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November 26, 2023
New Year – New Obligations
January 19, 2021
After much industry-wide debate, best interests duty for mortgage brokers - the statutory obligation for me to act in the best interests of consumers and to prioritise consumers’ interest when providing credit assistance - is now law.
And frankly, it’s yet another reason buyers should work with brokers and not directly with banks to secure their home loan.
This new legal duty offers customers peace of mind knowing that their mortgage broker is legally required to act in their best interests. It is important for you to know (and share with your clients) that best interests duty doesn’t apply to banks.
This is just one more reason I encourage you to educate your clients on the benefits of using a broker. After all, there’s a big difference between getting a home loan through a banker versus getting a loan through a broker. Yes, it’s easy to walk into a bank to ask for a loan… but there are at least 6 reasons why it makes more sense to get a broker, like me, on the team.
1. PRIORITY - I am legally bound to put the buyer’s best interests first
2. FOCUS - I work for the buyer, not for the bottom line of a bank
3. CHOICE - I’ll compare plenty of rates, lenders, and terms
4. NO FEES* - I come at no cost to the buyer for my service and expertise
5. READY - I’m available to the buyer all the time; online or in person
6. LOYAL - I’ll be there for the long haul to review their loan and support their future plans
Especially for first home buyers, having a finance expert who is invested in their journey can be crucial to making the home ownership dream come true.
*There may be occasions where you may be charged a fee by your broker
This document provides an overview or summary only and it should not be considered a comprehensive statement on any matter. You should before acting in reliance upon this information seek independent professional lending or taxation advice as appropriate specific to your objectives, financial circumstances or needs.
This document provides an overview or summary only and it should not be considered a comprehensive statement on any matter. You should before acting in reliance upon this information seek independent professional lending or taxation advice as appropriate specific to your objectives, financial circumstances or needs.
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Rock bottom rates = time to refinance
February 26, 2021
It's never been so cheap to borrow…
Low rates aren’t just good news for the influx of first time buyers racing into get their first loan. This is also the right time for existing mortgage holders to capitalise on lender competition and super low interest rates.
Despite interest rates dropping to historic lows, less than ten percent of mortgage holders in Australia have refinanced. That means millions of customers are paying extra interest…for no reason or benefit. That’s the definition of crazy! Especially when you have a broker like me that's here to do the heavy lifting for you.
Do you know your home loan interest rate?
If no, you aren't alone. About half of surveyed home loan holders don’t know their rate! Let's talk and I can help work out the savings available.
Three great reasons to refinance:
Disclaimer: Any refinancing is subject to lender imposed terms and conditions including but not limited to loan serviceability, valuations and confirmed capacity to service both any existing and revised lending arrangements. The information provided on this site is on the understanding that it is for illustrative and discussion purposes only. Whilst all care and attention is taken in its preparation any party seeking to rely on its content or otherwise should make their own enquiries and research to ensure its relevance to your specific personal and business requirements and circumstances.
- Leverage equity. Refinancing a home loan can allow you to free up the equity in your assets to buy another property.
- Redeploy repayments. Lock in lower rates before they rise again, so you can choose to pay more off principal or perhaps take on a second property.
- Better fit. This can be a great chance to consider a different product type, consolidate other debts, shave years off your loan, or access exclusive deals.
Disclaimer: Any refinancing is subject to lender imposed terms and conditions including but not limited to loan serviceability, valuations and confirmed capacity to service both any existing and revised lending arrangements. The information provided on this site is on the understanding that it is for illustrative and discussion purposes only. Whilst all care and attention is taken in its preparation any party seeking to rely on its content or otherwise should make their own enquiries and research to ensure its relevance to your specific personal and business requirements and circumstances.
7 benefits of using a mortgage broker
February 1, 2021
There are many moments you’ll need advice, support, suggestions and experience on your side during the journey to buying a property.
One of the benefits of a broker is that we’re with you every step of the way: from the moment you consider buying, to budgeting, understanding the real estate market, securing a great loan, putting an offer in, negotiating with agents, settling and moving, revising that loan when life changes, accessing specialists like solicitors and valuers, settling in, buying future properties and eventually helping your children do the same.
Here are seven non-financial ways I can help you:
- Suburb stats. You know where you’d like to buy, roughly. Tell me the areas you’re considering, and I will research market trends, prices, demand and opportunities. I have access to brilliant resources that inform smart decisions. What’s going on with capital growth there? Are investment yields attractive? How tight is supply, and how strategic will we need to be when making an offer? This information helps you buy intelligently.
- Cash coach. You might not yet have reached your goals for the deposit, or you might need to prove to lenders that you’re disciplined with your dollars. I’ll create a plan for you… a realistic one… and help coach you through so that when the banks see your bottom-line they’re simply blown away by your financial skill and are happy to lend you the full amount you’re seeking.
- Mental move. The moment you decide you’d like to buy, I’m your resource to discuss, debate, and determine the best course of action. Sometimes, the process from the initial idea to actually moving is a matter of months and sometimes it’s longer. I’m there for you from the dream to the day you park in the driveway.
- Lifelong relationship. After moving in, interest rates might fall… I’ll be there to adjust your loan when needed. Maybe a year later, you start a family, this will change your financial situation… I’ll be there to review your loan accordingly. Two years later, you might want to buy an investment property… I’ll be there to handle your mortgage needs. And many years later, your first born might aspire to buy… I’ll be there to help them learn to budget and get their foot on the property ladder. Now, you won’t get that with a bank!
- Agent advice. Buyers beware of the trickery you can experience when making offers and negotiating with sellers and agents. Lucky for you, I’ve been there and done that with thousands of clients. I can read the tea leaves, so to speak, and can help you secure the home of your dreams without overpaying during negotiation or auction, avoiding the typical traps along the way.
- Inspection intel. When you view the property, I’ll help you do your own due diligence before you send in a building inspector. You can save hundreds by eliminating a property during that first impression. Simple tips like testing the plumbing in the shower for heat and pressure, checking light switches, windows and doors, and walking the block to experience the neighbourhood… how’s the traffic, how well-kept are the homes, are amenities convenient to access, is there street parking?
- Savvy specialists. I’ve worked with solicitors, valuers, building inspectors and all of the other professionals that are required when making a purchase of property. If you need someone trustworthy and skilled for one of the steps in the process, I’m always happy to recommend or review your choices.
Get your home buying resolution on a roll
February 1, 2021
So, you’ve made the commitment: 2021 is a property-buying year!
Unsurprisingly, that’s a common goal for the new year I’m hearing from clients. After all, when will rates be this low again? And with changes to lending due to occur in March, the home loan opportunities for buyers are ripe and ready for the picking. Plus, the 60 lenders I negotiate with are eager to please and ready to compete for your home loan.
After making a mental commitment to buying a home, inevitably, the first thing prospective home buyers do is start window shopping online or with their local real estate agencies. And this is what you’ll probably do: you’ll look at the homes available, consider the prices, sort through the spectrum of off-the-plan to delightfully old, superbly renovated or requiring some TLC. Then you'll start to factor in what you’d be happy to go for (is a pool a necessity? Maybe not) and what is non-negotiable (a walk-in wardrobe and a dishwasher, please), and you start mentally preparing for the big buy.
Disclaimer: This document provides an overview or summary only and it should not be considered a comprehensive statement on any matter. You should before acting in reliance upon this information seek independent professional lending or taxation advice as appropriate specific to your objectives, financial circumstances or needs.
Hold up! You’ve missed a step.
There’s a critical phase to house-hunting online and in the real world that puts you in a position of power. It’s called pre-approval and it’s free, lasts at least three months and gives you a clear guide on property prices in your buying range. Not having it can cause all sorts of headaches, like discovering you can’t borrow the amount you need for the property you love.What, precisely, is pre-approval?
Put simply, it means a lender has indicated that they would be prepared to lend you a certain amount of money with which to buy property. It means you can accurately fix the settings on your property search portal to the maximum amount you’re likely to be lent. And if you did find a property you like, you’d be in a position to make an offer. You’ll also be more attractive to sellers because you’re “good to go” and you won’t make the mistake of falling in love with a $900,000 stunner when you’re likely to be lent $700,000.Seven steps to getting pre-approval
- Book in to see me so we can get the property party started
- I’ll review your fiscal footprint (credit history and financial situation)
- I’ll work out your capacity regarding repayments (how much you comfortably can afford to repay)
- We’ll cross reference your needs with 60 banks and lenders and their various loan types
- We’ll settle on a lender who is a good match for your plans and position
- You’ll leave with a number to start home-hunting intelligently…
- And that number is valid for up to half the year!
Disclaimer: This document provides an overview or summary only and it should not be considered a comprehensive statement on any matter. You should before acting in reliance upon this information seek independent professional lending or taxation advice as appropriate specific to your objectives, financial circumstances or needs.
Buying your first property in 2021?
January 18, 2021
With a broker on your side it could take less than 12 months to go from the idea to housewarming. Here’s how it panned out for one Loan Market customer.
This document provides an overview or summary only and it should not be considered a comprehensive statement on any matter. You should before acting in reliance upon this information seek independent professional lending or taxation advice as appropriate specific to your objectives, financial circumstances or needs. *If you proceed with any of these services, I may receive a commission from the service provider. This is not payable by you. In these instances, I'll disclose to you any commissions that I'll earn.
1. THE IDEA:
This time last year Miss J and Mr K decided they wanted to buy a home. So in February, they sat down with Loan Market to see if this was a pipedream or a possibility.2. REVIEW:
We then reviewed their scenarios, and looked at the types of properties they were happy to consider. We let Miss J and Mr K know that home ownership was an achievable goal, and the repayments weren't as scary as they had imagined (woohoo!).3. GOALS:
We then discussed various purchase prices and loan sizes, and set a savings target for Miss J and Mr K to be able to qualify for a loan. Miss J and Mr K were so motivated to achieve their target and we were in touch every month to stay on track.4. NEXT STEPS:
As Miss J and Mr K looked at suburbs and prices, we sent them PriceFinder reports so they could track the market, introduced them to a solicitor, and in July we lodged a pre approval. As their savings continued to grow, we were able to increase their pre approval amount. This got them to their "sweet spot" meaning they were now eligible for a loan that would allow them to buy in the suburb that they really wanted (hooray!).5. POP THE CHAMPAGNE!
It's time to celebrate! As Miss J and Mr K got closer to buying, we had another chat about the purchase process and negotiating tips. Fast forward to September, they had bought their dream home and in November, they popped the champagne and settled in.6. GET CONNECTED:
We arranged their building insurance through Concierge* (your one stop shop from insurance to removal services), and their utility connections through Home Now * (water, electricity, gas, solar...you get the gist). Now they’re busy turning a house into a home. Let’s get your journey to home ownership started, I’m only a phone call, text or Zoom away.This document provides an overview or summary only and it should not be considered a comprehensive statement on any matter. You should before acting in reliance upon this information seek independent professional lending or taxation advice as appropriate specific to your objectives, financial circumstances or needs. *If you proceed with any of these services, I may receive a commission from the service provider. This is not payable by you. In these instances, I'll disclose to you any commissions that I'll earn.
Get the down-low
November 30, 2020
In 2020, COVID-19 certainly changed a lot about the world we live in and we saw the property market slow down throughout lockdown. However, we have come out the other side and prices are healthier than ever and first time buyers are unconcerned by the economic confusion the pandemic has caused. The sheer volume of first timers (120,000 have had loan approvals in the last year)** entering the market to buy or build is extraordinary. But, because buying is a new experience for these buyers, there are understandably lots of questions and some general myths (often brought on by anecdotes passed from person to person) that I’m debunking on the daily.
Here are some of the questions I’m coming across lately, answered for the good of next year’s buyers.
This document provides an overview or summary only and it should not be considered a comprehensive statement on any matter. You should before acting in reliance upon this information seek independent professional lending or taxation advice as appropriate specific to your objectives, financial circumstances or needs. Information included has been sourced from third parties and has not been independently verified. **First-timers pile in as house prices start to rise, John Collett, 17 November 2020, The Sydney Morning Herald - Online^First-timers pile in as house prices on rise John Collett, 18 November 2020, The Sydney Morning Herald.***MIL-OSI Australia: Queensland jumps the queue on Home Builder applications, 31 July 2020 ForeignAffairs.co.nz
- How will you decide which loan is best suited to my circumstances?Home loans are not created equal, but neither are the priorities of all borrowers. A proportion of property buyers prefer a flexible home loan, while others want a product that ensures their long-term peace of mind and some just really want to pay off their loan as quickly as possible. Once we discuss your circumstances, we look at over 60 banks and lenders to size them up and see which product best suits your scenario.
- Can you help me understand my borrowing capacity?Your income, your financial commitments (think car, credit card, personal loans…), whether you’re buying with a partner, have children and how long you’re happy to make repayments for all affect borrowing capacity. The first step I recommend is a mortgage calculator - It’s important to note that this is a guideline only. What it doesn’t account for is lenders: their rates, their policies, their borrower preferences etc. That’s why, when you’re ready, we’ll do a Fact Find and get a clear picture of how much you can borrow.
- Can you tell me if I'm eligible for any government grants?^Absolutely, I keep my finger on the pulse of all the incentives. You’ll be pleased to know, there are more government incentive schemes than ever before for first home buyers. For instance, in NSW you can access grants up to $35,000, in VIC it’s up to $45,000, and in WA and the NT you’re looking at closer to $55,000 in assistance. Queensland offers a $15,000 first home owners grant with additional kickers for regional property.***There’s a grant of $25,000 for people building rather than buying (including first timers), and there’s a government guarantee that allows you to contribute a 5 per cent deposit rather than the standard 20 per cent as a first home buyer. Let me tell you what you’re eligible for.
- Is it a good time to buy right now? There are some major factors in your favour, first time buyers. The biggest of which is the cost of borrowing money. In fact, borrowing has literally never been cheaper. The Reserve Bank of Australia cut its official cash interest rate from 0.25 per cent to an ultra low 0.1 per cent. And that’s the third time this year that the central bank has decreased the interest rate! As a result, most of the big banks are offering you a fixed rate under two per cent. Little lenders are offering competitive products too.
- Isn’t there a big new stamp duty exemption? There sure is. But it’s not for everyone. We’ve seen through the 2020-21 state budgets for Victoria and New South Wales that there will be stamp duty concessions available. In VIC, there’s a brand new stamp duty concession of up to 50 per cent for off the plan or 25 per cent for an existing property. Though, it’s important to note there is criteria to meet in order to be eligible for this. NSW is looking at an ambitious plan to make it optional. Other states offer some stamp duty concessions too, and … I can tell you what’s on offer. Just reach out.
This document provides an overview or summary only and it should not be considered a comprehensive statement on any matter. You should before acting in reliance upon this information seek independent professional lending or taxation advice as appropriate specific to your objectives, financial circumstances or needs. Information included has been sourced from third parties and has not been independently verified. **First-timers pile in as house prices start to rise, John Collett, 17 November 2020, The Sydney Morning Herald - Online^First-timers pile in as house prices on rise John Collett, 18 November 2020, The Sydney Morning Herald.***MIL-OSI Australia: Queensland jumps the queue on Home Builder applications, 31 July 2020 ForeignAffairs.co.nz
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