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If you’re looking for a home loan but are inexperienced with finance brokers, attending your first appointment with a broker can be a nervous experience. Getting a home loan, after all, can be quite complex for a first-timer. There are lots of brokers around and there is a lot to learn. But there are many steps you can take to be confident that your appointment will be a success.
A good starting point is to familiarise yourself with the expectations of the first appointment between brokers and yourself. Your brokeris very likely to ask you about your medium and long-term financial goals, the amount you want to borrow, comparisons of your home loan options and your understanding of the fees, costs and conditions attached to home loans. Knowing the direction the appointment will likely take lets you participate more actively in the conversation. This means you can better articulate your needs to your broker.
It’s also recommended that you give some consideration before the meeting to the types of questions you wish to ask your broker.Questions that can be of use include such things as loan types (such as term,repayment options and interest rate types), the types of ongoing fees attached to various loans (such as early exit, late payment, break and redraw fees) andthe typical timeframe for a loan settlement.
These questions might pop into your head spontaneously during the meeting but preparing them in advance is a good way to refine them.By doing so, you are in a position to get more specific information from your broker.
It is common practice, too, for your broker to conduct a needs assessment prior to your face-to-face appointment – so you may be asked some pre-appointment questions. To assist in answering these, you’ll need to supply information about your employment history, assets and expenses.
At the appointment it will save you time and effort to prepare and then bring the required documentation with you. This can include ID, transaction histories, tax returns, rental income statements and borrowing documents such as “contract of sale” and proof that you have the deposit for a property. It’s mandatory for brokers to maintain the confidentiality of information that you provide to them and only pass on information necessary to enable them to lodge your loan application or where required by law.
The other preparation you can make to maximise the success of your appointment is to research your broker. Many brokers provide content on their web pages and social media. This can give you a good indication of their knowledge and expertise and highlight topics to discuss with them. You can also determine if they specialise in any types of loans that match your needs, where they are located and their panel of lenders. Finally, you should investigate their qualifications. Although brokers are only required to obtain Certificate 4 qualifications, it could be argued that the better brokers hold Diploma qualifications. Finding a diploma-qualified broker will help ensure you receive the best credit advice.
Brokers can also be accredited, with accredited brokers held to higher standards. By verifying they are accredited, you can approach the meeting knowing your broker is appropriately educated, adheres to a strict and professional code of practice and is authorised to access a large range of products offered by a variety of lenders.
Published by MFAA
How to pay off your home loan faster and save big bucks
Reducing the life of your loan isn’t difficult; there are many simple things you can do to cut years off your mortgage. Here are some tips that will help you be mortgage-free sooner than planned.
Small extra repayments
One of the most obvious ways to pay off your home loan quicker is to make extra repayments. Depositing lump sums, such as a tax return or work bonus, will always be beneficial, however it doesn’t always take large amounts or windfalls to make a substantial difference – planning for regular, small cash injections can have a great impact over the life of a loan.
“Let’s say we give an extra $50 a fortnight on a $500,000 loan, that saves you $32,000 of interest over the life of the loan which in turn will save you just over two years,” explains the finance broker. “That’s only $25 a week.”
Switch your payment intervals
If you find that you don’t have the discipline to make extra repayments, then simply switching your payment structure can also help save years off your mortgage, as well as simplifying your finances if you are paid fortnightly.
“Because there are 12 months in a year but 13 four-week cycles, by switching your payment intervals from monthly to fortnightly, you are essentially paying off an extra month per year,” says the finance broker.
Make sure you have the right type of loan
Ensuring your loan allows extra repayments without penalty will let you to make the most of bonuses or funnel small extra payments to reduce the loan principle more quickly, saving on interest immediately, while an offset account will use your savings or living expenses to reduce your principle, while still allowing you to access these funds from a transaction account.
“I’ve set the mortgage on my investment as interest-only but I make the principle and interest payment equivalent by putting surplus rental income into an offset account,” says the finance broker. “Because interest is calculated daily but charged monthly, any money sitting in the account will help reduce the loan.”
Although you may have to pay extra fees for the offset or redraw account, these may well be lower amounts than the interest saved. Talking to a finance broker is the easiest way to work out whether this option is financially sound.
Paying off your home loan faster isn’t difficult, however it does require financial discipline and expertise in ensuring the right loan features are in place. Find an MFAA Accredited Broker who can match you to your perfect loan.
When people think of buying an investment property, many only think locally. Investing in a property interstate could possibly be a smarter idea, potentially resulting in a better return on your investment. It may also be a potential way to snaffle a bargain. You could be buying into an area with greater potential capital growth compared to your home state, as each state reaches different stages of the property cycle at different points.
2015 figures from LJ Hooker’s Investor/Tenant Survey indicated only 14 percent of Australian investors surveyed own an interstate investment property.
Some of the key issues to keep in mind include:
The logistics of property management
Some may find it hard to manage their investment property from another state. It can be costly maintaining a property and finding tenants if you regularly need to travel between states. Although employing a property management service may be of help here.
Property managers undertake several jobs that can be difficult for an interstate investor to do. They can screen your tenants; source the best local tradespeople for repairs; and, by inspecting the property on your behalf, can save you the expense of flights for site visits.
While you may be recommended a property manager by your real estate agent, it’s a good idea to shop around, given there’s usually some variation in the nature and quality of the service that managers provide.
Some, for example, might provide an annual market rent review but others might go to the next level and give you feedback on how you can optimise the rental income on your interstate investment. Not all property managers will be as effective at managing the property or screening tenants, while others could be better qualified, so the fee they charge for their services could vary.
Get a pre-approval
Pre-approval is important because it informs you about barriers you can encounter when you seek to arrange finance for an interstate investment. Certain lenders can be restrictive in the terms and conditions they attach to loan approvals in different parts of the country. The location of the property could impact the amount you can borrow from a lender – and it’s important to remember different states have different fees and taxes. Getting a pre-approval can give you the confidence you need to make a sound investment decision.
Visiting the property
Visiting the property and seeing it is more telling than simply viewing pictures. But the travel and cost associated with investing in interstate property obviously imposes limits on the time you can spend seeing the property.
A buyer’s agent is one potential fix, but it’s costly, and you could wind up paying a buyer’s agent just for them to tell you that a property is potentially a poor investment. Likewise, it’s expensive to make the discovery yourself after you shell out for flights and associated travel expenses, so it pays to research the property and area as diligently as possible prior to undertaking closer physical checks. The internet is a great source of valuable information, including property guides and market updates.
As with any property, local or interstate, there are pros and cons and you need to conduct your due diligence to ensure you make a good decision.
To decide if interstate property is a suitable investment for you, it’s worthwhile consulting with an MFAA accredited finance broker about the considerations to be mindful of before applying for finance.
When you’re confident you’ve identified a suitable interstate investment property, a broker will be on hand to support you to get an appropriate loan for your needs.
Lenders are currently taking up to 21 days to pick up a home loan application for assessment. Fourteen days has always been sufficient time for finance, however at the moment this is proving difficult and many customers are feeling extremely frustrated with the delays.
Why is this happening?
Lenders documentation requirements appear to be changing every day, thanks to highlighted issues coming off the back of the Royal Commission, the Combined Industry Forum and the like. Finance Brokers are having to constantly be aware of the lenders ever-changing requirements to ensure that they are gathering the correct documentation and information, and in turn matching you with the most suitable lender and product. The process of packaging up the proposal can take over a week – before it even gets into the lenders systems.
Brokers have never been more important in the application process – but we need more time to efficiently package your application to ensure you receive the fastest approval possible. If you are looking at purchasing in the next three months, let’s get a head start with a pre approval or if you are signing a contract for a new home, take the stress out of the process and allow 21 days on your finance clause. Contact me today on (07) 4779 0555 for further information.
Your finances can get a bit out of control sometimes, for all sorts of reasons. Illness, divorce, redundancy – sometimes, just getting overwhelmed with things to do and accidentally missing a bill payment. The end result can be that you get put in the bad credit basket. Even if you sort it out and pay the overdue bills or fix up a default on a loan repayment, you can still have a black mark against your name afterwards. So while you may see yourself in the clear after clearing debt, others might not. Understandably, if you’re in that situation it can feel pretty overwhelming. So let’s tackle the ‘bad credit’ issue and help figure out where you stand.
What is bad credit?
‘Bad credit’ is when you’ve ended up with a history of not keeping up with some payments and the result is that you’re not easily able to get approval for any new loans or credit. The reason many lenders will now steer away from you is because they see you as a high risk. The bottom line is that they’re concerned about your ability to make the regular repayments on their loan if you’ve missed regular payments on other loans in the past.
How do you end up with a bad credit record?
There are a fair few things that can leave you with a ‘bad credit’ record. For example:
• Having unpaid bills or loan payments
• Going over your credit card limit
• Having been declared bankrupt in the past
• A divorce leaving you in debt
• Registered credit defaults against your name
• A part 9 or 10 Debt Agreement
• Having time off work with no pay because you were ill
• Your credit file having ‘too many’ credit checks run on it by potential lenders.
How can you know if you have a bad credit record?
Most times you wouldn’t really know. It’s not until you apply for a loan that you find out. Then you suddenly find you’ve been labeled ‘non-conforming’ by the lender you had an application with, because you don’t fit their lending rules. It doesn’t matter if the credit issues were large, small, or even accidental, in the lender’s eyes, the fact that you missed payments has made you a candidate that is now too high-risk.
What can you do?
The good news is that there are more lenders than the major banks out there. And some non-bank lenders are pretty human about it all. They understand that circumstances beyond your control can sometimes lead to a missed payment, default or even bankruptcy. They will talk with you one-on-one to learn more about what went on and then look at how they might be able to work towards a solution for you.
So if you’ve had a home loan application turned down because you’ve had credit defaults, it doesn’t mean it’s definitely over. It also doesn’t mean you have to wait to be in the clear before you can apply again. You have options.
There are good non-bank lenders like Pepper Money who may be able to help you. More often than not, they will have some specialist loan features outside a basic or standard variable home loan. Along with taking a more holistic approach, they will usually look at your individual circumstances before making a decision.
If you’d like more information on how to get a home loan if you’ve had bad credit talk to us today. We may be able to put you in touch with a lender that can help if the major banks have said ‘no’ to your home loan application.
Call us on 07 47790555.
Disclaimer: Original content source: Pepper Money. It is designed for publication through Accredited Brokers, to provide you with factual information only, and it is not intended to imply any recommendation about any financial product(s) or to constitute tax advice. If you need financial or tax advice you should consult a licensed financial or tax adviser. The information in the article is believed to be reliable at the time of distribution, but neither Pepper nor its accredited brokers warrant its completeness or accuracy. For information about whether a non-bank loan may be suitable for you, call us on 07 47790555.
ABOUT THE FOUNDRY INVESTMENT APARTMENTS
Habitat Development Group is excited to introduce The Foundry, a boutique development consisting of 88 large 1, 2 and 3 bedroom apartments.
Located on the corner of Deshon Street and Holden Street, Woolloongabba, The Foundry has been designed to complement both the industrial spirit of Woolloongabba’s rich history as well as the subtropical climate of South East Queensland.
Designed by award winning Architecture firm, The OGE Group, emphasis has been focused on space, style and quality. This coupled with Habitat Development Group’s track record for being able to deliver larger apartments at lower prices means that buyers can rest assured that they are getting the best value for their money.
8 Deshon Street, Woolloongabba QLD 4102
PARK RIDGE, LOGAN
Type of Property | Villas/ Townhouse
Property Mix | 3 Bed, 2 Bath, 1 Car Garaged
Price Range | $332,500
Rental Estimate | $330 – $350 (approx)
Expected Completion | Varied on Stages
ABOUT WATTLEBRUSH VILLAS
The Wattlebrush Villas Development site is conveniently located next to an entrance to the Mount Lindsay Highway, allowing an easy connection through to Brisbane and the Gold Coast via the M3 and the M1.
The Park Ridge Town Centre retail precinct, which houses a Coles and Woolworths as well as a number of specialty retail, food and health stores and services is located just over 1km from Wattlebrush Villas. More shopping can be conveniently found within a short 7 minute drive to the Grand Plaza Shopping Centre at Brown Plains. Educational facilities are readily available with Park Ridge State High School and Park Ridge Primary both close by.
All homes are finished to an extremely high standard and contain everything you would expect in such a perfect location
Close to amenities
8-12 Wattlebrush Court, Park Ridge QLD 4125
Contact Jemmy about Wattlebrush Villas
VISTA ON BRAYS
GRIFFIN, MORETON BAY REGION
Type of Property | Townhouses
Property Mix | 3 Bed 2 Bathroom 1 Car
Price Range | $377,500 – $379,500
Expected Completion | Available
ABOUT BRENTWOOD FOREST INVESTMENT PROPERTY
The Moreton Bay Region is located just north of Queensland’s capital city, Brisbane, and immediately south of the Sunshine Coast. In the west the region shares common borders with Somerset Region. The Region’s proximity to Brisbane and major transport infrastructure makes it easily accessible, a benefit that has attracted numerous new residents and business
The mix of semi-detached townhouses of stages one and two is set on approx 1.63261 hectares. The estate will encompass a lower accommodation density, wider internal roads and picturesque landscaping.
- 1 State Primary School
- 1 Local Community Centre
- 9 Local Parks
- 4 Neighbourhood Parks
- 1 Local Sports Facility
- 1 Bushland Recreation Park
- Railway Station
- Public Transport Corridor
- Destination Library
PLEASE NOTE: NO SMSF SALES IN THIS DEVELOPMENT
179-181 Bray’s Road, Griffin QLD 4503
REDBANK PLAINS, BRISBANE
Type of Property | Townhouses
Property Mix | 3 Bed, 2 Bath, 1 Car
Price Range | $327,500 – $334,500
Rental Estimate | $310 – $340 (approx) per week
Expected Completion | Stage 3 Available
ABOUT CEDAR HEIGHTS INVESTMENT PROPERTIES
In a peaceful part of Queensland’fastest-growingng region, this brand new development combines convenience, recreation and serenity.
Cedar Heights is comprised of a mixture of 97 stylish residential townhouses and homes for spacious family living, which draw together modern facilities, idyllic natural surrounds and unfettered access to major city centres.
Your peaceful urban lifestyle lends time to both bustling city hubs and humble local streets. Spend the morning perusing Brisbane’s Gallery of Modern Art and exploring its alleyways of street art and cafes, and pass the afternoon relaxing under a Queensland sunset in your own backyard.
The work-home balance now tilts in your favour with a short 20-minute commute to Ipswich’s business centre. Arrive to work without the frustrations of traffic and reach family time before dark.
And as for the kids, welcome them to a world of clean air, parklands and neighbourhood friendships. As well as backing onto the local recreation grounds, Cedar Heights is a community built on safety and connection – and the odd game of street cricket.
From its stylish design and facilities, to its scenery and location, Cedar Heights in Redbank Plains is the community you’ve been looking for.
Cnr Cedar & Willow Road, Redbank Plains, QLD 4301
Type of Property | H&L Packages
Property Mix | 4 Bed Homes
Price Range | $480,628 – $486,575
Rental Estimate | $550 – $590 (approx) per week
Expected Completion | Available
ABOUT LAKEVIEW INVESTMENT PROPERTY
Lakeview combines the perfect balance of urban living with city convenience being 5 minutes from the Morayfield Shopping Centre, close to schools, a community centre and just a stroll away from Petersen Road sportgrounds, the home of the Caboolture Sports Club.
Lakeview is boarded on the western side by the Kevin Kaeser Oval Lake, two spring fed waterbodies that provide a freshwaster habitat to numerous bird species, platypus and other native fauna as well as a unique bird watching hide for residents. With the lakes surrounding parklands that include walking tracks and picnic areas Lakeview has a distinct back to nature feel yet provides all the necessary city facilities right on your doorstep.
Just 40 Kilometres from Brisbane, Morayfield continues to grow into a thriving, affordable residential community.
170 Oakley Flat Road, Morayfield QLD 4506