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- What can a mortgage broker do for me?
- What costs are involved when I purchase a property?
- How much deposit will I need?
- When do I need a registered valuation?
- How long should I allow to arrange finance?
- How quickly can I get a loan approved?
- Should I fix my interest rate?
- How long should I have a mortgage for?
- Is it difficult to refinance a mortgage?
- Should I review my mortgage?
- How important is the interest rate?
- How much will it cost to refinance my mortgage?
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Do I need mortgage/life insurance?
Your Preferred Mortgages broker is your personal representative and consultant. They will -
- Provide advice on the range of loan products available
- Assist you to work out how much you can afford to borrow and the best repayment option
- Liaise with your solicitor, real estate agent, and other professionals
- Assist with your loan application documentation and negotiate with one or more lenders to ensure you get the right loan for your needs
- Present you with the options and assist you to make your final decision
- Remain available to help you with any loan queries that may arise in the future
In addition to the purchase price of the property you can expect to pay:
- Any loan fee charged by the lender +
- Legal fees (Approximately $1000) +
- Valuation fees if applicable +
- Lender mortgage insurance if applicable +
- A portion of local body rates.
- LIM report
- Builders inspection
That depends on where you live. A general rule of thumb is at least
20%. You may seek the balance of your deposit from family or other contacts. The larger the deposit, the cheaper your
overall costs. Some lenders will still
advance more than 80% finance but this comes
with very strict criteria.
As a general rule of thumb, if you want to borrow more than 80% of the property value. If you are able to negotiate a price less than the valuation, the bank may only lend on the
purchase price. A valuation can be requested at any time by the lenders and is commonly asked for if the lender has any doubts about the quality of the security (property) you are offering.
When you make an offer on a property you should make the purchase contract subject to you arranging SUITABLE finance within 10
working days. Your real estate agent or solicitor will advise you
on the exact wording. The actual time to arrange the loan may take a lot less. Beware the offers promising fast decisions - sometimes in under an hour. They are expressly designed to stop you or your broker shopping around
for the best deal. It is also advisable to make your offer subject to your solicitor's approval of the title and to a satisfactory LIM and builders report.
Allow yourself at least two working days. You could get a loan approved within one hour if everything is in order, but you are better to play safe and allow at least 10 working days to
cope with the information gathering process you do not have any control of. See our Preferred Mortgages Broker first who will
advise what is required for your
application.
That depends on how sure you need to be of your payments and what is happening overall to interest rates. If interest rates are showing volatility or there is a general upward trend
then fixing is a good option. If rates are tending to drop, you may be better with a variable rate. This is quite a complex decision and we recommend that you contact your Preferred Mortgages broker to discuss the best
options.
The shortest time possible. The longer you have the mortgage the more interest you pay. The length of your mortgage will be determined, at least at first, by how much you can afford to
pay each fortnight or month.
No. Far from it. You are under no time pressure and so you can gather all the information you need at your own pace. You don't even need to tell your bank, your solicitor will do
that for you. You should have available the following:
- Loan transaction history or bank statements for the last 6 months
- Your last three pay slips or at least 2 years accounts if you are self employed
- Your last 3 months credit card statements
- Your rates bill or Government Valuation
- Account details of any other debts
you may want to add to your mortgage.
Yes, on a regular basis, if you are on a fixed rate an ideal time is when that rate expires, this will reduce any penalties which may apply. Once in their dream home most people
look at their mortgage, see it's for 25 years and then forget about it as best they can. Yet mortgages have changed and continue to change all the time and the potential exists for you to save tens of thousands of dollars.
You could in fact save yourself the equivalent of the original purchase price of the home by refinancing.
It is very important. Over the life of your mortgage a small difference in interest rates can add up to tens of thousands of dollars. Take care though as the interest rate is not the
only thing that influences your cost. Maintaining flexibility is also very important so that you can take advantage of any drops in interest rates, or superior products that may become available.
- Any loan fee charged by the lender +
- legal fees +
- Valuation fees (approximately $450) +
- fixed rate mortgage break costs of existing loan if applicable (amount depends on your own set of circumstances) +
- Lender mortgage insurance. Check with us - this is based on the amount of equity you have in the property.
Some lenders now offer a contribution
towards your legal fees which helps to
reduce your costs, the amount is usually
determined by the size of the loan.
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