Tag Archives: mortgage broker melbourne

You've heard this a few million times, "If it sounds too good to be true. it's usually is." In the past several years the Mortgage broker released "Magic Mortgages" with "1%" interest rates. These loans were designed for only about 7% of the population, however, some unscrupulous brokers decided to market this to the entire borrowing universe. For that elusive 7%, I can safely say that it's about that many people who truly understand how these loans actually work.

From my own perspective, some of them seem less honest than others, although I have trouble calling any of them particularly fair. The usual suspects you're likely to be familiar with include:

  • No application fee
  • Apply now! For a limited time our variable rate is a low x.xx%
  • Big savings on the Big 4 standard variable rate
  • No fees
  • Low comparison rate
  • Free holidays, plasma or other gimmicks

Let's just take a quick look at a couple of them in detail.

The Option Arm or "Pick-a-Pay" loan works similar to this:

Each month the customer can pick or choose from four different payment options. The first (and most dangerous) is the deferred interest or minimum payment option. This is essentially saying that you may pay only a portion of the interest and defer the remaining, with nothing going to principal. The problem with this loan is the mortgage brokers and customers who fool themselves into thinking this is the best practice. This loan is currently being offered on public access television in the form of poorly produced infomercials. Click here !

Another problem the consumer has is the way these loans are advertised in print, most times without a published APR (annual percentage rate). Not only is this misleading and deceptive practice, it's also against the compliance regulations of the Dept of Banking & Insurance.

The other three options include:

Interest Only, Full Principal & Interest and an accelerated payment designed to lower the term on your mortgage. Interest only, when used correctly can be a decent option for most borrowers. Typically the max period for interest only is 10 years and it is not recommended that you defer principal for that entire period. It is however acceptable to increase occasional cash flow by carefully choosing when not to pay principal.

The last two options:

Full Principal & Interest and accelerated payments is where the "magic" really dissolves. Full P&I payments are based on a fully indexed rate (currently averaging 8%) therefore a far cry from the 1% starting rate. That's right, I said starting rate. This loan will continue to increase in rate since the entire loan is an adjustable rate mortgage. The accelerated payment for most persons is not really an option since you are essentially doubling the Full P&I payment to pay off your loan in half the time.

These loans do, despite all I've pointed out have their rightful place in the lending world. Mortgage brokers Melbourne use these loan to secure second homes and Investment properties. When properly managed these loans can help maximise profits and counter lost rent revenues through vacancies. Even on an owner occupied property, these loans can be very effective, but the underlying theme here is caution.

To conclude:

To "operate" this loan read the entire instruction manual before starting. That way, you fully understand the benefits and any potential downside.

Mortgage brokers Melbourne goal is to help guide you towards the right financial decisions for your family. Get more information and visit this site : mortgagebroker247.com.au

shutterstock_165526292Taking your time to investigate and also determine the right and best mortgage broker for your can spare you lots of money every month. However, it takes quite a lot to find one. To assist you in the search for the very best deals for you, Outlined here is a guide on how you can get the best mortgage deals around.

Step 1: Decide on the kind of mortgage that you want for yourself.

There are quite a lot of things you should decide when trying to get a mortgage for yourself. Firstly, you have to decide on whether you need an interest-only credit or repayment. You should understand that if you picked interest- only, then you will require another plan to settle your debt because your payments will only get to cover the interest cost. To better understand these you need a mortgage broker Melbourne.

On the other hand, repayment mortgage costs more every month, and you also get to settle the original debt through that. Therefore going for a repayment should always be a good idea except you have a better option.

There are also other decisions that you will need to make which includes deciding whether you are choosing a fixed or variable rate mortgage and other minor decisions.

Step 2: have a rough estimate of what you could get

Whatever your decision on choosing either a variable or fixed mortgage, you should begin to look at the rates that you can likely get. This’ll be based on the amount of both your deposit, as well as the property’s worth.

You should note this critical thing that you should “Never go to the bank for a shoddy deal.” This is because your existing bank will present you with only a tiny collection of deals, and not give you so many alternatives. It is also not likely that you will get the best one through this means.

Step 3: Communicate with a mortgage broker

Talking with a mortgage broker is always a good idea. They help you to comb the market and get the best mortgage deal for you. By making use of one, you can quickly cover a huge swing of lenders, and also get additional influence with them to make your acceptance comfortable, and added protection in case things don’t go your way. Looking for a broker to discuss with? visit www.mortgagebroker247.com.au

They can advise you on how to buy mortgages and also about other federal mortgage schemes if you’re eligible. However, you should inform your broker beforehand if that is exactly what you’re looking for.

Also, mortgage brokers are quite resourceful because they have a vast knowledge of the important details about lenders’ criteria. Therefore they will know in case the bank that you have your mind on doesn’t lend on other properties apart from shops. And they'll be able to suggest another lender that can do it.

Most dismiss mortgage broker Melbourne services because they believe it’s a waste of time and energy but in reality they can be excellent services. If you are in two-minds about buying a home and searching for a mortgage you need to talk to a broker. Mortgage brokers are professionals and they can help you in all sorts of way but why should you talk to them? The following are a few factors you may want to consider.

A Mortgage Broker Can Save You Time

The first reason why you should talk to a mortgage broker when buying a home is simply because of the amount of time you can save. Now have you ever tried looking for a mortgage online? It isn’t easy and despite the fact there are a lot of options available, it’s no easy task. You can shop around as much as you like but it takes a lot of time and in the end you can give up. When you go through a broker it essentially saves you time since they are the ones to find the mortgage for you.

You May Not Have To Pay a Fee

Strangely most brokers are paid by the lender or bank in which their clients receive a mortgage which means you don’t have to pay anything. This is actually an amazing idea because you aren’t losing any money. You can use mortgage broker Melbourne services but don’t have to put in a cent which can make you feel better and at ease slightly. There is a big misconception that broker services are going to cost a fortune but in reality mortgage broker fees aren’t paid by you.

Brokers Rely On Their Reputation – They Don’t Play Games

There are a lot of misconceptions surrounding mortgage brokers at the moment but the truth is that most rely on repeat business. They cannot afford to mess around customers because no one will ever them again. Word spreads fast and if they don’t offer the best services then they won’t be in business for very long. A mortgage broker does rely on their reputation and that means they don’t mess you around by playing games; their sole focus is finding the best rates so their clients are fully happy.

Talking You through the Process

Obtaining a mortgage can often be a long drawn-out affair and it can be a very confusing and anxious time. When you look at a mortgage broker Melbourne you know you don’t have to worry.  The broker is there every step of the way and will talk you through what each step involves so that you can be fully aware of what will happen and if you ever need some help, they are there to help.

Speak To a Broker

When you’re buying a home you can easily get a little lost and confused. However this is an important decision and one which shouldn’t be taken lightly. It’s crucial to consider talking to a mortgage broker so that you can get the help and support you need whenever you need it.

Visit http://www.mortgagebroker247.com.au/ for more informations and help.