Mortgage brokers are professionals in the finance industry. They work with you to determine your needs and objectives and how much you can borrow. Brokers help to ensure that you don’t take out a loan that is not right for you.
Like your solicitor, accountant or financial planner, we are specialists in what we do and will provide you with the right solutions.
Brokers have access to a wide variety of lenders. This means our broker can find a loan that’s just right for you.
Lenders will only sell you their own products. Each bank (or lender) has various loan options – low doc, package loans, re-draw facilities, plant and equipment loans, fixed, interest only, interested in advance, variable, introductory variable… the issues you face as a consumer is ‘which loan is right for me?’ And that is where a mortgage broker comes in. If you go direct to the bank, you will only be offered the loan options available through that one lender.
At SP Mortgages, we are across many lenders and all of their loan products and our sole purpose is to find the right loan for your needs. We do all the leg work to save you time and money by finding a loan product that suits your requirement out of competitive market. We understand your personal circumstances and then show you the most favourable options from a wide variety of loan products and options
We conduct all research for you and once you have decided on the loan, we complete your application, communicate with the lender on your behalf and handle all the detail right through to settlement. We take the full stress out of you until your loan is approved.
We can help you to structure your loan to achieve the competitive rate of approval and to have the right ongoing result for your needs.
Some mortgage brokers charge a fee for their services and some don’t. When you take out a loan via a Mortgage Broker – it does not cost you more. Brokers get paid commission by the lender for bringing new business to them, this does not impact your interest rate or level of service.
Some brokers charge a fee for their service. They must disclose this fee upfront to you, so you know what you will be up for if you engage their services.
At SP Mortgages, we do not charge client any fees.
We are Connective Brokers. This means that we have access to many lenders that we hold accreditations with. This means we can source you a loan from a variety of lenders to provide you with options that are suitable for you and your situation.
Our top lenders which we generally conduct our most business with are ANZ, CBA, Bankwest, Nab, St. George, Westpac and AMP.
First of all, there is very little difference between the commissions paid by the various lenders. There is also legislation in our industry, called the National Consumer Credit Protection Act (or NCCP), that is designed to protect consumers and ensure ethical and professional standards in the finance industry. We tell you upfront what commission we will be getting from the lender. Our job, our only job, is to find a competitive loan for your needs and objectives.
Sure thing! We are mobile brokers, so we can come to you!
The Reserve Bank of Australia meet on the first Tuesday every month to determine the official cash rate for the country. The lenders then use this information to set their own rates. Mortgage brokers do not set rates
First Home Buyers
Buying a first property can be overwhelming process. First home buyers can face uncertainty over how to apply for a home loan, how to get approved, the government grants they might be eligible for and where they should look to buy.
Don’t worry. Consider contacting us, we are solution to all your question and concern. We can explain you all the detail and help you with process and it is NO cost to you because we are paid by lender.
There are specific factors that need to be considered when determining how much a customer can borrow, such as income, employment position, the deposit saved, current living expenses and any liabilities.
Give us a call and we can go into your options in more detail, or check out the loan calculator page of our site.
We use our sophisticated calculator that is designed to provide borrower an accurate indication of their borrowing power based on individual lender. However, it is not a commitment from the bank to lend money based on this letter.
To calculate, we consider your annual income, monthly expenses, type of loan and current interest rate, repayment type (principal or principal and interest), the loan term and estimated repayments.
Pre-approval is when a lender approves an amount for you to borrow after assessing your financial situation, and having this seal of approval in place can be huge advantage when time comes to find the perfect home.
Why you should obtain:
- Shows real-estate agent you are a serious buyer and you get a better choice of properties
- Shows certainty to seller that you are eligible to get finance means you get a better deal
- You will not waste time looking at homes you can’t afford because pre-approvals will give you better idea of what are within your price range
- Pre-approval is vital to have before bidding at auction
*Pre-approval letter is an indication from the lender only and is not a guarantee that you will get a loan.
Generally, it is 5 to 10% deposit of purchase price for an owner occupier. If you are an investor, you will require 10% of the purchase price, although it is possible to purchase with less.
In addition to purchase price, there are a number of fees and charges you should factor into your budget when buying a home or investment property. Furthermore, lenders require mortgage loan insurance for loans made to anyone that wishes to purchase a home with less than 20% of the purchase price
Many lenders have introduced genuine savings mandatory policy for everyone that applies for a home loan. It is a saving held or accumulated over 3 months, term deposit held for 3 months, shares or managed funds held for 3 months or an equity in real estate (varies based on the lender).
What isn’t genuine savings?
The lender is interested to see that you have planned and saved deposit yourself because this demonstrates to them you are likely to be a good borrower.
Having money in your saving account isn’t enough! If the savings relate to following source- they do not considered to be genuine.
- Savings plans
- Tax refunds
- Proceeded from sale of your car or other assets
- Funds held in business account
- Any borrowed funds e.g personal loan
- Developer’s or builder’s rebates/incentives
The cooling off period is the time between when you have had your offer to purchase a property accepted and the time you actually exchange the contracts. The period is usually 5 – 10 days and is negotiable between your solicitor and the solicitor of the vendor.
Once your offer is accepted you will be asked to pay non-refundable deposit of around 0.25% of the purchase price.
You pay 10% deposit (excluding any holding deposit already paid – 0.25%) at the end of cooling off period when your finance has been unconditionally approved and your solicitor has conducted all the necessary searches.
The FHOG is a government approach to assist eligible first home owners to purchase a new home. This is form of cash adds to your deposit and usually paid at the time of property settlement. For the eligibility, please visit Office of State Revenue website www.osr.nsw.gov.au
Stamp duty is a state government tax paid on the purchase of land or a property in Australia. Ask our loan expert to calculate how much stamp duty you will have to pay on a property OR use our stamp duty calculator.
Fixed rate does not change during the term of the loan, so your repayments will remain same. You will know what exactly you need to pay each month and be protected from any increase in interest rates.
Variable rate may go up and down during the term of the loan. You can make early or additional repayments at any time at no extra cost. You can also access any additional repayments if you need to (fees may apply – varies by lender).
We will recommend a product based on what you say is most important to you – for example, “pay my loan off quickly” or “guaranteed repayments”. We do however, live by the following; “if you want flexibility take a variable rate loan, if you want budget certainty take a fixed rate loan, if you want both, then do both.”
We believe you should have below 5 features in your checklist if you are taking your first mortgage.
- Redraw Facility
This facility allows you to withdraw additional repayments that you have already put towards your loan. It provides you flexibility to put as much extra money as you like towards your loan, with the peace of mind in knowing you can access it at any time. So, for those budget conscious home buyers, this is a great facility to consider because it enables you to pay less interest over the life of the loan.
- Low Rate
Whether you are purchasing a home as an investment or a residential property, a low interest rate will see you pay less towards repayment, reducing the time required to pay off your loan and the total interest you will repay.
- No Ongoing Fees
No extra for account-keeping fees are a great option for first home buyers. This is because they reduce the cost of your loan while often providing competitive rates that enable you to control your repayment.
- Low Discharge Fees
Discharge fee is charged upon full payment of the home loan or at the end of the loan. This fee is designed to cover the cost that lender will incur when you terminate your contract.
You must keep an eye for lender offering low or no discharge fees, as this will provide greater flexibility to switch between lenders should your situation change or should you find a more competitive offer.
- LMI Charge
Avoid paying high LMI or No LMI. The best way to avoid completely is to have savings 20% of the value of a property which is a difficult task for First Home buyers. It seems like an unrealistic option but aim for the higher savings which can reduce your LMI payment.
Loan Valuation Ratio (LVR) is the portion of money you intend to borrow compared to the value of the property. It determines the amount a lender will loan to you.
If your LVR is higher than 80% you are likely be required to pay Lenders Mortgage Insurance (LMI).
LMI is type of insurance that protects lender – NOT the borrower.
If in the event borrower can’t meet the loan repayment and the net proceeds of an enforced sale of the property not enough to cover the loan- the insurance will cover the gap for lender. Thus, LMI has no benefit to the borrower but it is a cost to the borrower to minimize lender’s risk.
The LMI charges vary based on the % of LVR.
Refinancing a mortgage means paying off an existing loan and replacing it with a new one. There are many common reasons why homeowners refinances.
- The opportunity to obtain a lower interest rate
- The chance to shorten the term of their loan
- The desire to convert from an adjustable rate mortgage to a fixed-rate mortgage or vice versa
- Opportunity to tap a home’s equity in order to finance a larger purchase
- Desire to consolidate debt
In a nutshell, refinancing can be a great financial move if it reduces your mortgage payment, shortens the term of your loan or helps you build equity more quickly. When used carefully, it can also be a valuable tool in getting your debt under control.
Investing in property offers many potential tax benefits, such as expenses associated with any investment property that is tenanted or available for rent as well as interest paid on your investment property loan.
It’s essential to get professional tax advice specific to your circumstances prior to making an investment. The cost of your tax advice and having your tax returns professionally prepared for an investment property is tax deductible.
The following expenses can normally be claimed on tax for your investment property:
Real Estate advertising for tenants
- Property management fees
- Accounting fees
- Borrowing costs ie: loan establishment & registrations fees as well as valuation fees
- Interest payments and ongoing loan fees
- Stationery, phone costs, book keeping fees
- Travel relating to the property
- Council rates, body corporate fees, land tax and strata fees
- Property maintenance & repairs
- Insurance premiums
- Pest control, cleaning and gardening
- Utilities that are paid by you ie: electricity, gas and water
- Depreciation of both the property and contents such as fridges, stoves & furniture
Positive gearing is where an investment earns more in rental income each year than it costs to own the property. As this profit is taxable, you will need to set funds aside to cover the tax you will be required to pay on your investment each year. Negative gearing is where the cost of owning a rental property is greater than the income earned from the property each year. This creates a taxable loss, which can be offset against other income like your wage or salary.
Car Loan/Equipment Finance
Yes, we can.
A standard car loan allows you to borrow a one-off lump sum and make regular set payments to pay it back. The vehicle being purchased is used as security for the loan, which means that if you default on your loan repayments your car can be seized. The interest rates on a secured loan are lower than the rates for a personal loan or credit card.