Home loans, mortgage brokers, interest rates, big banks, Royal Commissions; five major talking points for economists, journalists and everyday Australians over the last few years.
The Reserve Bank of Australia has now dropped the cash rate to its lowest level in history; 0.25%. Many first home buyers and property investors alike have questions over the state of everything.
Just like you wouldn’t sell your house without seeking advice from a number of professionals, you should always seek professional help before selecting a mortgage or home loan.
What if there was a way to minimise the stress of applying for a home loan, while improving your chances of approval, at the same time?
Quality mortgage brokers have many years of experience negotiating home loans for a range of clients – from the simplest to the most complex. These loan advisors know of many ways to help you fast-forward through your loan process, including seeking out and negotiating the most suitable loan rates, appropriate structures, the right leverage and flexible terms to fit your personal situation.
Mortgage Brokers Can Help You!
Unfortunately for home buyers, there is a long-standing stigma surrounding all mortgage brokers – that they are money hungry snakes, no better than a shady used car salesman.
However, thousands of our happy clients currently smashing their home loan goals will tell you that the tag is false and unjustified.
Financial Advice is Designed to Help You:
- Develop a range of strategies to help achieve your financial goals
- Identify your short, medium and long term financial goals
- Implement systems to help you manage your money better
- Maximise your superannuation
- Minimise your tax liabilities
- Ensure you are adequately insured
- Develop a suitable investment plan for your life stage
- Plan for your retirement
How do you choose the right mortgage broker or financial planner for your own circumstances?
It can be easier said than done. Luckily, there are a number of tools you can use to compare advisers in Brisbane and beyond… as well as a number of steps you can take to ensure you are making the right choice.
First of all, you need to identify your financial advice needs. This will give you the scope you need to make sure you are choosing a financial solutions provider that is qualified to give advice in that field.
Once you have chosen a financial adviser, the next step is to ensure you are able to provide them with accurate information pertaining to all aspects related to your financial situation. Be prepared with your financial goals, financial statements, all assets and liabilities along with any other finance-related information. Be open and honest about your current situation, as failing to do so could result in incomplete or incorrect advice for what you require.
Make sure you feel comfortable with the adviser. You do not want to feel pressured into making any decisions.
Follow the above advice, do as much research as you can and be as open and honest as you can be. You should be able to find a reputable financial adviser, fit for your needs.
The Benefits of a Broker
The pros of using a mortgage broker are plentiful. They will collect your income evidence and the other documents you need to provide as part of your application and take care of the whole process from application to settlement… as well as everything in between.
Mortgage brokers tend to be very strong negotiators, which is where they can really help you. They can get you stronger positions and lower interest rates than what your bank is offering. Brokers also keep in contact with credit officers to provide further evidence they may need to assess your application. They keep in contact with your solicitor, valuers, your builder and even real estate agents, to ensure a smooth application process. They are your number one contact during the whole procedure – keeping you updated throughout the entire process!
A 2016 report from one of Australia’s major banks found that the most common reason people approached a bank instead of going to a mortgage broker was due to the fact that they already had accounts with them. So, convenience is the most common reason why people go to a bank directly, but it doesn’t necessarily ensure that you’ll get a smooth loan application process or the best deal/interest rate.
Banks are large companies, and communication between departments is a big problem. There can be delays with your property valuation. The credit assessor can misinterpret your payslips because they don’t understand your income. The bank may question prior loans that you’ve applied for. Your file can be handed over to someone else without clear communication. They sometimes even lose entire mortgage applications. These are just some of the examples of what can go wrong if you go to a bank.
Mortgage brokers can be perceived as scary and untrustworthy people, as a result of the poor practices of a minority. However, if you seek out the help of a quality mortgage broker, you’ll find the importance of one really quickly.
