What does a mortgage broker do?
Mortgage brokers are professional in the home loan industry. They work with you to determine your borrowing needs and how much you can borrow. Brokers help ensure you don't take out a loan that is too big for you.
Professional Mortgage Brokers only focus on loans. If you have a toothache, you go to the dentist not a florist. If your car is broken you take it to a mechanic not a librarian. You go to someone trained to help you with your specific need. It's same when you need a loan.
Brokers have access to a wide variety of loans. This mean your broker can find a loan is just right for you.
Why should I use a mortgage broker if I can go with a bank?
When we talk about a "loan product" we are referring to the thousands of options that are currently available to you.
Each bank (for lender) has loads of different loan options - variable, fixed rate, offset, line of credit, low doc, package loans, re-draw facilities, plant and equipment loans, interest only, interested in advance, introductory variable... the issues you face as a consumer is, 'which loan is right for you?' That is where a mortgage broker comes in. If you go direct to the bank, you will only be offered the loan options available through that one lender. As your mortgage broker, we do all the leg work for you.
We are across many lenders and all of their loan products and our sole purpose is to find the right loan for your needs.
Do you Charge fees for Home and Residential Investment loans?
Some mortgage brokers charge a fee but at Precision Loans we don't. When you take out a home loan via a Precision Loan Broker - it does not cost you more. That is an absolute myth. Brokers get paid commission by the bank for bringing new business to them, this does not impact your rate or level of service.
Some brokers do charge a fee for their service. They must disclose this fee upfront to you so you know what you will be up for if you engage their services.
Don't you just recommend the lender who pays you the most commission?
Absolutely not! There is legislation in our industry, called the National Consumer Credit Protection Act or NCCP, that is designed to protect consumers and ensure ethical and professional standards in the finance industry. We tell you upfront what commission we will be getting from the bank. Our job, our only job, is to find the best loan for your needs and serviceability.
Isn't it more expensive to use a Broker?
This is dependent on how much you have saved for a deposit and what you current expenses are. Give us a call and we can go into your options in more detail, or check out the loan calculators page of our site!
How much can I borrow?
There are two main areas that affect your borrowing capacity -
1. Your ability to repay the debt - this is based on your disposable income.
2. Your savings / amount available to put down as a deposit OR equity in another real asset.
Should I go fixed or variable?
I am only allowed to recommend a product based on what you say is most important to you eg "pay my loan off quickly" or "guaranteed repayments"
I do however, live by the following;"if you want flexibility take a variable rate loan, if you want budget certainty take a fixed rate loan, if you want both, then do both".
I am not in your area, can we still work together?
Sure thing! We are mobile brokers so we can come to you!
Which lenders do you deal with?
We are Connective Brokers. This mean we have access to many lenders - these include the major banks, second tier lenders and credit unions. We can source you a loan from the lender of your choice.
Who sets interest rates?
The Reserve Bank of Australia meet on the first Tuesday every month to determine the official cash rate for the country. The lenders then use this information to set their own rates. Mortgage brokers do not set rates.
What are the fees for a SMSF loan?
There is an upfront cost to set up the SMSF which varies between $1,000 and $3,000 depending on circumstances. The ongoing fees are between $1,000 and $2,500 depending on SMSF investments and complexity.
What fees am I currently paying?
Different superfunds have different fees. Typically they range between 1% - 3% of the total fund balance. You can contact us and ask us what your current fees are.
What sort of property should I purchase inside my SMSF?
The individual has full discretion as to which property they purchase. Ultimately the investment performance of the property should be the highest priority. There are specific guidelines on property types that SMSF cannot purchase. It is best to discuss this with an expert.