Finding A Mortgage Product to Suit You

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In this blog we talk about some excellent tips for people looking for the right mortgage product and then reducing it quickly – what to look for and what to be aware of.

For most Australians the largest financial commitment ever undertaken is their home mortgage. The prime objective of many is to pay it off as soon as possible, particularly as the interest is not tax-deductible.

There are so many options attached to mortgage deals that selecting the one for your personal circumstances is the first consideration. Will you benefit from extra features such as a redraw facility; mortgage offset account or a line of credit? Or should you go for a basic “no-frills” loan and make additional payments whenever you can?

What is now becoming more and more prominent is the advantage of sourcing your next home loan through your local mortgage broker. There are a number of reasons for this: In 2017, mortgage brokers helped Australians secure finance for more than half of all home loans, more than half a million home loans to be exact.

And, over the last five years, mortgage brokers have moderated the dominance of the major lenders and increased competition by concluding an increased proportion of their business with lenders other than the Major Banks and their affiliates – which is great news for you!

We’ve also included some general, key tips for making the right decisions and taking control of your mortgage:

  • Shop around for the best possible interest rate. Even though rates are historically low, interest is the single largest cost.
  • If you want special features, look for a lower interest loan that offers what you want. Paying a higher rate for a loan with features you do not fully use may end up costing more in the long run.
  • Always work with a professional who has your best interests in mind and is driven by your specific needs, such as your local broker.
  • Ask if your current lender can match the best deal you have been offered or offer you a better loan than your current one.
  • If you decide to refinance, calculate the account fees and costs associated: application fees, stamp duty, valuation and legal fees and make sure you’ll be better off.
  • Make extra payments whenever you can and consider weekly or fortnightly repayments instead of monthly. This is particularly important in the early years of the loan when repayments are attributed more to interest.

Selecting the right mortgage and payment method may make thousands of dollars difference to your wealth in future years, so carefully assess your needs and seek professional advice at the beginning from your local broker. It will save you time and money.

The team at Tanti Financial Services has been servicing the local community in achieving their dream of buying a home for over 30 years, and you’re no different. If you have any questions, or would like to talk with one of our mortgage brokers, you can contact our office on (02) 4735 6644 or send your enquiry to admin@tantifs.com.

Sources: MFAA IIS Report 5th edn., produced by CoreLogic

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