Matthew Middleton
Mortgage Broker Malvern East, Malvern, Armadale
What is the largest purchase that you will make during your lifetime? It’s your home, right? Well no, it’s likely to be your mortgage!
If you buy a $600,000 home, financed with a $480,000 mortgage at 6.5% interest for 30 years, you will pay $612,213 in interest over the life of the loan*. That’s more than the purchase price of the home. Most people do not consider obtaining a mortgage the same as choosing and buying a product. But a mortgage is a product like any other, and as with other products it pays to be a smart consumer.
By working with your mortgage broker, knowing what you are shopping for and structuring correctly, you can save thousands of dollars, whether it is for your first home or your umpteenth. Saving 0.5 percent on the interest rate of a $480,000 mortgage lowers your payments by $1,872 a year and saves you $56,190 in interest over 30 years.
And what of the application or origination costs, legal, valuation, monthly or annual charges? Then there’s potential deferred establishment fees, break costs, economic costs and so on. What other products and features are included with your loan? Is your daily banking tied in with your loan, fully offsetting, able to accomodate redraw, or portable?
Making you a smart consumer is the whole point of working with your mortgage broker.
*This is a basic scenario only. Your individual home loan package including terms, conditions, fees and charges will affect the overall amount you pay for your home loan.
Hi Matthew. Settlement and everything went very well and I am all moved and unpacked. Thanks for your assistance in making the whole process painless and much easier than expected. I will certainly use your services again and have no hesitation in recommending your service to anybody I know.
J Milner, Hawthorn
A mortgage broker with experience
Matthew has 20 years experience in property, finance and investment. His roles during that time in corporate finance, investment banking and property funds management have provided him with excellent knowledge to assist clients with purchasing their first property right through to building an investment portfolio.
A huge choice of lenders and products
Never has the array of lenders and products available to prospective and existing property owners been so extensive. Having all these choices is great, but sometimes having too many choices leaves you either not making a decision or wondering whether you’ve made the right one. Having a professional on your side will help you move ahead with confidence.
Larger loans, packages and discount rates
Just as there is an extensive array of lenders and products, there can be a huge variation in rates and cost structures. And as the average price of homes in the likes of Malvern East and Hawthorn move past $1,000,000, the need to secure a competitive rate and package is as important as ever. A small change in your interest rate and package structure will save you thousands. Having an understanding of what a client wants, what is available in the marketplace and negotiating on your behalf is Matthew’s specialty.
Dear Matthew. Thanks for assisting us with the bank loan. Whilst it was complex and took time and a lot of effort, you did it!
T T and L K Goh, Balwyn
Property investment
Like all types of investing, property investment requires that you have an understanding of some basic measurements such as rate of return, rents and income streams, estimates of value and so forth. These measurements and concepts help analyse the four key components of every property investment:
- Cash flow
- Property growth
- Loan amortisation
- Tax
Every property investment and investor situation is different, and each of these components will provide returns in different measure. So whether you are a beginner or an experienced investor, Matthew can assist you with structuring and building a property investment portfolio.
Matthew, Thanks for your assistance with our investment purchase and refinancing. It was a long road, and your patience and persistence is very much appreciated. As things move forward you will always be our first and only choice for loans, and we will always be referring you to our family and friends.
T and N Maruff, North Melbourne
Self employed borrowers and professionals
Self employed applicants will generally find it harder to obtain a home loan, especially in the first couple of years. Despite what they say, lenders look at self employed applicants a lot more closely than an employed or PAYG applicant. One of the reasons for this is that they need to see some long term consistency in earnings, as self employed applicants are responsible for generating their own income.
Fortunately some lenders also recognise an applicant’s professional qualifications or standing, previous experience or work type as supporting a new venture, or other factors may be considered that will enable an applicant to be viewed favourably.
If you are self employed try to make sure your tax returns and other financials are up to date. Alternatively, should you be in full time employment still and considering commencing a business in which you would be self employed, ensure that you have all your financial matters in order before hand. Talk with Matthew further on this. And whilst the tax deductions can be great when you become self employed, consequently reducing taxable income, be aware there can be a downside to this in that your ability to borrow money is based on your taxable income.
Home loan pre-approval
A home loan pre-approval is one of the first steps in the property finance process. Otherwise known as conditional finance, this process allows you to apply for a loan without having actually purchased. It is the preliminary step that often enables you to submit key financial information to a lender to ascertain just how much you can borrow, for what type of property for, and for what loan products and rates.
As a general rule completing this process should see you clearing the main credit and assessment hurdles so that you have a pre-approval conditional only upon a valuation of your purchase property and a copy of contract of sale. Unless you have a significant deposit as a percentage of the purchase price, and exceptional financials, we strongly recommend you obtaining a home loan pre-approval.
First home buyers
Buying your first property can be exciting and daunting at the same time. This is why Matthew takes the time to explain the overall process and then to assist buyers throughout. As a general rule the initial steps involve identifying two key factors or variables.
Firstly, what deposit is available, and whether this will be enough for the proposed property. And if not, what further amount is required. Also, how long a deposit has been held and with which institution has become increasingly important.
Secondly, what size of loan will an applicant’s income support? This is often referred to as serviceability. The type of employment, how long, whether in a probationary period and so forth, may also affect borrowing capacity.
Both of these factors are taken into consideration by the lender and it is often one or other that will have an overriding impact. In the case of a first home buyer it is generally the deposit, and so alternatives such as additional security provided by family can be explored. Matthew will also assist in how to make an offer to buy the property, engaging specialists such as a conveyancer, solicitor and building inspectors, and facilitating the first home owners grant.
Thanks Matthew – really appreciate all the hard work to get this through as quickly as you did.
B Price, Glen Iris
Home loan flexibility to suit your needs
Matthew has a reputation for identifying structures that maximise and protect his clients’ wealth. He also focuses on creating flexibility to meet future needs where possible, and keeping in touch to ensure ongoing requirements are met. His role as a mortgage broker is to facilitate the right property finance loan between you and the lender selected.
Matthew is also often asked “…have I got the best loan?” With constant change in the home loan market and property finance products available, the question cannot be answered with a simple yes or no. He understands that the right loan does not always mean the lowest interest rate, but is instead about finding the right overall solution to your individual financial and personal situation.
Dear Matthew, Now that the dust is settling, I wanted to express Melissa and my thanks for your assistance in what was a very smooth and speedy series of transactions. With your invaluable guidance we were able to achieve exactly what we wanted to, and with a minimum of fuss.
B Fethers, Malvern
Home Loan Review Process
If you are not sure whether your current loan or structure is suitable for you, contact Matthew and he will assist you with a no obligation review.
Alternatively you may have some changes coming, such as selling to buy a new property, investing, changing jobs, looking to start up a business, or a new addition to the family! Again, contact Matthew and he will be happy to discuss and assist you with home loans, finance and property.
Qualifications
- MBA, Melbourne Business School
- Graduate Diploma in Applied Finance and Investment, Securities Institute of Australia
- Diploma of Financial Services, Financial Planning
- State: Victoria, VIC
- Broker region: Melbourne East
- Suburbs: Malvern East, Malvern, Armadale
- Matthew Middleton provides mortgage broking services in suburbs including but not limited to: Malvern, Malvern East, Armadale, Glen Iris, Camberwell, Hawthorn, Kew, South Yarra, St Kilda, Carnegie