More than ever mortgage brokers can significantly save you time finding a home or investment loan due to the new  regulatory requirements.

The new legislation requires that all lenders and brokers assess an applicant before they can recommend products. Often this requires supporting documentation that includes;  tax returns, pay slips, identification, other loan statements such as car, personal and home loans and other forms of documentation. Also, if there are two applicants then both have to be present at the interview.

If you were to shop around for a mortgage then this process can be very time consuming. Using a mortgage broker can take one lot of documentation, one interview and compare your requirements to hundreds of loans. It is really that simple.

Most brokers have at least up to 30 lenders to choose from that include the major banks, second tier banks as well as non bank lenders. Therefore, you are likely to get one of the most competitive loan solutions based on your finance needs.

If you are interested in speaking to a licensed and experienced mortgage broker in your local area please submit a mortgage quote.

The new National Consumer Credit Protection Act  (NCCP) makes it harder for borrowers to compare loans.

Recent law changes to the mortgage industry require mortgage brokers and lenders to qualify a client before recommending a mortgage product. This requires more documentation and checks than ever before seen in the industry. It  can be exhausting and time consuming for the consumer to submitsupporting documentation to each lender before they can recommend a home or investment loan.

 This means  that the consumer will settle on one lender  or comparing  a few lenders due to the frustration of submitting documentation to a lender before they can recommend a product. This could cost the consumer by missing out  on a loan  product that could save them thousands of dollars over the life of the loan.

A mortgage broker can help save time by allowing the borrower to submit one set of supporting documentation and recommend various products from multiple lenders that are suitable.

Most mortgage brokers have at least 10 lenders they can choose from and they should have access to all the major banks.  Ask your broker what lenders they have access to and  make sure they are accredited with the major banks.

If you are looking for a mortgage broker in your local area please contact Smart Search Finance by submitting a mortgage quote.

Below are current specials offered by various lenders.

Commonwealth Bank – 3 Year Rate Saver – $0 loan service fee for new borrowing

Homeloans – $0 upfront for their Premium Full Doc Loan

St George Basic Variable – Low rate at 4.99%, no up front and ongoing fees for new customers only.

Westpac – .20% discount on all fixed rates under Premier Advanatge Package. Nil upfront fee for Flexi First Option Home Loan for first home buyers.

The Australian government announced in Tuesday’s budget a six month extension to the first home owners grant boost.

Grants of $14,000 for established homes and $21,000 for new purchases will stay until September 30. From October 1 to December 31 the grant will be scaled back to $10,500 and $14,000 and return to the original amount of $7,000.

State governments have also given first home buyers a hand by either reducing the stamp duty and or adding to the grant with funds of their own. Check with your state revenue office to find out what concessions you are entitled to receive or contact us.

Home loan lending is certainly tightening up. Yesterday RAMS announced that they are removing their 100% home loan product for risk management purposes.

With now only one reputable lender offering 100% home loans, it is going to become more difficult for those with out a deposit to get a mortgage.

Banks and other lenders also require home buyers to have a minimum 3% to 5% deposit sourced from genuine savings for a minimum of 3 months. Genuine savings can be in the form of bank deposits, shares, equity in another property and for some lenders rent paid over a 12 month period.

Not all lenders require genuine savings for a successful application but similarly to 100% home loans we will see a shift towards most lenders require savings of some sort before they will accept a potential borrower.