Raine & Horne Essendon Blog

BROKER OR BANK?

Tell us a little about yourself?

A little bit about me, my name is Lyndel, I have a 6-year-old daughter, I am 28 years old and I have worked with Loan Market for nearly 4 years now. I began working with Loan Market as a customer support manager then moving into a junior broker role and recently becoming an accredited mortgage broker.

What are some tips for first home buyers?

Budgeting for the future is an essential first step. Be realistic, not only about your current situation but also about future costs, to work out how much deposit and monthly mortgage repayments you can afford.
See if you are eligible for government grants and stamp duty concessions available to first home buyers. These incentives vary from state to state.
Get a feel for the market and understand the costs involved in buying a home
Mortgage brokers provide expert advice on a range of borrowing options, however choosing the right one is essential because they will do all the leg work and guide you through the whole process.
Obtain a pre-approval for your maximum spend which is conditionally approved subject to the contract of sale and valuation. A pre-approval is valid for 90 days and will give you confidence when shopping for your biggest asset.

Tell us about guarantor home loans?

A guarantor or mortgage guarantor is the person who provides the additional security for your home loan. Most lenders prefer the guarantor to be a close relative – usually a parent, grandparent or sibling.

Your guarantor doesn’t need to provide any cash payment. No money changes hands with a guarantee. Instead, the guarantor agrees to offer part of their home equity to top up your cash deposit.

When it comes to buying a first home, saving a deposit is hard work – and it takes time.

A guarantor home loan can be a way to get into the market sooner. You may only need a small deposit. In some cases, you may not need a deposit at all.

A guarantor home loan can also be a way to avoid the cost of lenders mortgage insurance (LMI). It’s a saving that can be worth thousands of dollars.

What is LMI?

If you are purchasing a property in Australia with less than a 20% deposit plus the stamp duty costs, the banks will charge you a lenders mortgage insurance (LMI) cost which is a one-off cost that is simply added to your loan amount and paid off with the rest of your loan. LMI is designed to protect the bank in the case that you aren't able to meet your loan repayments and they were forced to sell your property.

Why should we pick a broker over going through a bank?

On January 1, Best Interests Duty (BID) will apply to brokers, not banks. This means you'll have a professional who is legally obligated to work and act in your best interests - and no one else's.
You get someone who works for you. Bankers work for their shareholders.
You’ll benefit from a comparison of over 60 banks and lenders who offer thousands of loans and products.
You’ll have someone with you for the long haul, regularly checking in on your loan to ensure it aligns with your goals.
You’ll have someone fighting for the fittest rate on the market for you so that your loan matches your needs and goals, not the first product on the shelf.
You can contact me at any time, not just during the restricted working hours of a bank.
You’ll have a professional advising on rates, repayments, incentives and contracts.
From the first Fact Find to the final repayment, your broker is with you all the way.
You won’t be left alone to negotiate with bankers, agents, conveyancers, accountants…
Oh, and did I mention that having a broker comes at no cost to you?

What is something you love most about your job?

The biggest thrill of my job is helped my people - finding solutions for my clients and helping people achieve their goals and dreams and being part of that journey with them. The smiles and appreciation at the end of it all is worth every minute!

LYNDEL ROMEO – Loan Market

0421 118 114

[email protected]