Preapproved mortgages put buyers in a stronger position

Preapproved mortgages put buyers in a stronger position

Property markets in many suburbs, regional cities, and towns across Australia currently favour buyers.

Moreover, if you have your finance in place before you start negotiating a sale price, then as a buyer you’ll be in an even stronger position.

The recently concluded Hayne Royal Commission has resulted in many banks tightening their credit controls resulting in more extended loan approvals, or worse, some buyers not meeting the new lending criteria.

Either way, buyers who can negotiate a quick sale and settlement are in the box seat to take advantage of many property markets around Australia that currently have a surplus of properties for sale.

Brokers have a role to play in helping you into a property

Despite some negative comments targeted at finance brokers and the commissions they receive, a broker provides an invaluable service to the community by supporting competition between the Big Four banks and the smaller financiers. Besides, some of the major banks may be struggling to meet new criteria, while many smaller regional banks are keen to lend.

Brokers are a great way of sourcing competitive mortgage products. They can also help you find the most suitable mortgage. Often the right loan may not offer the lowest interest rate. There are other variables a mortgage broker can help you consider including settling on the correct loan term, whether you can secure interest and principal finance, or take advantage of a mortgage offset account. Taking these variables into consideration can result in significant savings for a property owner.

We are lucky to work with our finance team at Our Broker, who have a call centre able to handle your lending enquiries. Call them today on 1800 913 677, or alternatively, log onto our website at www.raineandhorne.com.au/ourbroker for more information and to use our simple loan calculator that can assist you with your next property purchase.