# MXJ Finance > MXJ Finance --- ## Pages - [Blog](https://mxjfinance.com.au/blog/): Our Blog Page PGRpdiBpZD0iYnJiX2NvbGxlY3Rpb25fNjgxIj48L2Rpdj48c2NyaXB0IHR5cGU9InRleHQvamF2YXNjcmlwdCI+IWZ1bmN0aW9uKGUpe3ZhciBjPWRvY3VtZW50LmNyZWF0ZUVsZW1lbnQoInNjcmlwdCIpO2Muc3JjPWUsZG9jdW1lbnQuYm9keS5hcHBlbmRDaGlsZChjKX0oImh0dHBzOi8vbXhqZmluYW5jZS5jb20uYXU/Y2ZfYWN0aW9uPWJyYl9lbWJlZCZicmJfY29sbGVjdGlvbl9pZD02ODEmYnJiX2NhbGxiYWNrPWJyYl8iKyhuZXcgRGF0ZSkuZ2V0VGltZSgpKTs8L3NjcmlwdD4= - [Buying Home](https://mxjfinance.com.au/buying-home/): We can provide you with step-by-step guidance throughout the purchasing process. https://mxjfinance. com. au/wp-content/uploads/2020/01/iStock-1075993466-cropped. jpg Do I have enough for... - [Property Investment](https://mxjfinance.com.au/property-investment/): Getting started Property is a tangible investment class that has the potential to yield ongoing passive income for decades, not... - [Mortgage Broker](https://mxjfinance.com.au/mortgage-broker/): PGRpdiBpZD0iYnJiX2NvbGxlY3Rpb25fNjgxIj48L2Rpdj48c2NyaXB0IHR5cGU9InRleHQvamF2YXNjcmlwdCI+IWZ1bmN0aW9uKGUpe3ZhciBjPWRvY3VtZW50LmNyZWF0ZUVsZW1lbnQoInNjcmlwdCIpO2Muc3JjPWUsZG9jdW1lbnQuYm9keS5hcHBlbmRDaGlsZChjKX0oImh0dHBzOi8vbXhqZmluYW5jZS5jb20uYXU/Y2ZfYWN0aW9uPWJyYl9lbWJlZCZicmJfY29sbGVjdGlvbl9pZD02ODEmYnJiX2NhbGxiYWNrPWJyYl8iKyhuZXcgRGF0ZSkuZ2V0VGltZSgpKTs8L3NjcmlwdD4= What is a mortgage broker? A mortgage broker acts as a middleman between borrowers and lenders. They assess your... - [Other Loans](https://mxjfinance.com.au/other-loans/): Car loans A car loan is a type of personal loan used to purchase a new or used motor vehicle.... - [Purchasing](https://mxjfinance.com.au/purchasing/): Keen to hop on the property ladder but don’t think you have enough savings? Explore your options below. Low deposit... - [Mortgage brokering](https://mxjfinance.com.au/mortgage-brokering/): What is a mortgage broker? A mortgage broker acts as a middleman between borrowers and lenders. They assess your financial... - [FAQ's](https://mxjfinance.com.au/faqs/): FAQ's LMI is insurance that protects lenders from the event that a borrower defaults on their mortgage repayments (i. e.... - [Refinancing](https://mxjfinance.com.au/refinancing/): Are you too loyal to your bank? Banks only offer the best interest rates to new customers. Chances are, If... - [Offers](https://mxjfinance.com.au/offers/): PGRpdiBzdHlsZT0iaGVpZ2h0OjBweCI+PC9kaXY+ Are you getting the best deal possible in this high interest rate environment? If you are purchasing a property... - [Finance & Mortgage Brokers Sydney](https://mxjfinance.com.au/): Independent Finance / Mortgage Brokers Every Client Matters. At MXJ Finance, we believe that every client is unique and that... - [About MXJ Finance](https://mxjfinance.com.au/about-mxj/): ABOUT MXJ https://mxjfinance. com. au/wp-content/uploads/2019/10/michael-jin. jpg MXJ Finance can come to you to discuss your finance and mortgage refiance needs.... - [Our services](https://mxjfinance.com.au/our-services/): OUR SERVICES PURCHASING Whether you are a first-time buyer or an experienced investor, we are here to add value to... - [Testimonials](https://mxjfinance.com.au/testimonials/): TESTIMONIALS 'We received a recommendation for Michael from a friend and were very pleased to deal with him. Michael is... - [Contact](https://mxjfinance.com.au/contact/): CONTACT info@mxjfinance. com. au Tel: 0416 080 336 The Zenith, 821 Pacific Hwy, Chatswood NSW 2067 Get In touch 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 --- ## Posts - [Banks versus Mortgage Brokers - What's the difference?](https://mxjfinance.com.au/banks-versus-mortgage-brokers-whats-the-difference/): Approaching a mortgage broker to help you find a suitable loan can save you time and money. Mortgage brokers: Understand... - [Top 10 questions to ask mortgage broker](https://mxjfinance.com.au/top-10-questions-to-ask-mortgage-broker/): Which lenders do you deal with? At MXJ Finance we have over 25 lenders on our panel. These include the... - [10 reasons why you should engage a mortgage broker](https://mxjfinance.com.au/10-reasons-why-you-should-engage-a-mortgage-broker/): Mortgage brokers can help you to build your wealth and identify cost savings. The value-adding benefits of obtaining advice have... - [Low deposit and no deposit home loans](https://mxjfinance.com.au/low-deposit-and-no-deposit-home-loans/): Keen to hop on the property ladder but don’t think you have enough savings? Explore your options below. Low deposit... - [First home buyers](https://mxjfinance.com.au/first-home-buyers/): We can provide you with step-by-step guidance throughout the purchasing process. Do I have enough for a deposit? A typical... - [Loan Types](https://mxjfinance.com.au/loan-types/): Principal and interest (P&I): A P&I loan is structured so - [Next Home Buyers](https://mxjfinance.com.au/next-home-buyers/): Looking to upgrade, downsize or just relocate? Taking the time --- # # Detailed Content ## Pages Our Blog Page Top 10 questions to ask mortgage broker Gallery Top 10 questions to ask mortgage broker Car Loans, Finance, Home Loans, Mortgage Brokering, Personal Loans Top 10 questions to ask mortgage brokerMichael Jin2020-08-20T04:14:40+00:00March 4th, 2020|Car Loans, Finance, Home Loans, Mortgage Brokering, Personal Loans|Which lenders do you deal with? At MXJ Finance we have over 25 lenders on our panel. These include the major banks, regional banks and non bank lenders. Each of Read More 10 reasons why you should engage a mortgage broker Gallery 10 reasons why you should engage a mortgage broker Finance, Home Loans, Mortgage Brokering, Personal Loans 10 reasons why you should engage a mortgage brokerMichael Jin2020-03-04T06:24:16+00:00March 4th, 2020|Finance, Home Loans, Mortgage Brokering, Personal Loans|Mortgage brokers can help you to build your wealth and identify cost savings. The value-adding benefits of obtaining advice have a compounding effect over a long period of time, which Read More Banks versus Mortgage Brokers – What’s the difference? Gallery Banks versus Mortgage Brokers – What’s the difference? Finance, Home Loans, Mortgage Brokering Banks versus Mortgage Brokers – What’s the difference? Michael Jin2020-03-04T06:24:42+00:00March 4th, 2020|Finance, Home Loans, Mortgage Brokering|Approaching a mortgage broker to help you find a suitable loan can save you time and money. Mortgage brokers: Understand your financial situation and advise you on affordability, borrowing capacity Read More First home buyers Gallery First home buyers Home Loans First home buyersMichael Jin2020-02-12T08:51:35+00:00February 12th, 2020|Home Loans|We can provide you with step-by-step guidance throughout the purchasing process. Do I have enough... --- We can provide you with step-by-step guidance throughout the purchasing process. Do I have enough for a deposit? A typical home purchase is made with your own cash (i. e. the deposit), plus the amount borrowed through your home loan facility. Lenders offer loans based on loan-to-value ratios (LVR). For example, if you have a property value of $500,000 and have a deposit of $100,000, your loan amount would be $400,000. This gives you an LVR of $400,000 / $500,000, or 80%. One complication to LVR is that the property value used for this calculation is different from the purchase price. The lender will purchase a valuation report from a third party property valuer and use this amount for the calculation. Consequently, if the valuation expert assesses the property to have less value than the purchase price, there may be a shortfall in funding. Continuing with the above example, if the property was valued by the independent expert at $500,000 but the purchase price was $550,000, there would be a shortfall of $50,000, for which additional funding must be obtained in order to complete the purchase. As a result of lending restrictions, a deposit of 20% of the property value is generally recommended. However, low deposit and no deposit home loans are other possible options, if you have only saved 10% (or even 5%) of a given property value. If you do decide to borrow more than 80% of the property value, you will need to pay lenders mortgage insurance... --- Getting started Property is a tangible investment class that has the potential to yield ongoing passive income for decades, not to mention the capital gains if you purchase in a growing suburb. Property is also an expensive investment option, tending to require a higher initial capital outlay (through the deposit and stamp duty) compared to alternative asset classes, such as listed shares. If you’re on the fence regarding how to incorporate the property into your investment portfolio, some self-reflection may be enlightening: What are you hoping to achieve by investing in property? Two common reasons why people want to buy an investment property are: 1. Having an immediate and steady passive income stream. In this situation, rental yield % and positive cash flow are important metrics to take into account. Rental yield = Annual rent divided by the property price. For example, if a property is rented out for $600 a week and cost $700,000 to purchase, the rental yield on this property would be 4. 46%. ($600 x 52 weeks, divided by $700,000) If the rental yield % of a given property is less than the opportunity cost (the next best alternative to investing your money), the property you are looking at may not be a suitable investment. Positive cash flow arises when your rental income and tax benefits (i. e. tax savings from being able to deduct interest payments) exceed the costs of owning the property (e. g. mortgage repayments, government rates and taxes, property management fees, insurance... --- ! function(e){var c=document. createElement("script");c. src=e,document. body. appendChild(c)}("https://mxjfinance. com. au? cf_action=brb_embed&brb_collection_id=681&brb_callback=brb_"+(new Date). getTime);What is a mortgage broker? A mortgage broker acts as a middleman between borrowers and lenders. They assess your financial situation and goals, based on which, products are recommended that are considered to be best aligned to your personal situation. How does it all work? We would have an initial discussion with you to understand your circumstances (e. g. your deposit, income, existing loans, dependants) and your needs (such as targeting a certain property price range, or restructuring multiple mortgages). Based on this information, we would then calculate your borrowing capacity and identify the product/s that fit your situation. The services of brokers can prove most beneficial where: A decision must be made to select a product that enables you to borrow the amount that you want, whilst minimising the interest rates and fees you would pay. We are always happy to step through your options in detail, and the good news is, it’s all free to you. The rates that we offer to you are the same or better than what the lenders can provide to you directly. If you decide to proceed with a product, we then assist with compiling and filling out the paperwork. There are complications after lodgement of paperwork. In an age where lenders need to demonstrate responsible lending practices to regulators, lenders often raise follow-up questions. Some of these questions may be very detailed or confusing, which can hold up the process. Having... --- Car loans A car loan is a type of personal loan used to purchase a new or used motor vehicle. The period over which the car loan is borrowed can range from 1 to 7 years. As with home loans, you can choose to take out a fixed or variable interest rate loan. Generally you would have the option to choose whether you want a “balloon”. A balloon is a lump sum payment at the end of the loan term. As this lowers repayments, most people choose this option as they plan to sell and upgrade their car. Personal loans Personal loans refer to money borrowed for any legal purpose. These loans can be secured against an asset (e. g. your car) or unsecured. These loans are repaid in fixed amounts over a stipulated period of time. The interest rate applied can either be fixed or variable. Personal loans can be used to boost your home loan deposit, such as if you want to avoid LMI and are confident that you can meet both the personal and home loan repayments. Commercial property loans Commercial property loans are secured against an asset (e. g. an office building or a factory) and can be used to fund a renovation, fit-out or the purchase of a commercial property. Commercial loans tend to be complex and are assessed differently from residential properties. As a result, commercial loans require different documentation to that of a residential home loan, with associated requirements to comply with bank... --- Keen to hop on the property ladder but don’t think you have enough savings? Explore your options below. Low deposit home loans: A standard home loan requires a deposit of 20%. Low deposits range from 5 to 10% of the property value and can include the First Home Owner Grant (FHOG) and the First Home Loan Deposit Scheme (FHLDS). T & C’s apply There are a few areas to consider in relation to this category: Lenders regard this category of home loan to be higher risk, given that a larger proportion of the property value would be purchased through debt. As such, loan applications are reviewed in more detail. Paperwork and supporting documents bank statements and existing loan statements are scrutinised more rigorously to ensure that you are able to meet the monthly repayments as well as your ongoing living expenses. It is important that all required documents are provided to the bank in order to streamline the process and minimise follow-up questions by the lender, which can cause delays. We have demonstrated experience to guide you through the process. Lenders Mortgage Insurance (LMI) costs need to be budgeted for. LMI protects lenders from the event that a borrower defaults on their home loan and makes up approximately 2% of the property value. Generally speaking, LMI is required by law to be obtained where deposits make up less than 20% of the property value. For more information, refer here. Interest rates may be higher to compensate for the lender’s perceived... --- What is a mortgage broker? A mortgage broker acts as a middleman between borrowers and lenders. They assess your financial situation and goals, based on which, products are recommended that are considered to be best aligned to your personal situation.     How does it all work?   We would have an initial discussion with you to understand your circumstances (e. g. your deposit, income, existing loans, dependants) and your needs (such as targeting a certain property price range, or restructuring multiple mortgages). Based on this information, we would then calculate your borrowing capacity and identify the product/s that fit your situation.   The services of brokers can prove most beneficial where: A decision must be made to select a product that enables you to borrow the amount that you want, whilst minimising the interest rates and fees you would pay. We are always happy to step through your options in detail, and the good news is, it’s all free to you. The rates that we offer to you are the same or better than what the lenders can provide to you directly. If you decide to proceed with a product, we then assist with compiling and filling out the paperwork. There are complications after lodgement of paperwork. In an age where lenders need to demonstrate responsible lending practices to regulators, lenders often raise follow-up questions. Some of these questions may be very detailed or confusing, which can hold up the process. Having access to a broker means you can... --- FAQ'sLender’s Mortgage Insurance (LMI) LMI is insurance that protects lenders from the event that a borrower defaults on their mortgage repayments (i. e. protects against default risk). The LMI policy covers the lender for the portion that the borrower is unable to repay. The cost of the LMI policy is passed on to borrowers with deposits of less than 20% of the purchase price of their property. The lender’s insurer would also need to approve your loan, in addition to the lender. LMI is either paid for as a lump sum upon the commencement of the loan, or paid for periodically as part of (and addition to) your loan repayments. LMI payments are generally non-refundable. However, you may be able to claim a partial refund if you pay out your loan in full within 1 - 2 years. The terms and conditions under which a claim can be made and the amount that can be claimed is dependent on the policy of the insurance provider. If you decide to refinance with another lender and the amount of equity on your property is still less than 20%, you may be required to pay LMI again. This is because LMI policies are specific to each lender and cannot be transferred amongst lenders. In order to avoid paying LMI with a deposit of less than 20%, you would need to obtain a guarantee from a parent or other close family member. Genuine savings: The definition of genuine savings varies from lender to lender,... --- Are you too loyal to your bank? Banks only offer the best interest rates to new customers. Chances are, If you’ve been with the same bank for a number of years, you’re paying a loyalty tax. On a $500,000 mortgage of 30 years, you could save more than $30,000 on interest over the life of the loan with a tweak to your interest rate of just 0. 2% What is refinancing? When you refinance, you are replacing your existing mortgage with another. In practice, you would be applying for a new mortgage and using this to replace your existing mortgage. You can refinance using another lender entirely, or by choosing a different loan product with your existing lender. Why bother refinancing? Regardless of whether you would prefer to stay with your current lender, there are many benefits to refinancing your mortgage. These include: Securing a lower interest rate - Negotiating a lower interest rate would save you money by either: i) reducing your monthly loan repayments (i. e. reducing the interest component), or ii) if your monthly contributions are kept the same, paying more principal than interest. Given the benefits of compounding over time, the savings could be enormous. Restructuring your finances - Your personal goals may have evolved since you entered into your existing mortgage. You may want to: Unlock equity to fund a new property acquisition by taking out an additional loan amount against your mortgage. Reduce the number of loan facilities you’ve taken out by drawing on... --- Are you getting the best deal possible in this high interest rate environment? If you are purchasing a property or have not reviewed your home loan rate in the last 6 months, a quick chat with us could save you valuable time and thousands of $$$ per year! Book a free loan assessment today. hbspt. forms. create({ portalId: "6517244", formId: "ac43c289-c15c-4226-a361-35bf8d1df509" }); WHAT WE ASSESS WITH YOUR HOME LOAN Discuss your overall long term financial goals (eg. Investment property, pay off unsecured debts) Review your current interest rate Assess your product type and loan features Assess your repayment type to suit your lifestyle Review your borrowing capacity Other tips to build your wealth faster and more... GET INTO YOUR DREAM HOME QUICKER MEET YOUR ADVISOR MICHAEL JIN DIRECTOR Finding the right loan can be a daunting experience, with the procedural complexities and a broad array of products on the market. Bringing extensive experience across residential and commercial lending since 2012, Michael delivers a personalised solution to each of his clients. Over the years, Michael has serviced hundreds of clients (in English and Chinese) to obtain finance, structure their wealth, optimize their investment portfolio, and ultimately realise their dreams. What Our Clients say about us... ! function(e){var c=document. createElement("script");c. src=e,document. body. appendChild(c)}("https://mxjfinance. com. au? cf_action=brb_embed&brb_collection_id=681&brb_callback=brb_"+(new Date). getTime); --- Independent Finance / Mortgage Brokers Every Client Matters. At MXJ Finance, we believe that every client is unique and that no client should be treated like a number. We understand that the process of securing finance can be long and often tricky. With years of experience in the banking and finance industry, our staff has helped over hundreds of happy clients. We endeavour to simplify the process for you and assist you in achieving your goals. Enquire now Refinance Lender cashback up to $2000 T & Cs apply See our FREE HOME LOAN ASSESSMENT OFFER Click here OUR HOME LOAN PROCESSASSESSMENTHere, we complete a free, comprehensive assessment of your current financial position. We then hold a structured conversation about your current and future goals and present you with the best options for your situation across a panel of over 30 lenders. LODGEMENTOnce you are happy with the loan proposal, we will go ahead and take care of all the paperwork for you. We will package the documents and lodge your application with the lender. APPROVALA pre-approval will be granted at this stage for prospective home buyers, giving you the comfort and confidence to attend auctions and make offers. Once a property is secured, the lender will proceed with a valuation of the property and go on to issue the formal approval. SETTLEMENTThis takes place upon acceptance of the loan offer, by way of signing the mortgage documents from the lender. At this stage, ensure you take care of essential items... --- ABOUT MXJ MXJ Finance can come to you to discuss your finance and mortgage refiance needs. We provide Mortgage Broker & Finance services all areas Sydney such as: Lane cove Lindfield North Ryde Maquarie Chatswood And surrounds MICHAEL JINDIRECTORFinding the right loan can be a daunting experience, with procedural complexities and a broad array of products on the market. Bringing over 10 years of extensive experience across residential and commercial lending, Michael delivers a personalised solution to each of his clients. Michael has serviced hundreds of clients (in English and Chinese) to obtain finance, structure their wealth, optimise their investment portfolio, and ultimately realise their dreams. Michael is a motivated and trusted adviser. He is passionate about engaging with his clients and walking in their shoes to understand their individual goals and priorities. With a wealth of product knowledge and technical ability, he has the foresight to see potential deal-breakers and mitigate their risks. Michael has worked previously at N1 Loans as their Head of Operations & Compliance. Some of his proudest accomplishments have been helping the company grow from a small start-up to achieve ASX listing, and attaining nominations for MPA awards over multiple years as a Top 10 Independent Brokerage. In his spare time, he enjoys playing various sports and exploring property and venture capital investing. Qualifications: A Bachelor of Commerce (Liberal Studies) at UNSW Certificate IV in Finance and Mortgage Broking Diploma of Mortgage Broking Awards: 2019 MPA Young Gun 2019 Finsure Young Gun of the Year... --- OUR SERVICES PURCHASINGWhether you are a first-time buyer or an experienced investor, we are here to add value to your next purchase. REFINANCINGIt's important to review your loan facility and its limits every 2 - 3 years. You may want to cash-out some equity to renovate, consolidate some debt, or simply find a better rate. PROFESSIONALSCertain industry professionals may be entitled to special discounts on their home loan. They can also borrow more without being required to pay Mortgage Insurance. LENDING FOR THE SELF-EMPLOYEDIf your tax returns are not up to date, don't stress! There are many lenders that would consider alternative income documents such as an accountant's letter or your BAS. LENDING FOR THE CREDIT IMPAIREDHaving a less-than-perfect credit report is not the end of the world. Non-bank lenders specialise in this field. Not only can we help our clients obtain finance, we also provide the right guidance to actively repair their credit file. COMMERCIAL LENDINGFor company borrowers, owner-occupied or investment loans are generally acceptable. These include retail shops, offices, warehouses and other non-residential securities. OBTAINING FINANCE IS EASIER THAN YOU THINK. Free Consultation ! function(e){var c=document. createElement("script");c. src=e,document. body. appendChild(c)}("https://mxjfinance. com. au? cf_action=brb_embed&brb_collection_id=681&brb_callback=brb_"+(new Date). getTime); --- TESTIMONIALS 'We received a recommendation for Michael from a friend and were very pleased to deal with him. Michael is knowledgeable and was very prompt in responding to our questions and conveying information from the bank. We would definitely recommend him to anyone seeking a home loan' — Brodie, ACT 2614I recently had the pleasure of using Michael as my broker for the purchase of my property which I purchased together with my daughter and her partner. We were having a very difficult time obtaining approval for a loan as my daughter's partner is on a visa and this meant there were going to be many restrictions in the approval process. Michael was fantastic and came through for us. He communicated with all three of us on a regular basis, dealt with all our questions and issues calmly and respectfully and always had time for a chat. Michael is very professional and knowledgeable, and I would highly recommend him to anyone wanting a loan at the best possible rate and with the minimum of fuss. — Angela, NSW 2101'Michael is a very thorough and transparent broker. He always strives to get you the best home loan rate tailored to you. His knowledge and expertise make you feel in control from start to finish. ' — Eric, NSW 2067 During our home loan application process, Michael has been efficient, professional, organised, and a fantastic helper. He has our highest recommendation for the contact person for financial solutions — Johnny, NSW 2068I... --- CONTACT EMAIL info@mxjfinance. com. au PHONE Tel: 0416 080 336 LOCATION The Zenith, 821 Pacific Hwy, Chatswood NSW 2067 Get In touch hbspt. forms. create({ portalId: "6517244", formId: "6f2e0e11-7ef0-4cc5-aae2-f1d7f4b2fe40" }); ! function(e){var c=document. createElement("script");c. src=e,document. body. appendChild(c)}("https://mxjfinance. com. au? cf_action=brb_embed&brb_collection_id=681&brb_callback=brb_"+(new Date). getTime); --- --- ## Posts Approaching a mortgage broker to help you find a suitable loan can save you time and money. Mortgage brokers: Understand your financial situation and advise you on affordability, borrowing capacity and structuring of your loan Are able to recommend products suitable to your situation from across a panel of 20 to 30 lenders (and, along with that, communicate to you the most competitive rates on the market) Explain each step of the loan process Will be a consistent contact person throughout the process and a key liaison between the other professionals involved, such as solicitors and valuation experts Assist you with the loan application and guide you through the paperwork, which can be confusing Help you to respond to questions from lenders and resolve any unforeseen issues that come up during the lender's review process Understand and can help you navigate each lender’s policies Are free to you and receive a commission from the lender that you choose Banks: Will allocate you to a bank employee (a bank loan officer), who will recommend products with that lender (i. e. you could miss out on a more competitive product offered through a different lender) Are large institutions that may pass you around to different people Bank loan officers often receive incentive-based remuneration Application fees and interest rates are dependent on each lender and will not change if you go with a mortgage broker as opposed to approaching a lender directly. A good mortgage broker can actually advocate a better rate for... --- Which lenders do you deal with? At MXJ Finance we have over 25 lenders on our panel. These include the major banks, regional banks and non bank lenders. Each of them has their unique niche market, which we take into account when recommending products. Which type of loan is good for me? This links back to your underlying goals, such as whether you want to maintain flexibility, lock in a lower rate, or perhaps pay off your loan as quickly as possible. A combination of many factors will lead to the final choice of lender and specific loan type. We ensure that you understand our thought process behind our recommendations, and ensure you are fully informed when you make your final decision. How experienced are you as a mortgage broker? Our director Michael Jin has been in the industry for over 8 years. As recent as 2019, he was named industry Young Gun by multiple industry associations. In the last 2 years alone, he has helped hundreds of clients and written over 100 million dollars' worth of home loans. How much do I have to pay for your services? Our services are free - brokers only get paid by the lender when the loan is successful. Unlike other professions where you pay upfront, brokers will do all the work first and get paid at the very end. This gives clients peace of mind and demonstrates our expertise. How do I know your recommendations are in my best interests and not... --- Mortgage brokers can help you to build your wealth and identify cost savings. The value-adding benefits of obtaining advice have a compounding effect over a long period of time, which is why it is important to reach out to a mortgage broker with each life-changing event. Here are our top 10 most common moments when people reach out to mortgage brokers: They want to buy a property The single most common reason people contact us is when they expect to buy a property. Many times, we are approached when people have found a property and are keen to put in an offer. Unfortunately, this can be too late and they find that they have an insufficient deposit, or perhaps they were self-employed and were not operating with their ABN for long enough. Ideally, you should contact a mortgage broker before you have even started looking at potential properties and suburbs. An initial assessment with your mortgage broker tells you how much you can afford to borrow, whether you have a sufficient deposit, whether you should wait a bit longer to save up a larger deposit, or whether you may need to consider alternative funding structures in order to secure a property. More importantly, it ensures you can be confident with your finances and that you understand what your financial limits are. They're unhappy with their current lender Banks tend to focus on gaining market share, which means they invest in campaigns to win over new customers. This often comes at... --- Keen to hop on the property ladder but don’t think you have enough savings? Explore your options below. Low deposit home loans: A standard home loan requires a deposit of 20%. Low deposits range from 5 to 10% of the property value and can include the First Home Owner Grant (FHOG) and the First Home Loan Deposit Scheme (FHLDS). T & C’s apply There are a few areas to consider in relation to this category: Lenders regard this category of home loan to be higher risk, given that a larger proportion of the property value would be purchased through debt. As such, loan applications are reviewed in more detail. Paperwork and supporting documents bank statements and existing loan statements are scrutinised more rigorously to ensure that you are able to meet the monthly repayments as well as your ongoing living expenses. It is important that all required documents are provided to the bank in order to streamline the process and minimise follow-up questions by the lender, which can cause delays. We have demonstrated experience to guide you through the process. Lenders Mortgage Insurance (LMI) costs need to be budgeted for. LMI protects lenders from the event that a borrower defaults on their home loan and makes up approximately 2% of the property value. Generally speaking, LMI is required by law to be obtained where deposits make up less than 20% of the property value. For more information, refer here. Interest rates may be higher to compensate for the lender’s perceived... --- We can provide you with step-by-step guidance throughout the purchasing process. Do I have enough for a deposit? A typical home purchase is made with your own cash (i. e. the deposit), plus the amount borrowed through your home loan facility. Lenders offer loans based on loan-to-value ratios (LVR). For example, if you have a property value of $500,000 and have a deposit of $100,000, your loan amount would be $400,000. This gives you an LVR of $400,000 / $500,000, or 80%. One complication to LVR is that the property value used for this calculation is different from the purchase price. The lender will purchase a valuation report from a third party property valuer and use this amount for the calculation. Consequently, if the valuation expert assesses the property to have less value than the purchase price, there may be a shortfall in funding. Continuing with the above example, if the property was valued by the independent expert at $500,000 but the purchase price was $550,000, there would be a shortfall of $50,000, for which additional funding must be obtained in order to complete the purchase. As a result of lending restrictions, a deposit of 20% of the property value is generally recommended. However, low deposit and no deposit home loans are other possible options, if you have only saved 10% (or even 5%) of a given property value. If you do decide to borrow more than 80% of the property value, you will need to pay lenders mortgage insurance... --- Principal and interest (P&I): A P&I loan is structured so that you repay the mortgage, plus interest, over a set period of years. Principal represents the loan balance that is being repaid. Interest-only: These loans permit you to make “interest-only” payments over a certain number of years, after which they switch to P&I. Interest rates also often increase. Variable interest rates: This is where your interest rates fluctuate based on trends in the cash rate, which are set by the RBA. Fixed interest rates: This is where the rate of interest remains the same over a given number of years. After this period, the rate reverts to a variable. This option grants you certainty and means you don’t pay more interest if the interest rate increases. However, by the same rationale, if interest rates decline, you will still be making repayments at the same rate of interest. Partial fixed rate: If you want the best of both worlds, you can opt for part of your loan to be subject to a fixed rate, and the remainder subject to a variable rate. Types of mortgage facilities Offset account - An offset account is linked to your mortgage. Cash you put into this account is used to offset the loan balance payable for the purpose of calculating interest. The more you save in your offset account, the less you need to pay in interest. Redraw - A redraw facility enables you to access any extra repayments made into the home loan. --- Looking to upgrade, downsize or just relocate? Taking the time to reflect on your personal goals is important to frame how you want to manage your finances. Upgrading is the situation where you sell your existing home and purchase a more expensive property to live in, whether it’s a bigger property, in a better location or both. Downsizing refers to the opposite of upgrading, where your next home is a smaller (and usually cheaper) property. It is often used in the context of retirement, or for people whose kids have grown up and moved out (“empty nesters”). Relocation simply refers to a geographic change, where you may be moving suburbs, cities, states or countries. With these in mind, there are a couple of different things you can do with your current mortgage, such as refinancing to change loan products or “porting” your loan to the new property. Alternatively, you could keep it simple and sell your current home, using the proceeds to clear out your current mortgage, and then taking out a new one for the next home. Other people may consider keeping their current home and turning it into an investment property. Whichever path you end up going down, it is important to prepare a budget in order to work out the following: Have you researched the value of your current home? How much of a profit (or loss) would you expect to make from its sale, including after the real estate fees and commission to sell the property?... --- ---