Should you use a mortgage broker to refinance your home loan? 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 refinancing Refinancing a mortgage comes with a range of fees from lenders.Among the most … [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
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 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
New law gives consumers another reason to use brokers
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
How to compare home loans and features
How to compare home loans and features 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 or move?If you plan to move, build or renovate, checkout the following … [Read more...] about How to compare home loans and features
Beware of online shopping scams
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
Real estate values keep rising, despite pandemic
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
Government extends HomeBuilder by 3 months
Good news for existing home owners and people planning to enter the market – the government has extended the HomeBuilder scheme.HomeBuilder provides financial support to owner-occupiers who want to build a new home, substantially renovate an existing home or buy an off-the-plan property. Under the original version of the scheme, participants in the HomeBuilder scheme receive a $25,000 grant if they sign a building contract before 31 December 2020.Under the new version, participants will receive $15,000 if they sign a contract between 1 January and 31 March 2021.As before, construction must start within six months of the contract being signed.The price cap for renovations has been kept at $1.5 million (pre-renovation). However, the price cap for new builds, which is currently set at $750,000 for all states, will be increased to $850,000 for Victoria and $950,000 for New South Wales.To participate in HomeBuilder, you must be an Australian citizen and earn less than $125,000 for singles and $200,000 for couples.Need a construction 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 Government extends HomeBuilder by 3 months