Here in Australia, we are known to be laid-back and fun-loving people. Despite our history and the tragedies that have struck in recent years, we always find a way to move on. The rest of the world (meaning the internet) always jokes about the Land Down Under is full of deadly creatures. However, this probably goes to show that Aussies can live anywhere and just survive.
This does not mean that we can just live in the bush or the outback in tents while the sky’s our roof. All families around the world want to have a home, and Aus families are no different. Unfortunately, this is not something that you can do anymore without a sustainable livelihood as you can read on this page. Even then, you cannot buy one in full so you need to find someone that can help you out. This is the reason why you might need to take out a mortgage loan to help with the purchase.
The Importance Of Loans
When it comes to mortgage, people are still rather confused as to how it truly works. It is rather simple, as with this example: you are a newlywed couple with a baby on the way. Aside from preparing for childbirth, you are also planning to buy a home, but it is not easy. Most houses these days will always fall on the higher hundred thousand levels. Unless you come from a rich family, you may not be able to afford it.
Mortgage brokers are your home loan experts and they are the ones who can assist you in buying the perfect home for your family. It might seem that they are only out of your money, but this is not true at all. Some so many people do not trust any kind of broker, even those that are not in the mortgage business. Some might have a negative experience with them, like being pushed to a poor deal for them to get a bigger commission.
On the other hand, it can be quite difficult to secure a loan without them. They are the intermediary to the provider so that they can also sell the property. As long as you find a legitimate broker, then you do not need to worry about being fooled by anyone. However, they do differ in a lot of things and finding the best is not as easy as you might think. You just need to research more regarding the choices that you will make during this transaction.
This is why you go to loan providers like banks and other entities: to make a purchase that is not in your budget yet. Taking out a loan means that you can already buy a house and move in after you have paid the down payment. Depending on the provider, the down payment is usually at least 20% of the total price of the property. The rest of the debt will be paid overtime with the interest going to the bank. After years of payment, you would be the sole owners of the property once you have finished paying the debt.
You can approach a bank or other loaning institutions on your own, but you may not have any idea on how it works yet. Some of them might even turn you down depending on what you show them. The job of the broker would be to assist you in sealing the deal and helping you have your dream home. This can increase the chances of getting the loan approved and landing a better deal as well.
Steps For Investigation
- Look For A Good Resource
When it comes to mortgage, it is important to do your research and arm yourself with knowledge. Reading more about the laws surrounding property ownership can help. You can also look around and see the options for companies offering this kind of service. For example, www.fidget.com.au explains what their services are all about on their website. This makes it easy for potential customers to see what they can do for their clients.
- Ask About Their Payment Scheme
Once you have already seen a company that you might like, look around their website and see if they provide information about how their brokers are paid. There are generally two types: Upfront and Trail Commission. Upfront gives the broker a percentage of the total loan, so the bigger it is the higher their payout. On the other hand, trail commission depends on the payment of the loaner and it trickles down after the down payment has been paid.
- Check Their Credentials And/Or Educational Background & Licenses
Here in Australia, there are two ways to be a legal broker: you can take the official Australian Credit License or you can have it through a credit representative. This is something that you can directly ask your broker once you have already met. Meanwhile, their educational background can also help you decide as most mortgage brokers should at least have a Certificate IV in Finance and Mortgage Broking.
- See Their Options For Lending Institutions
Another thing that you should always ask them is their options for lending companies. Most of them should have more options depending on what you need. Most of the prestigious companies have more than 20 or even 50 banking institutions that they can recommend to you. This way, you can also start comparing their loan programs like interest rates and amortizations. It can also help make your decision on where to spend your money.
- Investigate About Their Affiliations
If they have given you limited options, then it is time to ask about their affiliations. Some brokers can push you to a certain lending company because their owners might be working with the brokerage. This means that they would probably have the better end of the deal, while you are the one who is going to face the issues in the long run. It can also reveal their intentions about the deal and can help you see if they have hidden agendas while they are pushing you to one company only.