Whether you are an existing home loan borrow or searching for your first home loan it is important to understand that there are over 3000 home loan products available from a multitude of lenders. So realistically, it is not possible to consider every option. Similarly, it is not possible for a mortgage broker to keep abreast of every home loan product in the market.
So you may ask; when consulting a mortgage broker, how do I know if I’m getting the best product? The answer is the Customer Needs review. A mortgage broker must conduct a Customer Needs Review to understand your individual financial situation and objectives. The aim being to gain an understanding of your needs in order to find a product that suits you best.
So if you are a:
The mortgage broker knows that lenders are generally unlikely to allow you to have a Line of Credit or Interest Only Loan, because they want to see that you have the ability and discipline in paying down the home loan first. This means that the mortgage broker will limit the product search to Principal and Interest loans and they should also look at home loans that are designed for the 1st home buyer market. Frequently, these are low cost, basic loans or no frills products.
The mortgage broker will be seeking to understand the amount of equity you may have in your existing property, and of course the purpose for the re-finance. It is important that your objectives are clearly understood as this will impact the type of home loan the mortgage broker will recommend. You may be better off selecting a product that has a range of features that complement your life style and where you are in your life cycle.
Many investment property buyers take out Interest Only Loans or Lines of Credit facilities to maximise the tax deduction and minimise the cashflow impact. A mortgage broker should understand this and have access to a suite of products that are directed at investment property buyers.
SMSF lending is a specialised type of borrowing. Mortgage brokers operating within the SMSF space are required to have specific training, qualifications and licences. If they, don’t have the required qualifications and licences they should not be advising you on these products.
This area of the market is also specialised because many SME use their homes as security for loans to the business. SME loans are generally required to raise working capital. A mortgage broker must understand how to read the financial statements of a company, partnership or trust in order to appreciate the specific needs of and opportunities available to the borrower.
As with SMSF borrowers this is a specialist area of the market. All mortgage brokers must be accredited to do this type of lending. There are a limited number of lenders and products in this market segment.
The WealthMaker team are versed in all features outlined above, so to answer all your home loan questions, simply complete the Contact form above or call us on 02 9233 1111. If you would prefer to set up a meeting, we are Sydney CBD based and close to transport. We're happy to help.
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