mortgage broker Archives

When you need a home loan for your first home or your investment properties, there are a lot of options out there, you could save yourself thousands of dollars by shopping for various lenders your mortgage needs. But this is hard for most people to choose. Which bank? Which product? Or would other building societies and credit unions more suitable for your situation? Of course, you can go to each bank and deal directly with bankers and compare yourself. But the fact that mortgage brokers do more than half of all Australian mortgages.

So why do you actually need a mortgage broker?

A finance broker negotiates with banks, credit unions and other credit providers on your behalf to arrange loans. A mortgage broker is someone specializes in home loans. They will collect your information such as incomes, the habit of expense, debt situation, credit score info, etc. to work out the best for you.

Brokers give you more choice
- In contrast with the bank loan officer, who can only offer their own products, a broker has a panel of lender and many products to choose from and they will only apply with a lender that more likely to approve your loan with the feature you want to have.
- You can avoid getting unnecessary credit enquiries listed on your credit file when you apply for home loans that you don’t qualify for.
Brokers are credit experts
- In complex situations, bank staff sometimes take a long time to process your application but you end up get declined for no good reason. However, a mortgage broker can identify policy exceptions and even negotiate policy exceptions with the credit officer assessing your applications because of the strong relationships they have with the lender.
- Mortgage brokers are able to work with each individual client, evaluate their specific needs and find a lender that suits them personally. On top of that, mortgage brokers are also able to discuss a lower interest rate from lenders in trade for bringing in business.
It ‘s easier and faster
- Communicating with a credit officer to provide further evidence they may need to assess your application
- Liaising with valuers, solicitors, and even the real estate agent in case you buy an investment property or at auction, to ensure a smooth application process.
- Broker to be your one point of contact across the entire process and staying contact at each stage of the process so you know what is going on.

Generally, when you take out a home loan, you have options to choose: a fixed interest rate or a variable interest rate.

Fixed home loans have an interest rate that is fixed for a set period of time, typically 1, 3 or 5 years. At the end of the fixed-rate term, the loan will usually switch to the standard variable rate offered by the lender. The main advantages of fixing rate are rate increase would not affect your monthly repayment and it is easier to manage your budget and set up financial goals as the repayment is a certain amount.

But some drawbacks with fixing your loan are:

You won’t benefit from a drop in interest rate if the variable rate is lower than your fixed rate.
Most banks will set a limit on extra repayment amount you can make.
A redraw facility may not be offered on a fixed-rate loan.
Break fees – when you change or pay off your loan within the fixed-rate period

Variable-rate, in contrast, gives you some flexibilities when you change financial plans or so. Some main advantages of variable home loan:

You can make extra repayment as much as you want at no extra cost, which can save you interest and you can pay off the loan sooner
More features: redraw facility, an offset account
More flexible: you can easily switch loans to other product or lenders when you find a much better deal elsewhere

However, disadvantages of variable loan should consider are the facts it is harder to make budgeting as the rate can increase and you may struggle with repayment increase unpredictable.

Can’t decide? A splitting loan is a good compromise

Another option you may think of is having a part fixed and another variable interest loan. The split loan allows you to not only to minimize the risk of an interest rate increase but also give you more flexibility to make extra repayments. And you can choose how to split the loan, i.e 50/50 or 30/70. By doing this, you can both manage to budget and have benefited from features like redraw, offset account and reduce the break fees when you change your financial plan.

Hans is the most passionate and dedicated person to his work that I have ever had the wonderful opportunity to meet. He strives above and beyond to achieve the best possible outcome for his clients. He always finds the time to make himself available without hesitation and his bubbly personality and exciting nature will bring a smile to your face

YOLANDA christodoulou

I've had the pleasure of using Uniik Finance for many of my purchases, Hans' is always fantastic. He knows the business very well, he's very thorough and diligent to make sure a successful loan and settlement. Highly recommended.

D Dang

What can I possibly say about Hans And my experience with him!
Extremely competitive ,Professional and efficient
I recently refinanced my home loans where Uniik finance who did all the hard work of finding the best possible loan for my circumstances , when I realised my interest rate had become really uncompetitive due to my old lender not passing through rate cuts and even increasing my rates by small bits here and there over the years. By getting Hans to look into my portfolio and moving me to another loan provider who was able to reduce my rate from well above 6% to just 3.82 %, which adds up to a lot of dollars saved every year. The initial application with with Uniik finance was very easy.
There was no hassle and the time involved was well worth the savings!
Hans has been great to deal with, both through the application and with day to day stuff.Thank you again
Highly recommended.

Mena Abdelmessih

Why you do need a mortgage broker?

Tag: mortgage broker

Why you do need a mortgage broker?

So why do you actually need a mortgage broker?

Variable rate vs Fixed rate home loan