Getting a home loan in 2021- What are the best home loans? Why should I use a mortgage broker? Where and when will I need to give my information? How will the longer term effects of this pandemic impact me? Negative interest rates-is it a thing here in Australia?
So what are the best home loans? Well firstly you should use freely available calculators to Gauge what sort of potential savings can be made by refinancing or if purchasing newly for the first time the cost of purchase including stamp duties in any other additional fees, in some cases what first looks like a great rated home loan can turn expensive due to a lack of flexibility or not meeting the intended purpose.
With hundreds of Home Loans available Across the 50 + lenders that we have access to It is understandably a significant challenge for you to be able to sort through all of these and access what is the best home loan for your particular circumstances.
With this in mind it is not merely the ability of a mortgage broker to sort through your information and assess the likelihood of you achieving a best home loan product with great interest rates.
What can be more relevant is the mortgage brokers experience and ability in understanding the credit policies of these individual lenders and how that is best represented to them to achieve a positive outcome for you.
The Australian Securities and Insurance Commission (ASIC) recommended to check whether your agent/broker is registered and licensed with the agency. ASIC noted that brokers can help home buyers in choosing the most suitable loan package and deals based on their needs and circumstances.
Remember that each lender works for themselves and therefore they can generally only represent the products that they have on offer. Over the past eight decades each lender in Australia has developed policies that suit their own risk profiles which marry up with the target client niches that they are looking to acquire.
Therefore experienced mortgage brokers provide arguably real value in your future goals for successfully sourcing the best home loan in your quest for property ownership. This is really important given the amount of time required in attending open homes, searching the internet and dealing with realtors when sourcing your dream property.
With best interest duty (BID) now being legislated about how brokers and lenders act towards giving advice on lending and finance, a particular process is required for obtaining reviewing and preparing advice for clients. You will be asked to read and authorise/sign a credit guide digitally and privacy consent in most recent circumstances due to the covid pandemic digitally. This then allows the broker and later the lender to review your information when asked for-generally by email/messenger or whatever suits you both.
A more frequent question that has been asked a lot by clients over the past 12 months has not been “what is the best home loan for my circumstances and the easiest to achieve” but has been in relation to covid-19 then 20 and now 21. To answer these questions we would need a crystal ball and unfortunately ours seems to have a large crack and with smoke seeping from inside it.
What we have experienced relative to people refinancing, purchasing property or constructing property around Australia has been that many areas that were supposedly due to fall have actually risen. Our only guess in this has been that people when forced to Lockdown inside small one or two bedroom units envy those people who have properties with backyards. As having a swimming pool, swing set and area for a gym provides a lot more value than anyone had given thought to.
Whatever the reason many have had their value appreciated despite having the fact that many had lost their jobs.. And this is reflected in the valuations we see when having home loans formally approved. Perhaps you can get some level of comfort when purchasing relative to price paid by having an online valuation (property appraisals for the overseas people) done beforehand-ask us about those.
Finally, are negative interest rates a thing in Australia or are they about to arrive? This question is sure to provide a perplexing situation for many of us. Given some European countries have had for a number of years and Japan for two decades then it may be a forgone conclusion. And with the Australian Prudential Regulation Authority (APRA) asking lenders are their internal systems ready to handle such an event?-seems to be leaning towards a yes perhaps.
How will this affect the value of property, rental and property investment markets-as well as construction and retail sales relative to household expenditure household expenditure?-we just have to watch all while hoping for the best. Most people when faced with the fundamentals of life-meeting, living and growing families we need houses/properties in which to do so. As there is still a shortage of properties given prices-then it still looks very positive.
So what should you do with all this information you have several options on which to act. You can complete our online form you can call and request to discuss with a mortgage broker or chat with our call centre to give an overview before a broker meeting.
Home loans make it possible to acquire a property without having to pay in cash. This type of loan can be utilized to buy a home, with the property acquired as the security or collateral of the loan. You can borrow a large sum of money, as the property is generally a lot more expensive compared to cars, boats and personal loans.
Loan amounts depend on your income, savings and financial commitments. You can either choose between a fixed rate loan or a variable mortgage. As the name implies, a fixed rate home loan gives you a fixed interest rate during the duration or repayment period of your loan. Variable loans, on the other hand, are dependent on the changes in interest rate prevailing in the real estate market. Intellichoice can assist you in deciding which type of loan suits you best.
Whether you need to renovate your home, plan for a holiday or wedding or need to consolidate your debts, a mortgage broker from Intellichoice can help you with a personal loan to make it happen.
A personal loan is essentially a lump sum of money that you borrow from a mortgage lender. Personal loans are generally meant for personal use only. That is, the money must be wholly or predominately for personal or domestic use. Personal loans cannot be taken out for business use, such as starting a business, stock for a business or to purchase a car for the business. If you do require a loan for your business or to purchase inventory, we have alternative business finance solutions to suit your needs.
Our wide range of personal loan and home loan products offer flexibility to help finance your personal needs, so whatever your requirements, speak to the mortgage brokers at Intellichoice on 1300 55 10 45 and let us help you find a personal loan to fit your needs.
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