Next Home Essential Mortgage Advice
Discover Mortgage Advice That Delivers
Sound Financial Solutions That
Banks Don’t Want You to Know
Intelligent mortgage advice that delivers sound financial solutions isn’t always easy to come by these days. Mortgage lending exists in a world entirely of its own that many people do not fully fathom. As a result, a lot of people end up paying a whole lot more than what they need to, simply because they don’t get full access to the mortgage advice that will provide them with mortgage solutions on how to leverage their time and money within the mortgage finance process.
Note: Although residential home loans are not as easy to get as they once were, don’t be daunted by all of the information on this page. The purpose of this article is to give you an overview on how to efficiently and swiftly apply for a home loan in this day and age.
Don’t feel you have to fulfil every requirement listed here to get your home loan approved. The idea is provide home loan advice on the home loan process that will assist you to avoid common delays and frustrations that can frequently occur.
Before you even start the home loan process, important mortgage advice is that you take some time to figure out what is going to be the best mortgage finance fit for your circumstances. You need to work out exactly what type of loan is going to service your situation most efficiently. Are you looking to buy a first home, new home, next home, investment property, or refinance an existing loan, one size won’t fit all?
Big bank Loyalty, forget it: obtaining the right loan advice on how to get a mortgage for your personal residence or investment property could well transform your life financially.
The Right Mortgage Advice Will Provide
Financial Solutions That Will Allow
You To Escape Mortgage Slavery
In respect to home lending, banks are clever as their mortgage strategy is based on what is known as a compounding interest amortized payment schedule spread over 30 years. Now, most borrowers are oblivious to what they are being saddled with. And, where are you going to find a bank that would go out of their way to provide you with finance solutions that would help you to pay off your mortgage faster?
You see, even in this reduced interest rate environment, if you make the minimum contractual principal and interest monthly repayment on your 30 year mortgage it will take you 11-12 years to reach the half way mark.
When interest rates go back up (which they will eventually), then you can increase that half way mark term to more like 14-15 years.
What is meant by the half way mark? That’s where half of the payment you make to the bank is credited to the principal balance of your mortgage and the other half goes to the bank in interest.
Prior to that, the payments you have been making are all front end loaded where the majority of the payments you make go to the bank in interest. That’s why your frustration levels can quickly boil over when you take a gander at your statements and see how slowly the balance of your mortgage reduces over those first 4-5 years. Even after paying many 10’s of thousands of dollars.
Banks are also aware that borrowers in their younger years are apt to refinance their mortgages on average every 5-7 years. They may refinance to get a better rate, get cash out for any number of things, or upgrade to another (possibly larger) home.
Whoa, you mean they start the mortgage
finance cycle all over again?
Simply put, many borrowers over their working live’s are doing nothing but trying to ride their bike up that slippery mortgage slope. So, when they continue on with that trap of continually making that repayment every month, it will simply be front end loaded with interest in the banks favour.
Hence, over a normal mortgage term of 30 years you can end up paying more in interest than what you paid for the property. “So, the house can cost twice as much?”
They say that over 70% plus of all retirees end up relying on a full or part Government pension. Worse still many of these retirees still have a mortgage around their necks. Often necessitating them having to sell the family home and move elsewhere, away from their established social circle.
A Summary of the Best Mortgage Advice Is
- Be smart, manage your money within your means (yes, budgeting does pay dividends)
- Borrow within your means
- Choose your lender and home loan type thoughtfully
- Engage the services of a top finance broker to not only get you a great loan and home loan help with the above, but also effective home loan advice and advanced financial solutions on how to pay off your home mortgage much faster.
Allow us to show you the best home loan type for your situation and the best rate going for that category (we would love to help you there).
Don’t let a bank rob you of your deserved financial future.
Fast Loan Approval Tips
With the aftermath of the banking royal commission and the financial effects of the covid pandemic trying to obtain a fast loan approval can be a frustrating experience.
However, getting a fast home loan approval may be easier than you think, especially if you have a good credit score. If you’ve got a good credit history and are a homeowner then it may be easier for you to get quick loan approval, but the process might be a little complicated for those with high debt to income ratios, low deposit, high living expenses and/or shaky credit scores.
Find out in advance What You Can Afford
- Decide in advance what your loan limit is going to be
- Do a budget and list out what your income and expenses are and from there see what you can comfortably afford in the way of mortgage repayments
- Show you can live within your means
- Meet the lenders documentation criteria
- Have everything ready and in one place
- When purchasing property, obtain a home loan pre approval before committing to a property
- Be honest, detailed and complete when you fill out your application
Another important factor in determining whether or not you will be approved for a loan is the lender. All home loan lenders will require you to fill out an application and they may call back to ask questions. This process can be time consuming. Respond promptly to requests for additional information in order to keep things moving.
How can the National Consumer Credit Protection
Act (NCCP) Affect Your Application?
In this day and age of responsible lending under the National Consumers Credit Protection Act (NCCP), lenders are required to make extensive investigations into any borrowers lifestyle expenses and in turn to determine the applicants mortgage affordability. The NCCP requires that borrowers provide details on their living expenses and back this up with copies of their bank and credit card statements. Under the NCCP Act both brokers and lenders have a heavy responsibility to ensure that any borrower is not over committing themselves.
When was the Last Time You Did
A Credit Rating Check?
- You should have/create a satisfactory credit and/or account history
- Know Your Credit Score
- Check your credit report in advance. Make sure that your credit report is up to date and there are no errors on your report. If there are derogatory entries or errors it can seriously delay your loan application.
- Be prepared to honestly explain any negative items in your credit report
- Strengthen and show a strong and consistent savings record as much as possible
- Maintain employment and residential stability
- Stay at Your Job. Don’t change jobs 3 months before you apply for a home loan
- Demonstrate that you can live within your means
- Pay Down Debt and Avoid New Debt
- Keep your bank accounts and credit cards in order. Avoid any derogatory entries on your statements, like direct debit dishonours, late payments or over the limit notations.
Securing a Home Loan Pre Approval
Speeds Up the Whole Process
Securing a home loan pre approval can be a smart move. Especially if you’re looking to buy property for owner occupied or investment purposes. Obtaining mortgage pre approval will give you the advantage of knowing in advance what the bank is willing to give you. It will also give you more power when it comes to negotiating the final purchase price. You can tell the agent/vendor with certainty that you’re ready to go.
Besides, once you commit to purchasing any specific property the pressure is on for you to exchange contracts. This is usually experienced in the way of a 5 day cooling off period. During which time, you have to get the contract back to the bank, have the bank value the property, receive the valuation report. Then from there, negotiate the queue back to the credit assessor to obtain an unconditional loan approval before handing over your deposit.
By obtaining a mortgage pre approval you will have overcome the most time consuming section of the application process.
Utilise Expert Mortgage Broker Advice to
Negotiate Today’s Complex Mortgage World
Once upon a time getting approved for a home loan was a simple process. You manually filled out a loan application and verified your income, your ID and any credit liabilities you had. Today things are more complicated, regulatory authorities are putting more pressure on mortgage brokers and lenders to try and limit the number of borrowers who end up in default or repossession.
Any residential loan applicant now has to walk the gauntlet of the National Consumer Credit Protection Act (NCCP). The NCCP act requires that mortgage brokers and lenders act responsibly when confirming the affordability of any loan to a consumer.
This can at times be complex and time consuming. Reaching out for home loan help from an expert mortgage broker can relieve a mortgage applicant of some of these time consuming and often frustrating requirements, allowing them to get on with other important aspects of their life.
By the way, most mortgage brokers offer their services for free as they get paid a commission by your chosen lender.
How do You Identify the
Best Home Loan Deals?
Easy –You simply engage with an expert mortgage broker, who will take the time to find out your true needs and desires, not only for today, but also for your future goals.
From there, a seasoned experienced broker will have access to all of the major banks, the second tier banks and most of the non-bank lenders. Using advanced software programs they will have their fingers on the pulse of what all of those lenders are offering and be able to swiftly provide you with a shortlist of great options.
Whether you have, or are looking to have either an owner occupied or investment property loan, if it doesn’t have a 2 in front of it, then you’re paying too much.
Don’t allow yourself to trip into the gaping trap of allowing lenders to rob you and your family of your rightful future.