Mortgage Broker Coffs Harbour

mortgage broker coffs harbourTips to Finding The Best Mortgage Broker Coffs Harbour

A mortgage is one of the biggest expenses most families will endure so it goes without saying that you want to make sure you get the right one that is suitable and compatible with your situation. Mortgage Broker Coffs Harbour prides themselves in taking the time to listen to their client’s needs and making it a priority to find the most suitable mortgage.

Sometimes the most suitable mortgage may not necessarily be the one with the lowest interest rates and fees. These days in the Australian financial sector, mortgages come in many different forms and shapes, and the mortgages available to the people of Coffs Harbour is no different.

Finding the right mortgage for you means finding the right mortgage broker – the right mortgage broker will go beyond finding the average loan to finding the perfect loan.

Most banks and lenders advertise their interest rates and mortgage features on the internet which is usually updated daily. What might be hard to find however and not is clear are any special conditions or terms of that mortgage which may end up costing the customer more in the long run. In addition, the time required on your behalf to compare and wade through multiple offerings from multiple lenders will take a significant time investment.

An expert mortgage broker will have this information already on hand, if not, they will spend their time researching current products on the market.

Take the time to talk to a few different mortgage brokers and meet with them to discuss your needs. You’ll need to inquire about their offerings in terms of interest rates and product features. Also you should feel comfortable with the personality of the broker – if you don’t trust him/her then the process will be very difficult.

Also discuss with the mortgage broker their fee schedule. Most brokers will not charge the client for a standard mortgage because they get paid from the lender, however there are cases where a broker may charge and you want to make sure you’re clear on the fees up front. If you’re looking for a commercial loan, then it is standard to expect to pay a fee because of the amount of work involved.

Another topic to discuss with the broker is their application time. Normally a half decent broker will do all the paper work for you which means that most of the application process and time will rely on them getting the work done. Try and judge their response if they are serious and value the importance of a timely application. Last thing you want it having made a decision and then waiting weeks for the broker to do the application.

Our preferred broker, Mortgage Broker Coffs Harbour, meets all these challenges and exceeds expectations. They have a 100% approval rate because of their experience and knowledge in the mortgage industry.

Types Of Residential Loans

Mortgages Now - Residential LoansResidential loans are by far the most popular types of mortgages on the market. Being so popular, there are many types of residential loans and options within types of residential loans. A mortgage broker will wade through all the types of loans and options and present you with the best mortgage to suit your situation.

Incidentally, if you’re looking for a residential loan, the team at Mortgage Broker Central Coast come highly recommended if you live on the Central Coast NSW and surrounding areas.

Within the many types of loans available on the market today, the following type of loans are the major types of home loans and they usually have various options within these types of loans.

  • Fixed rate loans
  • Variable rate loans
  • Split rate loans
  • Low-Doc loans
  • Interest only loans
  • Line of Credit loans
  • Non conforming loans
Fixed Rate Loans

Fixed rate loans are exactly what the name implies – the interest rate is locked in at a certain rate for an agreed period of time, usually between 1 to 5 years.

The advantage of a fixed rate loan is that you are protected from interest rate rises during your agreed fixed rate period of time. This means your repayments will not go up should their be an increase in interest rates.

On the other hand, the disadvantage is that if rates fall, you will not be able to take advantage of the cheaper interest rates. Additionally there are usually limitations on fixed rate loans regarding extra payments and additional fees for an early loan payout.

Variable Rate Loans

In Australia, the Reserve Bank meets once a month to determine interest rates. Should they decide the official interest goes up or down, a variable rate home loan will also go up or down (at the lenders discretion).

The advantage is that should interest rates be cut, your repayments will be reduced. Conversely, the disadvantage is that your repayments will go up if interest rates rise.

Usually a standard variable rate loan will offer additional features such as the ability to pay off the loan quicker, and because of this the interest rate is usually a little bit higher.

Split Rate Loans

Split rate loans will allow you to split your loan and have a portion of the principal at a fixed interest rate and the remaining at a variable rate.

This type of loan basically allows you to combine both pros and cons of a fixed rate home loan and a variable rate home loan.

Low-Doc Loans

There are many borrowers who are self-employed, own their own business, contract, etc and are unable to produce evidence of regular income such as payslips. Lenders have recognised this market and provide loans requiring limited supporting documentation.

The advantage of these loans allows self-employed borrowers to obtain finance however the lenders will charge a higher interest rate for these types of loans.

Interest Only Loans

With these types of loans, you agree with the lender to pay interest only on the loan for a certain period of time, usually 1- 5 years. At the end of this period the loan reverts to principal and interest payments for the remainder of the term of the loan.

This type of loan is typically suited to investors or property renovators, etc. as the initial repayments are lower to accommodate a period of investment or renovating after which the property could be sold.

Line of Credit Loans

A line of credit loan behaves similarly to a credit card – you must pay a minimum amount each month (usually the interest portion) and you have access to funds up to a pre-arranged limit. This type of loan uses equity in your home to be able give you access to funds.

This type of loan only works well if you have built up equity in your home and you’re fairly disciplined in making sure you generally put more money on the loan than you use. Otherwise you can find yourself never paying off the loan.

Non Conforming Loans

Lenders have recognised that there is a market for borrowers who have a poor credit rating. Non conforming loans are targeted to these borrowers.

It is usually a little more difficult to get an approval for this type of loan as a lender has an increased risk factor. The lender will also want a higher deposit and the loan will have a higher interest rate than normal loans.

 

Choosing A Mortgage Broker

Mortgages Now - Choosing A Mortgage BrokerThere are so many lenders and financial institutions on the market today it can be difficult to know who to choose – using a mortgage broker will take the guesswork out of picking a lender.

A mortgage broker such as Mortgage Broker Central Coast will also help you with the right mortgage for your financial needs and situation. It is important to pick the right mortgage broker to help you through and this article discusses some factors to consider when choosing a mortgage broker.

Mortgage Broker Charges

Mortgage brokers are paid a commission from the lender for getting them the loan. In regards to residential lending, for most mortgage brokers they are happy with the commission payment and do not expect their customer (i.e. you) to pay them any money. However, some mortgage brokers do charge a fee so it is worthwhile asking the mortgage broker upfront what their fee schedule is when shopping around for a mortgage broker. It is recommended to find a broker who does not charge their clients fees.

For commercial lending, most mortgage brokers will charge a fee and this is because commercial lending takes a lot of work and organisation to complete a mortgage application. Ask the broker what their fees are for commercial applications.

Licences

In most places around the world, mortgage brokers need to carry a valid licence. The licence itself may have various names depending on the country but ensure your mortgage broker is properly licensed according to your local regulations.

Experience

Ask the broker you are consider what their experience is. You would want to choose a mortgage broker with a minimum of 5 years financial industry experience.

Even better if the broker has banking experience – this gives you the comfort knowing that the broker knows the banking industry and a general knowledge of banking procedures.

Years In Business

Similarly to experience, check how long the mortgage broker has been in business. It is always comforting to know that a business has been around for a while. But don’t discount the mortgage broker if they’re only new in business and posses other good qualities mentioned in this article.

References & Testimonials

Don’t be shy in asking the mortgage broker for 2-3 references or clients that you can contact that will be happy to discuss their experience with that broker with you. This is important as customer service is a big factor in the overall mortgage application process.

Banks and larger financial institutions are generally quite poor in customer service, but you should expect great service from your mortgage broker. Speaking with some of the broker’s other clients will give you an insight into how they conduct business.

Summary

Similar to other businesses, a mortgage broker will rely on a good reputation and providing great customer service to stay in business. Choose carefully as an incorrect mortgage could end up costing thousands in interest over the lifetime of the loan.

 

Using A Mortgage Broker

Mortgages Now - Using a Mortgage BrokerInvesting in a home is probably one of the most important purchases you’ll ever make. Most buyers spend weeks, even perhaps months searching for an ideal home. But when it comes to financing that purchase, much too often buyers are prepared to consider the first option that comes along or they believe their current bank will be able to provide them with the best home loan option on the market.

Not shopping around for the best mortgage could and will cost thousands of dollars in extra interest over the lifetime of the loan.

A large number of buyers make the assumption that their local bank will approve any mortgage application and give them the best deal since they are current customers and probably have been customers for quite some time. This could also cost thousands in extra interest over the term of the loan.

The reality is that a savvy buyer will pay just as much if not more attention to the details of the financing as to the house their purchasing.

So what are the options out there? How do you find the best deal and a mortgage that will suit your situation without spending the next 3 months doing research?

Let’s look at what happens if you go to your current bank;

  1. You will see the lending officer at your local branch (if they still have a local branch) who will discuss with you the amount you wish to borrow
  2. They will check your financials, make sure that you are able to service the loan repayments and also check your credit rating
  3. Then they will advise you if your application has been approved, and if so you will most likely pay a hefty application fee once the loan is drawn down

Now on the other hand, mortgage brokers don’t work for one particular lender – they typically have a relationship with many lenders. This translates to many options from many lenders.

Since mortgage brokers do not represent any single lender, this works to your advantage.

For example, take a buyer with a really good credit history and a decent deposit who simply wants a mortgage with no bells and whistles and the lowest interest rate. A mortgage broker will know what their partner lenders’ interest rates are and be able to present the best mortgage options in a reasonable timeframe. No work on your part.

Alternatively, if your credit rating is not that great, a mortgage broker will save you hours and hours visiting all of the local banks applying for a mortgage, not forgetting it might pull your credit rating down further with all the credit inquires! Additionally, you wouldn’t know about particular lenders who specialise in lending to people with poor credit ratings.

Another advantage of a mortgage broker is that have a lot of experience with different financial situations. This allows them to offer solutions to problems that you might not have thought of.

Your mortgage broker will do all the work for you, from finding the most suitable mortgage to completing and lodging paperwork. This saves you so much time and your chances of loan approval will be high because the mortgage broker would have already pre-qualified you.