Loan Market Mortgage Broker servicing Senior Mortgage Broker and surrounding suburbs
About Adam Mitchell
With lenders able to offer only a limited range of products to those customers that meet their lending criteria, it was clear to me from my experience as a borrower that a single lender could not possibly offer the kind of choice that was truly available in the lending market.
A veteran of the real estate and hospitality industries, I believe in the power of choice, the value of professional advice and the satisfaction of outstanding service. Having worked hand in hand with hundreds of property buyers over many years, and having been on the consumer end of finance and property purchase myself, there was no doubt in my mind how valuable the service proposition a Mortgage Broker offers, could be.
Offering a consultative service backed by hundreds of products from over 35 lenders and an intimate knowledge of lending policy, I pride myself on helping my clients make informed choices that serve them well for the present, and into the future. Managing the application process with meticulous attention to detail, I leave you to focus on the things you love. It is my belief that I should chase the lenders, so that the only thing you need to chase is your dream home.
Whether funding your first home, an extension, an upgrade, or growing an investment property portfolio, my passion is to serve, and provide valuable advice so that you can get it right the first time.
Extensive choice, expert advice and a complete consultation to approval service…
How much? you ask.
At no cost to you! I am paid by the successful lender when your funding is complete and charge no service fee if you do not secure a loan. Furthermore, I am available for a confidential chat seven days a week, daytime or evening, so give me a call and let’s have a chat about the next step of your journey.
Still not sure? Keep reading below for answers to frequently asked questions, and eight great reasons you should talk to me before you see your bank.
Eight great reasons to call Adam Mitchell
A commitment to weekly phone calls along with timely SMS and email updates means that you will never be left to wonder if no news really is good news. Outstanding communication is the calling card of a great team in any field. I see my business no differently.
With lenders changing their lending policies so often, especially for investment, its a full time job for a broker to stay up to date. What chance does the average consumer have? Speaking with a knowledgeable broker can prevent you from wasting your time logging credit enquiries with lenders that you may not meet the lenders criteria anyway.
Being the equivalent of a small business operator myself, I understand how hard it can be to find free time to go and visit a bank when you work long hours or you can’t shut down during weekdays. That’s why I make myself available to come to you, weekday evenings and weekends! The way service should be!
Jump the queue
A partnership with a broker can benefit you in more ways that just reducing your work load. Being able to inform a selling agent that you have already started preliminary finance work with a broker, or have a pre-approval in place will make you a preferred buyer for agents when multiple offers are being considered for a property. Furthermore, if the agent can call your broker and confirm the strength of your application it can quite often make the difference between securing your dream home, or losing it at the final hurdle.
More than just a Broker..
I love to put my vast real estate experience and network of real estate agents to good use for my clients. Actively seeking out properties that will suit specific clients, then advising them on the in’s and out’s of property purchase and negotiation. The seller has an agent; why shouldn't you benefit from professional advice too?
Whether looking at specific properties or a few key suburbs, I routinely provide detailed market reporting to clients in print or via email; showing recent sales results and statistics to help them get a solid grasp of property values in the areas they are searching in. Putting them in the best position to negotiate on their dream home. Give me a call today or drop me an email and ask for a complimentary report for your favorite suburb!
Difficult loans a speciality
Offering products from such a wide range of lending institutions, I am often able to assist clients that major lenders cannot. For example; self employed borrowers with limited trading history, credit damaged clients (discharged bankrupts and defaults) as well as contract employees and those with short employment histories.
Everything in one place
Rest assured that I not only offer superior finance options but also a range of complimentary products that prevent you from having to do the run around. Such as a free 30-day cover of insurance for your new property through Allianz, connection of utilities at your new home on your behalf, and loan protection insurance offered through the ALI Group, offering loan protection insurance for consumers via the broker channel since 2003.
Frequently Asked Questions
What does a mortgage broker do?
A good mortgage broker can make life so much easier when it comes to securing the right finance for your needs. They will help you understand the size of deposit you require, how much you can borrow, and narrow down hundreds of products from over 35 lenders to the most suitable for your needs. Finally, once you make your choice of lender and product your broker will formalise an application on your behalf and see it through all the way to final approval.
How do brokers get paid?
Brokers are paid by the lender that you select and make a loan application with. The lender only pays the broker after the loan has been executed, meaning if you are unsuccessful, you don’t pay the broker a thing.
My branch manager offered me a discounted rate. Can a broker do the same?
Great question. Some lenders will offer rate discounting on their professional product packages, sometimes known as ‘wealth packages’. Brokers have the same discounting tools available with these lenders on the same line of products, so you can still get a rate discount while having the peace of mind that you can call one person, any time of day, for an update or an answer to a question that has been bugging you. All without speaking to robots, or surfing through myriad telephone menus.
How much deposit do I need?
Most lenders want to see a borrower contribute at least 5% of the purchase price towards the proposed loan. This 5% value should have been genuinely saved by the applicant, or held in an account for at least three-months. That’s not all though.
The borrower will also need to have funds to cover Government Stamp Duty and any Lenders Mortgage Insurance Premium required. A total deposit size of 11-12% is good as a rough guide. Your broker will be able to use lender provided calculators to give you an accurate figure for your situation.
Some lenders will allow lending to exceed 95% of property value when Lenders Mortgage Insurance is included, so if your deposit is a little undersized, your broker may be able to help position you with one of these lenders.
If you don’t have the deposit required, you may be able to make use of family equity, also known as a ‘Limited Guarantor Loan’ or ‘Family Guarantee’ we will cover this type of guarantee in more detail in the relevant section below.
What is LMI? and do I have to pay it?
LMI stands for Lenders Mortgage Insurance and contrary to popular interpretation it is not the same as Loan Protection Insurance (that the borrower takes out to protect themselves). LMI protects the lender (ie: Bank) against a shortfall of funds in the event that the borrower defaults on the loan and they need to sell the home but cannot recoup all the funds that were borrowed.
Whenever a borrower is applying to borrow more than 80% of the property value in funds, an LMI premium will be charged. The higher above 80% the loan works out to be (as a percentage of the property value) the higher the LMI premium will be; as the risk is perceived to be higher.
Loans below 80% of the property value do not attract an LMI premium as banks universally deem lending below 80% to be acceptable risk in the event of a default and do not require the borrower to insure the bank against a loss.
What is an LVR? and why is it important?
LVR or ‘Loan To Valuation Ratio’ is the ratio of borrowed funds to the value of the property being taken as security (most often, the property being purchased).
If you were to purchase a home worth $400,000 and needed to borrow $380,000 to complete the purchase then the LVR would be 95% ($380,000 divided by $400,000 = .95).
LVR is a ratio used universally by lenders to assess lending risk. Furthermore lenders use this metric to set thresholds for finance products that they offer and even set hard LVR limits that they will not exceed when financing the purchase of certain properties.
Without getting bogged down by details, from the consumers perspective, the lower the LVR (the less required to be borrowed for a given purchase price) the better. Lower LVR’s are considered to be lower risk and are far more attractive business for lenders to take on board.
Lenders will often offer lower interest rates for products that occupy the lower LVR brackets. Another added advantage for the consumer is the savings they will make in LMI premiums required. LMI premiums progressively lower as the LVR drops from 95% to 80% - and once the LVR dips below 80% Lenders Mortgage Insurance is no longer required at all.
I’m in Australia on a visa. Can I still buy property?
Buying Australian property on a Visa will very much depend on the underlying residency status attached to your visa. The short answer is that there is little issue with most lenders if your Visa has permanent residency status.
How does a Guarantor work?
A ‘Limited Guarantor Loan’ or ‘Family Guarantee Loan’ is often utilised in instances where the primary borrower does not have sufficient deposit saved to secure a loan on their own and can therefore make use of equity that a family member may have in a property of their own.
Generally the lender will take an interest in the family members home to the value of 20% of the property being purchased; so this is most useful if the family members’ property is owned outright, or the existing mortgage accounts for a relatively small percentage of the family members property value.
Importantly, the lenders’ interest in the family members’ home will not be released until the primary purchaser has reduced their loan to represent 80% or less of the purchased property value.
As can be expected, conditions and policies for guarantor loan products vary from lender to lender so it pays to chat with a mortgage broker so they can assist in finding the most suitable structure for you and your family members.
I’m a first home buyer. Do I still get a Government grant? (SA Specific)
Currently in South Australia a $15,000 grant may be available to eligible property purchasers as long as they are purchasing a home that has not been lived in before (new) or if they are purchasing land and constructing their own home.
Importantly from a finance perspective, the buyer may use the $15,000 First Home Builders Grant towards the construction of a new home or purchase of a newly built home, but cannot use it as deposit funds toward the purchase of vacant land; as naturally, a person cannot reside on a vacant block of land.
There are a wide range of conditions governing eligibility for the First Home Buyers Grant, so make sure that you check your eligibility at the following site before making any buying decision.