IT’S NOT ALL ABOUT THE INTEREST RATE!
What’s the best interest rate you have?
I get asked this all the time. A loan is chosen, more times than not, by the lender’s credit policy not the interest rate.
What a mortgage broker has to consider and research for borrowers are the following :-
How your income is earned?
For example, are you self employed and have recent tax returns been completed, are you in a probation period, do you have unusual forms of income or allowances. These income factors will determine which lender a mortgage broker can submit your loan too.
Some lenders have postcode restrictions. Some lenders will not accept properties under 40m2 or properties on larger acreages. Some lenders do not do construction loans.
Refinancing a home loan
Some lenders won’t refinance your home loan if loan amount is going to be over 80% LVR. And it goes on and on.
How much can you afford to borrow?
All lenders have different methods and assessment rates of calculating your maximum borrowings. It can vary greatly.
There is always something that sets each borrower and loan apart that will require a different lender. The interest rate in most cases is secondary, and some borrowers don’t even get an option with the rate as their circumstances may only fit one lender.
If you need help with your home loan, refinancing or investment loan or advice on purchasing your first property please give me a call or send an email.
I’m only too happy to help – it’s my job and I love helping people attain their goals.