Cashing in on the mortgage boom

Broker-originated home loans reached record highs towards the end of 2020, according to mortgage broker eChoice.

Data commissioned by the Mortgage & Finance Association of Australia and researched by CoreLogic estimated that $57.47 billion of new loans were settled by 18 leading aggregators.

“With great wealth comes great responsibility,” Bill Gates famously quipped. So, how you choose to borrow and from whom depends largely on research, repayment methods, reputation and reliability. 

Comprehension is key

You must first understand how mortgages work. Taking out a home loan can seem overwhelming, especially if it’s your first. Talking with friends and relatives will remove some of the mystery. The eChoice website offers more than 50 fact sheets to help you understand the home loan process.

Have the lender come to you

Visiting someone else’s office can be an uncomfortable experience, and takes more time than you’d want. Many institutions — including eChoice, the Commonwealth Bank and RAMS — can send a “mobile lender” out to visit you and discuss your needs. 

Consider the alternatives

Specialist home loan companies, such as RAMS, Aussie Home Loans and New Zealand Home Loans, are growing in popularity. The recent global trend is for institutions that can offer products from several lenders. Well over half of all US borrowers now get their home loans this way.

Don’t judge a loan on its rate alone

Your best loan probably won’t have the lowest rate. The features and service you receive can be much more important. For instance, a few of the cheapest loans with fixed rates won’t let you make extra repayments. And those cut-rate loans typically have the highest application fees.

Compare loans

The right loan for you will have a particular combination of features, service and interest rate. It’s unlikely to be the first deal that’s offered to you. There’s plenty of help available. You can find comparisons of loan rates and features at eChoice. Its web-based computer program, called ChoiceMatch, identifies loan products and lenders that match your individual needs. Lending experts will then follow up to explain the details and help you understand your options.

Shark alert!

Taking out a home loan has fewer risks than investing (after all, the lender’s giving you money), but you may still end up relying on your lender’s judgements — and be in your best interest. Choose a lending organisation with a reputation for ethical behaviour and you’ll be assured of quality service and financial peace of mind.

chrisbrown1224

Managing Director – New Vision Financial Services & New Vision Real Estate After years in the banking, finance & commercial sector Chris noticed that the industry needed a company with a personal touch that offered their customers a complete solution. In 2015 New Vision Financial Services was created to allow our consultants to use their experience (including approving and structuring large complex commercial transactions through to basic home loans) and to concentrate on offering a personalised service to their clients. With the growth and success of New Vision Financial Services a decision was made in 2019 to launch New Vision Real Estate to provide an end to end solution for client weather they be first home buyers or seasoned investors. Chris has built a team at New Vision Financial Services and New Vision Real Estate that have access to over 70 different lenders, insurers, lawyers, accountants and financial planners giving you more flexibility when making a decision. We offer a full service Real Estate agency offering Sales, Leasing, New Developments, House & Land and Commercial. Call me anytime on 0433 181 544 or email chris@newvisionfinancial.com.au The team at New Vision Financial Services have access to over 70 different lenders, giving you more flexibility when making a decision. Our consultants have had extensive experience within the banking, financial and corporate sector. At New Vision Financial Services we specialise in finance lending for home, investment, business, commercial, asset, debtor and many other requirements. As New Vision Financial Services has progressed, we have developed strong relationships with professional service providers such as; Financial Planners, Accountants, Settlement Agents, Leasing & Equipment Providers, Debt Management Specialists and any more to allow our clients access to a complete suite of services.