A mortgage broker is a home loan specialist who negotiates the loan on the client’s behalf. They facilitate the loan application acting as an intermediary between yourself and the banks.
A mortgage broker will research and compare the most suitable home loans on the market from the thousands available, help you choose the right loan and then support you through the entire mortgage application process from lodgment to settlement.
Mortgage brokers generally do not charge the borrowers anything for their service, as brokers are paid a set commission by the lenders only when the home loans are settled.
However, banks do not pass on the cost of the broker’s commission to the customers if they lodge the home loan application themselves directly to the bank, as the bank’s internal cost of supporting customers with their home loan application lodgment process through their branches are usually higher than mortgage broker commission.
1. A mortgage broker can compare the range of loans available from multiple lenders very quickly to find you the right home loan for your needs. You can check a lot of the home loan deals yourself using the mortgage loan rate comparing sites or by contacting a number of banks and lenders yourself, however, it may be time-consuming.
2. The mortgage brokers also provide you with one central point for home loan related information and will talk you through the entire application process from lodgment to the settlement.
3. Different banks or lenders have different document requirements, and unless you’re very familiar with them all, you could find yourself not getting a preferred home loan – for something as little forgetting to tick the right checkbox.
4. Most of all, you are missing out on a great free professional service, where a home loan broker comes to your place and discusses the most suitable loan for you and helps you with the documentation for the home loan application and guides you through the entire home loan process.
A mortgage broker usually has more home loan options in terms of lenders and loans available. A bank can only offer what is available to them. A mortgage broker can offer loans from all the banks and lenders available.
Therefore, a well-experienced mortgage broker will give you home loan options from various lenders available in the marketplace. A home loan broker is also very familiar with the home loan application process and the various documentation required. It is also in the broker’s best interest to get you a suitable home loan ASAP as brokers get paid their commission from the bank only after the loan has been successfully settled.
Therefore, a mortgage broker can give you choice by comparing hundreds of home loans and will help you through the entire home loan application process from lodgment to settlement so that you can make a better-informed decision based on your financial situation.
Remember that additional fees and costs will generally require 5 – 10% (approx) of the purchase price. These costs may vary due to many factors based on your unique circumstances. These costs generally include:
a. Stamp Duty: the state government tax on mortgage documents and the property price.
b. Conveyancing: the legal transfer of property title from one person to another.
c. Lenders Mortgage Insurance (LMI): Additional cost for you if borrowing more than 80% of the property value. It may get added directly onto your home loan amount.
d. Building Insurance: You should have your policy activated as soon as the contracts are exchanged, including contents if you are an owner occupier.
e. Goods and Services Tax: will be charged with new house and land packages, your real estate agent’s selling commission, conveyancing and solicitor fees, valuation fees, moving costs etc.
Cross-collateralization is a term used when the collateral of one loan is also being used as collateral for another loan. If a person has borrowed from the same bank a home loan secured by the house the person lives in, an investment property loan secured by another investment property, and so on, these assets can be used as cross-collaterals for all the loans. If the person pays off the investment property loan and wants to sell the investment property, the bank may reject the proceeding because the investment property is still being used to secure the home loan and other loans. Essentially, cross-collateralization only expires when the borrower has no outstanding loan with the bank.
Yes, the government is still currently providing this grant for first homeowners. If you are purchasing or building a new home, you may be entitled to this grant. Australian Citizens and permanent residents are eligible and conditions apply. For further information visit www.firsthome.gov.au or simply contact us.
Interest is calculated on your outstanding balance on a daily basis and charged to your home loan account once a month. Because the number of days between months varies, the amount of interest charged each month may also vary. For further information, contact us.
There are many reasons people decide to refinance their current home loans. You may want to refinance your loan if you: