Why use a mortgage broker?

A mortgage broker is someone who shops around for the home loan that’s right for you. Whether you’re in the market for your first home or building a portfolio of investment properties, we have access to hundreds of loans from a host of Australia’s leading lenders.

You can see us at any stage in your financial journey. You might still be saving for your first home, wishing to use the equity in your current one, or wondering if you’re still getting the right deal with your existing lender. You can make an obligation-free appointment with us at a time and place that suits you.

We will ask about your financial circumstances and objectives to find out what’s important to you in a home loan. For example, flexibility might be important because you plan to start a family or you may want ready access to equity for a rental property or renovations. Whatever your plans, we will research the market and recommend the right home loan to suit your needs. We always look for the right loan for you, not the lender.


Home buyers and first home buyers

We are paid by the lender, not the borrower. The lender has fixed marketing costs in every loan and pays these monies to their own representatives, branches or brokers like us.

This amount varies from lender to lender and depends on a number of factors.

Use our borrowing capacity calculator how much you may be able to borrow and a Shore Financial broker will be happy to give you a more detailed response based on your individual circumstances.

Loan types and loan features will give you a good idea of the main options available, but because there are hundreds of different home loan products available, and individual circumstances are all different, contact us today to take a look at your options.

A deposit is usually between 5% – 10% of the value of a property, which you pay when signing a Contract of Sale. Speak with us to discuss your options for a deposit. You may be able to borrow against the equity in your existing home or an investment property.

Go to our Repayment Calculator for an estimate – because there so many different loan products, some with lower introductory rates, talk to us today about the deals currently available, we’ll find the right loan set-up for you.

Most lenders offer flexible repayment options to suit your pay cycle. Aim for weekly or fortnightly repayments, instead of monthly, as you will make more payments in a year, which will shave dollars and time off your loan.


Refinancing

With lenders adjusting their rates outside of the Reserve Bank now is a great time to shop around. Check you have the right loan for your needs; chatting to Shore Financial is a great starting point. It will depend what interest rate you’re currently paying, what type of home loan you have (e.g. fixed, variable, interest only, line of credit) and what loan features you want. We can quickly explain your options.

This is one of the reasons many people refinance. The advantage is that you pay a much lower interest rate on a mortgage than for most other forms of debt – e.g. credit cards, overdraft facilities, personal loans etc.

Providing you have sufficient equity in your property, you may be able to consolidate all your debt on a home loan. If you take this option though it is important to make sure you maintain your repayments at their current level or you could end up paying more over a longer period of time. Speak with us today to discuss your personal needs.


Investing

Most of the same types of home loans and loan features apply for investors as for owner occupiers. Some lenders may charge higher rates for investment properties if the associated risks are higher.

Many an investor has started out leveraging the equity of their own home. Banks will usually accept equity in a home (or other property) as additional collateral against which they are prepared to lend. This means you could potentially borrow the full purchase price of the property, as well as all costs (stamp duty and other fees) without having to contribute any cash. The risk in using your home as collateral is that if you can’t fund the mortgage for the investment property, the investment property and your home are at risk. When we meet, we can go through the options available to you.

This is when the cost of owning a property is higher than the income it produces. If the rent you get for an investment property is less than the interest repayments, strata fees, maintenance and other costs, your investment is negatively geared, or making a loss. This loss can be offset against your income, reducing your income tax bill.

Landlord’s insurance provides standard building and contents cover plus cover for theft or malicious damage to the property by tenants and covers loss of rent in certain circumstances. It also covers the owner’s liability (e.g. if a tradesperson is injured while working in the property). Landlord’s insurance is an affordable extra safeguard and strongly recommended for all investors.

Stay in the know with our newsletter