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Make Your Meeting with a Broker a Productive One

If you’re looking for a home loan but are inexperienced with finance brokers, attending your first meeting with a broker like Astute St Leonards can be a nervous experience. Getting a home loan, after all, can be quite complex for anyone let alone a first-timer. There are lots of brokers like Astute St Leonards and there is a lot to learn. However there are many steps you can take to be confident that your appointment with us will be a success. Read on to see how you can make your meeting with a broker a productive one!

A good starting point is to familiarise yourself with the expectations of the first appointment between a broker and yourself. We will ask you about your medium and long-term financial goals, the amount you want to borrow, comparisons of your home loan options and your understanding of the fees, costs and conditions attached to home loans. Knowing the direction the appointment will likely take lets you participate more actively in the conversation. This means you can better articulate your needs to us and ultimately make the right decision for your requirements.

It’s also recommended that you give some consideration before the meeting to the types of questions you wish to ask us. Questions that can be of use include such things as loan types (such as term, repayment options and interest rate types), the types of ongoing fees attached to various loans (such as early exit, late payment, break and redraw fees) and the typical timeframe for a loan settlement.

These questions might pop into your head spontaneously during the meeting but preparing them in advance is a good way to refine them. By doing so, you are in a position to get more specific information. Astute St Leonards will always document the answers in an email, so that you have a record of the information.

It is common industry practice, too, for a broker to conduct a needs assessment prior to your face-to-face appointment – so you may be asked some pre-appointment questions.  To assist in answering these, you’ll need to supply information about your employment history, assets and expenses.

At the appointment it will save you time and effort to prepare and then bring the required documentation with you. This can include ID, transaction histories, tax returns, rental income statements and borrowing documents such as “contract of sale” and proof that you have the deposit for a property. It’s mandatory for brokers to maintain the confidentiality of information that you provide to them and only pass on information necessary to enable them to lodge your loan application or where required by law.

Research, Research, Research – do your homework!

The other preparation you can do to make your meeting with a broker a productive one, is to research your broker – check us out and make sure we align with you. Read more of our content on our web site and see us on social media either as Astute St Leonards or our parent company Madison Wells Pty Ltd. This can give you a good indication of our knowledge and expertise and highlight topics you can discuss with us. You can also determine if we specialise in any types of loans that match your needs, where we are located and our panel of lenders – 17 and counting! Finally, you should investigate their qualifications and the brokerage that supports them.

Brokers should also be accredited because we are held to higher standards. By verifying they are accredited, you can approach the meeting knowing your broker is appropriately educated, adheres to a strict and professional code of practice and is authorised to access a large range of products offered by a variety of lenders.

We are here to not only be your finance broker, but also a partner in helping you to plan your future asset purchases. To that end, we would be happy to collaborate with your accountant or financial planner so that we are all working as a team for you. Our view is that you should be in cotrol, after all you are the decision-maker, so it is important that you make your meeting with a broker a productive one.

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5 Great Reasons to Use a Broker

We recently created a series of four simple videos to explain the benefits of using a financial broker. If you haven’t seen it on our Youtube channel (with nearly 10,000 views) then have a look at the first edition here. In this video, I give 5 great reasons to use a broker when looking for a home loan or any financial loan.

Over the next month, we’ll show the other videos in the series! In the meantime have a look at our Astute St Leonards page to see the breadth of services we offer:

  • Home loans and mortgages.
  • Refinancing existing loans to a lower rate.
  • Finance for renovations.
  • Construction loans.
  • New and used car loans.
  • Car restorations.
  • Musical instrument purchases (talk to use about our preferred partners).

We are your local resource for all things finance, so start by learning the 5 great reasons to use a broker like Astute St Leonards.

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Don’t Forget the Extra Costs of Buying a Home!

When taking out a mortgage, don’t forget the extra costs of buying a home – consider the associated fees and expenses that you will incur. Here are some of the extra costs that you’ll need to consider when you get a home loan:

Home Loan Application Fees

Most lenders charge a home loan application fee. This can range from loan to loan, and covers:

  • Loan contracts
  • Property title checks
  • Credit checks
  • Attending a settlement
Mortgage Fees and Costs
  • Mortgage establishment fees – Lenders generally charge a mortgage establishment fee – a fee for setting up a mortgage.
  • Property valuation – A third party – chosen by the lender – is appointed to determine the value of your land and improvements.
  • Mortgage registration – Your mortgage deeds need to be registered with the Government.
  • Mortgage stamp duty – Some State Governments charges stamp duty to register your mortgage.
  • Lenders mortgage insurance – If you don’t have 20% of the purchase price or the value of the property, the lender will require you to pay  for a lenders mortgage insurance policy that covers their risk in the event you default on your repayments.
Property Fees and Costs
  • Building, Pest and Electrical Inspection fees – It’s wise to have your new property inspected for any structural or electrical problems and for pests (e.g. termites).
  • Stamp Duty – Governments charge Stamp Duty to transfer the ownership of a property.
  • Registration of Transfer Fee – The new owner of the property must be registered at the Land Titles Office.
  • Legal fees – You generally need to pay a Solicitor of Settlement Agent to handle the transfer of ownership of the property on your behalf
  • Home & contents insurance – Most homeowners insure their home and contents against a range of threats: burglary, fire, storm, etc. Lenders will insist that your property is insured while you have a mortgage.
  • Life and income protection insurance – Borrowers should consider protecting their incomes and themselves while they have a mortgage.
  • Utility costs – Connecting electricity, gas and telephone can attract a fee.
  • Council Rates – Your local council charges rates to cover garbage collection and a host of other services.
  • Water Rates – The water corporation charges rates for the supply and upkeep of water to your property.
  • Body corporate fees – If you buy an apartment or Strata Titled property, body corporate fees will be charged. Some buildings can have very high feed – particularly if the building is in need of a major work (e.g. concrete cancer, security upgrade, new hot water system, etc) or if there are lifts, pools and other communal facilities. This should be a key question to ask before agreeing to buy an apartment.
  • Maintenance costs – Don’t forget to make provision for regular maintenance on your home – even if you decide not to undertake significant renovation.

There is a lot to consider when you are ready to buy a new home – especially if this is the first time you have bought a home in Australia. Our advice is to talk through these when you are reviewing the options for your home loan – in some cases it may help your loan application if you have a plan to cover the ongoing costs of ownership.

Make sure that you don’t forget these extra costs when buying a new home – talk to us at Madison Wells Pty Ltd t/a Astute St Leonards to help with your planning! We are here to help you through the process.