What Can a Mortgage Broker Brisbane Help You With?
Australia’s third most populated city, Brisbane is the capital of the state of Queensland and has a population of over 2.5 million. This metropolitan area is a popular tourist destination and serves as a gateway to Queensland’s Gold Coast and Sunshine Coast, which are home to various popular beaches. This green and fast-growing city is known for its subtropical climate, diversity, outdoor lifestyle, vibrant urban precincts, and friendly locals. It’s surrounded by the beautiful Moreton Bay Marine Park to the east and the Scenic Rim Regional to the west. Think this might be a great place to live in? Then contact a mortgage broker Brisbane today and we’d love to show you around!
What Would You Use a Mortgage For?
Mortgages refer to the practice used to obtain a loan on behalf of any collateral and are a big player in the financial market. Mortgaging is a highly in-demand business and more and more people are getting engaged in this business to help people acquire the loans they need.
The amount of mortgage you get will depend on your personal property’s worth as payment for your debt. Banks, financial institutions, and other financial sources can all offer mortgages.
Mortgage loans are used mostly for buying or constructing residential or commercial properties. However, some people also get mortgages for their education, business, marriage, etc.
What Types of Mortgages are Available?
Most of us would find it impossible to buy a house without help from banks or lenders. If you wish to buy a property but don’t have the whole purchase price yet, consider home loans as your best friend.
The problem is, there are a lot of types to consider that borrowers find it very confusing. So in this post, let’s talk about the types of loans a mortgage broker Brisbane can help you with:
Variable Rate Loans
These are popular among several homebuyers. These depend on the constantly-changing cash rates of the Reserve Bank of Australia and the rise and fall of interest rates. This means that you can have low payments in one month and then high payments the next.
You can see this as a gamble. But most borrowers still prefer this type since it lets them repay the loan in a variety of ways. Additionally, if you find a loan that better suits your needs, most lenders won’t charge you an extra fee for switching providers.
Fixed-Rate Loans
These loans lock-in your home loan interest for a certain number of years, usually with a rate higher than the current variable. This also means there’s a fixed amount you have to pay every month. As your mortgage broker Brisbane, we recommend these loans if you’re on a budget since you don’t have to worry about whether you can repay the loan or not.
But, aside from the higher mortgage rate, changing to another loan is pricey as most lenders charge a break-cost fee.
Line-of-Credit Loans
Along with your current mortgage, these loans are your best bet if you’re thinking of a home renovation. Also called “home equity loans,” these allow borrowers to make the most of their loan and use it for other expenses. The amount depends on your property’s equity, and you can use it either in a lump sum or bit by bit.
Just remember that this loan isn’t for impulsive customers. The moment you draw from your line-of-credit, you must make repayments right away to compensate for what you borrowed. Not doing this will lengthen your loan term.
Guarantor Loans
These loans a mortgage broker Brisbane can help you acquire is ideal for first-time buyers who are keen on joining the property market.
Let’s say you wish to borrow more than 80% of the purchase amount but don’t want to pay the mortgage lender insurance. What you can do is ask your parents or close relatives if they can be your guarantor. If they agree, a part of their house will now serve as your collateral.
Interest-Only Loans
A quick escape from traditional home loans, these let you skip the principal amount and let you pay only the interest—for the meantime. This choice is popular among property investors hoping for negative gearing, or people looking to make a profit by reselling the property (as long as it doesn’t depreciate.)
We also recommend this if you’re a young home buyer or have a low income yet are eager to have your own property without a lot in your bank account. This loan a mortgage broker Brisbane can help you get typically lasts for 7 years before going back to the “traditional route.”
Investment Property Loans
These loans have stricter requirements. First, you must show the lender that you have enough funds set aside to take care of the mortgage. Additionally, the lender may also require that the funds you have set aside are higher as compared to if you were applying for a home loan.
Second, the rental income is also a factor since it may be enough to cover mortgage payments and other expenses. Meaning, getting the property didn’t actually lower your debt-to-income ratio (or what percent of your monthly income goes to repaying the mortgage,) which is also a factor in the approval of the loan.
Lastly, lenders can also check the property’s potential for appreciation throughout the loan. This is why it’s crucial to check current vacancy rates and the trends in housing prices. These factors also play a big role once your property is assessed.
Why Do You Need the Services of a Mortgage Broker Brisbane?
For many years, there was lesser competition among financial institutions since borrowers only belonged to their banks. However, a lot has changed since then and borrowers now take time comparing institutions to get the best rates. This is where a mortgage broker comes in. We help people get mortgages from lenders by securing collateral.
Mortgage brokers should have an Australian Credit License (ACL) or be a credit representative of a licensee (aggregator.) This serves as your protection in case a lawsuit takes place.
Mortgage Brokers Negotiate with Financial Institutions
First off, we’re not here to lend you money. But, we’ll serve as a “middleman” between you and several lenders to help get the funding that you need. This means you don’t have to approach different lenders, which saves you time.
As a mortgage broker Brisbane, we know how banks work and we’ll help you find the loan that best suits your needs. We aim to help you find lenders with the most competitive rates based on your situation. We negotiate the best that we can to make sure to get the loan that aligns with your goals and budget.
Mortgage Brokers Ensure Your Credit Score is Protected
When it comes to loan filing, banks and lenders have their own criteria as to what they accept and what they don’t. If you choose to shop for mortgages with several banks and even one gets rejected, your credit rating will inevitably suffer.
Our goal as a mortgage broker Brisbane is to avoid this from happening. We deal with banks only by using your financial information and never your identity. With this, we can find the loan that fits your goal while protecting your credit score at the same time.
Mortgage Brokers Explain How Mortgaging Works
Before getting a mortgage, you should know what the difference is between a fixed and a variable rate. A knowledgeable mortgage broker should be able to give you this information and advice on how you can land the right offer.
This means they can help you understand complicated things more clearly. They should guide you through all the steps too, until you find the product that truly works for you.
You should know the difference between a mortgage advisor and a mortgage broker Brisbane as well.
The former works for a bank and is only concerned about selling loans from that bank, regardless if they fit your needs or not. Meanwhile, the latter works independently and talks with various lenders to get the best deals—in short, we work for you.
Mortgage Brokers Prevent You from Doing Risks
You have very little knowledge in the world of mortgaging and aren’t an expert in the field. So why deal with all the headache? Mortgage brokers explain the products of each financial institution and how these differ from each other. They should help prevent you from doing steps that can cost you a lot.
For example, a common mistake by borrowers is going with products with the lowest rates without understanding the conditions. Our role as a mortgage broker Brisbane is to explain the conditions thoroughly so you won’t end up in an unfortunate situation only because you were misinformed.
Mortgage Brokers Handle Administrative Tasks
Want to skip on hiring a mortgage broker? Then be prepared to take on several administrative tasks!
We’ll guide you on getting the different documents you need to present. This includes a credit pre-authorization, or the document that lets you know if you can get a loan and how much you can borrow.
How Can We Help as Your Mortgage Broker Brisbane?
There are various options available in the market when it comes to lenders and home loans. So as your broker, we can give you several lenders to choose from to ensure that you end up with a home loan that suits your needs. We believe there isn’t a “one size fits all” type of loan and we’ll be here every step of the way to find your perfect loan. We’re here to help whether you’re in the market as an investor, home buyer, or looking to refinance your loan. And while we do all the work for you, we still make sure to inform you through proper communication so you’re never left in the dark.
Brisbane has a wide range of housing styles: from modern, loft-type apartments to the iconic “Queenslander” with its breezy verandahs and high ceilings. While most of the houses here sit on their own block of land, the housing boom that happened in the early 2000s marked the sudden growth of development activity in Brisbane’s CBD. Several apartment buildings were built and continue to do so.
So what are you waiting for? Contact a mortgage broker Brisbane today!