mortgage broker Maroochydore

Buying Property In Maroochydore? Work With Sunshine Coast Financial Solutions

A recent study found that mortgage brokers settled 59% of all residential properties in June 2021. Let’s take a look at the reasons why more property buyers are choosing mortgage brokers in Maroochydore, especially when purchasing in the area.

What makes mortgage brokers different from lenders?

A Mortgage Broker is a specialist in property loans and acts as a matchmaker between a borrower and a lender. A broker is paid a commission by the lender for settlements of loans and this is not passed on to you, the borrower. If a broker fails to act in their client’s best interest, they can face fines up to $1 million.

A mortgage broker works with lenders and banks to arrange home loans, and usually deals in other types of loans as well. When suggesting a loan to you, mortgage brokers should act in your best interests.

A good mortgage broker in Maroochydore can work with you to:

  • Learn about your goals and requirements.
  • Determine how much money you are able to borrow.
  • Explain how each loan works and any fees involved.
  • Submit your home loan application and manage the process of settlement.
  • Help in refinancing your existing home loans.

What is the difference between a direct lender and a broker?

A borrower may also contact a lender directly, but a lender only gives you access to what they have to offer. They are not legally obligated to work in your best interest. And they certainly will not tell you about a better offer with another lender. 

Benefits of working with a mortgage broker in Maroochydore

  • Wider product range: Mortgage brokers have access to no less than 20-30 lenders and a range of 1000-2000 products. This allows you to access a much wider selection of products than restricted portfolios.
  • A better product match: Mortgage brokers work with many different borrowers, each with their own needs. These include someone with a strong credit history looking for the lowest rates or looking to refinance their mortgage, as well as someone who is self-employed or has limited deposit options. This combination of knowledge and access to a vast product selection will greatly increase your chances of finding the right home loan for you.
  • Convenience. Mortgage brokers allow you to access multiple products at once. They are also more flexible with work times as direct lenders are limited to their offices’ hours and locations.

Take into account your must-haves and nice-to-haves

Before you meet with a mortgage broker in Maroochydore, consider what is most important to you about a home mortgage. Do you just want the lowest interest loan? Do you need specific features like the ability to make extra payments or want an offset account?

It will make it easier to talk with your broker if you think about these things before your first appointment. You can make a list of:

  • The ‘must haves’ or the things you cannot do without
  • The ‘nice-to haves’ or what features you can be flexible on for the right overall loan

Questions you need to ask your mortgage broker

Mortgage brokers expect their clients to ask them questions. Here are some that might apply to your situation:

  • Do you offer loans from multiple lenders? What kind of lenders do your loans come from? What types of lenders can you not access?
  • How do you get paid for the services you provide? Is this different for each lender?
  • Why did you recommend this loan to me? Is this loan in my best interest?
  • What are the fees for taking out this loan?
  • What are the options and features included in this loan? Could you please show me how they function?
  • What effect do the fees and features have on the amount of my loan?
  • Could you please show me two more options, one with the lowest price?
  • What is the threshold for Lender’s Mortgage Insurance (LMI)? What can I do to avoid it?
  • Where can I find your previous client reviews?

Get your home buying process right from the start by working with a mortgage broker in Maroochydore today.

Mortgage terms you need to know

It can be exciting to buy your first property, but it can also prove confusing due to the jargon surrounding mortgage loans. Even for the most experienced homebuyer, understanding the structure of home loans in Australia can be confusing. However, for those who are just starting out, it can be very overwhelming. It’s good to know the basics so you can understand how home loans work in Australia and get your first loan. We have included the most common terms and what they mean below.

Stamp Duty

Stamp duty is a government tax on a property purchase and payment for the transfer of property from one owner or another. It depends on where the property is located, but you could be paying thousands of dollars in up-front costs. You can adjust the fee depending on whether your property is a purchase or an investment. However, most states offer concessions if you are a first-home buyer.

LVR = Loan to Value ratio

The loan to value ratio (LVR), is the percentage of your loan of the property’s Value. This number is used by lenders to assess your risk when lending money. Your lender will divide the value of your property by the amount you are able to borrow.

Lender’s Mortgage Insurance (LMI)

Lender’s Mortgage Insurance, or LMI, is used by the lender when your LVR is above 80% in order to protect lenders from possible default on the loan.

Interest Rates

When you borrow money to pay off a mortgage, you will be paying a percentage of the interest on that loan until it is fully paid off. When deciding on which type of loan to get, you can choose either a fixed-rate or variable-rate loan.

  • Variable-Rate Loan
    This is the most commonly used type of home loan. It means that your interest rates will fluctuate throughout the term of your mortgage depending upon the current rate of interest offered to you by your mortgage provider. While you might pay less interest some months, others may have higher monthly payments.
  • Fixed-Rate Loan
    A fixed-rate loan means that you have fixed interest rates, regardless of how the market changes. These rates are typically fixed for two to five years, after which they will revert back to a variable for the remainder of the term of your mortgage, unless you lock in another fixed rate term.

Transfer Account

An offset account can be a savings account linked to your home loan where these funds are used to reduce your home loan balance. You can’t attach an offset account to all home loans but your mortgage broker can advise you on which loans have offsets available when helping you select a home loan.

Our first home buying experts and mortgage brokers in Maroochydore will be happy to answer any questions you have about home loans.

We Are More Than Just Home Loan Mortgage Brokers In Maroochydore

As your most-trusted mortgage broker on the Sunshine Coast, we will be able to help you with more than just your mortgage.

If you are looking for:

  • cash loans
  • car finance or equipment loans
  • investment loans
  • self-managed super fund loans
  • commercial, construction or business loans

we can provide the right answer and the right loan for you.

Send us a message for all of your mortgage broker needs in Maroochydore and we’ll make sure you get the best advice every time. 

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