Should I Work With a Mortgage Broker? Share on facebook Share on twitter Share on linkedin Should I Work With a Mortgage Broker? You should consider using a bank loan officer or a mortgage broker if you plan on buying a home. Here's what you need to know.Mortgage shopping can be an overwhelming task. There are many mortgage lenders and a variety of ways lenders can adjust home loans to make them look lower than they actually are. You may also feel vulnerable as lenders scrutinize your credit report while you're excited to own a new home. In many cases, home buyers are trapped in bad mortgages because they just wanted to get the process over with. Sadly, that's a big mistake: Even fractional percentage points are enough to add up to thousands of dollars for a 30-year mortgage. What does a bank or Credit Union loan officer do? Bank loan officers are employed by a specific bank or lender and often receive volume incentives when they provide clients with loans from a single bank's or lender's branches.You can apply for a mortgage by walking into the bank or credit union in your area and sitting down with a loan officer. They will consider your application and, hopefully, present several loan options tailored to your situation. If you’re a loyal customer, you might get a wonderful deal from the bank.The best mortgage rates are often offered by small local banks and credit unions. The problem is that many of these institutions only lend to consumers with excellent credit scores. If such a requirement isn’t met, many first-home buyers simply won’t qualify since they don’t have long enough credit histories.However, let's say your bank offers you a loan. But how do you know it's the best deal unless the bank offers a lower rate than national averages? So you go to another bank to get a quote, or you go to a mortgage broker. Mortgage brokers They are responsible for connecting borrowers with lenders. Usually, they work for more than one lender and earn commissions on each sale. The same way talent agents show aspiring actors to films, mortgage brokers present applicants to different lenders.The best mortgage broker will work to find borrowers with less-than-perfect credit, the lowest rates and also the cheapest mortgages. The broker gets paid more when the loan is more expensive. Additionally, brokers may not want to show you the absolute best loans (although I am not saying they all do this).So shop around and make sure to negotiate as you would with a home or car: Don’t be afraid to push for better terms and don’t just say the first thing that catches your eye. Mortgage Broker Vs Loan Officer Mortgage brokers work with a variety of lenders to offer borrowers a variety of loan programs. In return for a fee or commission, brokers connect borrowers with specific lenders and loan programs that match their needs.A loan officer, on the other hand, works for a specific institution, like a bank, … [Read more...] about Should I Work With a Mortgage Broker?
Your Local Mortgage Broker in the Northern Beaches, Sydney Share on facebook Share on twitter Share on linkedin How do I find a mortgage broker in Northern Beaches, Sydney? Mortgage brokers are financial professionals who work to connect lenders and borrowers. Usually they work with dozens or hundreds of loan companies as independent agents, not as employees.Mortgage brokers are like scouts. They identify and evaluate home buyers, determining which loan would be best based on each person's credit situation. The broker submits the home buyer's application to few lenders for the approval of the loan, and works closely with the lender until it closes. The best mortgage broker can find a lending institution for pretty much any type of credit situation that you have. To find the right mortgage broker in Sydney, ensure you ask the right questions.One important fact borrowers should realize is that great brokers don’t tend to focus on every market, they tend to stick to a particular niche.Moreover, the needs of a first-time home buyer may be different compared to the needs of a busy professional.In order to determine whether your broker is a good one, ask the following questions to your mortgage broker after you have a shortlist of potentially good mortgage brokers.Are you licensed to operate or are you using someone else's Credit license?Are you a member of the FBAA or the MFAA?What is the length of their tenure in this industry?Which lenders do they usually work with and how often?Do they have any testimonials or customer reviews?What can you offer your customers that others can't?How many accreditations do they have? If they have less than 10 accreditations, then they probably aren’t very good.In the last 12 months, how many lenders did they use? A good mortgage broker would work with at least eight lenders.How many home loans have you closed in the last 12 months?What types of clients are you most frequently working with?It’s about finding a broker who is experienced, and dealt with clients in similar situations, e.g. first home buyers, investors, construction work, Australians who live overseas etc. What is a typical mortgage broker fee? The mortgage broker who is securing your loan earns commission from the loan transaction and the better the deal they get a lender, the more they get paid. You don't need to disclose the interest rate you intend to accept to a broker. Let them tell you what terms they can obtain for you. Shop around to make sure you're getting a fair deal. Most of the mortgage companies advertising online are mortgage brokers. Why are some mortgage brokers in Sydney charging a fee? Mortgage brokers who are new to the industry or have less experience may levy an upfront fee or mandate as a means of obtaining commitment from a client to invest in their project, in case the broker spends time on the customer's application but never results in a settlement.They might have … [Read more...] about Your Local Mortgage Broker in Northern Beaches, Sydney
Should you use a mortgage broker to refinance your home loan? Share on facebook Share on twitter Share on linkedin Should you use a mortgage broker to refinance your home loan? At present times, interest rates are at record lows, you might be thinking if it is a good idea to look around for a better deal on your home loan.Most Banking experts say that this is a good time to look for home loan refinancing. Refinancing can seem like a daunting process, but right now consumers have all the power.During a prevailing situation like recession, banks are really rushing to offer lower interest rates to consumers. Thus, if you are trying to shop a better deal, it’s worth using services of a mortgage broker to save yourself time and from other related worries.Here, we will look at the pros and cons to help you make an informed decision. Mortgage brokers are convenient. First, let's take a look at how brokers get paid.Generally, customers don't have to pay any money to a broker for their services. Instead, most brokers are paid by the lenders as upfront and trailing commissions. So in that sense, most mortgage brokers offer free service to borrowers.Another important fact to consider is that some lenders have certain loans which they sell directly to borrowers, and they don't provide commissions to brokers for those products.Certainly, it aint not difficult to say that those loans won't be recommended by brokers — however how cheaper they are than the alternatives.Some mortgage brokers are rewarded for bringing in new customers as well. If you are going to use a mortgage broker, you should ask these questions. Freshwater Financial Services suggests the following questions to ask your broker:.Can I get a loan from a wide range of lenders?How are you paid for offering your advice? Does this vary between lenders?Why did you suggest I take this loan?What fees must I pay when I take out this loan?What features are included with this loan? Can you explain how they work?Would you be able to give me a couple more options, including the lowest-cost option?What is the Lenders’ Mortgage Insurance (LMI) threshold, and how do I avoid it?What information is required for the loan application?Additionally, check whether the broker has a proper credit license with the ASIC Connect Professional Register. Here are still so many good reasons why you might want to use a mortgage broker to refinance your home loan.A Good broker can suggest options which you may not have considered or that would otherwise be unavailable.Additionally, it's also far more convenient to use a broker than having to do the research and deal with the banks yourself.Independent mortgage brokers Freshwater Financial services recommends getting quotes from different lenders before making a decision.Furthermore, it will help to ask your broker to explain why they recommend certain products and how they work. The costs of … [Read more...] about Should you use a mortgage broker to refinance your home loan?
Sydney's Mortgage Broker Says now is the time for a first home buyer Share on facebook Share on twitter Share on linkedin Sydney's Mortgage Broker Says now is the time for a first home buyer Is it a good time to buy a home for first home buyers?A recession or economic downturn largely results in things such as lower industrial output, higher unemployment, a decrease in consumer spending, an increase in loan defaults and bankruptcies, and an absence of household income.Commonly they have an effect on the real estate market as well. During a recession, you might expect to see an increase in the number of foreclosures, flat or declining property values, a decreased sales volume and houses waiting on the market for longer periods before they sell.However, according to experts, in spite of bad news for real estate professionals and the industry overall, this can create opportunities if buyers can convince mortgage lenders they can afford to pay their loans even with an economy in turmoil. An approach to an experienced Sydney’s mortgage broker can make your loans as stress-free as possible. What should you do before buying your first home? Be honest with your finances before you buy. What concerns us is not how low prices can fall during a recession. But it’s about how much property you can afford to buy before the prices go back up. To pay your mortgage and survive the downturn is at least as crucial as finding a low-priced home.Be honest about your own financial situations as well—recessions do not just affect homeowners. An unstable job can make bargain homes unaffordable in the long run. If you’re a business owner, determine whether or not you expect your business to continue to flourish in the present economic situation. Benefits of Buying During a Recession:. Lower home prices:. According to supply and demand, where there are fewer buyers, a home seller might lower their price to make their property more appealing. Fewer buyers generally mean longer selling cycles, which can cause difficulties for those looking to sell in a hurry due to financial reasons or because they have other opportunities somewhere else. To escape months of marketing and hosting open houses, they will lower their asking price or accept offers that are lower than their asking price. So, if you’re looking to buy a house, you might come across:. Property owners who are willing to offer a lower asking priceHomeowners who do a short sale to get out from under their mortgageBanks that sell foreclosure propertiesRates Are Lower:.Recessions tend to bring down mortgage rates along with falling home prices, and the housing industry always plays an important part in the economy. During a recession, the federal government hopes that by lowering mortgage rates, it can boost home sales and make it cheaper for borrowers to borrow mortgages.Less buying competition:. When the economy is in a slump, fewer people have the funds to buy a … [Read more...] about Sydney’s Mortgage Broker Says now is the time for a first home buyer
10 Reasons to consider refinancing your home loan Share on facebook Share on twitter Share on linkedin 10 Reasons to consider refinancing your home loan You've got a mortgage on your home, and you may think you got a pretty good interest rate. That may not hold good now. The average owner-occupier variable principal and interest loan rate is about 4.13%, but unless you get it in the threes or lower, the banks are slowly draining you of your cash.Ignorance may be bliss. However, it can also be expensive in this case. Taking care of our health means ensuring our body is in good shape, so too should we take care of our home loan to ensure it's in the optimal financial condition. You have probably had a change in your life since you took out your first home loan (wedding, kids, promotion, etc.). So why shouldn't your mortgage rate change as well? Perhaps your life hasn't changed as much since you took out your loan, but your repayments have grown significantly as the interest rate creeps on the loan over time.Refinancing is merely switching your existing loan for a new one (hopefully better) however finding a new lender is often a part of the process. Freshwater Financial Services helps borrowers get a better deal. Here are 10 reasons to think about refinancing your home loan.Save Money:.According to Australian Bureau of Statistics, the average loan in Australia is $384,700. Although many of us have loan amounts that are much higher or lower than this, we’ll use this amount as an example. If you refinance your 4.13% mortgage to 3.59% on a 25-year loan, you would save $114 per month. Over the course of a year, that adds up to more than $1300. If you save some money, you can invest it into other household expenses or a family holiday.Pay off Your Home Loan More Quickly:.If you used the same example above, you could pay off your home loan five years and a half earlier, so you'd be saving $53,136 in interest. Yes, that's a savings of over five figures. Never underestimate the effects of small amounts of money over a long period of time on a loan.More Equity Leads To Better Rate:.If the value of your property has increased since you bought it, it means you have a greater amount of equity. This may mean access to lower interest rates as well. Consequently, if you borrowed $450,000 to purchase a $500,000 house that is now valued at $600,000, your equity has increased 10 percentage points to 25 percent. Note that it works in reverse also, particularly if you bought at a higher interest rate and are in an area now where prices have dipped since then. You can easily find the value of your property using a few online tools.Switch to a fixed-rate mortgage or interest-only mortgage.Perhaps you're looking for a fixed rate for a certain period of time (fixed rate) or you want to decrease your payments (interest-only) for a while. Switching to a fixed-rate program is advantageous when you undergo significant life changes, such … [Read more...] about 10 Reasons to consider refinancing your home loan
How to compare home loans and features Share on facebook Share on twitter Share on linkedin How to compare home loans and features The home loan you choose can have a substantial impact on the future of your life, whether you are a first home buyer in Sydney or making your first move into the housing market, buying an investment property, or renovating your home.There is no such thing as a one-size fits all home loan because everyone's home loan needs are unique. The best home loan with right features is easier to get if you know what you're looking for, so it's important to first understand how you'd like to structure the loan. Finding the best home loan rate comes down to comparing loans. There are a lot of mortgage options available on the market, so it’s a good idea to compare home loans and find the one that’s right for you. You may have different ideas about what you consider a good home loan than others, and your opinion may change with time.A good home loan generally includes :Competitive interest rate (makes it easier to repay the loan a lot sooner)Low establishment costs and feesFeatures that apply to your needs and genuinely meaningful for youWe’ve put together a list of questions to ask yourself before you compare home loans in order to help you find a home loan that suits your needs.Would you like a variable, fixed, or split interest?It’s crucial to compare different home loan interest rate types in order to customize a loan to suit your needs.Fixed interest - Home loans that offer fixed-rate terms provide a degree of security if you want to budget ahead or work with a strict budget.Variable interest - The interest rate of a variable home loan varies based on market interest rates and lender price policies, which may suit those who can be flexible with their repayments.Split interest - Split interest means that a part of your mortgage loan is secured by a fixed rate, while another part is secured by a variable rate. This makes borrowing more secure and takes advantage of interest rate cuts. Calculate your repayments under different variable and fixed rates and variable rates using this handy Split Loan Calculator.Which features will you actually need? While a loan that comes with lots of extra features sounds great, it is generally true that the more features come with the loan, the higher the costs involved with it. You may opt for a no-frills loan, however, if you choose one that offers more (such as a redraw facility) you want to ensure you are using what you pay for.What will the fees be? In addition to application fees, valuation fees, lender’s mortgage insurance, monthly fees and annual fees, you may also have to pay break costs if you want out of the mortgage.What is the comparison rate? A comparison rate indicates the true cost of a home loan, based on the fees, charges and interest rate. This implies each rate has equal priority when comparing with other loans.Are you planning to stay … [Read more...] about How to compare home loans and features
Share on facebook Share on twitter Share on linkedin Australia’s consumer watchdog has urged people to watch out for online shopping scams this holiday season, with scam losses rising sharply in 2020.Losses to online shopping scams have increased 42% this year, with almost $7 million in reported losses, according to the Australian Competition & Consumer Commission (ACCC).Losses on classified websites, such as Facebook Marketplace and Gumtree, have increased 60% this year, to $4.5 million.ACCC deputy chair Delia Rickard said scammers create realistic-looking fake websites that offer products at very low prices; victims then receive either a fake item or nothing at all.Another trick scammers play is to post fake ads on classified websites, often claiming they are travelling and someone else will deliver the goods – but the item never arrives.Ms Rickard advised consumers to beware of:Popular products being sold at suspiciously low pricesSellers who request payment through direct bank transfer or cryptocurrencyFake Australia Post parcel delivery notifications that ask you to click links and input sensitive information (something Australia Post never does)Needing a great deal? Hit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Book a review today We partner with over 50 lenders so you can find the perfect solutionFollow Facebook Linkedin Do you have questions about mortgages or loans?Ask us in the comments below … [Read more...] about Beware of online shopping scams
Share on facebook Share on twitter Share on linkedin Median price growth for the month of November ranged from 0.4% in Sydney to 1.9% in Darwin and Canberra.Over the year to November, prices grew in all capitals except Melbourne.Canberra’s median price ($672,866) is now higher than Melbourne’s ($672,172), making Canberra the second-most expensive capital city property market, behind Sydney. Peter Koulizos, chairman of the Property Investment Professionals of Australia (PIPA), said the latest statistics were in stark contrast to the alarmist forecasts at the start of COVID.“Big banks and some property commentators were predicting property price falls of anywhere from 10-30%,” he said.“At the same time, PIPA produced research to show that house prices had increased by as much as 100% in the five years after the most recent recessions.Do you need a home loan?Hit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Book a review today We partner with over 50 lenders so you can find the perfect solutionFollow Facebook Linkedin Do you have questions about mortgages or loans?Ask us in the comments below … [Read more...] about Real estate values keep rising, despite pandemic