Are you searching for the right home loan but aren't sure which bank to choose? Then this blog post about how long each bank takes to process applications is definitely for you!
Most people usually contact a Mortgage Broker when it's time to choose a bank for their home loan, as they tend to do all the hard work for you and you don't even have to pay them for their time. However if you're choosing to do it alone, below are the current turn around times for each bank.
Bank turn around times have increased dramatically during the current market, however each bank is different and some haven't increased by much, whereas others have blown right out.
NAB's turnaround times haven't increased by much - just a mere day from 9 to 10 business days.
Both CBA and Westpac have increased their processing times from just 3 business days to a whopping 14 business days.
ANZ has the longest processing time, going from an average of 26 business days in June, to 27 business days in July.
Contract finance clauses are been extended multiple times because of the new waiting times, and sellers are having to wait almost a month to find out if the property will go unconditional, or whether they will have to start from scratch to find a new contract.
If you'd like to know more about what's happening in the market atm, or you'd like a recommendation for a Mortgage Broker, please contact me on 0414 520 853 or email me at email@example.com.
By now you probabably would have heard that the government is contributing $25,000 towards new builds and renovations, but is this going to help everyone? The short answer is no. Let me tell you why.
To access the $25,000 government grant, you need to spend at least $150,000 on a home renovation not including pools, garages and tennis courts (and let's be honest - who's spending this much on home renovations when there is so much uncertainty in the air?) or you must be building a new home worth no more than $750,000 - including the land.
Also, only individuals earning less than $125,000 per year or couples earning under $200,000 per year can access the grant. Contracts must be signed by December 31 and work has to begin within 3 months.
Knock down re-builds are eligible as well, so this could help with finding a suitable block to build on.
So, basically if you're wanting to build a house to live in (no investment properties are eligible), and you are within all of the ranges above, the extra $25,000 would make a big difference and would benefit you a lot. If you're looking to build, have a look at all the different house and land packages that I currently have for sale and if you see something that catches your eye, please let me know if you have any questions whatsoever.
If you would like to read more about the $25,000 government grant, you can do so on the Qld Government's website. Realestate.com.au has written some good articles on it, as has Cherie Barber. Check them out too and comment below to let me know your thoughts.
If you have been made redundant or your working hours have been reduced due to the Coronavirus, and you need help with your mortgage repayments during this time, Maryanne from 360 Mortgage Solutions has compiled a list of information where you can receive help from the banks.
Head to 360 Mortgage Solution's blog post to find out what you're entitled to and if you can receive some help with mortgage repayments during this time.
The Reserve Bank of Australia has recently reduced interest rates and if your interest rate doesn't have a 2 in front of it, then it may be time to refinance your loan, because you could be paying too much.
If you are wanting to refinance your home loan, so you're not paying as much interest during these hard times, please also get in touch with Maryanne, so she can help you to find a home loan that will suit your needs.
Read more info on help with home loans here.
I was recently interviewed about the current market by Mortgage Broker Maryanne from 360 Mortgage Solutions and in return, I asked her to write a guest post on my blog for me. Below is her explanation of what a mortgage broker actually does. (Watch the interview here.)
GUEST POST FROM 360 MORTGAGE SOLUTIONS:
As a Mortgage Broker I love nothing more than helping my clients to achieve their financial goals, but how is it I do that?
I fell into a job working for one of the major banks, and to be honest it was (in my mind) a stepping stone until I finished my University degree and became a school teacher.
Fast forward 10 years on, and I was still working in that bank, in fact I stayed there for over 13 years and what I learnt was invaluable.
I learnt how money works, how to compare the right loans, the real way, how to avoid paying interest on your credit card, risks of lines of credit and much much more.
This provided me with really important knowledge, knowledge that (in my opinion) should be taught at school. Knowledge that, unless you have someone in your life to teach you, you may never know and therefore may make the wrong financial decisions.
WHAT DOES A MORTGAGE BROKER DO?
So what do I do as a Mortgage Broker? I provide my clients with options to help them achieve what they are looking to achieve as well as educating them about their finances. This means they not only achieve the goals they are looking to achieve but they learn more about their finances along the way.
In addition to providing options for clients, because I am a Mortgage Broker I also have the flexibility to:
Maryanne from 360 Mortgage Solutions
HOW DO I GET THE BEST DEAL FOR MY CLIENTS?
When I meet with my clients I ask a lot of questions. These questions help me to understand what my client needs in terms of lenders and helps me to put a plan in place to help them get there.
My advice from client to client is different and that’s because everyone is different. For example I had a client who was purchasing their first home recently and after getting to know more about the family I discovered that they would need a lender who can offer them additional discounts to help them grow their property portfolio. We put them under a package loan with a lender that will allow them to grow as this was their main goal.
I also had a client recently who was at risk of losing their property as they had let bills get on top of them. Our plan for them was very different and involves stages to help them pay out the debts, get on top of their credit rating and eventually move to another lender which will offer them a competitive rate. The goal for this client was to get their finances sorted out and sleep comfortably.
This is why I love what I do, for every client there is an option and unfortunately when you go to your Bank, they will only be able to talk to you about the options they can provide within that Bank. As a Mortgage Broker, with access to over 30 different lenders (and private funders too) I can tailor a specific solution to help my clients now and into the future.
Written by: Maryanne from 360 Mortgage Solutions
GET IN TOUCH WITH 360 MORTGAGE SOLUTIONS
If you would like to get in touch with Maryanne from 360 Mortgage Solutions, give her a call on 0412 862 811 or email her at firstname.lastname@example.org
You might even see her at some of my open homes. :-)
The faster that you pay your mortgage off, the sooner you'll have excess money to save into your own bank account or to spend on the things you love.
HOW TO PAY OFF YOUR MORTGAGE FASTER
Paying off a mortgage usually takes people 25-30 years to do, however there are some things you can do to reduce this amount of time. Below are some tips below on what you can do to pay off your mortgage quicker.
find the right home loan
Find the right loan for your circumstances. Whether you need a loan with a low interest rate, an offset account or a bridging loan, a mortgage broker can help you find the right loan for your needs. They can look into the best options for your needs and save you the hassle of doing this yourself. And you don't even need to pay them!
Don't be afraid to re-finance your loan if you find one with a lower interest rate. Sometimes you could start off with a bridging loan with a high interest rate and after you've sold your property and are living in the new one, you could re-finance your loan to another loan with a much lower interest rate.
FIND A GOOD MORTGAGE BROKER
When buying a property, finding a good Mortgage Broker can save you a lot of time and money. A Mortgage Broker will research all the different home loans on the market and narrow them down to help you choose the right loan for you. Whether you need a bridging loan, or are refinancing your current loan, a Mortgage Broker can save you money by finding the banks with the lowest interest rates and fees and help you apply for the new loan. And best of all - they're free!
PAY OFF THE PRINCIPAL AND INTEREST
The quickest way to pay your mortgage off sooner is to make sure that your loan is set up to pay both the principal and the interest. If you are just paying the interest on a loan, you will never pay off the whole debt. Paying interest only may be your only option in your current circumstance, however I would suggest not doing this for more than a year.
PAY OFF MORE THAN THE MINIMUM REPAYMENTS
If you want to reduce your mortgage bit by bit, but still managing to save years off your loan, always pay off more than the minimum amount. If your loan repayments are $450 per week, try paying $500 a week off to shave of years of your loan.
MAKE MORE FREQUENT PAYMENTS
Pay your loan off weekly instead of fortnightly or monthly. Your interest is calculated daily, so if you pay your mortgage weekly, the amount of interest that you pay will be significantly reduced than if you were to pay monthly.
EXTRA LUMP SUM REPAYMENTS
If you have a windfall, a tax return or redundancy package, make sure you put the lump sum onto your mortgage. Interest is calculated daily so the less you owe, the less you'll pay in the long run.
I hope this has helped you to come up with some ideas on how to repay your mortgage quicker. If you would like to talk to a mortgage broker, contact me on 0414 520 853 and I can put you in touch with someone who can help you to reduce your loan.
When it comes time to purchase your first home, the first things that the banks are going to ask you are: “Are you currently working?” and “Do you have a deposit?” If you say no to either of these two questions, you are going to have a hard time getting a home loan. So, I’ve come up with some great ways to help you save for your deposit.
I hope this list has helped you to come up with some ideas of your own to reduce costs, and that you can commit to reducing your spending to enable you to save up for your home deposit. If you need any help finding the perfect home, please don’t hesitate to contact me to see what we have available. I can even put you onto a finance broker who will be able to give you even more tips on saving your money.
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