Should I use a broker - SA

Hi everyone

Looking at buying my first PPOR

Is it worth using a mortgage broker when organizing a loan or should I go shopping with lenders directly?

Deposit approximately 150k
Loan size required approximately 170k
Employment status, casual in a secure role (2 years in current role)
Want a 100% offset account

Loans.com.au had a offset loan advertised at 4.1% comparison, has anyone had any dealings with them?
Does anyone know of any other deals or have a broker they recommend?

Thanks guys

 

I'd use a broker purely from a time point of view if nothing else. Lots of brokers on this forum, have a read through their posts and approach one.

 

What are your longer term plans?

If you're just purchasing the one property and looking to pay down the loan ASAP then go with any online cheapy. Set it up as P&I - throw your entire deposit at it and smash the mortgage.

If your plans expand upon the immediate PPOR - then seek expert advice. Corey Batt is in SA - he knows a few things about finance structuring.

Cheers

Jamie

 

Use mine.



e[email protected]

m 0430 110 304 f 08 8121 3308

 

I have an awesome broker in SA we use for sales. He can get finance through where others can't, I will contact you privately.

 

I would recommend Corey from the forum as suggested above. He has many clients from here and he is from Adelaide. Being a first timer this would be a safer approach.

 

Just planning to pay down the mortgage asap, not looking for an IP anytime soon.

Would a good broker be able to negotiate a better rate than I could?

 

yes a broker certainly would NB.

 

Sounds like you'd be best served with an online cheapy. Check out canstar and go with the lowest.

Cheers

Jamie

 

Not sure a broker can beat what the online providers are offering you - if its just a simple P/I loan to pay down at a ~60% LVR, than your best rates will be from someone like loans.com.au. Brokers won't be able to beat that on that loan size.

 

Doesn't everyone?

 

Thanks for the responses, ill have a shop around, bit confusing comparing rates atm, have to work out who still has to raise them

That or pay it down, look to upgrade and keep the first one as a rental (could make some simple renovations to increase value at the property im looking at)

 

That changes things - if that's a possibility you need an offset account. You may still be fine with an online lender, but make sure you don't pay off the loan and offset it instead.

 

If you plan to convert the existing property into an investment property (no matter how long down the track) and are disciplined with your money then you should consider not paying the principle down in order to maximise your negative gearing benefits with the property is converted into an investment and instead go interest only and save the funds in an offset.

If you are not disciplined with your money then its a good idea to continue paying the loan down.

 

So often I meet with new client's who made what believed to be great decisions at the time - paying down their PPOR exceptionally well, chasing the lowest rate at the expense of other benefits etc.

The issue arises when life get's involved, plans and expectations change. So that PPOR becomes an investment property, and they need to draw from the equity for the new purchase. They're now effectively borrowing 105% for their new PPOR, maximising their personal debt and minimising the tax deductible debt.

You don't know what you don't know - so it can be of immense value to pick the brain of someone who does know a thing or two about this niche knowledge area.

Shahin has hit the nail on the head - so long as you're disciplined, interest only with offset account is going to produce the same result with more flexible outcomes which may have very tangible financial benefits for the future.