The market for home loans in Perth has become extremely competitive. Now, a person who just takes whatever the “home bank” has to offer can leave thousands of dollars laying on the table. There are so many different factors affecting home loans that we always recommend hiring one of the many qualified mortgage brokers in Perth to help you sort it out.
Here is a list of questions you should ask your mortgage broker or loan consultant.
MFAA
Are they MFAA members? If so, they should subscribe to the MFAA Code of Practice, which encourages ethical behaviour, transparency and professionalism.
Expertise and Experience
Ask your consultant how long he or she has been in the industry, or ask what they specialise in. Make sure you are confident that they can help you obtain the right loan for your budget and situation.
Commissions and Fees
MFAA members are required to disclose all commissions and fees. Most mortgage brokers are paid by the lenders, meaning that you pay no fees to the broker.
The Right Loan for You
What percentage of the value will the lender allow me to borrow?
Is mortgage insurance required?
What different credit products are available?
Which loan is best for my financial situation?
Which loan offers the best rates?
Should I get a fixed rate loan or a variable rate loan?
Are options such as a credit card, ATM or redraw facility available?
Questions to Ask about Specific Loans
What is the interest rate?
Is it variable interest or fixed interest?
Can the loan be split into variable and fixed portions?
What will the payment be and at what interval?
What is the cost of the loan establishment fee?
Are there any “extra” fees associated with this loan, immediate or monthly?
Can this loan be pre-approved with no fees upfront?
How well does this lender service their loans?
Do they offer branches, internet banking, credit cards, ATM’s, etc? How much do these services cost?
Are there extra costs for paying off the loan early, upgrading the loan product, or making extra payments to pay off the loan earlier?
Purely Finance can Help
At Purely Finance, our mortgage brokers are prepared to answer all questions about home loans in Perth. Call (08) 9472 9766 to learn more.