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Buying

WHY YOU SHOULD NOT APPLY FOR A HOME LOAN WITHOUT A BOND ORIGINATOR

Who wants to school themselves in ratios and amortisations and securitisations when there’s more appealing homework to tackle – like choosing fabric swatches and light fixtures? But before you can hit Builders to canvas the paint aisle you have to get the right financing for your new home.

From independent advice to better interest rates (and better results), using a bond originator as your personal home-loan consultant comes with some major perks. “A bond originator is a very useful partner for the first-time homebuyer,” says Ooba CEO Rhys Dyer, who explains that these bond experts will assess your financial situation as part of a ‘needs analysis’, and match your requirements to a wide range of loans from banks and other financial institutions; managing the process right through to settlement.

Here are five more good reasons to consider using a bond originator

A bond originator will search for a deal that meets your needs. This provides access to a large range of loan options without you having to do any of the legwork.

The consultant will have access to loan rates as well as fees and charges at his or her fingertips so it’s easier to make a straightforward ‘apples for apples’ comparison of loan costs.

Consultants also have good relationships with banks, and can often negotiate a very competitive rate. Banks receive a significant amount of business through bond originators so it’s in their best interest to work closely with them.

The consultant’s experience in the home-loan industry will help you make informed decisions and allow you to feel confident throughout the process.

The best news is that you won’t need to pay your bond originator: instead, they receive a commission from the bank on the loans they settle.

What to expect when you meet with your bond originator

Your first meeting will usually take around an hour, and in that time, a qualified consultant will:

Ask what you are looking for in a home loan and understand the particulars of your situation

Calculate how much you may be able to borrow and what your repayments will be so you’ll know what sort of range you can buy in

Help you choose the loan and associated features that meets your needs

Explain the application fees and other charges associated with the loan

Explain the home-buying process end-to-end including making an offer, getting legal advice, exchanging contracts and transfer

The consultant will walk you through the application for the loan of your choice – if and when you are ready. You’ll need to have some documentation and information handy; your consultant will tell you what you need to submit to the bank you’ve chosen.

You should feel informed and confident in the next steps in the process when you leave your first appointment. And the good news is that your consultant will be with you every step of the way making the process very clear and simple.

 

Choosing a Property That's Right for You

Affordability, availability and suitability. Whether this is your first tentative step on to the property ladder or you are an old hand looking for the perfect home for your retirement, achieve the right balance between these 3 principles will set you on your way to being a happy home owner.


Affordability

Your first port of call. Knowing what you can afford means less time wasted on looking at properties that could be out of your reach. Remember:  there is no point buying the house of your dreams if it's going to turn into a financial nightmare.  Be prepared! Better yet, get pre-qualified for a home loan.

Making use of Bond calculators can help you answer questions like:

  • What home loan amount do I qualify for? 
  • What will my monthly repayments be? 
  • What if I pay extra each month?

Availability

Now that you know what you can afford (remembering any costs for improving the property) it’s time to take to the streets and see what kinds of properties are available where. Make a list of your needs, that is, the features that your home must have to fit your lifestyle. Be as rational, rather than emotional, as possible when making this list. Your Harcourts agent can help hugely here by advising you on what is on the market and what to expect in what areas. It's likely that you will have to compromise on some of your likes and dislikes so be prepared to be flexible.

Location, location, location! You can improve the property but you can't move it. Remember however, to think to the future of the area, not just what its current state is. You estate agent may even be able to help you find out of there are any new development plans of possibilities in the area – are they attractive or not?


Suitability

You’ve found somewhere you like the look of and it's in your price range - do you go for it? Think laterally now - what does your future hold? If it's family, then can you expand the house? Are there schools close by? If it's retirement,  are your family and friends nearby? Is there a hospital or clinic near-by? Ask the neighbors about crime in the area, noise levels, traffic congestion. Don't compromise on things that are important to you. If they annoy you now, they will only annoy you more later!



Lastly: Be patient and shop around. You may get lucky and fall in love with the first property you see, but you'll make a better decision if you look at a number of them instead.

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