Mortgage Loan Considerations

 
To help us recommend the most appropriate mortgage lender and loan structure for you, we consider the following:
 
First Home Buyers

Subject to certain criteria, some mortgage lenders will lend 90% of the purchase price – a genuine 10% deposit is required.

First Time Property Investors

The equity you have in your home can be used to get you started. This means you can 100% finance an investment property with no cash down. The same principle applies to equity you may have in an existing investment property.

Mortgage Interest Rates

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The mortgage interest rate is important and we negotiate the most competitive rate available.  A difference of 0.5% between mortgage lenders is not unusual - on a $400,000 loan this represents an annual interest saving of $2,000
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Splitting large loans into two or more fixed rates [including floating] is a good hedge against mortgage interest rate rises.
Example : A couple fix their $500,000 loan for 2 years.  When the fixed rate expires, mortgage interest rates are 2% higher, which increases their interest bill by $10,000 pa.  Or they could protect themselves by splitting the loan into 5 x $100,000 loans, fixed for 1,2,3,4 and 5 years

Mortgage Lender’s Fees and Contributions

We negotiate to minimise application fees (if any) and negotiate for mortgage lender contributions towards your legal and/or valuation fees, where possible.

Mortgage Lender’s Criteria

The mainstream banks and non-bank lenders have different mortgage lending criteria and the amount they will lend a certain borrower can sometimes vary by tens or even hundreds of thousands of dollars.

Type of Mortgage Product

There are numerous mortgage products available and some are more expensive than others. We recommend a mortgage product or a mix to suit the repayments you are comfortable with on your home or the cash flow you are looking for on your investment property.

Maximise your Borrowing Potential Today

Adverse changes in a mortgage lender’s criteria or your personal circumstances could mean that you may not qualify for further borrowing. We protect against this by applying for the maximum you can borrow today - it means you have funding available before you need it and mortgage interest is only payable when you use it.

Property Risk Management and Insurance

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Planning for Emergencies – Many home owners or property investors don’t plan for unforeseen circumstances, such as mortgage interest rate rises, a period of unemployment, large repair bills etc. Some homeowners or property investors confronted with these circumstances panic and sell their home or investment property under duress, potentially losing thousands. We recommend you include an “emergency fund” with your home or property investment loan so you can pay for unexpected expenses should they arise.
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Income Protection & Redundancy Insurance – An accident, illness or redundancy could affect your ability to work and earn income. We recommend you insure your income so that you can maintain your current lifestyle and commitments and make your home loan repayments. For a property investor it also means you continue to receive tax refunds generated by your investment property.
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Life Insurance – The premature death of an income earner could leave dependants with a large financial burden and a diminished standard of living. We recommend you have adequate life cover to repay all personal debt - including your home loan, maintain the lifestyle of any dependants (schooling, etc.), and repay debt on your investment property so all or some of the rents are freehold.

Click here to learn more about our Mortgage Finance Service, our Mortgage Loan Application Process or to book a Mortgage Finance Meeting.
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