Once you understand your financial position, the next step in buying property is getting ahold of the money. The vast majority of us don’t have the purchase price lying around, so it becomes necessary to seek out a mortgage from a lender. Incidentally, the word mortgage means ‘death pledge,’ but the process doesn’t have to be that formidable—as long as you have the right information and professional advice.
Today, Toni walks us through the three sources for money to purchase a home, explaining the benefits of borrowing to secure capital gains. She speaks to the difference between good debt and bad debt, and what makes a home a good investment.
Toni covers the option to work with a mortgage broker versus a bank, discussing why she prefers a mortgage broker and how they utilize software to find the loan products that suit you best. She outlines the characteristics to look for in a mortgage broker and why you should understand where their commission is coming from.
Finally, Toni talks about how aggregators function as the middlemen between brokers and banks, and why it’s a good idea to talk to more than one mortgage broker. Listen in to understand how to analyze the total cost of a particular loan and make good decisions around your money.
- The three places money for a house might come from
- The benefits of borrowing money for a home
- Good debt versus bad debt
- The two different mortgage providers
- Why Toni recommends using a mortgage broker
- Factors that affect your credit score
- The wide range of products offered by banks
- How mortgage brokers determine which mortgages suit you best
- How to understand the total cost of a loan
- What to look for in a mortgage broker
- How a mortgage broker earns commission
- The role of the aggregator
- Why Chocolate Home Loans pays brokers the same percentage for every loan
- Toni’s advice around talking to more than one mortgage broker
- Why you should ask a mortgage broker for references
- The pros and cons of meeting with a mortgage broker via Zoom or Skype
Learn More About Mortgages
Find more information about credit scores at moneysmart.gov.au/borrowing-and-credit/borrowing-basics/credit-scores.
Get the basics of mortgage loans at en.wikipedia.org/wiki/Mortgage_loan.
Understand the role of a mortgage broker by visiting en.wikipedia.org/wiki/Mortgage_broker.
Access a mortgage calculator at moneysmart.gov.au/tools-and-resources/calculators-and-apps/mortgage-calculator.
Sign up for Toni’s free email course on buying your first property at planinsek.com/property-resources/buying-first-property/.
Revisit Episode 57 of Real Estate Matters at planinsek.com/whats-happening-mortgages-podcast-episode-57/.
Visit Carl Scheriani’s website at loanmarket.com.au/carl-scheriani.
Take Carl up on his offer for a free credit file, email him at firstname.lastname@example.org or give him a call at 0412 352 900.