not know who has the best rate.

The web makes getting an apples-to-apples mortgage comparison easier than ever!

Apply at your convenience.

There's no need to make an appointment with a loan advisor when you choose to apply on-line. You can complete the loan application in the morning or at midnight in the convenience of your own home without any pressure to make a final decision until you are ready!

Personal Assistance whenever you need it.

We also offer personalised support during the entire loan process. At anytime, you can call or e-mail a loan advisor who can answer your questions or provide some advice.

Can I apply for a loan before I find a property to purchase?

Yes, we strongly recommend that you do apply for a mortgage before you find a home. We will have your loan approved in principle within 48 hours. You can use the pre-approval to present to auctioneers or sellers showing that you are a qualified buyer. A mortgage pre-approval letter will give more weight to any purchase offer that you may make. After you find the home of your choice, simply call your loan advisor to complete your application.

What is a valuation and who completes it?

To determine the value of the property you are purchasing or refinancing, a valuation will be required. A valuation report is a written description and estimate of the value of the property. Mortgage Lenders standards govern not only the format for the valuation; they also specify the valuer's qualifications and credentials. In addition, Mortgage Lenders require that all valuers have the necessary qualifications required for evaluating properties located in your area, All Ireland Mortgages only uses qualified, experienced valuers who are familiar with your area. The valuer will create a written report for the Mortgage Lender. A copy can be provided for you upon request from your loan advisor.

If the property you are purchasing is for investment purposes, the valuer will also consider the rental income that will be generated by the property to help determine the value.

How are interest rates determined?

Interest rates fluctuate based on a variety of factors, including inflation, the pace of economic growth and European Central Bank policy. Over time, inflation has the largest influence on the level of interest rates. A modest rate of inflation will almost always lead to low interest rates, while concerns about rising inflation normally cause interest rates to increase. The European Central Bank, implements policies designed to keep inflation and interest rates relatively low and stable.

How does All Ireland Mortgages provide the lowest rates possible?

All Ireland Mortgages deals with all of the leading Mortgage Lenders and so are able to direct you to the Mortgage Lender that best suits your circumstances.

Are there any pre-payment penalties charged for mortgages offered by All Ireland Mortgages?

Most of the variable rate mortgages we arrange have no penalties for pre-payment. Usually you can pay off your mortgage anytime with no additional charges. Some of the fixed rates we offer may have prepayment penalties. Contact a loan advisor for more details.

Is comparing APR's the best way to decide which lender has the lowest rates and fees?

The Financial Regulator requires that all financial institutions disclose the Annual Percentage Rate (APR) when they advertise a rate. The APR is designed to present the actual cost of obtaining financing, by requiring that some, but not all closing fees are included in the APR calculation. These fees in addition to the interest rate determine the estimated cost of financing over the full term of the loan. For discounted rate mortgages, the APR can be complex. Since no one knows exactly what market conditions will be in the future, assumptions must be made regarding future rate adjustments.

You can use the APR as a guideline to shop for loans but you should not depend solely on the APR in choosing the loan program that's best for you. Also, the APR doesn't include all the closing costs. Look at total fees, possible future rate adjustments and the length of time you plan to have your mortgage.

Don't forget that the APR is an effective interest rate - not the actual interest rate. Your monthly payments will be based on the actual interest rate, the amount you borrow, and the term of your loan.

What is a discounted rate mortgage?

A discounted rate mortgage is a loan type that offers a lower initial interest rate than most fixed rate loans. The trade off is that the interest rate can change periodically, usually in relation to an index, and the monthly payment will go up or down accordingly.

Against the advantage of the lower payment at the beginning of the loan, you should weigh the risk that an increase in interest rates would lead to higher monthly payments in the future. It's a trade-off. You get a lower rate with a discounted rate mortgage in exchange for assuming more risk.

For many people in a variety of situations, a discounted rate mortgage is the right mortgage choice, particularly if your income is likely to increase in the future or if you only plan on being in the home for 3 to5 years.

Here's some detailed information explaining how discounted rate mortgages work.

With most discounted rate mortgages, the interest rate and monthly payment are either variable or fixed for an initial time period such as 6 months, one year, three years, five years, or seven years. After the initial period, the interest rate can change every year after. For example, one of our most popular discounted rate mortgages is a (12 month) discount tracker rate. The discount is applied to the interest rate for the year after which the rate reverts to the standard tracker rate at that time.

Tell me more about mortgage loan closing fees and how they are determined.

A home loan often involves many fees, such as the valuation fees, legal fees, stamp duty etc. These fees vary from lender to lender.

What is Mortgage Protection Insurance?

Also known as mortgage protection. When purchasing your own home every lender will require the security that as a result of your untimely death the outstanding capital amount, excluding arrears will be repaid in full, provided premiums are paid to date. The debt is repaid regardless of future interest rates. A mortgage protection policy covers the amount outstanding on your loan. As the borrowing reduces, so does your level of cover. The premiums are normally paid on a monthly basis.

Disclaimer: This information centre is designed to provide assistance in the loan process. It is provided with the understanding that All Ireland Mortgages is not engaged in rendering legal, accounting, or other professional services. If legal advice, accounting service, or other expert assistance is required, the services of a competent professional should be sought. Warning: Your home is at risk if you do not keep up payments on a mortgage or any loan secured on it. Warning: This loan may take longer to pay off than your previous loans. This means you may pay more than if you paid over a shorter term. Warning: The entire amount that you borrowed will still be outstanding at the end of the interest-only period.