What does a Mortgage Broker do?
A Mortgage Broker (also known as a Finance Broker) is essentially the “middle-man” between yourself and the bank. We deal with banks or other lenders on your behalf to to arrange your home loan.
Mortgage Brokers must act in your best interests when suggesting a loan for you.
A good Broker works with you to:
- Understand your needs and goals.
- Work out how much you can afford to borrow.
- Find options to suit your situation.
- Explain how each loan works and what it costs (for example – interest rate, repayments, features, fees and so forth).
- Manage the entire process for you through to settlement.
How soon before buying a home should I start getting my finances in order?
It’s never too early to start getting your finances in order. When it comes to buying a house, as soon as the idea pops into your head, it’s a great idea to touch base with a Finance Broker. That way you can discuss your potential borrowing capacity, which will help establish your maximum budget as well as any deposits required so you can prepare your savings plan.
Pre-approvals are valid for three months so once you have your deposit and are ready to actively start looking at houses, this would be a good time time to lodge the pre-approval application. As your Broker, we will assist you with all of this.
How much money can I borrow?
There are many factors that impacts your borrowing capacity, including income, expenses, liabilities and more. As part of the process of working with us, this is something we discuss with you in depth.
How do I choose a loan that’s right for me?
That’s where we come in. It’s our job to find you the most suitable loan based on your needs and circumstances. There are hundreds of different home loans available, it’s just about finding the right one for you.
How much deposit do I need?
Lenders usually like seeing a 20% deposit for a home loan. This amount signifies the borrower’s financial commitment and responsibility. Without a 20% deposit, borrowers may need to borrow more than 80% of the property’s value, leading to additional costs such as Lenders Mortgage Insurance (LMI). However if you don’t have a 20% deposit, there is no need to worry; We will work with you and discuss your options.
How often do I make home loan repayments — weekly, fortnightly or monthly?
Most lenders offer flexible repayment options to suit your pay cycle. Aim for weekly or fortnightly repayments, instead of monthly, as you will make more payments in a year, which will shave dollars and time off your loan.