03 9855 9290
03 9855 9290

Home Buyers Guide

Why Use A Mortgage Broker?

A mortgage broker can be a very useful partner for a first home buyer. In conjunction with our 5-step home buyers guide, we will assess your financial situation as part of a ‘needs analysis’, and match your requirements to a wide range of loans from banks and other financial institutions; managing the process right through to settlement.
There are good reasons to consider using a broker:

Brokers will suggest loans from lenders they are ‘accredited’ with, known as their ‘panel of lenders’. These lenders may include the large banks, plus specialist ‘non-bank’ lenders and mortgage managers

The best news is that generally you won’t need to pay your broker: the broker receives an upfront commission from the lender on the loans they settle, and in some cases, a trailing commission

Brokers have good relationships with lenders, and can often negotiate a very competitive rate. Lenders receive a significant amount of business through the broker channel so it’s in their best interests to work closely with brokers

A broker will search for a deal that meets your needs, from their panel of lenders. This provides access to a large range of loan options without you having to do any of the legwork.

A broker has access to loan rates as well as fees and charges at their fingertips so it’s easier to make a straightforward ‘apples for apples’ comparison of loan costs.

Bear in mind that not all brokers have the same level of qualification or experience. It pays to look for a broker who is accredited with the Mortgage & Finance Association of Australia (MFAA) which sets the professional standards and its members are required to adhere to a range of Code Practices, laws and regulations. MDM Finance Solutions is MFAA accredited and diploma qualified.

Request An Appointment

What To Expect When You Meet With Us For The First Time

Your first meeting will usually take around an hour, and in that time, we will:
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Ask what you are looking for in a loan and understand the particulars of your situation

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Calculate your borrowing capacity and what your repayments will be so you’ll know what sort of range you can buy in
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Help you choose the loan and associated features that meet your needs from a panel of lenders
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Explain the application fees and other charges associated with a loan
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Explain the home buying process end-to-end including making an offer, getting legal advice, exchanging contracts and settlement
The broker can also take you through some helpful information like:
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How Lender’s Mortgage Insurance works and whether this cost applies to your circumstances
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Whether you may qualify for the First Home Owner Grant or any other government assistance as well as how you may be able to access any assistance or concessions
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How you could save by consolidating your debts
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Refer you to buyers advocates who may assist in the identification and negotiation of suitable property
We will walk you through the application for the loan of your choice – if and when you are ready. You’ll need to have some documentation and information ready for the broker to see. The documents you need will depend on the type of borrower you are, and the type of loan you’re after. We will tell you what is needed to submit to the lender you’ve chosen.

You should feel informed and confident in the next steps in the process when you leave your first appointment. And the good news is, we will be with you every step of the way making the process very clear and simple.

Things To Know When Shopping For A Loan

Credit history – What’s important?
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If you’ve ever applied for credit or a loan (whether or not you went ahead), you are likely to have a credit report.
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Your credit report is available to credit reporting bodies, credit providers such as banks and utility providers, and importantly you.
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Information held on your credit report includes credit information, personal information and public record information.
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It’s a good idea to check your credit report each year to identify any possible mistakes or identity theft
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Credit providers use the information in your credit report to help work out whether you can afford a loan, or a larger credit limit on an existing loan, and whether you are likely to repay it.
Monthly debt

Equally important as credit history is Debt To Income Ratio (DTI). Put simply, DTI is a measure of expenses and monthly debt obligations versus how much you earn. Ultimately, DTI is a determining factor in your ability to ‘service’ a debt and is therefore a significant contributor to how much you can borrow.

Let’s assume your total monthly housing expenses are $1,000 per month. To determine your debt-to-income ratio, add up your monthly debt expenses with your housing expenses and divide the result by your monthly gross income. For instance, suppose you pay $200 per month for a car loan, $50 per month in student loans, and about $100 per month in credit card bills. That adds up to $1,350 in monthly debt obligations, including housing expenses. Based on a monthly income of $3,000, your back-end ratio would be 45 percent. Lenders typically say the ideal DTI ratio, including all expenses, should be 36% or lower.

Income

Australian lenders need to have documents which validate the income disclosed in loan applications.
We assist in this process by requesting copies of:

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Payslips

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Group certificates

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A letter from your employer

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Bank statements

When we submit a loan application on your behalf, the bank will give your loan a credit score based on the overall risk that you pose.

We recommend that you complete our free assessment form or call us on 03 9855 9290 to discuss your employment situation if you believe you may have trouble getting a loan based on your employment.

Call us today if you are enthusiastic towards advancing your business!

03 9855 9290