The Advantages Of Using A Mortgage Broker

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The Advantages Of Using A Mortgage Broker

It is a known fact that picking up the keys to your new home is quite rewarding, thrilling and life changing. There is no greater feeling than that you feel while you are pulling into the driveway for your first time and head to your new residence.  For those of us that are tired of living in shared households or renting, it is exhilarating.

When it comes to mortgage loans, it is much more preferable that you use a mortgage broker instead of going to a bank directly. Mortgage brokers are preferred because they offer expert loan advice and money coaching. Getting the right advice can make a great difference to the amount of wealth that you have.

If you do not see an expert when you apply for a mortgage loan, it is likely to cost you more and you will most definitely suffer from limited flexibility. You may pay more interest, higher fees and you are not likely to have options available to you when you next purchase another home or investment property.

However, you need to understand that not all mortgage brokers are created equal. Although there more than 11,000 registered mortgage brokers in Australia, finding one who is an expert can pose to be a great challenge for you. It is important that you understand mortgage brokers have differences in training and abilities and they vary in terms of their motivation.

Another reason why it is preferable to use a mortgage broker is that you have your personal team of loan experts. These will support you throughout the full procedure and keep you well informed. Therefore, you will be able to know where your application is at and what you can expect next.

While using mortgage brokers, you also get access to lots of different loans and specials. If you are applying directly to a bank, then you have no loan options. There are lots of deals out there and the only way to find such deals is by making use of mortgage brokers. If you decide to apply directly at the bank, it is likely that they will not give you the loan set up that is best for you. Banks are known not to offer the option that suits one best.

Now, it is imperative that you have a variety of options. Banks may even change their lending rules making it harder for you to cope. This is why it is better to use a mortgage broker. Find out more about the best mortgage broker in Melbourne. Make sure that you get a wide range of options.

The Case For Using A Financial Broker For Your Agriculture Loans In Australia

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If you’re like most people, this is probably the first time you’re hearing about a financial broker being used to find agriculture loans. But this really is the norm in the land down under and is no different from the Americans using portal websites to find lenders who will give them the best term loans.

But in the case of financial brokers for agriculture loans, finding lenders as the brokers really sit down and ask would-be clients what it is that they really need. In other words, they take the time ask what kind of agriculture loan a businessman needs before finding the right creditor that will grant such a creditor.

You may not know it yet, but under the term “agriculture loans”, there are many different sub-sets of loans. While there are loans for farming equipment, there are those for buying agriculture property. And each type of agriculture loan would have its own set of ready creditors that would be more than ready and willing to lend you the money.

Unfortunately, finding the the best agribusiness loan isn’t as easy as doing a search on Google. You need the help of finance brokers to help you find the best loan products that meets you needs.

Having the word “broker” in “finance broker” means that these brokers would give you access to different lenders. Just like anything else, not all brokers are created alike, and there are those brokers that are definitely better than others. What you want to do is to compare the different offers by the different lenders.

By compare, we do mean that you take the time to do the math to determine which creditors offer the best interest rates and terms of their loans.

If you need a good agribusiness loan we suggest that you contact Oak Laurel.

Australia’s Big Four Lag Behind the Lenders Giving Rise to Mortgage Brokers

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Press release

Australia’s Big Four Lag Behind the Lenders Giving Rise to Mortgage Brokers

According to the latest research, the four major banks of Australia are lagging behind the lenders, in terms of providing satisfaction to the home loan customers. The survey conducted by Roy Morgan’s Single Source suggested that the satisfaction level provided by the leading banks of Australia that is NAB, Commonwealth Bank, ANZ and Westpac was 80% from March 2015 to September 2015.

The fact has also led many Australians turn to mortgage brokers to fulfill their lending needs. Often, the lack of knowledge causes the customers to make wrong property choices and that is when Mortgage brokers come into picture.

The survey also revealed that the next seven leading banks had a satisfaction level of 85% as well as ING Direct and ME Bank were leading in home loan customer satisfaction. Since Mortgage Brokers keep themselves updated with such information and tie up with the leading lenders, it helps the customers to choose the best mortgage property for them.

The bank with best level of customer satisfaction was reported to be ME Bank, with a percentage of 92.8%, ING Direct stood at 92.7% while SA held a satisfaction level of 88.7%.

CBA was leading the big four with 82.0% while Westpac received 80.8%. ANZ provided a satisfaction level of 77.5% and NAB stood at 78.9%. In spite of reducing the home loan rates, the banks saw a decreasing level of satisfaction in their home loan customers as compared to the non-home loan customers.

The above mentioned survey results and even the recent study done by Mortgage and Finance Association of Australia (MFAA) which stated that more number of Australians are turning to Mortgage brokers for their property lending needs.

However, it becomes highly important for the customers to choose the right mortgage broker considering all the parameters such as lending partners and previous records. Choosing a good mortgage broker allows the user to be in touch with the right lending partner that can offer them best cost and avoid any loss.

Norman Morris, the director of Roy Morgan Research industry communications mentioned in his statement that there might be a rise in home loan rates and it’ll become important to track the response of mortgage customers about the same. The fact may affect the satisfaction and reliability levels of the bank.

The customers are mainly drawn to the brokers who have access to a large panel of lenders so that the user can have a better choice.

Independent mortgage broker such as Oak Laurel provides mortgage services in Australia’s major cities Canberra, Sydney, Brisbane, and Adelaide to guide borrowers from or outside Australia.

Mortgage Brokers Can Help You Find Alternatives For Financing Your Property

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Mortgage Brokers Can Help You Find Alternatives For Financing Your Property

Most Australians looking to purchase or build a home, financing it is probably the first hurdle that they need to complete.  Should you do enough research about your finance options you will see that there is a huge range of loan options available on the market. Selecting the best one for your situation and needs can be difficult. This is where a mortgage broker can help to provide advice about the different loan options.

You could always talk to the person at your bank branch but they can only sell you loan product that their bank offers. Furthermore, the person at your local bank branch will probably tell you that the loan products that their bank offers are the best as will all the staff at the other banks. Obviously they can’t all have the best home loan. This is where a mortgage broker can be of great assistance to cut through the marketing and help you to compare loans that directly relate to your situation.

A good mortgage broker will have many lenders on their panel including banks and non-bank lenders. This way they can provide you with lots of different options to choose from and can use their expertise and systems to recommend which loans will be good for your situation and needs.

A good mortgage broker will often use some software that can compare options that meet your needs and display them according to price so that you can be offered loans that meet your needs and have competitive interest rates and fee packages.

A mortgage broker can also save you time compared to dealing with the different banks and lenders directly. This is because you will only need to provide your details and needs once to the broker instead of again and again to each bank and lender.

When you use a mortgage broker, you need to be clear about your situation and objectives. Your mortgage broker can then provide you with an indication of your borrowing power, deposit required, and ultimately the details of the different loans that you will be able to get.

You need to make sure that the broker you use is appropriately experienced and licensed. Most lending institutions will only deal with people who have the professional requirements such as qualifications, registration to work as a broker.

There is a significant amount of documents you will need to provide or complete to qualify for a loan. Good mortgage brokers are very familiar with the procedures of the different banks and other lenders. A good broker will supply you with a list of which documents you will be required to complete and provide.

Mortgage brokers often get their compensation from lenders through a commission. However, the better mortgage broker may also charge a fee for their service. This should be set out up front so that you know what you will be up for.

 

Low documentation home loans

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Low documentation home loans

Are you self employed? Self employed people can often have difficulty in providing all of the documents required in order to prove their income to the satisfaction of the bank or lender. This can mean that self employed people without the required documents are unable to get a full doc loan but may be able to get a low documentation loan.

This can be a distinct advantage for those self employed people that don’t have the required documents but still want to get a home loan. This can be an advantage especially in a rising property market when prices rise quicker than incomes or people ability to save for the deposit.

Low doc home loans can also be useful for self employed people that have a variable income or have had a unusually low income in the latest year. If the latest year’s income will not accurately income and a low doc home loan can enable self employed people to get the home loan they need. Low doc loans are usually more expensive than full documentation loans. However, despite being slightly more expensive low doc loan can be obtained earlier (before full docs are available). When the full docs are available the borrower can upgrade to a full doc loan and have their loan interest rate and cost reduced.

If you are self employed a low doc home loan may be a useful option. However, if you are able to get a full doc home loan this is often the better option because they can be cheaper. Check with a good mortgage broker to see what your options are and what type of loan is suitable for you!

 

Did you know that low doc loans are also available for business purposes? Businesses that do not have the required income documentation may also be able to get a loan. Similarly to loan doc home loans, low doc business loans can be more expensive than full doc business loans.

 

Bad Credit Home Loans

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Bad Credit Home Loans 

Bad credit home loans are for people with:
  • Poor credit history
  • Mortgage arrears
  • Rental arrears
  • Loan defaults
  • Adverse court judgments
  • Discharged bankruptcy
  • Part 9 agreements
  • Part 10 agreements
  • Payment arrangements
Bad credit home loans are also known as:
  • Bad credit loans
  • Bad credit mortgages
  • Bad credit history home loans
  • Credit impaired home loans
  • Credit impaired mortgages
  • Non-conforming home loans
  • Non-conforming mortgages
  • Specialist loans

Who can get a bad credit home loan?


Bad credit history home loans are typically for people who have had unfortunate events such as a relationship breakup, divorce, lossed their job, had an injury, had a business failure or some other loss of income or assets which has resulted in adverse records on their credit file.

In many cases there is a valid reason why you have bad credit.


Bad credit home loans are generally for borrowers who may have:

  • Adverse credit history
  • Existing home loan arrears or defaults
  • Credit card arrears or defaults
  • Personal loan arrears or defaults
  • Too many debts and are finding it difficult to consolidate
  • Been declined by another lender

Bad credit home loan types

  • Home loan with a small paid default
  • Home loan with more than one small paid default
  • Home loan with moderate paid defaults
  • Home loan with large paid defaults
  • Home loan with unpaid defaults
  • Home loan with judgements or court writs
  • Home loan with a part 9 agreement
  • Home loan with discharged bankruptcy
  • Low Doc Bad Credit Home Loans
  • Bad credit consolidation loan

Helpful information for bad credit home loan applicants

Specialist lenders for bad credit

Oak Laurel mortgage brokers know specialist bad credit lenders that are much more flexible than the major banks and many other lenders.

However, the interest rates that are offered reflect the risk to the lender. Therefore, if the lender assesses you as higher risk they will charge you a higher interest rate.

Specialist lenders will assess your bad credit home loan application on a case by case basis and consider your explanation about why you have bad credit and why you need debt relief.

These lenders can often rapidly approve bad credit home loans to meet deadlines from your creditors.

How are bad credit home loans assessed?

Bad credit home loans are assessed on a case by case basis by specialist lenders.

The worse your credit history, the higher the risk the lender will consider you and more limited your options will be and the higher interest rates will be.


Typically, bad credit home loans are priced based on:

How long ago the credit defaults were listed on your credit file / credit report. The more recent the credit problems the worse it looks to the lender.

If you have paid, settled or unpaid defaults/judgments at the time of application. The lender will look more favorably on your application if you have paid rather than unpaid defaults.

The type of the defaults of judgments. Generally phone bills, power bills, water bills, gas bills or other utility related defaults are less severe than bank or financial institution related default listings.


The proportion of the property value (loan to value ratio – LVR) that you are applying to borrow. If the proportion of property value that you are applying to borrow is low it is lower risk for the lender and the interest rate is also typically lower.

Your income situation. Applicants with proof of sufficient income are considered lower risk. If you have stable employment and can provide sufficient evidence (such as pay slips and group certificates) you will be considered as lower risk and receive a lower interest rate all other things being equal. If you are self-employment without the required financials you will be considered higher risk and be charged a higher interest rate all other things being equal.How are bad credit home loans assessed?

 

Home loans

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Home loans

The amount you can borrow will depend on your circumstances including:

 Your income(s)

 The amount of your other loan repayments and other commitments

 The amount of the deposit (cash or equity) you have

 Your eligibility for any grants or rebates such as the First Home Owner Grant or Stamp Duty Concessions

 It is also important that you are able to repay the loan comfortably, even when interest rates (and your repayments) increase in the future.

The interest rate you will be able to get will depend on your circumstances and the loan you choose. Different lenders have different interest rates and they will assess your income and ability to repay the loan when considering your loan application. You will be able to get the amount of loan approved by the lenders. ‘Low doc loan’ which has a higher interest rate is needed for self-employed and unable to supply all of the regular documents required. Generally, the large the amount you borrow the lower the interest rate. A mortgage broker at Oak Laurel can assess which ones have good interest rates and which lenders can approve your loan application. It is difficult to determine a single cheapest home loan. Depending on your situation and how you manage your fund means that using some features may make a loan cheaper. If you have a guarantor with a property you may not need a deposit. If you do not have a guarantor, you will either need cash deposit or provide equity from another property as security. If you are borrowing more than 80% Loan to Value Ratio most lenders will require you to pay Lenders Mortgage Insurance. Lenders mortgage insurance can be a costly expense if your deposit is very small your loan is large. You may also be able to borrow the funds for the lenders mortgage insurance. Most lenders require that you show genuine savings for loans above 80% loan to value ratios. Some lenders do not require you to show genuine saving below 90% loan to value ratios. Genuine saving are funds that you can show that you saved rather than received as a gift. Lenders will require you to provide documentary evidence about your income, employment, liabilities, genuine savings (when you have a loan to value greater than 80%) and property details. They will also need to check your credit file. Each lender have their own criteria for assessing home loan applications. However, all lender base their assessment on four main criteria.

 Serviceability – can you afford to repay the loan, not just at today’s interest rates but when interest rates increase in the future? This considers your income, liabilities (other loan repayments) and other expenses.

 Employment and residential stability. This is things like how long you have been in your current job and or industry or residence. If you have switched jobs and industries and moved around a lot this may concern lenders.

 The amount of deposit that you will contribute. The greater the deposit (equity may be used in place of cash for a deposit) you provide the lower the risk to the lender.

 The security that you provide (the property that the mortgage is over) will influence the minimum amount of deposit that you contribute. Some properties are considered high risk than others. A well located residential property in a capital city will be considered lower risk and easier to sell quickly than a property in a rural area.

See mortgage broker bargains

 

Property development finance

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Australia’s population is growing at a fast pace

With the population of Australia growing and the demand for housing (and other properties) often outstripping supply, the construction of more housing is required to meet Australia’s need.

So what is the solution? It is obvious really, we need more development. We need private individuals or companies/entities to develop or re-develop Australia’s landscape to accommodate our growing population and demand for property.

Making a property development project happen

You may be a smart operator and have identified some real development opportunities but unless you are already super rich you are going to need finance to make your project happen. This can be where some would be developers and even experienced developers come unstuck leaving their potential project as just a dream or worse (potentially much worse) if they committed without securing the finance in advance.

Getting property development finance approved

Getting your property development funding approved does not have to be a problem if the project has real merit. However, banks and other lenders can be extremely risk averse if there are some unresolved problems and end up rejecting your proposal or giving you conditions that you just can’t meet.

So what is the solution? Using an finance broker with experience getting development project finance approved can be a valuable asset to your team of property development professionals (along with your architect, builder, lawyer, project manager etc..).

Want to know more about the factors that impact on funding approvals?

Find out how to get your property development approved.

Do you have a development project that you need to finance?

Contact a property development finance broker.

Concerned about vertical integrated mortgage brokers

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This post appeared first on Oak Laurel.

Concerns about mortgage brokers in a submission to the parliamentary inquiry

The Customer Owned Banking Association (COBA) has raised concerns about mortgage brokers in its submission to the parliamentary inquiry into home ownership. The Customer Owned Banking Association’s raised a number of issues including potential for consumers to misunderstand broker limitations in terms of lenders and products offered, the obligations of the broker when offering loans to the customer and a lack of disclosure regarding if the mortgage broker is vertical integrated with a bank.

According to the Mortgage and Finance Association of Australia (MFAA), aggregation/mortgage broker groups that are owned totally or substantially, by the big 4 banks,  comprise an estimate of 40% of all mortgage brokers. The COBA has opposed vertical integration of mortgage broker groups with banks, strongly and repeatedly in the past.

You are right to be concerned about mortgage brokers being owned by the banks and lenders (vertical integration). Many of which have access to only a limited number of lenders and loan products, which may result in customers being directed to their owner’s (Banks) home loan products. Consumers want to visit a mortgage broker so that you can select from a wide range of lenders and loan products. If consumers wanted to go to a Bank and and over pay, then they don’t need to go to a bank owned mortgage broker, just be be fed that bank’s products. Consumers expect that a mortgage broker is owned independently from the bank.

  • Oak Laurel mortgage brokers are NOT owned by a big bank or other lender.

  • Oak Laurel are mortgage brokers independently owned from the big banks.

  • Oak Laurel are family owned mortgage brokers!

 

This post appeared first on Oak Laurel.