Hi, we are buying a new home at Ambervale, Price $599,000. We are both working and combined income is $130,000 and have no other debts or credit cards… we have a 2 year old at day care and want to borrow $500,000. What is the best rate we could get and does the loan have to be with one of the banks? Thank you
Congratulations Marian, and vowels in excellent suburb.
Your question here is very very simple to answer in principle however the devil is really in the detail as it is quite common for the cheapest rated product to either not meet your needs or you may not meet the eligibility requirements.
As a staring point if you want the best rated product I can confidently say that the cheapest home loan rate available out there is probably with one of the online online lenders . They probably 20 basis points below what any other major bank or lender could provide. Websites like cannex or RateCity are a great starting point.
However, Your question raised indicates to me that you require a little bit more details rather than what you can just research on the net. You, like most home owners want to understand how to own your home sooner and maximise the benefits of the loan products features so you really receive value. Rather than a transaction.
In all my year experience in the banking and finance industry this is the most commonly asked question by clients. It only reveals one part of a more substantial conversation that needs to take place to ensure that you get the home loan product that is right for you.
This is where brokers become extremely valuable for you - where they can analyse your needs, provide some options that may be available. Generally I need to provide at least three other lenders so you can then make an informed decision about the most suitable Linda. And best of all you don’t have to pay for the brokers, the bank pays upon successful approval and settlement of the loan.
I strongly recommend having a conversation with the broker so you can identifyThe product that’s right for you. As it saves you massive amounts of time trying to decipher the best product and You don’t need to pay for the use of experience the most quality brokers do have.
I trust this provides for some reason all perspective so that you can identify the best pathway to proceed.
You may not qualify for a loan with the lender with the best (or cheapest) rate for various reasons.
A good broker (Like us :-) ) will sit down with you and firstly look at your whole financial position and your short, medium and long term goals before making a recommendation on which lenders, loan products and rates to offer. We look for lenders who will consider your application and then recommend 2-3 of the cheapest rates from those lenders. These rates may not necessarily be THE cheapest rates in the market; however the lenders recommended are more likely to approve your loan.
There have been a lot of changes in the finance sector over the last 6 months and now is the time to seriously consider using a broker to help you navigate the maze of the hundreds of loan products in the marketplace.
To answer your final question... NO you dont have to go with a bank if you dont want to. We have access to over 25 lenders on our panel (including the majors) to choose from.
South West Lending Solutions are not far from you; so I would be more than happy to meet with you in the comfort of your own home to discuss your options further. You can call me on 0414 727 308 to schedule a date and time suitable to you or you can click on the following link to schedule a date and time:- http://www.southwestlendingsolutions.com.au/free-consultation/
Hope this has answered your questions. Please feel free to call me on the above mentioned number send me an email using the address below.
South West Lending Solutions
P: 1800 824 325
M: 0414 727 308
As my fellow brokers have mentioned, you need to sit down with a broker and have an in-depth discussion about your current situation and future goals. Your broker will then be able to determine which lenders you qualify with and then show you three of the most suitable products based on your individual needs.
It's also important for consumers to understand that sometimes the lowest rate is not always the best deal, you've also got to consider what features you require (e.g. offset account) and any fees involved, you may find the lowest rate but that might come with high upfront and/or ongoing fees, in which case a slightly higher rate with no fees could end up costing you less in the long run. There are so many factors to consider when choosing the right home loan and I highly recommend speaking with a mortgage broker - it's free to you and the majority of brokers provide exceptional customer service.
Good luck with everything!
Straight off the bat, you are going to be borrowing above 80% of the valuation of the property so that crosses out a number of the “cheap” rates that you see advertised. Other than that there are quite a few variables that will affect whether a loan is suitable for you and then the rate you will pay - specifically in that order.
I would recommend you contact one of the brokers who have answered your question here and provide the rest of your information for them to assess you fully.
It will be well worth the time down the track.
Best of luck