best mortgage brokers
Financial and Home Loan Brokers in Sydney

By Dave Fleming : 18 October, 2018

finance broker - photo of a young lady's out stretch arm with thumb up trying to hitch a ride

Sticking to a financial plan – such as paying off a mortgage – can be a long journey that’s punctuated by high highs and low lows. Here are some tips to get you through the tougher times.

October is generally the month that people all around Australia and the world dedicate to improving awareness around mental health.

According to Mental Health Australia, 1 in 5 Australians are affected by mental illness, yet many don’t seek help because of stigma.

The thing is, mental health and financial safety are strongly linked, with many studies showing personal finances are one of the main sources of stress.

With that in mind, below we’ve outlined six ways you can help protect your mental health from being eroded by financial concerns.

First, however, we believe it’s important to add that if you’re feeling severely down or depressed, please contact your GP or call Lifeline on 13 11 14.

1. Know the warning signs

Signs that you may not be coping as well as normal include:

– Arguing with the people closest to you about money
– Sleeping difficulties
– Feeling angry, fearful or resentful
– Sudden mood swings
– Loss of appetite
– Not wanting to hang out with family or friends as much as usual.

2. Exercise daily

Exercise releases feel-good chemicals such as endorphins and serotonin. It also gets you out and about, which minimises your feelings of loneliness.

You don’t have to run a marathon or anything either. Just a brisk 30 minute walk each day will deliver both physical and mental health benefits – and help you sleep better at night.

3. Eat well

There’s not much use doing all that exercise if you’re just going to smash a few Big Macs straight after.

Instead, try cooking some new healthy recipes with your loved one, or inviting a friend you haven’t seen for a while to come eat with you.

A healthy diet not only improves your physical health, but it’ll make you feel better too.

The best bit? Cooking uses brain power, which will help distract you from any issues that are making you down or anxious. And they’ll make you proud of your gourmet creations, of course!

4. Reach out to support networks

Make an effort to reach out to and catch up with family, friends and other members of your community.

Don’t wait for them to reach out to you – be the one who initiates contact.

It doesn’t have to cost you anything extra, either. Kill two (or three!) birds with one stone and invite them over for a walk, or a home-cooked meal.

5. Positive sense of identity and an optimistic outlook

Always look on the bright side of life.

For example, if you’ve recently become redundant, look at it as an opportunity to launch into a new job, or finally give running your own business a shot.

Also, adopt a positive attitude to seeking support. Rather than feeling down about seeking help, take pride in the fact that you’ve got the initiative to recognise when you’re not feeling up to par.

6. Improve your financial literacy

Sometimes, our finances can feel all too overwhelming, which in turn, gets us feeling down.

If you fall into that category, brushing up on your financial education can help you feel a whole lot better about things – not to mention equip you with the tools you need to improve your budget bottom line.

Our regular blog covers a wide range of topics that can help you improve your financial literacy.

Alternatively, don’t hesitate to give us a call if you’re worried about your finances, such as paying off your mortgage.

We’d be more than happy to workshop some ideas with you to help improve your situation and get you sleeping better at night.

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Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

By Dave Fleming : 18 October, 2018

best mortgage broker - hand weighing cash on a scale against getting a houseShould you make application for a home loan, especially if the loan you want happens to be for more than 80% of the property’s value, with most lenders you’re going to have to show them that you already have a satisfactory amount of savings.

This reassures the lender that you have the capability to fulfill your repayment obligations once you have been confirmed for a loan.

Most lenders policies require that you have a minimum amount of 5% of the property purchase price saved as a deposit.

Although, there are lenders that will loan up to 98% and 100% of a property’s value. However, most mainstream lenders will only lend to 95%.

That is, unless you have an immediate family member who is willing to use equity in their property to guarantee the loan you want (conditions apply).

In these instances you don’t need any deposit and you can borrow up to 110% of the value of the property you want to buy. It’s called a Family Guarantee Loan.

No Deposit Home Loans and LMI

To obtain a loan with any of those lenders the borrower would need at least an 8% deposit in order to be able to capitalise the Lenders Mortgage Insurance premium that will be charged.

Any loan that exceeds 80% of a property’s value will incur a mortgage insurance fee. This is a fee that is paid by the borrower to an insurance company that insures the banks loan in case the borrower defaults on their loan.

What Constitutes Genuine Savings?

The borrowers savings in most instances will be accepted by the selected lender as an acceptable genuine 5% deposit amount if the savings account in the borrowers name shows the required savings have been in the account for 3 months or more.

Alternatively, the savings account had constantly been receiving funds over 3 months or more and now had the required deposit amount.

There are many classifications of savings however these mentioned below may or may not qualify for a home loan deposit:

  • Cash gifting program
  • an inheritance
  • casino/other gambling winnings
  • Cash coming from selling a non-investment asset
  • Incentives and government financing
  • Personal loan

Are No Deposit Home Loans Just a Myth?

That said, if the money can be shown to have been in the borrowers saving account for at least 3 months, most lenders will accept that as genuine savings.

Are there other options for acquiring a loan if I don’t have genuine savings?

The good thing is that there are still loan companies that are willing to provide you with a loan despite having no genuine savings.

These include:

  • Family guarantor loans – a family guarantor loan is where an immediate family member allows the equity in their home to be used as security to guarantee the loan. Conditions do apply. However, most lenders will allow borrowers to borrow up to 110% of the purchase price of the property they want.
  • Some lenders may also accept non-cash genuine savings – some of these include equity in another property, term deposits and shares. In certain cases, the sale of a vehicle owned by the borrower can also stand as genuine savings provided that the borrower shows proof that the vehicle was owned for at least 3 months.

There are some lenders that will allow you to take out a personal loan to obtain the required deposit.

Keep in mind though you will need to show healthy taxable earnings to be able to do that strategy.

Any liabilities you have or create will reduce your borrowing capacity for a new home loan.

  •  A stable rental history could see a loan provider forgive you to having to come up with 5% genuine savings. There are a few lenders who will waive the 5% deposit rule if documentation can be produced from a licensed property management agent showing that all rent has been paid on time and in full for the preceding 6 to 12 months.
    This will highlight your ability to make repayments on time and on an ongoing basis. Nonetheless, you will still need to drum up a deposit from somewhere.

What is the Most Effective Way to get Qualified?

If you’re keen on buying a home and you’re not sure if you will be able to qualify then contact us or a reliable experienced mortgage broker near you and they will be able to assess what you need to do.

Sometimes, all it takes is to understand the situation of the borrower and find a suitable lender with the right policies that can match the borrowers needs.

Brokers are the best bet because they develop their understanding and successful strategies through experience and constant communication with a network of lenders policies and procedures.

Each lender has specific policies and each borrower has specific needs – this is something that the best mortgage brokers understand and matching the borrower with the right lender is what they do very well, especially when it comes to no deposit home loans.

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By Dave Fleming : 18 October, 2018

You might be comfortable paying off your mortgage now, but what if things change? Here are some tips on how to avoid a mortgage stress fracture.

https://www.mastermortgagebrokersydney.com.au - note spelling out how to avoid mortgage stress - stress is spelled in dramatic red lettersPaying off a mortgage is one of the biggest financial challenges you and your family will ever tackle.

And it isn’t easy – mortgage repayments take up about one-quarter of a family’s income on average, according to the Australian Bureau of Statistics’ 2016 Census.

While most families manage, what happens if your circumstances change?

An unexpected redundancy, relationship breakdown, illness or accident can dramatically impact your ability to make your payments and put you in mortgage stress.

But first, what is mortgage stress?

While there isn’t a technical definition for the term, mortgage stress is generally considered to occur when a person or family is spending 30% or more of their income on home loan repayments.

There are also a range of other criteria which would suggest you’re experience mortgage stress.

If you’re paying only the interest on your home loan, borrowing money from family, or having difficulty paying your bills, then you might be experiencing mortgage stress.

I don’t have a problem now, why worry?

It’s unwise to assume your circumstances will never change. An accident or illness can befall a person at any time, and the impact on your finances can be devastating.

An increase in interest rates can also have a significant impact on your mortgage repayments. A simple 0.25% rate hike can increase repayments on the average Australian loan ($375,000) by about $50 a month.

Over the course of a year – and with a potential of further rate hikes – this can really chew into your disposable income.

Ok, so how can I avoid it?

The smart borrower won’t wait for their circumstances to change, they’ll start planning now to make sure they can weather a storm if it hits.

Steps you can take to reduce your risk include:

Step 1: Use a mortgage calculator to see what your repayments would will look like if there was a rate increase. Would you be able to keep up?

Step 2: Review your current income and expenses, and make a new family budget. Use it to track where your money is going and where savings can be made, so you can either pay off your mortgage sooner or get by if things go awry.

Step 3: If you’re worried about your mortgage, or concerned about the impact of a future rate hike, come pay us a visit.

We can talk to you about your situation and help you make a plan to ensure a small problem doesn’t become a big one.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

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By Dave Fleming : 18 October, 2018

In a perfect world you select a property to buy, complete with white picket fence, and the settlement goes through on the agreed date without a hitch. But as we all know, we don’t live in a perfect world.

loan broker - hands shaking across a business deskWhen you buy or sell a property you go through a ‘settlement period’, which is the time designated for the buyer to complete payment of the contract before becoming the owner of the home.

Up until the settlement goes through the home is the property of the existing owner.

And with a large home deposit at stake, you’ll want to ensure you choose the right period length.

How much time should I give myself?

Generally, settlement periods are 30, 42, 60 or 90 days.

In NSW a 42 day settlement period is the most common, but in most other places around the country it’s 60 days.

Just because it’s common, however, doesn’t mean it’s the best fit for your situation (or the seller’s).

You see, both the buyer and the seller must agree on the settlement period.

However, you may have competing motivations, so this can be tricky.

Whatever the case, just make sure you allow yourself enough time for conveyancing, bank financing approval, organising the move, undertaking requested repairs for the buyer, and negotiating settlements for your other property interests.

Also, keep in mind that if you buy the property at an auction, there will already be a settlement date indicated in the contract.

If you can’t meet that date, chat to the selling agent before signing on the dotted line to see if another date is agreeable.

You might push for a longer settlement period if:

– If you’re the seller and you’re still looking for a property to purchase
– If you’re a buyer and you haven’t yet sold your own home
– You’re selling and the buyer has requested you repair something
– If you have an upcoming event that you want to deal with first (wedding, big overseas trip, etc)
– Someone is going guarantor on the loan or you’re purchasing through a family trust
– You’re buying off the plan, as the scheme has to be registered with the titles office
– You need to save more money as a buffer (especially if you’re upgrading or will be renovating).

You might push for a shorter settlement period when:

– You’re a seller who has already found another home
– You’re a buyer who has already sold your current home and needs to move quickly
– A holiday period or big event is coming up and you’re keen to move in beforehand
– You’d like to undertake work on the property sooner rather than later
– You need cash flow.

It’s important to get right

One-in-five property settlements in Australia are delayed by about one week so it’s important to give yourself a comfortable buffer.

While each party can request a settlement extension if a delay occurs, that doesn’t mean the other party has to agree.

This is where it gets a little tricky. Each state and territory has different laws, and every contract differs.

Queensland’s laws are probably the most stringent. For example, either the buyer or the seller can terminate the contract, sue for damages, and keep/lose their deposit if the other party is not ready to buy on time.

Other states have a little bit more leeway.

In NSW and Tasmania an extra 14 days can be given, in WA and SA buyers are given three days’ grace before penalty interest applies, and in Victoria a seller can immediately start charging a tardy buyer penalty interest.

Final word

So that’s negotiating a settlement period in a nutshell.

The best news? That’s about as much negotiating as you’ll need to do. Because when it comes to negotiating a loan with a lender, we’ve got you covered.

If you’d like to find out more about our services, get in touch, we’d love to help you out.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

By Dave Fleming : 18 October, 2018

How to make your mortgage life easier
personal loans written on a blackboardIt is really much easier to get the real dollars you’re going to need to invest in a home with the assistance of loan brokers. When you need a broker who isn’t specifically associated with a certain finance lending organization but could offer you the most beneficial remedies to your fiscal necessities, a mortgage broker will possibly be your smartest choice.

People who have unfavourable financial history could find it not so easy to request the help of financial companies, but a mortgage broker understands how to adjust to several different instances to ensure you get what you want. It is really feasible to make use of two or more agents at a time.

Sometimes it’s who you know
A mortgage finance broker does have connections in the market and can scree your own personal financial information through a number of mortgage companies without necessarily giving your identity away. By simply partaking with more than a single finance agent you can look at a wider variety of lenders and begin to zero in on the right home loan offers readily available.

In certain cases agents are doing work for a specific mortgage lender. When working together with an agent who’s also a loan provider, it is very clever to become mindful of this issue. This is simply because they’re not likely to go out of their way to advocate you to many different credit firms and rather will simply seek their own loan company.

Playing the ends against the middle
The great thing to try and do is utilize numerous agents,personal loans written on a blackboard if you’re planning to employ a mortgage broker that is also a loan provider.

Don’t sign any written agreement if you intend dealing with a few agents at any given time. If you happen to get into a binding agreement you could be compelled to take whatever special offers they have even if they aren’t the most effective they’ve found for you.

Fantastic benefits can be expected when obtaining aid from an agent. Most likely you don’t need an agent to find the very best rates on offer for mortgages should you have a good credit standing. You can accomplish that in your own if you have the time and resources, rather than pulling another group into the mortgage loan procedure.

When you’re in a tight spot
personal loans written on a blackboardIn case you have bad credit, although, an agent could probably get funds for your specific case which you didn’t know about. Their understanding of the sector permits them to look for the funds from a variety of trusted loan companies that will assist you in getting your home.

You will recognize that there are a great number of expert loan providers on the market which are not typically readily available directly to the general public that great mortgage brokers would have access to. These expert mortgage companies support and fund someone who has problems in their credit data as well as earnings range.

They’ve got a wide array of items available that serve all degrees of bad credit, from mild to heavy.

Where to look
It’s not hard to acquire mortgage agents. You can search online to locate their contact information or inquire from people you know to get referrals. Right after acquiring a broker, you could setup a scheduled appointment with them to find out some of their personal and also financial data.

They’ll have to look at your credit report so that they know exactly what financial circumstances you’re in. The great thing is that they’ll keep all this info and will likely move it to a mortgage lender if you decide to choose one they see, therefore helping you save a little time along the way.

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