Why I love being a mortgage broker

First up – I have an amazing job that I love and even better it’s a win – win, the better I do for you the better it is for me. I’m a mortgage broker and I am pretty sure that most of you know what this means – that I find, compare and arrange your new home loan for you. Really my job only starts here. Did you know we can also negotiate for additional discounts with most lenders & lean on the relationships we have to get special rates? This could mean saving hundreds of dollars a month over and above the regular rates on offer. A huge part of my job is assessing lender policies so we don’t submit loans that we believe you wont be approved for, which also protects your credit history. This co

What is a portable loan?

What is special about a ‘portable loan’? A question from a reader “ I believe our loan is a portable loan so that means we can take it with us to our new property. I have been reading that this saves money but the problems is that you need to find the deposit and stamp duty and legal fees, costs, and maybe the agents commission as well, our mortgage will go down a fair bit from our sale. Can anyone tell if this the case?” And our response: If your loan is portable it means you can change the security for the loan without having to go through the whole credit process again - providing you meet certain conditions, the 3 main things being: you don't need to increase your loan amount, secondly t

Thinking about property investment? Start with the ending for a clearer path.

Knowing what you want to achieve and why you are investing in property means you can choose better, tastier options that are more likely to achieve your aims. You might have a very different reason for investing than the next person: Buying where you eventually want to live Buying for capital gain (long or short term) Buying for cashflow Replacing superannuation Helping the kids To accumulate X properties And probably plenty more. Understanding what you want out of it helps you decide where to start looking for property and the type of property to buy. For example, if you yearn to live by the seaside and you can afford to get in now it might make sense to buy (if not the exact property you w

Do I need to refinance?

When refinancing isn’t the best option. Sometimes people come to me and ask for a refinance, but they’re basically happy with their lender and they really just want to borrow a little more money. If this is the case, and the lender is competitive then we can look at increasing your loan where you are – and hopefully get a little bit of an interest saving at the same time. The process itself looks a lot like a refinance, you’re supplying most of the same documents, but you’ll save on some of the costs like government charges & legal costs to exit your current loan. So before you refinance make sure your broker looks at what’s really best for you, simple.

A small renovation, like a new kitchen, could cost you as little as $40 a week, or nothing at all if

Most of us are living with at least one home feature that we don’t love – a kitchen, a bathroom, old deck or lack of car accommodation – something we would love to update but assume we can’t afford the renovation. Would you do it if the cost was as little as $40 a week? Quite often it’s a simple as this and you’re no longer juggling an overcrowded, broken, or just plain ugly home. I want you to think about it because I’ve been there, a few years ago I did the new kitchen – can I tell you what the difference was for me? My kitchen was horrendous; I went from a tiny, dingy, dark, timber monstrosity with holes worn through the benchtop; most of which were hidden because the cupboard layout was

Redraw Facility...great for emergencies!

Redraw Facility: If you have made any lump sum or additional principal repay­ments to your loan account, you can access those extra repayments whilst on a vari­able rate – to do so is called “redraw”. Basically it’s a fancy name for withdrawing from your loan, but only the additional repayments you’ve made over and above your required loan repayments. Obviously the redraw is handy because you can access the money which has been stashed away saving interest, but be aware than of course this also means your balance increases and so does your interest due. Think of it as money paid off of the loan but available for emergencies or worthwhile purposes; you’re not going to redraw for a pair of jea

What structure should you use to buy your property?

Most people, when buying a home to live in with your spouse and your family, will buy the home as ‘Joint tenants’, that is, essentially each of you owns the whole of the property and (heaven forbid) anything happens to one of you, the other automatically inherits the whole property. The decision to be joint tenants or other will likely go on behind the scenes without you being aware of the choice. Your solicitor or conveyancer will simply mark one box or another on the contract. And hopefully there’s never an issue with this. When you buy an investment property you must be aware that there are other ways to hold a property, like within your self managed super fund, or in a trust, or as is mo

Refinancing...

Refinancing: This means that you switch your current loan from one lender to another; this might be to save interest, to access equity or to get better features on your loan and have it work better for you. Its very important to look at your loan every few years and consider refinancing if you can make a considerable saving by doing so. The industry moves very quickly and lenders are often competing for your business. This wont damage your credit rating and just imagine what you could do with the savings! It’s a simple thing for your broker to check whether you could save money refinancing – and a good broker will give you tips on how to save your money with your current lender first knowing

Rate cut - astounding!

At the RBA meeting today the decision was made to cut interest rates by 0.25% to an absolutely unheard of 1.5% official cash rate - on the back of poor inflation figures. The RBA commented on banks having pulled sufficient levers to keep the property market in check. Banks have started to advise their corresponding cuts with all of the majors announcing today - none of them yet passing on the full 25 points, in fact most are opting to pass on less than half citing cost of funds. Interesting times ahead and with some excellent variable and fixed rates on the table there really is no excuse to not look at your options right now.

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We recommend that you seek independent financial and taxation advice before acting on any information in this website or blog. It contains general information only and has been prepared without taking into account your objectives, financial situation or needs.

 

We recommend that you consider whether it is appropriate for your circumstances.

 

Your full financial situation will need to be reviewed prior to acceptance of any offer or product.

 

Interest rates are subject to change without notice. Lenders terms, conditions, fees & charges apply.

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Two Red Shoes Copyright © 2020 All rights reserved. Call on 02 9002 0380, 0404 494 929, email us  or 'old school' fax 02 9002 0381

Jarrett Group Pty Ltd atf Jarrett Group Discretionary Trust trading as Two Red Shoes hold Australian Credit Licence No: 428614 and are members of an external dispute resolution scheme. Details of our complaint resolution process can be found here or please see our credit guide. All information contained on this site is general information only, and does not take into account your particular financial situation or needs. You should consider your personal objectives, financial situation along with the recommendations of your trusted advisors.

Sydney mortgage broker operating in

  • The Hills District

  • Hawkesbury

  • Nepean 

  • North Shore

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  • Camden

  • Baulkham Hills

  • Lower Blue Mountains

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  • Windsor and Richmond

  • Rouse Hill

  • Hunters Hill

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  • NSW Central Coast too!