Are you taking the first step into purchasing your first home but have no idea where to start?
When you think 'mortgage' you think of borrowing money. And where do you typically go to buy money? Your bank. There is nothing wrong with going to your bank, however your bank may not be the right fit for you. After all if you only ask one bank you may only get one answer. This is where a mortgage broker comes in.
To break it down in simple terms, a mortgage broker exists to find the right bank or a direct lender for you and your needs. A Mortgage Broker (or Mortgage Advisor as they're otherwise known) is an independent person between you, the borrower, and the bank or finance company that you're looking to get a mortgage from. They are also FREE to use!
There are several benefits to using a mortgage broker, especially if you're unfamiliar with the process and have lots of questions. You may also be looking for the best option for your unique needs. As a mortgage broker will go to a variety of lenders on your behalf you're fishing in a much bigger pond than if you were to only speak to a single bank or lender about your needs.
HOW MUCH DOES A MORTGAGE BROKER COST?
Mortgage brokers are paid commission from the bank which the borrowing is taken out with once the loan has been agreed, or some time afterwards. This means that it's nearly always free to use a mortgage broker - it certainly is with Stephanie Murray Mortgages!
Getting a mortgage may take several meetings and for some buyers as long as years! Your mortgage broker will help you through the process so it's best to book a chat with them early so you can have your questions answered in plenty of time.
WHAT DOES A MORTGAGE BROKER DO?
At Stephanie Murray Mortgages we sit down and go over your full financial situation, goals and what you are looking to achieve. We then recommend which bank/finance company we best see fit to your unique circumstances. This may depend on credit policies, pricing (interest rates), where your current banking relationship is and a number of other factors.
As we deal with banks all day, every day we know what the current market situation is, therefore, can advise what we believe is best for you. We then send an application to a bank or banks or your behalf. Only one application is completed that can be sent to more than one bank if necessary. This means there is no need to do this twice.
Once we have an approval for you we explain the terms and conditions applicable to you, taking away all the banking jargon. When the time comes to structure your loan we relook at your financial goals and can recommend what may work best for you.
CAN A MORTGAGE BROKER GIVE ADVICE ON MORTGAGE TYPES?
Yes! Because your mortgage broker or mortgage advisor is constantly checking on bank requirements they have up-to-date information on new considerations to factor in. Likewise you mortgage broker would have helped dozens of other people in similar circumstances find the right mortgage for them. This means they can recommend the best plan for you and your unique needs.
An example of this would be if you wanted to pay off an additional $50k above your repayments in the first year. It may be recommend that you keep $50k of your borrowing on a floating rate so there are no penalties to repay this when you wish to.
Another example may be that you are wishing to expand your family, therefore, income may be lower for six months. In this situation, it may be recommended to have a maximum repayment term (say thirty years) to keep your repayments to a minimum at this time.
Stephanie Murray Mortgages has up-to-date knowledge of the current interest environment which means the team know just how far banks are prepared to lower advertised interest rates to gain business. This could mean a lower rate for you and overall savings in the long-term.
Credit policy with banks is ever changing and has been affected by the Reserve Bank restrictions even more so since 1 October 2016. A good mortgage advisor is constantly on top of these changes, therefore, can advise which bank policy may suit your borrowing circumstances.
WHEN CAN I CHAT TO MY MORTGAGE BROKER?
A huge advantage of using a Mortgage Advisor is availability. Talking to the same person every time instead of an 0800 number can be a huge advantage when you are going through a stressful time purchasing a house. Your Stephanie Murray Mortgages broker can meet you at a time and place that suits you even if that's outside of your normal office/work hours.
Stephanie Murray Mortgages also offers seminars such as First Home Buyer evenings, Building Finance and Investment Property evenings. These are an informal get together with panels/guest speakers in all areas of expertise to help you out on your property journey.
CAN I FIND FREE RESOURCES ABOUT BUYING A HOME OR GETTING A MORTGAGE?
Stephanie Murray Mortgages are available at a time and place that suit you for a free no obligation chat. Contact Us Today
This information is general information only and must not be relied upon as legal advice. A disclosure statement is available here.