Lenders and mortgage brokers, like Tundra Mortgage Brokers are still open for business during this coronavirus. Your mortgage broker will still be able to find a loan product and lender that suits your needs and situation. Some lenders are being a little more cautious and monitoring some industries which may be currently impacted by COVID 19. Macquarie Bank, for example have identified a number of industries that they are more closely monitoring; Tourism Transportation Hospitality Retail Sports, arts and recreation If your occupation is included in one of the above industries, the credit assessors will be confirming your employment and income directly with your employer, and they will be requesting payslips that are no older than 14 days. If you do not fit one of the above industry normal lending regulations will apply. Other lenders are likely to move in a similar way to Macquarie Bank, for the above-mentioned industries as responsible lending practices apply and these industries have been the hardest hit with social isolation. Using a Mortgage Broker – Any Changes? One of the major changes to application processes from lenders due to social isolation, has been the way that mortgage brokers verify identification. Prior to COVID-19, a… [Read More]
First Home Loan Deposit Scheme 2020
The First Home Loan Deposit Scheme (FHLDS) is an initiative of the Australian Government to help first home buyers realise their property dreams. The costs of buying a property in Australia can add up, and trying to save for a deposit can be a tall order. The scheme will be supporting up to 10,000 guaranteed loans per financial year from 1st of January 2020. The Australian Government understands these difficulties and is offering eligible first home buyers the opportunity to purchase a property with only 5% deposit. Normally, as a buyer, if you only had a deposit of 5%, you would be required to pay lenders mortgage insurance (LMI). LMI is a one-off insurance payment to protect the lender in the event you default on your loan. Under the FHLDS, eligible first home buyers could save $10,000+ in LMI fees charged by the bank. From the 1st of January 2020 the NAB and CBA will be offering guarantee loans to eligible first home buyers. From 1st of February 2020, 25 non-bank lenders will also be offering guarantee loans under the FHLDS. Who is Eligible for the Home Loan Scheme? First home buyers will need to satisfy a number of criteria… [Read More]
Conditional Loan Approval – The Smart 1st Step
The Ins and Outs of Conditional Approval There are plenty of people out there that dive in at the deep end, find a property that they’d like to buy without any consideration for their financial potential and then end up getting rejected for a mortgage. And then there are those that prefer to do things a little more intuitively; by applying for what most inside experts refer to as conditional approval. With it, you’ll have a much clearer idea of what you can borrow from a lender – or more importantly, how much you can afford to repay. And without it, you could be going into the property purchasing process near-blind. Sure, a mortgage calculator can give you an idea of your borrowing potential; especially if you take advantage of their features to get a rough idea of your financial capabilities, but there’s nothing quite as reassuring as knowing that once you’re ready to buy, your lender is 1 step closer to full approval. Is it a guarantee? The clue is in the name really. Conditional approval is technically approval; as long as your lender’s conditions are met. Provided the conditions are met, it is like being given the go… [Read More]
The Ultimate Introduction to Mortgage Brokers
Your Ultimate Introduction to Mortgage Brokers Mortgage brokers, home loan agents and interest rate comparison experts are typically all one and the same. In most cases, they act as somewhat of a ‘middle-man’ between you (as a borrower) and the lender. They collate information, compare interest rates and perform application-related tasks to help their clients secure the right type of loan for their needs. Do mortgage brokers charge? Yes and no. Yes, if they work independently and outside of the commission-based protocols offered by banks. No, if they work with specific lenders that pay them commission each time they bring a new borrower on board. What is a mortgage broker job description? In a nutshell, there are two specific descriptions for these types of home loan specialists. The first relates to independent brokers that offer mortgage comparison services at a cost. The second relates to commission-based agents that charge the bank a percentage of your loan if you sign up to a fresh mortgage. Roughly 35% of all new mortgages were handled by brokers in 2008 alone. What are independent mortgage brokers exactly? Generally speaking, an independent agent is anyone that works outside of the rules and regulations of an… [Read More]
How Frequently Do Interest Rates Change?
If you’re currently in the process of applying for a mortgage, you’ve undoubtedly come face to face with the concept of interest rates. These additional fees are what banks rely on to provide them with a return on their investment. In 1990 the percentage was at a whopping 17.5% – the highest amount to have hit Australian banks in history. There are a dozen of factors that can affect the way in which rates rise and fall; from the current state of the economy, to investments from third parties and external sources. But just how often do they change and is there a way to predict whether they will increase, or decrease? Financial experts and their views on rates For years now, financial advisors and mortgage brokers have been studying the rate market in an effort to learn how they can climb and drop. Over the years, many have learnt how to recognise the subtle signs that are often followed by a change in rates – and this is why we always advise our clients to obtain as much information as possible before agreeing to terms. So, how frequently can you expect these rates to change? Well, it all comes… [Read More]
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