Changes in the lending market
When it comes to financing your next property purchase, it’s becoming more and more confusing with banks continually updating their own individual lending criteria.
A mortgage broker can not only help you secure the right loan, they can help you understand the complexities of the current market. Here’s just three things they can do.
They’ll calculate LVR
One of the most complicated areas of lending is Loan to Value Ratios (LVR). Many lenders are introducing stricter LVR rules. What this means is that different banks expect different things from their borrowers when it comes to their deposit. Some require a substantially larger deposit than others.
A Loan Market Mortgage Broker has visibility of what more than 30 lenders are doing, which means they can identify the right one for your circumstances.
They’ll get you the right pre-approval
Banks are becoming a lot more careful around what they’re lending. Having pre-approval in place is not enough to ensure a bank will approve your home loan. When you find a property you want to buy - particularly if it’s an auction property - a Mortgage Broker can assess the relevant sale documentation and go to the bank to get unconditional approval for that specific property.
They’ll help you navigate bridging finance
If you need to buy a new property before you sell your existing one, you might run into complications with bridging finance if you don’t have the right guidance. Lenders are tightening the rules around bridging loans. When you work with a Mortgage Broker, you’ll understand what banks require and you’ll also be steered towards the lender that offers you the right finance option.
In a changing market, your Mortgage Broker is a valuable asset. Their job is to arm you with the right knowledge and the most suitable loan options so that you can achieve your property goals.
posted 5 July 2016