Tag Archives | mortgage

Good Broker = Great Mortgage

Good Broker = Great Mortgage Your mortgage broker can often get you a better mortgage. A quality mortgage broker can often obtain a better mortgage deal, ultimately giving you all the features and benefits that suit your lifestyle, as well as saving you thousands in interest over the long-term.

But be warned, not all mortgage brokers are created equally. Experience, quality products and advice together with a reputation for professionalism are key factors when selecting your broker.

When selecting a mortgage broker here are five essential questions to ask:

  1. How long have they been in the mortgage industry?
  2. What accreditations do they have?
  3. How long have they been with their current company? This can be an indication of how long they will stay around. Brokers that switch regularly often aren’t as good as they claim to be.
  4. How many lenders do they have access to? A broad range of lenders gives you greater flexibility and varied product choice.
  5. Which is their preferred product, and why?

Your mortgage broker should be asking about your needs and requirements before suggesting products and services. Each borrower’s needs are different. Therefore it makes sense that the broker should understand your position before making recommendations.

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Refinancing Myths and the Simple Truth

Uncertainty in the economy has home buyers wary of the conflicting types of information available to them. Apparently we are operating in a two-tiered economy: a booming economy in the mining sector and the flat economy that most of us live in.

This has left many mortgage holders wondering whether they should refinance, lock-in a fixed rate or simply stand still and watch what unfolds.

Uncertainty and confusion exists among mortgage holders. No one really knows what way rates are headed and the proposition of refinancing your mortgage could have as many pitfalls as benefits.

These are some of the refinancing myths:

Myth 1: Low Rate Is The Be All and End All

Borrowers often forget that many of the low rate loans lack other money saving features such as mortgage off-set facilities. Borrowers should also check as to whether the low rate is for the life of the loan or just an introductory period.

Myth 2: Change Lenders For A Better Deal

A common misconception is that you need to change lenders to obtain a better deal. This is a falsehood as your current lender generally will negotiate in order to maintain your business.

Myth 3: Debt Consolidation Is A Good Idea

Many people believe that by consolidating their debts when refinancing that they will be better off in the long run. This is untrue. Often a credit card or personal loan refinanced along with a mortgage will mean that the debt will be paid out over 20 – 30 years rather than 3-5 years. What is often forgotten is, so too will the interest!

If you are considering refinancing, ensure you research what loan and what features are best for you and that you shop around for all your options. Talking to a good finance broker is the easiest way to do this.

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Buff Out Your Borrowing Power

Whether you are looking for an investment property, buying your first home or wanting to upgrade the family home it is important to ensure that, when it comes to purchase time, you can actually borrow the funding you require.

There are several ways that a prospective borrower can boost their borrowing power, enabling them to borrow more or at a better deal.

Tips include:

  • Credit Cards – Sort out your credit cards, pay them out and get rid of them. Lenders take into consideration the number of cards you have and the credit limits on them (even if you have a zero balance). To boost your borrowing capacity you are best off without them.
  • Protect Your Credit File – Every time you make apply for finance it is recorded on your credit file. Some lenders will decline a loan if a borrower has made application too often in the previous 12 months.
  • Collect The Rent – If you own an investment property make sure you are obtaining maximum rent. Under charging tenants lowers your cash-flow.
  • Keep Your Job and Your Residence – Lenders like to see stability. Remain in your existing employment for at least 6-12 months and maintain your current address for a period of time. Lenders don’t like people that switch their lifestyle frequently.

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