Mortgage brokers are professionals who help borrowers find and apply for suitable home loans, and according to the Mortgage and Finance Association MFAA of Australia, brokers were responsible for 69.3% of new residential loans taken out in Australia between October and December 2022. They help borrowers assess their needs and find a loan that suits their circumstances by comparing loans from multiple lenders. Brokers may also assist borrowers in structuring their loans to take advantage of tax concessions available or help them secure a discounted interest rate not usually available to borrowers who approach a lender themselves. However, brokers may not always have access to the cheapest loans in the market as they may not have relationships with smaller online lenders, credit unions, or customer-owned banks, which can often offer the most not unsuitable deals. On whether brokers can speed up the loan process, it depends on the bank and loan requirements, they do not always help to expedite the process, but they may be able to resolve any issues or problems that arise, thus helping to avoid rejections or any back and forth with the lender. Borrowers should assess their needs and compare the services and fees of different brokers before choosing one.
Owner Occupied Home Loan
An owner-occupied home is one that the borrower will utilise as their primary place of residence. A borrower may only own one primary residence, which must be the
place they spend the majority of the year living in. They are allowed to own a primary dwelling as well as
a secondary, or vacation, home, but the mortgage terms for the secondary home will be different. Only
a portion of the year is spent by the borrower living in a secondary residence. Other there may be some land tax implications as per this article from the SRO on land tax exemptions for your PPR
Investment Loan
A mortgage for the purchase of an asset that generates income is known as an investment property
loan. This involves purchasing houses with the intention of renting them out or renovating them to sell
for a profit (more commonly known as house flipping). These types of loans can be accepted on an Interest Only repayment basis with lenders.
Family Guarantee Loans
The Family Guarantee is a flexible home financing option that enables first-time homebuyers and
property investors to enter the market sooner even with little to no money. This is accomplished by
using the equity of a family member’s home (such as the parents’) or by using a Term Deposit fund to
secure a portion of the debt. Effectively clients can in essence borrow up to 100% LVR of the purchase property.
Refinancing
Paying off an existing debt and replacing it with a new one is the definition of refinancing a mortgage.
There are a variety of causes for home owners to refinance:
to get a more affordable interest rate
To make their mortgage’s duration shorter
to change an adjustable-rate mortgage (ARM) into a fixed-rate mortgage, or the other way
around.
To borrow money from the equity in your house to pay for a major purchase, consolidate debt,
or handle an urgent financial need
Principal plus interest (P&I) Loans
A principle + interest loan divides the principal (initial amount borrowed) into equal monthly payments,
and the interest (price charged for borrowing) is computed each month on the remaining principal
balance. This implies that as the outstanding debt decreases over time, so does the monthly interest
payment. A principle + interest loan therefore incurs less interest than a loan with blended payments.
Interest Only Loans
In an interest-only mortgage, the borrower (mortgagor) is only obligated to pay interest on the loan for
a predetermined length of time. Either the principle is paid back in full at a certain date, or it is paid back
over time. Interest-only payments may be paid for a certain amount of time, offered as an option, or
continue for the whole term of the loan (mandating you pay it all back at the end). Interest-only loans
are typically set up as a specific kind of adjustable-rate mortgage. While interest-only mortgages initially
result in cheaper payments, they also prevent you from accumulating equity and result in a significant
increase in payments after the interest-only period ends.
Commercial Loans
Commercial finance brokers act as intermediaries who bridge the gap between businesses seeking financing and potential sources of capital. They provide valuable expertise and assistance throughout the financing process, ultimately helping businesses access the funding they need to achieve their objectives. Also catering for the purchase of commercial zoned properties with a commercial commercial property loan