What does a mortgage broker do

Want a mortgage broker - go to - www.bsifinance.com.au

Great insight form my friend Sal Carrero

Having owned a mortgage broking business in Australia that managed two billion dollars worth of new loans annually, I've seen firsthand the monumental difference a seasoned broker can make in a client's financial journey. Mortgage brokers bring a level of market understanding and expertise that is hard to match.

 Their day-to-day involvement in the mortgage industry equips them with a nuanced understanding of evolving lending criteria, interest rates, and product features. This knowledge is invaluable, ensuring clients are presented with loan options that are not just suitable but optimized for their unique financial situations. The process of loan comparison and application can be daunting and time-consuming.

Standard definition 

A mortgage broker is a professional who acts as an intermediary between you and potential lenders. They have access to a wide range of loan products and rates from different banks, credit unions, and other financial institutions. They can help you compare and negotiate the best deal for your situation, saving you time and money.

From Felix Ortiz 

A mortgage broker is the go between borrowers and multiple wholesale lenders, assisting in finding suitable loan options. Their responsibilities include assessing the borrower's financial situation, presenting loan offers, and guiding them through the mortgage application process.

They’re supposed to help a borrower get the best loan for their current financial situation. 

So many have lost that and don’t do the “leg work”. Strictly focusing on ease of use for themselves. Rate may differ from program depending on the borrower’s needs. 

From Ed Brittingham 

Think of a mortgage broker as your financial co-pilot for home buying. They'll search high and low for the best loan options, saving you time and money. They'll also handle the paperwork and guide you through the process, making things smoother and less stressful.

As your realtor, I partner with trusted mortgage pros who share my commitment to a smooth home-buying experience. They're experts at navigating the loan market and finding the best fit for your needs. Let me know if you'd like a connection!

While using a broker isn't mandatory, their expertise can be a game-changer. They can help you secure the best loan, save you time, and reduce stress, putting you on the fast track to homeownership happiness!

From Clinton Howell - real estate agent 

A mortgage broker can be a great asset and partner in understanding your financial capabilities for purchasing property, renovations and for re-financing. They can provide mortgage pre-approvals and strategies for budget planning too. I highly recommend working with a trusted mortgage broker. 

From Broker Bill Black

A mortgage broker navigates complex financial waters, connecting clients with a variety of lenders to find the perfect mortgage match. 

This isn't just about having the most competitive rates; it's about understanding each client's unique story and financial goals. They  save clients time and money by handling negotiations and paperwork, ensuring they get a tailored solution that fits their lifestyle. 

In essence, a Mortgage Broker is a financial guide, an advocate, and a crucial part of making property dreams a reality in a streamlined and stress-free process.

From Rahul Dhakad

I think morgage brokers are architects of dream's, crafting financial plans that resonate with the heArtbeat of those seeking a place to call 🏠.

www.bsifinance.com.au

6 ways to get a deposit for a home - buy it starts with the first step

Navigating the journey to homeownership in Australia can be challenging, especially when facing the deposit hurdle. 

The key is to have the right mindset, a vision of what you want - and a smart goal of what you want to achieve .

A goal that is Specific , measurable, Achievable, Realistic and with a time frame .

If you don’t have a deposit , here’s  a quick look at some tips to enable you to get that kickstart!!

1. Leverage Government Schemes: Utilize programs like the First Home Guarantee for a lower deposit requirement. If you are a front line worker - there are some amazing programmes - such as the NSW home shared equity scheme, where Government will fund up to 30pc of a property (new buildings 40pc )

2. Explore Alternative Lenders: Don't limit your options; alternative lenders might offer more flexible terms.

3. Consider Shared Equity: A viable solution for those unable to buy outright, increasing ownership over time.

4. Innovative Saving Practices: Regular saving and expense management can accelerate deposit accumulation.

5. Boost Income Creatively: Side hustles or renting out space can supplement your deposit savings.

6. Professional Financial Advice: Having a financial planner, accountant and mortgage broker in your team is gold . They  can help tailor a plan to suit your unique homebuying journey.

Your dream home is within reach with the right mindset, approach and guidance. 

Let's discuss how we can help you make it a reality.

#bsifinance #bsi #mortgages #loans #ArkTotalWealth #WealthManagement #FinancialPlanning #InvestmentAdvice #AssetProtection #FinancialSecurity #EstatePlanning #RetirementPlanning #FinancialGoals #SmartInvesting #InvestingTips #WealthProtection

Call me on  www.bsifinance.com.Au

People often ask me - what do you need to retire?

People often ask me - what do you need to retire?

To fund a ‘comfortable’ lifestyle the Association of Superannuation Funds of Australia (ASFA) indicates that you would need a passive income of $50,207 for singles and $70,806 for couples. 

Those numbers equate to around $60,000 and $90,000 in pre-tax income today. 

This is of course assuming you own your home debt-free. 

So what capital do you need to retire? 

If you work backwards and assume you have an asset generating 5% yield a single person would need roughly $1.25m (in addition to having their own home fully paid off) and a couple would need $1.75m. 

Average super balances at retirement are $400k for singles and $700k for couples 

leaving a gap of $855,000 for singles and 244% $1.03m for couples. 

The pension - although generous -  is clearly not enough to find your retirement being $25,065 or $482 per week for singles and a combined pension of $39,269 per year or around $755 per week per adults - and with no adequate savings you risk being one of the 33% of Australians who will retire in poverty?

How do you close that gap and not be one of the 33% of Australians are at risk of retiring in poverty?

A tried and tested  way to beat this hurdle rate is using leverage or borrowings to invest in property. 

And based on a number of polls - most think that property prices will increase over the next 10,20 and 30 years !

For a fairly typical property using a 10% deposit, the internal rate of return is better than 13% per annum with  good properties ending up being around 20% per annum over the long term which comfortably beats the real rate of inflation. (As long as property continues to increase over the long term )

Of course you can also  invest in things like tech stocks and cryptocurrencies. 

 Property seems to be  a safe and practical way to escape the poverty trap and have a retirement that looks something like an advert from a SuperFund!! 

A key ingredient , in my view is to have a team around you that you can trust and rely on to help you on your journey to close the gap! 

A good financial planner,  a good mortgage broker (that’s me :) ) is a key cog in this team - be sure that you have one! 

Investing in Property Starts with Developing an Investment Strategy

This popped  in my feed from 2010 - 

And yes - property has doubled in 14 years!!!

1. Investing in Property starts with developing an Investment Strategy!

Before Investing in Property, Shares or other Asset Classes, one should consider factors that include their current financial situation, their existing investment portfolio and their goals for the future.  

Each investor is unique and have different goals for investing – some want a passive income streams, others may want to invest for capital growth so that they can sell their property when they retire, while others may investment in property for their children or parents to occupy. 

The process of building an investment portfolio should involve planning and research vs taking an educated guess on a property and hoping that it will double in value every 10 years. 

A property is a substantial asset, and if one buys a property at the wrong time, it could take many years for ones investment to be successfully realized. 

2.  RESEARCH RESEARCH RESEARCH!! 

Look at the area

 – demographics, infrastructure, population growth/change, desirability of area for tenants, yield, and accessibility to transport, shops and schools…. amongst other factors. 

3.Take emotion out of your decision making process

 Where you want to live vs. where you and to invest are 2 different decisions!!!

For more information, go to www.bsifinance.com.au

Is 2024 the right time to buy an investment property?

2023 has seen a significant increase in rents for investment properties (10pc for units and 7.5% for houses, and according to CoreLogic’s research director, Tim Lawless the lack is supply is indicating that this growth will continue in 2024! 

Is this a good time to buy an investment property in 2024? 

Home Support for Essential Workers - Shared Equity Home Buyer Scheme

The NSW’s shared-equity scheme can help make owning a home easier for lower-income single parents, older singles and essential workers.

You only need a deposit of 2% or more of the purchase price, and the government will contribute towards the purchase price in exchange for an equivalent interest in the property .

 

The contribution is a percentage of the purchase price. The maximum amount is:

• 40% for new homes
• 30% for existing home

What Are The Benefits Of The NSW Shared-Equity Scheme?

• You buy your home with a smaller deposit (only 2%)
• You save money, as you don’t have to pay Lenders Mortgage Insurance (LMI) which is usually applicable when you’re borrowing more than 80%
• Your monthly repayments are lower since you’re borrowing a smaller amount . There are no repayments, no rent and no interest charged on the governent’s shared equity portion of the property.
• You can pay off the NSW Government and increase your ownership share.

 

Who Can Apply For NSW’s Shared-Equity Scheme?

You can apply for the Shared Equity Home Buyer Helper if you are:

• A single parent of a child or children
• A single person who is over 50 years of age
• A first-home buyer who is a key worker

The key workers who can apply are nurses, midwives, paramedics, teachers, early childhood educators and police officers.

NSW Shared-Equity Scheme Lenders

Two lenders offer the Shared Equity Home Buyer Helper:

• Bendigo Bank
• Unity Bank

Please note that these lenders are not part of our lending panel . However, we would be delighted to help you purchase your own property!!! 

Other government support programmes include 

• Other government schemes like the Home Guarantee Scheme
• A guarantor home loan, which helps you borrow up to 105% of a property’s value
• Waived LMI home loans for essential workers
• No-deposit and low-deposit home loans
• High-LVR home loans

What Are The Eligibility Requirements?

• You are 18 years of age or older.
• You are either an Australian citizen, permanent resident or New Zealand citizen.
• You have a deposit of at least 2% of the purchase price.
• You will occupy the property as your principal place of residence.
• The gross income limit for singles is $90,000; for couples, $120,000 or less.
• As a single parent or older single applicant, you cannot own an interest in any land or property at the time of settlement.
• As a first-home buyer and key worker, you and/or your partner must not have previously owned an interest in any land or property in Australia.
• You have the funds to cover the upfront cost of buying a home, including conveyancing, legal costs, any inspections and stamp duty.
• Your financial assets are under:
• 30% of the total property price if your annual income is more than $93,200
• 45% of the total property price if your annual income is up to $93,200
• 65% of the total property price if you are a single person 50 years of age or older

Is There A Maximum Property Price?

Yes. The maximum property prices depend on where you buy in NSW:

• $950,000: Sydney and major regional centres (Newcastle & Lake Macquarie, Illawarra, Central Coast and North Coast of NSW)
• $600,000: Other regional areas of NSW.

 

What Are My Ongoing Obligations If I Qualify?

After qualifying as a participant for the scheme, you need to fulfil certain obligations to maintain your eligibility. You must:

• Pass annual reviews by providing supporting information
• Get approval from the NSW Government to make any modifications or renovations so that the value of such changes factors into the final sale price of the property
• Maintain the property and keep everything in good working condition
• Take care of recurring property costs, such as water and home loan repayments.

You do not need to satisfy the key worker or single parent of dependent children status on an ongoing basis.

 

Is NSW’s Shared Equity Home Buyer Helper The Same As Help To Buy?

The main concept of NSW’s Shared Equity Home Buyer Helper is the same as the federal government’s Help To Buy scheme. Both offer the same relief through equity contribution, both do not charge rent, and both allow homebuyers to gain ownership whenever they can afford it.

However, there are differences between them:

• Help To Buy is a nationwide scheme, while the Shared-Equity Home Buyer Helper is only for NSW.
• Help to buy is intending to start in 2024 - not yet started 
• Help To Buy does not specifically focus on groups, whereas NSW’s shared-equity scheme specifies groups like single parents, key workers, and people over 50.
• Help To Buy is available only to Australian citizens, whereas the shared-equity scheme is available to Australian citizens, New Zealand citizens and Australian permanent residents.
• 10,000 places will be available for the Help to Buy scheme annually, and 3,000 places a year will be available for NSW’s shared equity scheme.
•  

Frequently Asked Questions: NSW Shared Equity Home Buyer Helper 

Contact me on link below and I will be delighted to explore whether there is an opportunity to assist you with your purchase

Can I Apply For The Home Buyer Helper And Help To Buy?

How Many Places Are Available?

What If I Currently Own Property?

What Types Of Properties Can I Buy?

As A First-Home Buyer, Can I Get Stamp -Duty Exemptions When I Apply For NSW’s Home Buyer Helper?

How Do I Buy Back The Government’s Share Of The Equity?

What Happens When I Sell The Property?

contact me on www.bsifinance.com.au 

 

The steps to get approval for The Shared Equity Scheme In NSW?

• You must contact a participating lender to assess your eligibility before you lodge an application with Revenue NSW.
• Once you’re successful, you will be informed of the maximum contribution amount from the government. The participating lender will then process your application and offer pre-approval. You will then have three months to find and purchase a home.
• To get final approval, you must provide the participating lender with evidence of eligibility and prove that the government contribution is necessary for you to buy the property.
• Once you have final approval, you will get a written confirmation from Revenue NSW to purchase your home.

So, what is the prediction for Sydney property prices in 2024 and beyond ?

The big 4 banks predict house prices will grow by 5pc in 2024 after growing a whopping 10.4pc  per cent  (CoreLogic data ) in 2023! 

This growth is despite  the pundits predicting a dire year in 2023 and 13 rate hikes -which affected buyers serviceability and added thousands to mortgage repayments. 

Why did property rise in 2023? 

• the strong return of international migration 
• Lack of supply resulting in a highly competitive rental market
• help from the bank of mum and dad - inheritance and generational transfer from baby boomers 
• existing equity in property 
• saving buffers built up during COVID-19 lockdowns. 
• First home buyer grants and deals for front line  workers 

What do you think will happen to Sydney property prices in 2024? 

So , what does Ivan Kaye from BSI finance predict ? 

“The graph of Sydney property for the past 50 years shows a steady growth. There may be dips and one shouldn’t look at what happens in one year.  Ivan Kaye predicts a solid return over the next 5 years of more than 20pc! 

Property is not a short term investment.  If you do your research, and buy well, property has been and we believe will continue to be a solid investment - especially with the ability to leverage with a 30 year loan! 

For more information on rates and information about buying or refinancing a property - go to www.bsi finance.com.au

www.bsi finance.com.au