How Your Mortgage Broker can help You to Maximise Your Borrowing Power
Your mortgage broker can play a crucial role in maximizing your borrowing power (borrowing capacity) with Australian banks through offering professional expertise, access to a wide range of lenders, and personalised advice.
Here’s 7 ways that your mortgage broker can assist you to maximise your borrowing power:
1. Understanding Your Financial Situation
Detailed Financial Analysis: Your mortgage broker will conduct a thorough assessment of your financial situation including income, expenses, existing debts, and credit history. This helps in developing a full understanding your borrowing capacity.
Goal Setting: They will discuss and clarify your financial goals and needs, which can influence the type of loan sought and assist in formulating a borrowing strategy.
2. Access to Multiple Lenders
Wide Range of Lenders: Your Mortgage Broker has access to a large panel of potential lenders, including major banks, smaller banks, and non-bank lenders. This provides you with more options than a single bank can offer as well as greater competition for your business.
Comparison of Loan Products: They can compare various loan products from multiple lenders and find the one that best fits your financial profile and borrowing needs.
3. Optimising Loan Structure
Loan Type Selection: Your mortgage broker can recommend the best loan types (fixed, variable, split loans) based on your financial situation, market conditions and your long-term goals.
Offset Accounts and Redraw Facilities: They can advise on additional loan features like offset accounts and redraw facilities that can help in reducing interest payments and enhancing cash flow management.
Debt Consolidation: If you have existing financial debts, a mortgage broker can help consolidate them into your mortgage, potentially reducing overall monthly repayments and freeing up more borrowing power.
4. Improving Credit Profile
Credit Score Improvement: Your mortgage broker can suggest strategies to improve your credit score, such as paying down existing debts, correcting errors on your credit report, and managing your credit usage.
Loan Applications: They help in structuring your loan application to present it in the best possible light to lenders, which can improve your chances of approval and potentially increase your borrowing power.
5. Negotiating Better Terms
Interest Rates and Fees: Your mortgage broker can negotiate with lenders on your behalf to secure better interest rates and lower fees, enhancing your overall borrowing power.
Special Offers and Discounts: They may have access to special offers and discounts that are not available directly to consumers.
6. Staying Updated with Lending Policies
Policy Changes: Your mortgage broker stays informed about changes in lending policies and eligibility criteria across different lending institutions. They can guide you towards lenders that have more favourable terms based on their current policies.
Adapting to Market Conditions: They can advise on the best times to borrow and how to take advantage of changing market conditions.
7. Expert Guidance and Support
Application Process: Your mortgage broker will assist you through the entire loan application process, ensuring that all required documents are correctly prepared and submitted, which can speed up the approval process.
Continued Support: They offer ongoing support even after the loan is settled, advising on refinancing options and helping with any issues that arise.
Practical Ways to Maximise Borrowing Power Utilising Your Mortgage Broker
Initial Consultation: Meet with your mortgage broker to discuss your financial situation and goals.
Financial Assessment: Provide your mortgage broker with detailed information on your income, living expenses, and financial debts.
Credit Check and Improvement Plan: Review your credit report with your mortgage broker and implement any recommended improvements before seeking a mortgage loan.
Loan Options Review: Request your mortgage broker to evaluate different loan products and lenders and submit their recommendations to you.
Application Preparation: Work with your mortgage broker to prepare and submit your loan application.
Negotiation and Approval: Allow your mortgage broker sufficient time to negotiate terms and secure loan approval.
Loan Management: Use your mortgage broker’s advice to manage your loan effectively post-settlement.
Conclusion
By leveraging your mortgage broker’s expertise and resources, you can enhance your borrowing power, secure better loan terms, and achieve your financial goals more effectively. Here at Oz Lend (www.ozlend.com.au) we would welcome the opportunity to act as your mortgage broker and help you to maximise your borrowing power. Call us now on 1300 438 669 and put us to work for you.
