Why Would You Need Our Mortgage Broker Lawnton?

If you’re looking for a convenient and affordable place to live in, go and head over to Lawnton. An hour away from the Brisbane CBD, the suburb has lots of beautiful parks and reserves you can explore to adore the beauty of nature. Everything you need is here—schools, churches, markets—you name it! An hour’s drive from the city may seem inconvenient, but don’t worry since Lawnton has quick access to the train and you can quickly reach the city in just 30 minutes. Hoons were a big issue but episodes have been fewer and fewer, making it a generally quiet suburb. Think this area is right up your street? Get in touch with our mortgage broker Lawnton right now!

What is a Mortgage Used For?

A mortgage is a financial term that describes how you can get a loan by using collateral as security. Mortgaging has, in fact, become highly in demand that more and more people have joined this industry to help others acquire a loan.

Mortgages are typically used to buy or construct residential and commercial properties. They’re offered by banks and other types of financial institutions and how much you can borrow depends on your personal property’s worth to repay the loan.

There’s a standard way of applying for a mortgage. However, interest rates and other formalities may vary depending on your chosen lender.

What Types of Loans Can Our Mortgage Broker Lawnton Help You Get?

Purchasing a property usually isn’t possible without help from banks and lenders. If you want to buy one but don’t have the entire purchase price yet, then mortgage loans are your new best friend.

But with many types available, you can find it confusing to choose the right one. So in this post, let’s discuss your options and their pros and cons to find the perfect one for you:

Variable-Rate Loans

The go-to for most homebuyers, variable-rate loans depend on the Reserve Bank of Australia’s ever-changing cash rates and the constant rise and drop in interest rates. Meaning, you may have low repayments in some months while high in some.

These seem risky, but clients of our mortgage broker Lawnton still prefer this option since it lets them pay in various ways depending on the lender. And if we find what we think is a more suitable loan, you can easily switch providers because most lenders don’t charge a change fee.

Fixed-Rate Loans

As the name implies, fixed-rate loans involve a fixed amount you need to pay per month. But the rates are higher than the current variable, which means these loans can be a bit more expensive.

We recommend these if you’re on a budget since you know exactly how much to repay each month. However, aside from the higher rates, if our mortgage broker Lawnton finds you a better product, changing providers is costly because most lenders charge a break-cost fee.

Guarantor Loans

Planning to borrow up to 80% of the purchase price but want to skip paying the mortgage lender insurance? Then guarantor loans may be for you.

What you need to do is ask your parents or a close relative if they can be your guarantor. If they say yes, a portion of their house will now turn into your collateral. We recommend these if you’re a first-time homebuyer and new to the property market.

Interest-Only Loans

If you’re a young homebuyer or have a low income, our mortgage broker Lawnton will suggest that you go with interest-only loans. These let you skip paying the principal and focus on paying the interest—for now. These typically last for 7 years before going back to “traditional home loans.”

These are also great if you’re a property investor looking for negative gearing, or planning to earn some profit by reselling your property (given that it won’t depreciate.)

Line-of-Credit Loans

Planning some home renovation? Also called “home equity loans,” these loans, on top of your existing loan, allow you to spend the money on more important expenses. You can also choose to use it whole or bit by bit.

However, our mortgage broker Lawnton won’t recommend these if you’re an impulsive buyer. It’s because once you’ve drawn from your line of credit, you need to make repayments right away to compensate for the amount lost. Failure to do this will only lengthen your loan term.

Investment Property Loans

Investment property loans have the strictest requirements. First, you must have proof that you have enough funds set aside to repay the total loan cost. Some lenders may even require these funds to be higher compared to if they were for a traditional home loan!

Then, they’ll make sure that your rental income isn’t enough to cover monthly repayments. This is because your income-to-debt ratio, or the part of your salary used to repay the loan, should be affected as well.

Last is the property’s potential for appreciation during the loan term. This is why lenders always check the trend in housing prices and vacancy rates.

Why is Our Mortgage Broker Lawnton Helpful?

For several years, banks were your only choice in terms of applying for a mortgage. This also meant there was little to no competition among financial institutions. But borrowers today take their time comparing products from these institutions to find one that works for them. This later led to the birth of our profession.

As mortgage brokers, our job is to do all the work so you don’t have to worry about a thing. We’re required by law to carry an ACL (Australian Credit License) or be credit representatives of a licensee (aggregator) to serve as your protection if a lawsuit happens.

So how does using our mortgage broker Lawnton benefit you?

We Know How the System Works

Do you know what the difference is between variable and fixed-rate loans? As experts, we can explain these terms easily and maybe even suggest which option is best for you.

You should also know how we’re different from mortgage advisors.

Mortgage advisors work for a certain bank and only care about selling you products from that bank—even if they don’t work for you. Meanwhile, we work independently and compare products from several institutions to find the best product that meets your criteria. In short, we work for you.

We Save Your Time and Effort

Our mortgage broker Lawnton will act as a “middleman” between you and potential lenders. This means we’ll do all the negotiations to save you from stress and headache. 

We Protect Your Credit Score

Let’s say you chose to go on without us. If you apply to banks for a mortgage and get rejected even by just one, it will inevitably show in your history and make your credit score suffer. We prevent this from happening by using only your financial information, never your identity, when applying to lenders. This increases our chance of finding you the right loan while protecting your credit score.

We Perform Administrative Tasks

Think working with our mortgage broker Lawnton isn’t necessary? Then we hope you love doing tons of paperwork! We help you get all the documents you need to ensure a smooth loan application process. For instance, we can help get a pre-credit authorization or the document that says if you’re eligible for a loan and how much you can get.

We Stop You from Making Silly Mistakes

One of the most common mistakes people make is getting a product with the lowest rate without completely understanding the terms attached. Our role is to dissect this information and make sure you fully understand it so you won’t end up in a bad place just because you were misinformed.

Your Place Mortgage Brokers: Your Mortgage Broker Lawnton

Seeing you end up with your dream property is our goal. Whether you’re a first-time buyer or a seasoned property investor, allow us to assist you from start to finish to, hopefully, take some weight off your shoulders.

If you’re considering buying or investing in a property in Lawnton, don’t hesitate to get in touch with our mortgage broker today!