Why go to a mortgage broker rather than just go to the bank. Why? Its simple the banks will sell you the mortgage they want you to have. The mortgage broker will access the product and lender options and find the mortgage that will work best for you.
A mortgage broker has a range of software and mortgage calculator options. These can help you get the best understanding and feel for the mortgage you select.
So listen to the Mortgage Broker.
This list is an introduction to the features of mortgages that make up a mortgage. A feature is only relevent to your needs. Many people use the same mortgage feature in totally different ways.
Do not get caught up in a single part of the whole. Mortgage rates are a good example. Many people buy bad mortgages because of the feature structure because they wanted a low rate. It will cost them a lot more in the long haul.
The first item on the shopping list.
Fees.
Nil.
Ideally the mortgage should have no application, valuation or legal or deferred application fees. There should be no monthly or yearly account keeping fees.
Rates.
Focus on features of loan rather than rates
The advertised rates and the comparison rate should equal. Be careful of special rates, honeymoon rates. Do the calculation of what you actually save on a mortgage in the first year. Then subtract the saving with any fees in the loan.
Principal reductions and additional payments.
No fees.
There should be no restriction or fee on any additional deposit you make into you loan.
Redraw from your mortgage.
No fees.
Excluding the value of your minimum payments. There should be no restriction redrawing surplus payments and balances of your mortgage account. Unlimited transactions and unlimited value. There should be no transaction fee.
Splitting the loan.
Yes.
Split the loan into two or more accounts. Splitting Gives great flexibility in debt consolidation, buying investment property, setting investment targets for superannuation etc. Be prepared to pay $100 per split, when you make the split.
Offset accounts.
Take off your list.
Unless given specific professional advice from an accountant of a financial planner. Avoid. They have lots of traps and generally dont offer any additional features to the basic home loan.
Product switching.
Yes.
Switch from a variable rate to a fixed rate or visa versa. Normally all lenders will charge $200 if you use this feature.
Top up and extensions to the loans.
Without full applications required.
John E Edwards explains how a mortgage is a wealth creation tool, and how to use the mortgage effectively to start creating wealth in your life now. Contact a specialist to get you on the right path now. Mortgage Solutions or Mortgage Answers
Tags: loans, debt consolidation, mortgage, finance, mortgage broker, offset accounts, debt refinancing