Hiring a mortgage broker is a terrific method to speed up buying a home. Navigating the complex mortgage landscape in Australia can be difficult, with hundreds of home loan products available. This is when a mortgage broker can come in handy.
A broker not only searches the market on your behalf for the best house loan but also manages the paperwork. Finally, the lender pays the best mortgage brokers a commission for each loan they close, and borrowers are not charged for their services. However, making the most of your mortgage broker involves active participation on your part as well.
Here are some of the top questions you should ask your broker to get the most out of their services.
What Amount of Money Should I Borrow?
Make a reasonable loan repayment size depending on your existing living expenditures and income with the advice of your broker. While your present assets are crucial in calculating how much you can borrow, lenders place a higher value on your current income and living expenditures.
What Features Should I Look For In A Loan?
If you pay off your mortgage faster, loan features like an offset account, redraw facility, and the freedom to make larger and more frequent repayments can speed up homeownership and save you thousands in interest. Work with your broker to determine which features are most appropriate for your situation.
What Technique Should I Employ To Increase My Eligibility?
Obtaining a home loan may be difficult even if you have the necessary income. Your broker can assist you in determining a solution to any problem you may be experiencing. The following are examples of common limitations:
Low credit score: If you have a long history of missed payments, late invoices, and debt, your credit score is low. Other loan options, such as a 'Near Prime Loan' or locating a loan guarantor, might be discussed with your broker.
Inadequate income proof: If you don't have two years' worth of tax returns or salary slips, your broker can help you identify the right 'Alternate documentation' home loan provider to finance your home purchase.
Insufficient home loan deposit: If you don't have a 20% deposit, you can get a home loan by purchasing LMI (Lender Mortgage Insurance), normally 1-2 percent of the total property cost.
Even if you buy a house with an LMI, you'll still need a 5% deposit for a home loan. Buying a home without LMI can be accomplished by finding a guarantor, applying for the 'First Home Loan Deposit Scheme,' or leveraging equity from an existing home. Your broker can assist you in determining the best course of action for you.
Keep in mind that there is usually a discrepancy between a loan's quoted rate and its comparable rate. A lender must legally show the loan's comparative rate, the true cost, including all costs. If you decide to move lenders, you should be aware of all aspects of your home loan, including any exit fees. Make sure to ask the top questions before working with a mortgage broker in Sydney.
Wealthy You is an Australian mortgage company serving Sydney for almost a decade. We provide an extensive range of mortgage options to match your financial demands. We make refinancing your home simple as an alternative finance specialist. Contact us if you're looking for a mortgage broker in Sydney.