Are Loan Brokers Worth It?

If you are looking to buy a new home in the bustling neighbourhood of Melbourne, Australia, approaching a credible mortgage broker can help. Reputed loan and mortgage brokers like VIP Finance Brokers can assist you in securing a home loan or mortgage at a remarkably competitive rate. Securing a loan or mortgage is a rather tricky and tedious process if you are on your own. A credible and experienced finance broker makes the whole process easier for you as it comprises tedious, complicated form fillings, legalities, and other documentation.

Correct loan structure and consultation

Applying for a loan is a crucial decision in life as you have to pay the sum for a long time every month. Therefore, you must be careful while selecting a loan. A loan or mortgage should suit your income level and meet your requirements with other obligations in life. Approaching an experienced and expert loan and mortgage broker is a straightforward choice that you should make without a mistake. A simple online search will lead to many notable financing firms near you.

Most mortgage broking companies are helpful and provide good consultation regarding different loan options available in the market, meeting your needs. The focus of the loan broker is to offer the best possible finance solution that enhances your standard of life and gives you the necessary peace of mind through financial independence. Well-known mortgage brokers offer more than what financial metrics can offer, like assurance, experience, and expertise navigating the intricate financial loan realm, negotiation, and relationship building.

First time home buyers

If you are a first-time homebuyer, procurement of a loan is often a daunting task. You have to consider various details like the down payment or the deposit rate, interest rates, taxes and stamp duties, concessions provided by the government, grants, and other schemes. While things are tricky, some aspects can be helpful and advantageous for you. According to loan and mortgage brokers, 95 per cent of first-time homebuyers apply for the loan, and only 5 per cent can purchase their first home outright with cash.

Often the government has schemes and programs that the general public is not aware of. The government initiative is to support first-time home buyers. Australian government’s “First Home Loan Deposit Scheme” helps first home buyers with a limited amount to deposit. Through the scheme, you can secure a home with a small deposit of 5 per cent. Interestingly, you can also get a waiver of “Lender’s Mortgage Insurance premiums through the scheme. You can consult a competent broker to explore the saving opportunities.

Refinance loans

Refinancing is a loan swap process. You replace the current loan with another one. The loan swap, also known as “swapping out”, occurs among two loans from the same loan provider. The deciding factor for the borrower is the interest rates and revaluated terms and conditions depending on the changing market conditions. The swapping out can also take place for loans from different lenders. In the second process, the loan transferred to a new loan provider, perhaps with renewed terms and conditions along with interest rates. According to agencies like Melbourne refinance home loan, the motivation behind refinancing are as follows.

• Enhanced savings

You can increase savings with better deals comprising lower interest rates. The savings are substantial over the lifetime of loan repayment.

• Improved borrowing

The facility allows you to increase the loan amount if your requirements are changed.

• Restructuring

You can restructure your loan, comprising the principal amount and interest rate. For example, the most popular restructuring is the exchange of principal and interest (P&I) repayment option to interest (IO) only options.

Investment loans

Investment loans are similar to home loans but functionally different. An investment loan is for investments in properties. The properties for investment comprise a simple second rental place or a sprawling estate to rent out as a weekend home and leisure activities centre. Since the investment loans have income potential, the loan repayment is more comfortable. The property for investment loan requires approved investigation to unearth any possible issues before clearing the papers for the loan processing. You can search for a credible and trusted broker to complete your investment loan process.

Construction loans

Construction loans are different from home, refinancing, and investment loans. A significant feature of a construction loan is financial protection and lower interest rates, which is helpful when you renovate or rebuild your property. The construction loan is structured based on milestones, and the released loan amount is in stages. For example, construction loan stages for amount disbursement are foundation completion, building frame, lockups comprising the walls, windows, and doors, fit-out stage for internal work, and work completion. You can contact a good mortgage broker in Melbourne to know more about construction loan brokers.