With the introduction of all kinds of lending institutions (banks, credit unions, building societies, etc) over the last few years, the Australian property loan market is increasingly competitive. This is great news for borrowers because the benefit of this competition is better choice and more options but the downside is the time and effort it can take you to wade through all the information.
With more loan categories to choose from than ever before it can be a daunting process for potential property buyers or refinancers - and how do you know you’ll end up with the most suitable mortgage for YOU and not the lender?
Australia’s leading mortgage broker, Mortgage Choice originates around 1 in 20 Australian home loans from an extensive pool of leading lending institutions offering hundreds of different loans.
Its accredited loan consultants are paid the same commission* no matter what loan you choose, meaning there is no preferred lender so they are dedicated to assisting you choose a suitable product for YOU. And they do not charge customers for service!
Using a mortgage broker to find out how much you can borrow, whether you’re buying your first property or refinancing for any number of reasons, is a clever move because it is like meeting with a number of different lenders at once. Mortgage Choice enters your assets, income, living expenses and commitments into the ‘Mortgage Book’, an electronic database of loans to find out which of the lenders on its panel will lend you money and how much or which are suitable for you to refinance your current loan with.
Unlocking Equity
For those who already own a home or investment property, unlocking equity that has accumulated may be a confusing but Mortgage Choice can help. You may be unlocking this capital gain for reasons including:
o Booking a holiday
o Purchasing a vehicle
o Renovating your home or other property
o Improving your overall lifestyle
o Consolidating debts
o Buying another property
Refinancing
Mortgage Choice provides a free home loan health check to all customers because the mortgage market changes so frequently with the constant influx of new loans and lenders and you may end up with a much better loan than your previous loan!
Renovation is another popular reason for borrowers to refinance, unlocking some or all of their property’s equity to refurbish or extend their property and increase its selling value... or to increase the comfort for those who live in it.
Others refinance to take up opportunities that are only available if they unlock equity – to go on that holiday they’ve always wanted, purchase a vehicle, buy furniture or other products to treat themselves, or even just to increase cash flow and improve their lifestyle.
Debt Consolidation
A mortgage broker can also consolidate all your existing financial commitments (e.g. credit cards, personal loans, store cards, over-drafts) into your mortgage. This can be ideal for those stuck in a debt rut and happy to stretch their debts over their entire loan term rather than struggling to meet the different repayments.
Provided you have sufficient equity in your property, you can clear all current financial commitments by tipping them into this one loan. The amount of equity available will determine how many debts can be incorporated.
The main advantages of doing so are: you usually pay a lower interest rate than you would on other credit facilities, it reduces monthly commitments with the convenience of making one repayment as opposed to several and it allows you to keep track of their finances more efficiently.
The main disadvantage is that you must be financially disciplined – don’t fall into a trap of using the credit cards or accumulating other debts all over again and end up worse off than when you first started.
Property InvestmentInvesting in property can certainly assist your financial portfolio, given the right choices and the realisation that it is more of a long-term investment strategy, especially now house price growth is at a much slower pace. There are many regions of Australia where good gains can be made long-term if you research the strengths and weaknesses involved. Why note use property equity to take advantage of this?
Mortgage brokers can help you unlock equity to buy more property and build that portfolio you’ve been dreaming of. Building a property portfolio has seen many Australians make strong capital gains over a period of time though to gain a healthy profit you should be thinking at least five to ten years ahead before considering selling it.
Your local Mortgage Choice consultant is happy to help you find the most suitable home loan for your current circumstances, taking into account aspects such as your lifestyle and financial history, financial institution of choice, and whether you desire regular branch access and support or are simply seeking the lowest rate home loan. You are in control of the whole process from deciding where to meet them, to what you can afford to borrow or how much equity to unlock, and on to applying for the home loan you choose.
You can save time, effort and money by contacting Bill Wright at Mortgage Choice on 42266633 or 0403246259 to guide you along the way. Mortgage Choice is Australia’s leading mortgage broker, writing around 1 in every 20 Australian home loans. Its accredited and experienced loan consultants provide professional home loan advice on, and choice of, products offered by a panel of 27 leading lending institutions. They do not charge customers for service.
Mortgage Choice does not have any of its own loan products, and consultants are paid the same commission regardless of lender or product chosen by the borrower*.
So, why not let our local team find the most suitable property loan option for your individual needs. Contact Bill Wright at Mortgage Choice in Wollongong on 42266633. Or visit www.mortgagechoice.com.au/bill.wright for more information.
* This information refers only to loans provided by the panel of 27 lenders with whom Mortgage Choice has an arrangement, under which it receives commissions and other payments. | 
