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Buying a new home can be stressful enough without the added pressure of finding the right lender. The market is tough; there are many lenders with many different products offered that change constantly. It is the job of a mortgage broker to always be on top of the industry to find the suitable deal for you.
What is a mortgage broker?
A mortgage broker is an essential part of finding the right home loan. He or she will be evaluating your financial situation against a number of lenders until they find the best deal. They usually keep a panel of lenders that they will compare for their clients to find the best option available to them.
A good broker will work with you to find the suitable deal possible to suit your personal finance situation. They will see you by appointment to provide an efficient way of reviewing, negotiating and organising home loan options. They can also help you negotiate with your bank or lender as they understand the market and the lender’s competition so they are able to get a better deal.
How to pick the right broker
If you want to make sure your broker is trustworthy and not just acting as an agent for one lender, ask to see all the lenders on their panel to see what your options are. Your broker should have a range of loans from a variety of lenders and will be happy to discuss them with you. You are free to check their qualifications and experience. Go ahead and ask whether they are a member of one of the 2 industry associations – Mortgage & Finance Association of Australia (MFAA) or Finance Brokers Association of Australian (FBAA). As a client, you have the right to ask how the loans are relevant to your situation and any good broker will be able to answer in plain English and explain the situation to you.
Most of their services should be free because brokers get their fees and commission from the lenders they recommend, not the buyers!
How a mortgage broker can help you
A good mortgage broker will be willing to discuss loan options and explain all the documents and the steps of the loan process. They will explain the loan process and all associated costs and fees, and most importantly, will be willing to find a suitable loan for you.
If you’re ready to speak to someone in the know, call Excellence Finance today on 9609 4655.
Purchasing a new home can become an exciting yet stressful process. Before plunging into the “house hunting” pool, it is best to choose the right home loan. It will guarantee that you’re getting the best value and deal that best fits your mortgage needs. This will lessen the stress of the home-buying process and make it much more exciting.
Common Home Loan Products
You want to get the best value out of the loan. Find one that will fit your lifestyle. The size of the loan should also be put into consideration as well as the deposit you can make and type of property you want to finance.
These are common groupings of Home Loan Products:
√ Standard Variable Loans – most popular type. Rates may go up and down during life of loan.
√ Basic Variable Loan – lower interest rates.
√ Discount Variable, Honeymoon, Introductory loans – variable rate loans with a discounted interest rate. Usually lasting a certain period of time.
√ Fixed Rate Loans – borrower’s interest rate and repayments are fixed for a certain period of time.
√ Combination/Split Loans – allows borrowers to split part of their loan as a variable rate loan and other part as a fixed-rate loan.
√ Line of Credit/Equity Loans – Borrower can borrow up to specified limit, which is secured by a mortgage over a residential property.
Steps To Take When Choosing A Home Loan
Step 1:
Know what costs are involved in buying a home or getting a loan.
Step 2:
Know how much money you can borrow. It’s best to consult a mortgage broker as lenders calculate Maximum Borrowing Capacity differently.
Step 3:
Know which documents are necessary when applying for a loan i.e. bank statements, driver’s license etc.
Step 4:
Know your Credit Report Profile. Keep track of your credit rating. It is a determining factor of what kind of loan you will be eligible for.
Also, Property Valuations is an assessment of the property as a saleable asset. The lender is assessing the risk, which tells them if you able to pay the loan.
All of these criteria affect interest rates, which determine what home loan product will be offered to you.
All in all, choosing the right home loan feature along with a good interest rate will allow you to save money, making it easier to rapidly pay off your mortgage.
If you’re ready to speak to someone in the know, call Excellence Finance today at 9609 4655.
Get ready. Get ready. Get ready everyone. Summer is coming soon!
Time to take a break from work to enjoy a much needed holiday. But if you were unable to plan this year due to lack of funds, it might be time to sit down at the kitchen table and start a BUDGET! Starting a budget can help you pay bills easily, save money, and pay off debt so you’ll have extra funds to enjoy the pleasures of life like a trip to the destination of your dreams!
Is A Budget Really Necessary?
YES, a budget is most definitely necessary because it can build security, give you a sense of control, give you an understanding of where you stand financially, help you afford what’s really important like a home loan and help you pay off your mortgage faster.
For instance, creating a budget helps you maintain a good credit rating because you should be paying bills on time. Therefore, your credit-worthiness is a factor in receiving a Home Loan with an affordable interest rate. Once you start getting rid of debt, you will have extra funds that can be applied to the loan balance and interest payable. Thus, this results to paying off your mortgage faster. You can refer to our calculators on our website.
4 Steps of Budgeting
Before starting a budget, understand that the main skill you need is to be able to convert your expenses you have to coincide with your pay period. So if you are paid weekly, the income and expenses should be converted to weekly figures. The process of conversion enables you to split your income into categories which makes it easier to maintain a budget. Once you place the money where it should go, extra spending money should become available.
Step 1: Allow for Unplanned Expenses:
The ability to have money on hand to pay for unexpected expenses.
Step 2: Set up Multiple Bank Accounts:
Allocate portions of your pay check to be deposited into the following sample accounts – Bills, Spending Money, Groceries, etc.
Step 3: Automate Your Budget:
Portions of your paycheck should be automatically deposited into each account per pay period.
Step 4: Check Budget Regularly:
Keeping track of your budget helps you use unexpected expense money to pay for a large bill that is received that was not otherwise included in the budget.
It is fairly simple, isn’t it?
Walk down the road to financial freedom – Start A Budget Today! Excellence Finance is waiting – 9609 4655.
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