In the wake of 13 consecutive cash rate hikes through 2022 and 2023, many aspiring homeowners and current mortgage holders have been left feeling uncertain.
You might be concerned about whether your dream of owning a home has been temporarily derailed. Perhaps you’re questioning how competitive your current interest rate is, or what steps to take towards your property investment goals.
In such times, having a skilled professional by your side is invaluable. Mortgage brokers are equipped to guide you through your property journey, amidst the current market conditions. Here are several questions that we encourage
you to ask us.
1) Why should I use a mortgage broker?
Our role extends beyond connecting you with lenders, ofering insights beyond loan processing.
Are you a first-time buyer? We can explain the kinds of government assistance, grants or concessions you may
be eligible for (like the First home owner grant, the First home super saver scheme, or the Home guarantee
scheme).
Interested in refinancing? We can compare the market for you, assess if your current mortgage still serves your
best interest and explain whether refinancing may be financially worthwhile.
Want to use your equity to buy an investment property? We can assist with that too.
Need funds for upgrades? We can arrange finance for things like renovations so that you can potentially add
value to your property and/or create your dream home.
2) How much am I eligible to borrow?
Your borrowing capacity is influenced by various elements including your deposit, savings history, income, expenses, equity, and credit score.
Some banks have previously revised their lending criteria to minimise high-risk lending, impacting how much you can borrow. It’s important to speak to us to get a clear picture of your borrowing capacity.
3) Is now the right time to buy a property?
Whether you should buy now depends on your specific financial situation and goals. While some may benefit from
current opportunities, others might find it better to wait. Let’s discuss what’s aligned with your current situation.
4) Should I consider fixing my loan rate given the market conditions?
Choosing between fixed and variable rates is a personal decision, influenced by your financial goals and market
outlook.
Locking in a fixed rate might seem appealing for budgeting your repayments. However, this decision should be made with a clear understanding of the terms, including potential limitations and fees for early exit.
5) How do I use my equity to buy an investment property?
If your home’s value has gone up or you’ve paid down what you owe on it, you might be able to refinance and use
that equity to fund purchases such as an investment property.
Let’s say your house is worth $850,000 and you’ve got $420,000 left on the mortgage. That gives you $430,000 in
equity.
You can use that equity as security to borrow for things such as renovating your home, or even a new car. Banks typically let you borrow up to 80% of your home’s value, less the debt you’ve still got on it (this is your “useable equity”). You may be able to borrow more if you take out Lenders’ Mortgage Insurance.
6) How does bridging finance work?
Bridging finance might be a suitable option if you’re in the process of buying a new property while awaiting the sale of your existing residence. It can also provide funding to construct a new home while you reside in your current home.
This form of short-term borrowing supplements your main mortgage and is generally structured as interest-only until your property is sold and the principal can be repaid in full.
While bridging finance can provide the flexibility to purchase your next property without the need to align settlement dates precisely, it’s crucial to consider the associated costs. We can discuss whether this option is right for you, or we may suggest alternatives.
Got more questions?
It’s normal to have questions or feel a bit cautious as part of your home loan journey. But you don’t have to sort it all out on your own.
We’re here to support you and clear up any questions you’ve got. Please contact us for assistance.
The material on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained on this website is General Advice and does not take into account any person's particular investment objectives, financial situation and particular needs. Before making an investment decision based on this advice you should consider, with or without the assistance of a securities adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. In addition, the examples provided on this website are provided for illustrative purposes only. Although every effort has been made to verify the accuracy of the information contained on this website, Infocus, its officers, representatives, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this website or any loss or damage suffered by any person directly or indirectly through relying on this information.