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Aside from table tennis (if you’ve visited our office – you’re a real one), here at The Newstead Group we specialise in purchases, refinances and investments. This blog post will explore the types of questions that you should bring to your first meeting with us - aside from who the reigning table tennis champion of the office is.
Your first meeting with a broker will likely vary in topic depending on what you are looking to engage us for. Are you looking to purchase your first home? Maybe you are looking to invest in property or refinance the property you currently own. Once you have decided on what financial journey you want to take on, there are specific questions that we as mortgage brokers can answer for you to best guide you on your next steps.
Dear first home buyers,
Congratulations on taking the first steps towards your first home!
We understand how daunting securing finance for your first home can be, and here at The Newstead Group our team of mortgage brokers are superbly equipped to answer any and all of your questions. There are a few topics in particular that we would recommend you are across so that you can assess your personal wants and needs in a home loan.
First and foremost, you are going to want to understand your borrowing potential. Don’t be afraid of the buzz words that are about to come flying your way in bolded italics– I’m here to break those down for you. Your borrowing potential is essentially how much you can afford to take out in a loan. It takes into consideration your household income and what you can realistically afford in loan repayments, taking into consideration all of your expenses. And yes- this includes all those coffees and smashed avo’s (but we won’t judge around here). Your first meeting with a mortgage broker should involve expressing your needs and objectives for the subsequent 5 years in particular, and setting clear goals in securing your ideal home loan. This will help the broker tailor the lenders’ products to your individual circumstances and secure the best outcome for you in line with your borrowing potential. Additionally, there are various incentives such as the First Home Owner’s Grant that could assist you in securing your first home loan. Ask one of our mortgage broker’s about this today!
Secondly, you need to understand your deposit and other potential costs associated with home loans, including Lender’s Mortgage Insurance (LMI). If your goal is to secure a loan with a deposit of less than approximately 20%, you can expect to incur a cost for LMI. LMI is a one-off insurance payment charged by lenders to those borrowers who are considered a higher financial risk. For a lot of first home buyers, taking out a loan with a lower deposit is often still a viable option, and our mortgage brokers can help you assess whether your income can support the higher loan repayments associated with the added cost of LMI. Alongside LMI, it is also a good idea to ask about the other costs associated with a home loan including stamp duty and conveyancing or legal fees. Here at The Newstead Group we are more than happy to walk you through this process to make sure you understand exactly what you are signing up for.
Once you are across these topics, we strongly recommend talking to your broker about the type of loan that would best suit your situation. We have listed the 7 types of mortgage loans below for you to check out and ask your broker about in your first meeting.
Hey there, investors!
How exciting! So, you are looking to invest in property, but have you considered your investment objectives? What are your priorities regarding your investment property? Here are some questions that we would recommend asking your broker in your first meeting.
Let’s define your priorities – ask your broker about setting investment goals in line with your current financial situation. Are you looking to invest for capital growth which could yield a positive long-term result if your property increases in value, or rent investing which could deliver a faster return? This then opens you up to making decisions around positive gearing, where the rent exceeds the cost of the mortgage and upkeep to give you a profit. Or alternatively, negative gearing, whereby the rental income is less than the cost of owning and managing the property, which could potentially afford you a tax deduction.
Similar to first home buyers, investors need to determine what type of investment loan best suits their individual circumstances. Ask your broker about the following types of investment loans today.
Welcome, refinancers!
So much potential here! If you haven’t reviewed your home loan in the past two years, this is a fantastic option that you *need* to explore. Your broker could be saving you mega moolah (who doesn’t want that?!) and help you get on top of making a habit out of reviewing your home loan so that you stay ahead of the market. Here are some questions we recommend you ask your broker with regards to refinancing.
Ask us about your new borrowing potential (yep- she’s back and she’s better!). Let your broker evaluate your current costs and identify potential savings from lower interest rates, lower fees and even features such as offset accounts, flexible payments, redraw and line of credit loans that lenders' could currently have on offer.
Next, ask your broker about determining the most appropriate refinancing loan for your individual circumstances. We have included seven below for you to have a read through and approach your broker with at your first meeting.
And finally, don’t forget to ask about the costs that could be associated with refinancing your home loan. We have included eight potential fees below that are a must to take into consideration when opting for this option.
