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Why use a mortgage broker to refinance

Refinancing could potentially save you on interest, so it’s worth regularly reviewing your mortgage. Here’s why it’s a good idea to use a mortgage broker to refinance, rather than going direct to a lender.

Expertise you can trust

The mortgage industry has gone through a great deal of change over the years. With so many lenders and varying policies, it is complex and can be overwhelming, which is why you need a professional on your side.
A mortgage broker is a trained finance specialist. We understand the system and know which products work best for our clients. What’s more, mortgage brokers are up-to-date with all the latest industry developments.

By using a mortgage broker to refinance, you gain access to a wealth of information – and it doesn’t cost you a thing (the lenders pay us a commission). Mortgage brokers are governed to always act in the best interests of their clients when providing credit assistance – ensuring you have the right loan for your specific needs.

Tailored finance solutions

There’s no one-size-fits-all mortgage. Everyone’s financial situation and goals are different, which is why you need tailored finance solutions.

A mortgage broker will go through your unique financial requirements and find you a loan that’s appropriate for your specific needs. If we believe you could benefit from loan features such as an offset account or redraw facility, we’ll explain why. However, we won’t push extras you may not actually need.

A panel of lenders

If you go to a lender, you only get access to the products that bank or lender offers. We have access to a full panel, so we can help you pick the right home loan for you. What’s more, we do all the legwork, which saves you time going from branch to branch.

What about commissions? The commissions we receive are pretty similar across lenders. This ensures there’s no incentive for a broker to recommend one lender over another. Our job is to act with our clients’ best interests at heart.

A stress-free experience

Mortgage brokers take the burden out of refinancing. We’ll run through your financial situation and requirements, then explain your options.

If we do find you a more appropriate home loan, we’ll liaise with the lender and facilitate the refinancing process. From overseeing the documentation requirements to providing ongoing support, we’ll be there throughout the entire journey.

A holistic approach to your finances

Banks are generally focused on the here and now. Their primary goal is to secure your business and lock you in.

Mortgage brokers, on the other hand, take a holistic approach to your finances. We’ll take into account your current financial situation and future financial aspirations, then line you up with the right finance to support those goals.

Common reasons to refinance

To secure a more competitive interest rate

To make the most of interest-saving features like offset accounts or redraw facilities

To access equity for renovations, additional properties or other financial goals

To consolidate debt

If you haven’t reassessed your mortgage in the last two years, now is the time. There are competitive rates around. We can liaise with your bank to see whether you are getting the best deal, and compare the market to explore other options. We’ll also crunch the numbers and explain whether the benefit of refinancing outweighs any costs involved. Get in touch today.

Tips for first-time auction bidders

Buying property at auction can be both exciting and nerve-wracking. But careful planning can make the process a whole lot easier. Here are our top tips for nailing the bidding experience and maximising your chances of success on the day.

Attend plenty of auctions before you bid

Before your bidding debut, it’s important to observe several auctions to understand how they work. Get a feel for the language used and the process involved.

In general, here’s what you might expect:

The auctioneer will run through any relevant state or territory laws and auction rules. In some states, you may need to register to bid.

The auctioneer will request an opening bid and nominate an amount by which bids must increase (for example, in $5,000 increments). Smaller bids may also be accepted, but it’s up to the auctioneer.

The reserve price is the minimum amount the vendor will accept as a winning bid. Once the bidding reaches this amount, the property is said to be ‘on the market’ and will be sold to the highest bidder. The auctioneer will say “going once, twice, three times… sold” on the final bid.

The auctioneer may make vendor bids on the seller’s behalf to progress the auction. These are legal, but the auctioneer must disclose vendor bids. Rules vary depending on the state or territory.

If the bidding isn’t progressing, the auctioneer may go inside to seek instructions from the vendor about whether they are willing to sell to the highest bidder.

If the reserve price is not met and the property is ‘passed in’, the highest bidder will have the first opportunity to negotiate with the seller.

A deposit is required on auction day (usually 10 per cent of the purchase price), with the balance due on settlement. Contracts are signed immediately after the auction, then it’s time to celebrate.

Make sure your finance is in order

As the auction heats up, it can be easy to get caught up in the excitement and bid more than you intended. For this reason, it’s extremely important to have your finance pre-approved before you don your auction hat.

Home loan pre-approval is a written indication from a bank of the amount they are willing to lend to you. Pre-approval gives you a clear understanding of your spending limit and greater confidence when bidding. Speak to us and we’ll sort out pre-approval for you.

Also, don’t forget to plan for how you will pay the deposit on the day. Check with the selling agent which payment options are accepted in advance (personal cheques, bank cheques and deposit bonds are commonly used).

Get building and pest inspections

Be sure to have building and pest inspections performed before the auction. There’s no cooling off period when you buy at auction, so if you’re the winning bidder, you are obliged to purchase the property. You don’t want any nasty surprises once the property is yours.

Be assertive

It’s vital you go into the auction with a bidding strategy in mind. One common tactic is to knock out the competition with a strong bid early in the game. For example, if the bidding is hovering around $520,000, you may come in with a confident bid of $600,000. This shows other bidders you have the money and are prepared to buy.

Other approaches include starting low and early and progressing with slow bids, or avoiding hesitation and counter-bidding straight away. Whatever your strategy, be sure to call out your bids loudly and with confidence.

Call in back up

You don’t have to go it alone. If you’re concerned about staying within budget, you could ask a friend or relative to support you on the day to help keep you accountable. Another option is to have a professional bid on your behalf. Ask us for a referral.

Auctions are stressful, but with a little preparation you’ll be able to navigate your first auction like a pro. For advice about your borrowing power, deposit, pre-approval and home loan options, please get in touch. We’re here to help!

4 key benefits of downsizing for your next home

If you think downsizing is a step backwards, think again. There are many reasons why downsizing has become a popular choice for homeowners, especially retirees. Let’s take a look.

1. Less maintenance and upkeep

While larger properties offer more space, they also require more cleaning, gardening and upkeep. For some, the time and money involved can be better spent elsewhere.

This is especially applicable if the kids have left home and certain areas of the property are no longer being used. Imagine spending less time dusting, and more time catching up with friends, going to the movies or pursuing hobbies!

A smaller home means less work and more time on enjoyable activities.

2. Money for other things

There may be financial incentives to downsize. For one, it could allow you to live mortgage-free. If you have substantial equity in your current home, you may be able to pay off your next home outright.

In other instances, downsizing may mean a smaller mortgage, and as a result, reduced mortgage repayments. The potential savings could be used more cost effectively, like reducing personal debt (ie personal loans and credit cards) or even paying off your mortgage quicker. Imagine what you could do with an extra $500 a month. You could potentially pay off your mortgage quicker, knock over other debt or work towards other financial goals.

Another option may be to boost your retirement nest egg by making a contribution to your superfund from the sale proceeds of the downsize. From 1 July, 2018, the government introduced a new measure allowing people aged 65 or over to make a ‘downsizer’ contribution to super of up to $300,000 from the proceeds of the sale of their home ($300,000 each for couples). Be sure to speak to your accountant or financial planner about this option, or ask us for a referral. If you need help developing a plan to reach your financial goals, financial advice can really make a difference. A licensed financial adviser can help you identify realistic goals and put strategies in place to achieve them.

3. Lower ongoing costs

Downsizing may reduce the running costs of your home, like your utility bills and maintenance costs. It costs less to heat or cool a smaller property and generally there are fewer appliances. Again, this money could be used for other things like investing or improving your lifestyle.

Another important aspect of downsizing is that it’s better for the environment. Less running costs An added bonus is that reducing energy consumption is also better for the environment. If being green is important to you, downsizing may be the way to go. You may also find there’s less space for “stuff”, which forces you to declutter and cut down on other areas of consumption.

4. The ability to live in your dream location

Time for a sea change or a tree change? Perhaps you want to be smack bang in the heart of the action? Or maybe you’d like to live closer to family?

Downsizing to a smaller property could mean you can afford to relocate to the area you’ve always dreamed of living in.

As you can see, there are plenty of upsides to downsizing, including potentially reducing costs, saving time and improving quality of life. However, there may be other financial implications for seniors (downsizing may affect the amount of social security benefits you receive). Speak to a financial advisor before choosing whether it’s right for you.

If you do decide downsizing is the fresh start your family needs, please get in touch. We can help you find the right finance for your specific needs.