Blog

Should I Work With a Mortgage Broker? 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, and has access to the products that they offer only via that institution. … [Read more...] about Should I Work With a Mortgage Broker?

If you’re in the market and you’re struggling to find property, there’s a good reason – the number of homes listed for sale had an unexpectedly large fall in December.SQM Research has reported there were 272,999 properties listed for sale in Australia in December, which was down 7.9% on the previous month and 5.8% on the previous year. This shortage of properties has helped drive an increase in prices – which is why some commentators expect listings to significantly increase in January and February, as home owners look to cash in.If you’re planning to buy in 2021, here are three things to consider given the unusual conditions right now:Expect to pay a low interest rate for now but budget for future increasesBe prepared to move fast if there’s a shortage of stock in your target areaConsider how Covid-19 might affect inspections and auctions in your areaWanting to buy in 2021?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 Big fall in the number of for-sale properties

Banks have raised their lending standards over the past decade or so, by reducing their volume of low-deposit and interest-only loans. The share of home loans with a loan-to-value ratio (LVR) of 90% or more (i.e. a deposit of 10% or less) fell from 22% in 2009 to 9% in June 2020, according to data from APRA, Australia’s mortgage regulator. Meanwhile, the share of interest-only loans was 46% in 2015, but averaged only 17% of new lending from mid-2017 to mid-2020.That doesn't mean it's no longer possible to buy a home with a 10% deposit or take out an interest-only loan – it is. There are still lots of options available for that type of borrower.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 Australia’s mortgage market has been getting safer

Your Local Mortgage Broker in the Northern Beaches, Sydney 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 encountered a high rate of ‘tyre kickers’ and found that they were spending a … [Read more...] about Your Local Mortgage Broker in Northern Beaches, Sydney

Sydney's Mortgage Broker Says now is the time for a first home buyer 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 first home or upgrade to a larger one. It may be that, depending on … [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 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 as the birth of a new child, and you want the certainty of knowing how … [Read more...] about 10 Reasons to consider refinancing your home loan

Great news for anyone planning to take out a home loan – new legislation means consumers are even better protected when they use a mortgage broker.The Best Interests Duty, which took effect on 1 January 2021, legally obliges brokers to act in the best interests of their clients. This new law is on top of the National Consumer Credit Protection Act, which already regulates the conduct of brokers.Brokers must “prioritise their consumers’ interests” if there’s ever a conflict of interests, according to the legislation.But while brokers have to follow the Best Interests Duty – banks do not. A broker must give their client the best possible recommendation from all the lenders on that broker’s panel. However, a bank will recommend only its own products, even if there are better alternatives.Brokers act in your best interests when recommending a home loan, and have a legal obligation to do so. Banks sell you products.Need trusted home loan advice?Hit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Get advice 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 New law gives consumers another reason to use brokers