By Dave Fleming : 24 November, 2017

toy wooden house cut out sitting next to a series of check boxesOne of the most important financial decisions that you’re going to make today is that of getting a home. To get a house today, you’re going to have to work with a financial investment that takes on many years. It’s a decision not to take lightly. With the sheer number of applicants that want a mortgage, banks and other lenders are now starting to restrict the qualifications that someone has to have in order to get a home. This can be both helpful and a hindrance to those that are trying to get a home.

The change in the qualifications a person needs to get a home has been received with mixed reviews. As Australians seek to buy property, they are starting to realize that the property market can shift wildly depending on several factors, including their income and buying power. To fully understand this, and the changes, it’s imperative to consider a few notes in regard to the rules and regulations that seem to be calling for more experienced brokers overall.

Factors at Play
The first thing that you need to realize about purchasing a home is that there are a lot of different factors at play when you apply for a mortgage. Whenever a person seeks to get a loan, the broker has to consider a great deal of elements, including financial history, current employment records, affordability and other risk factors that aren’t always seen by individuals.

Purchasing a home should not be taken lightly, and therefore brokers are now putting in a lot more scrutiny to figure out just how qualified a person is before they give such a large sum to them for a home purchase. With the changes by the federal government causing a disruption in long term mortgage handling, individuals have to understand that there’s no “yes or no” scenario here, as a lot of elements have to weighed out.

Why Mortgage Brokers?
For consumers that aren’t certain that they want to deal with brokers, it’s imperative to realize that they are going to help smooth over the lending process. Mortgage brokers today help consumers figure out what loan type is best for their specific needs. It seems like this can be difficult at first, but you’ll find that brokers are trained to isolate risk factors and help people get the home they want, without breaking the proverbial bank.

A mortgage broker will sit down with a consumer, and they’ll discuss assets, price points, income, self-employment elements, and so much more. They’ll tailor a solution that meets the needs of the consumer, and not just approve a dollar amount. This is better than just asking for a set amount, and hoping for the best. The broker is trained to help meet the needs of the consumer, simple as that.

The Cost of a Broker
People assume that getting help in financial matters means that you’re going to have to pay someone a fee up front. That’s not the case inman's hand writing mortgage broker in light blue texta on reverse glass relationship to mortgage lending. In fact, you’ll find that there are plenty of free services that you can work with, especially if you want to get the advice of a mortgage broker about lending and more.

Mortgage brokers are in the business of connecting people with lending opportunities that they can afford, so that they can purchase the home of their dreams. They can help with focusing on mortgage rates, and price points that are not going to cripple the finances of any one individual. It’s a positive push forward.

First time homebuyers will delight in knowing that someone will help navigate the road of purchasing a home today. Purchasing a house is not a transaction that works the same like buying anything else. You’ll find that you’ll need to work through a variety of elements if you are to get the right home for your family. A broker can answer questions, and explore solutions that are going to help make this a bit easier to manage.

Dealing with Mortgage Brokers
man with black felt pen writing who, how, what etc on a white boardFor those that haven’t dealt with a broker or the new rules that are in place for mortgage lending, consider asking questions. Write down questions beforehand, and get ready to ask questions that you are not sure about. Do not feel that any question is off limits, or “dumb”. There are no dumb questions here, because you’re dealing with a loan amount that could take you decades to pay off. Do not resist asking questions, it’s that simple.

The mortgage broker that you use will not simply help you get your mortgage, mind you. They will help you understand any changes and updates that come through the marketplace after the fact. If there’s a change, problem, or new legislation, you’ll hear from the broker that helped you, so that you know what you’re dealing with. Buying a home is not something that is easy to get done on your own, and brokers know this, which is why they build a relationship with clients to help navigate the real estate market appropriately.

Your mortgage professional is in charge of staying abreast with all the latest news, views, and updates. They help navigate the real estate world, mortgages, financial matters, and any abrupt changes that the Reserve Bank of Australia may end up moving forward with.

Be Patient
At the end of the day, the best tip that you can take with you today is simple, be patient. That’s right, be patient with your mortgage lending and investigation. You may have found your dream home, but don’t assume that the transaction will be open and closed within a short span. Get a professional mortgage broker to help you gain access to the bigger picture, and you’ll end up with a positive push forward.

Home buying takes time, but so does the lending solution. If you rush things, or try to avoid using a broker, you may find yourself with a mortgage that is too hard to pay off, or rates that are not favorable for you at all. Take your time, ask questions, and get a good broker on your side.

Check The Home Page Out

By Dave Fleming : 24 November, 2017

Keeping Up With The Daily Mortgage News
Could Save You A Lot Of Money

What's Your Rate in 3d letters sitting on splayed colorfil arrows to asking if you are getting the best percentage optionMany people have to stop and think and even stumble when asked what their current mortgage rate is. That’s interesting, because even though today’s lifestyles are hectic just keeping up with everything, it means a lot of people are letting some serious money slip through their fingers.

One way to save a lot of money is to endeavour to keep up with the daily mortgage news. By making a habit of focusing on the housing industry and the mortgage market and it’s happenings you will have an up to date knowledge of what the market interest rates and trends are prior to walking into any lenders premises. Most Australians don’t have the foggiest about what current interest rates are available when they decide to visit their local bank or talk to a mortgage lender. The Amazing fact is, it occurs a multitude of times every day in Australia.

Most would say, “That’s why I’m going to see the lender, to find out what rates are available.” However, that’s kind of like walking into aused car salesperson with pencil moustache selling old car as brand new signifying with OK hand gesture that it's perfect used car sales yard and telling the salesman that you’ll leave it up to them to find you the right car at the right price.

Even if you previously refinanced your loan and at the time you did, you determined that they had given you the best rate available going at the time. Nonetheless, things do change over time. In recent years the major banks have become emboldened to the point they don’t think twice about increasing interest rates outside of the RBA cycle of increasing or lowering rates. Of course, they glibly come up with all kinds of excuses as to why that is. Nevertheless, their profits continue to go to record highs year after year.

The fact is, lenders will increase existing customer’s interest rates by stealth, but they won’t tell their existing borrowers what rates they have on offer to new borrowers. In fact they don’t even advertise them; they keep them tightly under wraps. They only offer these rates as a last resort if you’re looking like you are going to walk out the door. Kind of like the used car salesman that doesn’t want to lose the sale and says to you, “If I can get it for x price, would you be happy with that?”

Diagram of Quality of LifeWe as humans continually strive to better our quality of life and a major contributor to this being able to happen is having ready access to surplus money. We work hard to impress our employers; we even study to increase our skill levels in order to increase our qualifications, all in an effort to bring home more money. But, we seldom take the effort to see if there are any leaks in our cash boat that we could immediately fix to give us that extra surplus cash.

Keep in mind if you would like to have that extra leverage over your chosen lender or mortgage broker make the effort to keep up with the latest news in the mortgage markets. Because, should you be in the process of purchasing or refinancing a property, whether it is an owner occupied or investment property, lenders will pick it up straight away if you are naive on interest rates as opposed to someone who is knowledgeable.

Per chance you are discussing the finer details of a loan you’re interested in with your lender or broker and you then call them out after Two people shaking hands over a successful property agreementthey quote a too high rate, they are instantly going to be aware that you are well informed and a person who knows what you’re doing. Rather than have you walk out on them they will instantly sharpen their pencil and get down to giving you their best deal.

That said, they will know they’ve got you exactly where they want you when they quote you a 4.65% interest rate and you don’t flinch. The real facts are they can’t quote you a definitive rate until they know more about you in the way of what type of loan you want, is it an owner occupied or investment loan, what the loan amount will be, what the loan to value ratio is going to be and what your credit score is?

There is no shortage of lenders that will try this on in order to increase their profits. Keep in mind that many bank employees as well as mortgage brokers are now incentive based when it comes to their incomes. The ones to be most wary of are the bank employees who are more into short term gain as they frequently change job roles within the industry. Whereas, savvy mortgage brokers are smart enough to look at building long term relationships with their customers.

Interest rates headline printed on an old typewriterSaving 0.5% on a principal and interest $550,000 mortgage will reduce the monthly repayment on the loan by $163.00 a month. The time saved on a 30 year mortgage will be 3 years and 2 months. The interest saved will be a whopping $50,183.

It pays to keep up with the mortgage news. If you don’t have time to do it, make sure you mortgage broker is keeping you well informed. Make a better life for yourself and your family by not inadvertently giving your money away to the bank.

About About Dave Fleming

Dave is enthusiastic and fascinated by the digital and social media worlds. He is passionate and enjoys entrepreneurial pursuits, wealth creation financial strategies, health, fitness as well as cooking. Dave is the webmaster at, which is an information website pertaining to loans. He has a deep commitment towards writing about and helping people understand the basics of how the financial world works.

By Dave Fleming : 24 November, 2017

How did we get into this Mess Anyway?

man clutches his head in panic as stock market crashesIt’s been over eight years (how time flies) since the Global Financial Crisis made its presence felt. Initially Australia looked like it was going to be immune to its effects, or so a lot of people thought. However, we all now know that’s not the real world we live in. The real world we’re now living in here in Australia is a world that has been economically affected by the financial status of the countries we trade with.

In simplistic terms if people in America aren’t buying new houses then they’re also not buying all the furnishings that go with those houses, such as white goods etc. If they’re not buying those then manufacturers are not making them. I think you get the gist of what I’m trying to say.

If people in first world countries are not buying, then the economies of manufacturing countries like China, Japan and India go backwards. When they start going backwards they stop buying coal and other resources like iron ore.

Why Have the Banks Been Immune to all of this?

That’s why we had a two speed economy that everyone marveledcartoon of greedy banking grabbing lots of bank notes at. Fast and average were the two speeds we had. What we have currently is average and slow. Now the mining boom is over for the time being our economy is going to continue to struggle until the global economy starts to hum again.

It seems the only industry that is not bemoaning its fate is the banking industry in Australia. They continue to make record profits off of the back of hard working Australians. The four major banks in Australia continue to make record profits year after year.

Even though the Government outlawed exit fees on home loans, lenders have come up with new and innovative ways to ensure that their profits continue to increase. These strategies include increasing interest rates out of sync. This means, when the Reserve Bank of Australia’s (RBA) rate increases, the banks have in some instances increased their rates even more and also have not been passing on all of the rate cuts when announced to maintaining ridiculously high credit card interest rates.

When does the Rip Off Stop?

Their ongoing justification for this outrageous profit plundering is that Australia needs a profitable banking system to maintain a strong balanced economy. Well, how much is enough? When does this flagrant profit gouging stop.

At the moment the Federal Government has been a running a ‘Show Tribunal’. They lined up the boss’s of the big four banks and then fired some tepid questions at them, which made a couple of them squirm uncomfortably a little bit in their seats. What’s going to come out of that, not much? We may see one or two minor concessions, but that won’t slow the banks profit increases down.

What can You do About it?

Unlock your potential sign in rainbow coloursUnless we take personal responsibility for our own finances, we are always going to be stressed out with the banking system and trying to pay off our mortgages.

In the current market interest rates are at an all time low and some economists are predicting they could even go lower. Some say as soon as next month. In this financial environment it behooves anyone who wants to get ahead financially to start working their finances a lot smarter.

The principal and interest repayments on a 3.64% (yes you can get an owner occupied home loan (<80% LVR) with an offset account at 3.64%) $500,000 30 year owner occupied home loan are $2,284 a month. We all know that the majority of that repayment amount for the first 15 years is going to go to the bank in interest. Did you also know that over the last 30-40 years home loan interest rates have averaged around 7.5% to 8.5%? Many current older home owners will remember back to the late eighties and early nineties when home loan rates were 17.5 – 19.5%.

Which Would You Prefer – pay Yourself or Pay the Bank?

So, what I’m saying is home loan rates will inevitably raise again. However, when they get to 7.64% the majority of that payment will be going to the bank. If you allow that to happen, you will always be at the beck and call of the banks.

What we’re suggesting is that you tighten your mortgage belt, get the budget spreadsheet out and (I know, it’s a pain, but there is no other way) start figuring out how you can fit a 7.5% principal and interest mortgage repayment into your budget.

A 7.5% principal and interest mortgage repayment on a $500,000 home loan would amount to $3,578 a month. Yes that’s about $1,200 a month more than you’re paying now. The real decision is, do you pay yourself now or pay the bank later?

Because, inevitably interest rates will rise and when they do you will be forced to pay those amounts. Notwithstanding when it does most of the repayment will be going into the banks back pocket.

How Well Could You do?

The good news is, if you do activate this strategy you will pay your thirty year mortgage off in 15 years and two months. In other words youStep out of your comfort zone sign would lop off an enormous 14 years and two months off your 30 year mortgage and in the process save an astounding potential $170,986 in interest.

Imagine, if fifteen years from now you didn’t have a mortgage as opposed to being locked into the bank for the rest of your life. The choice is, you either pay now or you pay later.

There’s an old saying that says ‘You Should Never Look A Gift Horse In The Mouth’. What does that mean, I really don’t know. I think it has something to do with not being ungrateful when you’re handed a gift.

Nonetheless, the point is interest rates are at historic lows which provides an opportunity that may never been seen again. Or, if it does come again it will probably be a long time coming.

If you want information on more strategies that will help you pay your mortgage off faster or to create more wealth through mortgages and property, please get in contact.

If you don’t have a 3 in front of your owner occupied home loan interest rate these days, then you’re paying too much for your home loan.

About About Dave Fleming

Dave is enthusiastic and fascinated by the digital and social media worlds. He is passionate and enjoys entrepreneurial pursuits, wealth creation financial strategies, health, fitness as well as cooking. Dave is the webmaster at, which is an information website pertaining to loans. He has a deep commitment towards writing about and helping people understand the basics of how the financial world works.

Refinancing Info Page

By Dave Fleming : 24 November, 2017

So, are you looking to buy your first home?

This can be a major step for anybody, and you will find quite a few things to consider, not the very least of these is the way to get the funds for a house. Sure, there are lending options readily available for property purchases; however you will need to have some money on hand to pay for a deposit, also there are other costs, which include fees and settlement costs that you may not be able to get included in a borrowing arrangement.

How Much Money do You Have to Start?

First home buyers signIf you’re like a lot of first home buyers who are looking to purchase using a low deposit home loan you will still need to do your sums to calculate how much cash you will need. Most lenders who provide low deposit home loans want to see that you have at least 5% in genuine savings. What does this mean? It means you will be able to demonstrate that you have saved 5% of the purchase price over a 3 month period. Or, you have had that amount of funds in a savings account in your name for at least 3 months.

Basically they want to know if you have fiscal discipline and a sense of responsibility. In addition, if you’re buying an established property you will also have to prove to them that you have enough additional funds to complete the purchase transaction. This means you will need enough extra cash to pay for purchase stamp duty and legal costs.

Are You Eligible for Government Concessions?

If you’re purchasing a new home that nobody’s ever lived in before you might be eligible for first home buyer concessions. If you fit into that category you should check with your local states Office of State Revenue for any programs they may have.

So, what are some methods the everyday Australian can use to get hold of some funds to cover the dollar amounts required to purchase a home?

Cash Generating Tips

Happy couple holding baby in front of sold houseIf you are planning to get a property inside of 12 months you will want a savings strategy that’s going to yield immediate results. Saving cash is usually a complicated challenge if you only have a preset amount of disposable income on a month to month basis. A Second employment opportunity could be a possible option for generating fast savings.

Investigating other cash flow scenarios including a cash value insurance policy might help put some cash together. However, be mindful that withdrawal penalties could be applied, nonetheless it may be well worth the expense to get your first home.

Additional ways to pull together cash include things like selling off valuable items on the net or with a garage sale. Spare cars, stocks and shares, collectables, along with other things that have got a good value can easily generate big returns.

Some lenders will allow a gift from the borrowers parents as long as the parents are prepared to put in writing that the money is a gift and non-refundable.

Longer Range Planning Strategies

Home for sale with signShould you be concentrating on a long range strategy you naturally will have much more time to accumulate the required funds. Investing more money into a term deposit or perhaps a cash value insurance plan may help keep hold of the funds for your new home.

Starting a savings bank account can certainly help ensure that the financial resources are readily available and generating interest along the way.

An additional second job would still be another possibility, but if you have the luxury of much more time to save you would then have the luxury of having to work a lesser number of hours.

Starting a home based business would provide a flexible alternative for generating extra cash flow. Nevertheless, choose wisely in finding a business enterprise that is both rewarding and legit.

Tithing is an Oldie but a Goodie

It takes a smart person to make money, however it takes an even smarter person to hang onto it. In today’s society most people are so busy paying everyone else, there is never any money left over to pay themselves. To reverse this habit a person needs to sit down and map out a budget of their expenses. Once that has been done, whittle those expenses down until there is a cash surplus left over each month.

A worthy goal is to aim at saving a minimum of 10% of your net income each month. In other words, before you pay anyone else you pay yourself 10% right off the top. Then, you figure out how to manage your lifestyle so you can live on the 90% that is left over.

The purchase of a home is a sizable, but very worthwhile step, create a workable plan for getting the money together that you need and then stick to the plan through thick and thin.

About About Dave Fleming

Dave is enthusiastic and fascinated by the digital and social media worlds. He is passionate and enjoys entrepreneurial pursuits, wealth creation financial strategies, health, fitness as well as cooking. Dave is the webmaster at, which is an information website pertaining to loans. He has a deep commitment towards writing about and helping people understand the basics of how the financial world works.

Would you like more Refinancing Information?

By Dave Fleming : 24 November, 2017

Are You Being Ripped Off?

Does Your Interest Rate Have a ‘4’ in Front of it?

www-masytermortgagebrokersydney-com-au-scissors-cutting-percentage-rate-signWith the latest home loan interest rate cuts experts are now saying if your owner occupied home loan interest rate doesn’t have a ‘3’ in front of it you are being ripped off.

However, this is not necessarily the case with investment property loans as most of those rates still have a ‘4’ in front of them. Having said that though, borrowers should even start checking out what deals are available for those loans too.

Both fixed and variable interest rates have plummeted to under the four per cent mark with the recent cash rate cut that’s now at the all time record low of 1.5%.

How Good are Today’s Rates?

At the time of writing the lowest variable rate available in the market is just 3.39% and fixed rate deals are also at tempting levels. For example 2 years at 3.58%  3 years at 3.58% and 5 years at 3.58%

It should be noted that the rates quoted above can be dependent on the type of loan you’re applying for. Different lenders have different policies when it comes to loan to value ratios, the type of loan you want (owner occupied or investment loan) and the amount you want to borrow.

Are You Winning the Mortgage Game?

www-mastermortgagebrokersydney-com-au-chasing-interest-rate-ball-down-stairsFor those homeowners who would like to get ahead of the mortgage game these amazingly low rates offer them a great opportunity. Who knows when mortgage interest rates will start to rise again, hopefully not for a long time? All the same, while they remain at these historic lows it’s an excellent opportunity to pay extra into the mortgage and start paying it off faster.

Will there be more rate cuts, it’s highly possible? The rate of inflation is lingering about the 1.5% mark, which is well below the Reserve Bank of Australia’s benchmark levels of 2-3%

Where are Interest Rates Headed?

The Australian economy continues to dawdle along as business investment is low and consumer demand isn’t very high. The exchange rates of the Australian dollar keep creeping up towards the high seventy cents mark to the US dollar. The national unemployment rate continues to hover around the 5.6% mark, but doesn’t include all those people, and there are many, who have given up looking for work.

Some experts are predicting that there is still another rate cut on the cards. Another rate cut would take Australia’s cash rate down to the record low of 1.25%. Even a couple of months ago, no one would have predicted that.

However, will the Banks Pass on the Rate Cuts?

The big question on most everyone’s mind is, will the banks pass on these rate cuts in full. The answer is no! You see, the banks have found a new game to play with interest rate cuts. They will pass on some of the 0.25% rate cut given by the Reserve bank of Australia and they keep the rest of the cut up their sleeves. does that mean? They hold back some of the rate cut so they can use it for marketing purposes. So, this is where the borrower needs to become street savvy when it comes to finding the best interest rates for their particular loan.

How does this work? These days the banks are now holding back a significant portion of any rate cut passed by the Reserve Bank of Australia so they can use it for special promotions at a later date. They may come out with a special variable rate for owner occupied or investment loans. As can be seen in the current market place they are using these extra basis points they have up their sleeves to offer tempting fixed rate loans, most of which are notably below the 4% mark.

However is it time to fix?

Maybe not, because with any more rate cuts you are going to see even more record breaking deals flooding onto the market place in the forthcoming months. Although, for those that are fixed rate minded, you might want to consider doing a split loan. That is, part variable and part fixed rate.

For anyone who wants an owner occupied home loan to purchase or refinance that is in excess of $250,000 and has a loan to value ratio of 80% or less the interest rate you should be looking at should be notably under 4%. Anything that’s got a ‘4’ in front of it means you’re paying way too much (being ripped off in other words).

About About Dave Fleming

Dave is enthusiastic and fascinated by the digital and social media worlds. He is passionate and enjoys entrepreneurial pursuits, wealth creation financial strategies, health, fitness as well as cooking. Dave is the webmaster at, which is an information website pertaining to loans. He has a deep commitment towards writing about and helping people understand the basics of how the financial world works.

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