When you think about mortgage broking (okay, you probably don’t think about mortgage broking but stay with us) you probably think about it in the context of buying a house. But your mortgage broker provides multiple important services throughout the life of your mortgage. These services can save you thousands of dollars, a lot of time and stress, and get you in the best position financially. So they deserve to share a bit of the limelight!
When a mortgage account’s fixed rate is due to expire your broker will talk with you about your current circumstances and what may be coming up for you in the next few years – perhaps an addition to the family, or a reduction of work hours, or a big bonus is due. They’ll then help you choose the best re-fix period/structure and negotiate the best deal with your bank.
Your mortgage structure is really important. A small tweak can save you thousands and thousands of dollars over the life of your mortgage.
The ideal mortgage structure is one that fits with your financial circumstances and circumstances change – so then must your mortgage structure. Perhaps your income has increased and you can pay your mortgage down faster. Or perhaps your family is growing and you need to reduce your payments while on a single income. Or you’re fixed into a rate that is well above the current market. Your mortgage broker can help you navigate how to best manage these changes.
To find the best option when restructuring you’d ideally look across all of the banks and compare what they are currently offering. This is both onerous and time consuming so hand the task over to your mortgage broker. Good brokers will always try and make it easy for you by not moving you unnecessarily but will advise when there is a benefit to moving banks.
The mortgage broker will:
They’ll also advise you of any break fees that may be payable to get out of your current mortgage. Break fees are often seen as a scary thing, but in some circumstances it is worth doing to get in a better financial position.
There are times when getting a top up on your mortgage makes sense. It could be that you need to make upgrades to your home, or consolidate your debt. Your broker will talk you through your options, ensure you understand the financial implications and manage the process for you.
So you’re going to buy another property. Maybe you’re selling your home or maybe you're buying an investment property. Either way, you already have a mortgage and a relationship with your bank, why not just go directly to them? What was the right bank for you may no longer be the best option. Your broker will look across the banks and find the best option for you.
When it comes to investment properties a good broker will liaise with your property professionals such as your accountant and lawyer to make sure your mortgage structure has the maximum tax deductibility possible. Recent changes to the tax legislation make this even more important than previously.
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