Mortgage Broking

Mortgage Broking

Finding a home loan can be so overwhelming. So many banks, so many options how do you know if you are getting the best deal? A Mortgage Broker can help source the best loan to suit your situation and give you advice on structuring your loan. Empower Wealth has links to all the major banks and lending partners. Talk to us today to see how you can save.

MPA Top100 2012 Medal e1352262846836 Mortgage Broking

Empower Wealth is awarded as one of Australian’s Top 100 Mortgage Broker in 2012

 

 

Elite Business Writers Cameron Morgan Mortgage Broking

Empower Wealth is also awarded as one of Australian’s Top 50 Elite Business Writer by The Adviser for the Year of 2012

 

 

Mortgage Broking Frequently Asked Questions

How much does it cost to use a broker? »

There should be no cost to the borrower to use a mortgage broker’s services as they are paid by the bank.  We often state that a broker’s time is not free; it is just that the clients do not have to pay for it.  A good broker should always disclose the commission that they are going to be paid.

How does a broker get paid? »

A broker can be paid an upfront commission which is a one off payment for the research and sourcing of the loan.  The upfront is a pre-determined percentage of the loan amount and each bank will pay slightly differently.  The broker is also paid a trail commission.  This is an ongoing percentage of the remaining balance of the loan (less any amount in an offset account).

Why would I use a broker over the bank? »

A broker will have access to a number of different banks.  They will be able to do all the research and leg work to obtain the best deal for the client and one that adequately services the client’s needs.  The broker will deal with the bank on behalf of the client saving them both time and money.

How much can I borrow? »

Borrowing capacity is determined by a number of different aspects.  The bank will take into consideration the amount of income that is coming into the borrower’s household and then weigh that up against the financial commitments that the client has.  Borrowing capacity will be affected by such things as number of dependants, the amount of existing debt or access to existing credit limits.

What is the best interest rate? »

It can almost be impossible to pick the best interest rate as they can be a continually moving object.  How the banks position themselves and their interest rate decisions is dependant on the state of the market.

Should I choose variable or fixed interest rates? »

This will depend on individual circumstances.  If a client wants certainty in repayment then a fixed rate is a good option as they will be able to lock their repayments at a certain rate for a certain time frame.  This can give comfort in knowing what the commitment will be and can be good in a rising interest rate market.  Fixed rates are generally an inflexible product and will have restrictions on things like extra repayments on a loan , ability to redraw or have an offset account against the fixed rate loan.

Variable rates will move with the fluctuations of the interest rate market, but you tend to have greater flexibility with these products, with the ability to have an offset account, make unlimited extra repayments and then redraw those extra repayments.

 

Should Ask Questions

Is the broker willing to disclosure how they get paid? »

The broker needs to disclose the amount that they are being paid for arranging a loan for the client.  They should also be forth coming with a list of all the selected banks commission rates.

Does your bank/broker have property investing experience? »

If the broker is an investor themselves, they can have a better understanding of the structure that may suit the client and their future plans or goals in an investing sense. They will also know which banks have the best policy for certain situations and have an understanding of the different borrowing capacities with different lenders and how to use this to best advantage the client’s financial position.

What are the hidden fees and charges? »

A good broker should be able to detail all the fees that relate to the loan contract. These will range from the set up fees from the bank and the government, to ongoing fees and discharge fees that is incurred when leaving the loan.

Is the cheapest interest rate the best product? »

Not necessarily. The product should first be considered on the appropriateness of the client’s situation now as well as in the future. Flexibility of the product to change with the changing circumstances in a client’s life need to be taken into consideration, alongside with the upfront, ongoing and discharge fees. This will provide a well-rounded product which will serve the client’s best needs.

How can I afford to keep my current property and purchase another? »

This all comes down to cashflows and having an understanding of the events that will have an effect on cashflow into the future.

 

Testimonials & Reviews

They are very excellent, easy to talk to, very helpful, quick to respond. Their advice is invaluable. It’s nice to finally find a broker who is an expert in the field and knows exactly what he’s talking about!
Fat T. – Williams Landing, VIC

We have been clients of Empower Wealth since 2007 and highly value the services that have been provided in an expedient and professional manner. Empower Wealth has considerably improved our long term planning for wealth creation, and has given us visibility of options that we would not have otherwise considered. They have tailored their advice to our specific goals and values, and present objective and informed intelligence that supports our decision-making process. All of this is done in an informal and friendly environment where nothing is too much trouble. The team at Empower have great passion for their areas of expertise and this comes through in their willingness to investigate, challenge and provide guidance on developing opportunities.
Lee I. – Beaumaris, VIC

You always listen to my needs and aim to get what I want then you surprise me and get one better, e.g. interest rate reductions. Thanks guys, love your work.
Sarah C.- Burwood East, VIC

 

>> Click here to watch our video testimonial

How To Sessions

 

 

The golden question that we often get asked here in Empower Wealth is; How much money can I borrow? In this How to Session, Ben decides to shed some light on this mystery and how you can calculate it yourself. Click here to read the transcript for How to.. What are the Costs associated to Buying a Property?

To watch more of our How to Session, please visit our How to Sessions page.

Getting Started

Get Started Today Call Empower Wealth Now on 1300 123 842