Mortgage brokers in Australia are professionals who act as intermediaries between borrowers (homebuyers/property owners) and lenders (banks and financial institutions) to help individuals secure home loans or mortgages.
The primary role of a broker is to assist clients in finding the most suitable mortgage product that meets their financial needs and objectives.
Upon contacting Smyth Loan Co, Jason and his team will conduct an initial consultation to understand your financial situation, borrowing needs, preferences, & objectives.
After gathering the necessary information from you including basic personal details, employment history, assets, liabilities & living expenses, the Smyth Loan Co Team will research and compare mortgage products from various lenders in our panel or network. We have access to a wide range of lenders, including major banks, credit unions, and non-bank lenders such as mortgage funds.
With our user-friendly online platform, you can access our services anytime, anywhere. No need to schedule in-person meetings or visit multiple banks; everything can be done from the comfort of your home.
Once you have decided on a particular loan or mortgage product, we will complete the application and compile the necessary documentation for lodgement. There can be quite a few items a bank asks for on this step.
Smyth Loan Co will then submit your application to the lender of your choosing, liaising an as intermediary between yourself and the lender during the assessment process. There may be several phone calls or emails during this process. We are generally pretty thorough and in some cases don’t have any issues raised by a bank at all from submission to approval.
As soon the lender approves your application, Jason & his team will notify you immediately. We will then assist in finalising the signing of loan documentation and any requirements such as insurance, guiding you through the settlement process and funding of your loan.
Mortgage brokers in Australia typically receive remuneration in the form of commissions paid by banks or lenders for the writing of a loan, after settlement.
These commission payments are not paid directly by you as a borrower to a broker, but are paid by the bank as a referral of your business.
Banks generally have large margins, or make lots of money on any given loan (i.e. the difference in what it costs them to provide the money, & the rate they charge you to repay it), which is where these commission payments are generally paid from.
There are two main sources of commission generally paid:
1. Upfront Commission: When a mortgage broker successfully settles a home loan for a borrower, the lender pays them an upfront commission. This commission is usually a percentage of the loan amount. The percentage can vary depending on the lender and the specific mortgage product, with payments made by a bank 2 x months proceeding settlement.
These commissions are fully repayable by a broker-to-a-bank should the loan be repaid within a certain timeframe – In most cases it is within 2 years from settlement. Keep this in mind and contact us if thinking about making any changes to your loan within the first 1-2 years.
2. Trail Commission: In addition to the upfront commission, mortgage brokers may also receive a trail commission, which is an ongoing payment. The trail commission is calculated based on the outstanding loan balance and is paid to the broker for the duration of the loan.
Remember to always speak with us beforehand should you be looking to do anything that may affect your loan.
It all depends on what you need us to do and how much work is involved.
Our initial consultations are free however we normally do have a $300+ GST Administration Fee should we proceed with an application to a lender. This fee covers the time and cost for us to prepare your loan application with the bank and submit. Every application is different and normally takes us up to a day to prepare from when we hold all of your information. Lending requirements and compliance obligations since the banking royal commission and best interest duties are substantial.
We try to provide banks with as much relevant information as possible from the get go, in return for a quick decision and approval.
We hate wasting time on unnecessary phone calls or emails.
As per the picture – we ‘get s#~t done.’
For complex borrowing situations i.e. self-employed, trusts, multiple investment properties or income streams, SMSF, or Government Schemes we may apply a higher upfront charge and/or brokerage due to the added requirements in vetting the situation and subsequent time required to process this information as thoroughly as possible for a quick response from a lender.
We will always disclose any fees prior to undertaking work on your behalf & disclose in a written credit quote.
It’s important to note that the Australian Securities and Investments Commission (ASIC) regulates mortgage brokers to ensure that they act in the best interests of their clients and provide appropriate advice.
Since the remuneration structure involves commission-based earnings, there have been discussions about potential conflicts of interest. As a result, regulations have been introduced to promote transparency and ensure brokers prioritise the client’s interests when recommending mortgage products.
Smyth Loan Co most certainly agrees with these rules & will always put your interests above everything else.
Refinancing is when you replace your current home loan with a new one, usually to get a better deal. It can help you lower your interest rate, reduce your repayments, or access features like flexible payments or an offset account. You can also use refinancing to tap into your home’s equity for other financial needs.
Interested? Contact us to learn more about your refinance options!
#MortgageBroker #Refinance #HomeLoan #Refinancing
Aussie home values went up 0.4% (on average) in September… so let’s take a dive into what’s happening in each capital city:
• Sydney: 0.2%
• Melbourne: -0.1%
• Brisbane: 0.9%
• Adelaide: 1.3%
• Perth: 1.6%
• Hobart: -0.4%
• Darwin: 0.1%
• Canberra: -0.3%
If you’re planning to buy, call us and we’ll talk you through what it means for you! 📞
#MortgageBroker #HousePrices #FirstHomeBuyers #HomeValueIndex
🚨 The Reserve Bank of Australia has just announced their latest update for 2024. 🚨
The cash rate remains on hold once again this month at 4.35%.
It looks like we won’t see a reduction in the cash rate (or interest rates) for some time yet. If you’re feeling concerned about the current interest rates, you can always reach out to us to discuss your options! 📞
#Finance #HomeLoans #HomeLoan #Mortgage #RealEstate #RBA
📉 Regional Property Market Update 📉
CoreLogic’s latest update highlights a deceleration in regional property values, showing a modest 1.3% increase last quarter, compared to 1.8% in metropolitan areas.
If you`re looking to buy, sell, or invest in regional properties, we can help you navigate the complexities of a shifting market.
Let’s discuss your next move! Reach out to us today! 🏡📞
#RegionalMarket #PropertyTrends #MortgageExperts
Thinking about transitioning from renting to owning your business premises? The advantages are worth considering:
1 - Location Security: Owning your property ensures stability and eliminates the risk of eviction, allowing you to establish a permanent base for your operations.
2 - Wealth Building: Investing in your own premises contributes to your long-term financial growth by building equity and creating a valuable asset for your future.
3 - Tax Benefits: Property ownership may offer significant tax advantages, including deductions on mortgage interest and depreciation.
While buying your business premises is a major financial commitment, it can be a strategic move for your business’s future. Reach out to us today if you’d like to chat with a professional broker to help you make it happen!
#MortgageBroker #BusinessOwners #Finance #PropertyInvestment
Don`t let confusing finance lingo hold you back! 🏠💼
Understanding key finance concepts such as serviceability buffers will help you better understand how lenders assess your ability to handle future financial changes when applying for a home loan.
Ready to empower yourself with financial knowledge? Hit follow today!
#LoanLiteracy #FinancialEmpowerment #SmartBorrowing #ServiceabilityBuffer
🌸 Spring Buying Checklist 🌸
With more properties hitting the market as the days get brighter, it`s crucial to be prepared. Here’s your checklist to ensure you`re ready for the selling season:
1. Budget Check: Is your budget in order? Know what you can comfortably afford before you start house hunting.
2. Savings Schedule: Are you regularly saving to show lenders you can handle mortgage repayments?
3. Deposit Ready: Do you have a deposit saved?
4. Pre-Approval in Writing: Have you secured your pre-approval? It’s essential in today’s market.
5. Understand Conditions: Are you familiar with the conditions of home loans and the difference between fixed and variable rates?
6. Rate Preparedness: Will you be ready if rates continue to rise?
Let’s make this spring your season to secure that dream home! 🏡
#MortgageBroker #SpringSelling #Spring #HomeBuying
