Are you spooked by a mortgage?

Top tips to make a purchasing property less scary

For many, Halloween is the time for scary films, eerie pumpkin carvings and lolly-seeking children dressed up as ghosts and goblins. In the midst of the Spring property season and with so much spook about, it’s understandable if you find buying your first property frightening.

Local franchise owner for Mortgage Choice, Tony Fornaro said, “Property ownership need not be scary, as long as you take the time to research your options, prepare yourself for the lifestyle change - emotionally and financially - and think through each decision before finally committing yourself.”

“It’s also important to remember that a property purchase provides you with an asset. So, while accruing the related debt may be daunting, you're actually adding to your long-term financial wealth. There are no real tricks to achieving property ownership; it’s hard work but many Australians will vouch the treat is well worth it.

“To put the ‘scariness’ into perspective, the top five concerns for first homebuyers aiming to purchase this year, according to our 2009 Mortgage Choice First Homebuyer Survey, was the length it takes to pay off a home loan, the fear of not being able to afford repayments, the concern of being committed to such a large financial obligation for such a long time, the amount of money repaid by the end of the loan term and buying the wrong home.

“These are all valid concerns, especially when considering imminent rate rises, widespread pay increase freezes, high migration figures and the pressure of supply versus increasing demand. Yet, undertaking thorough research while seeking professional knowledge and support can help ensure nothing scary comes your way.

“Ask all the necessary questions before you are locked in; careful research will help you understand what those questions are. This may involve searching the web, talking to friends and family about the purchase decision and your mortgage choices and seeking professional finance advice.

“If you're still in doubt about your ability to repay a mortgage on your own, consider purchasing with a friend, partner or family member. Our survey found that an increasing number of first time buyers were looking to purchase with someone else to ease the financial obligation. Make sure, however, that you consult professional legal advice to understand the roles and responsibilities of each party before committing yourself.”

This Halloween, Mortgage Choice, Australia’s largest independently owned mortgage broker provides these handy treats to help make buying your first property a rewarding experience.

Research all that you can but save yourself valuable time by embracing new media - online forums and social networking sites are a great place to ask questions and gather firsthand accounts of the pitfalls and benefits.

Set up a great savings plan early on so you don't feel overwhelmed or rushed to scrape together a deposit when you find your ideal home. Challenge yourself to save as much as you can within a timeframe; this will give you a clear goal post and help you to create a good savings habit. A small treat here and there is a good reward for staying on track.

Practice making loan repayments ahead of time. Visit a reputable mortgage broker to help you figure out what your weekly/fortnightly/monthly repayments would be and budget accordingly so when the time comes it's no real financial surprise.

Be organised with your paperwork. Set up a folder to collect all of the documents you’ll need for applying for a home loan so when the time comes you’re not rushing around searching for that important piece of paper. Documents such as passports, bank statements, recent pay slips or tax returns, plus written details about assets, liabilities and any other income will all be required.

You don’t have to do this on your own. 41% of all new Australian home loans are written through a mortgage broker. Offering a step-by-step guide to the mortgage market, they can help reduce your apprehension and empower you to make the right move.

Visit Tony’s website at www.mortgagechoice.com.au/tony.fornaro or call 07 3624 0755.

Your Home Loan Specialist in North Brisbane

High Flyers Award 2002, 2003, 2004, 2005, 2007, 2008
Finalist - Australian Mortgage Awards - Sales Manager of the Year 2006

Whether you're buying for the first time, onto your second home or developing your investment property portfolio - purchasing property can be a confusing process, so it helps to have someone their to guide you along the way. Calling Mortgage Choice at Chermside is the first step to minimizing the fuss and turning your property dreams into reality.

In my eleven years in the mortgage and finance industry, there are few scenarios I haven't dealt with. Whether you're after a pre-approval, you've found your dream home already or need to get things happening quickly - our dedicated team are here to help you along every step of the way and best of all, we don't charge for our services.

AND WE DON'T JUST STOP AT HOME LOANS! We can help you with personal loans, commercial loans, investment loans, professional needs analysis, professional packages, debt consolidation and reduction or even refinancing.

Make the right move, and call us today on 07 3624 0755.

Our team

Charlotte, Celia, Tony and Sam.

Only Four Weeks for Some to Qualify for the FHOB

Loan processing times hinder Boost applications

Potential first homebuyers should be very aware that they may have only four weeks to get their property finance plans underway in order to qualify for the First Home Owner Boost.

Why, when the deadline is 31 December 2009? Lender’s loan processing issues have been exacerbated in recent months, pushing approval turnaround times to anywhere from one day to up to six weeks.

Local Loan Consultant for Mortgage Choice, Tony Fornaro said, “While processing times will vary between lenders, the next four weeks are crucial for many buyers wishing to receive the Federal government’s incentive”

“Eligible borrowers need to ensure they have applied for finance at least six weeks prior to the First Home Owner Grant boost deadline, by mid November, to allow adequate time for loan processing and grant application. If not, they risk missing out on the extra money!

“Not only do first homeowners need to have applied for finance well before the end of December, to be safe, they also need to meet stricter lending criteria. The majority of lenders require at least five percent of the purchase price to be built from genuine savings accumulated over at least three months - excluding any state or federal government grants.

“Reputable mortgage brokers can help borrowers determine the requisite borrowing level for their desired property, how much they will be allowed to borrow, provide an estimate for loan repayment amounts and assist them through the property purchase process.

“When dealing with a rush to the finish line and heated competition from other mortgage applicants and property buyers, well thought-out decisions are vital. In our experience, consumer awareness and education about the mortgage industry is paramount to help borrowers achieve their goals.

“Property buyers must remember that while handouts and concessions are tempting, they are not the be-all and end-all. Many first time buyers have made the move to property ownership since the Boost was announced in October 2008, however there are a great number who will miss out – for good reason.

“Deciding what to buy, where to buy, how much to spend and contending with lenders stricter finance criteria are only half the battle. Making the decision of when to buy is just as important.

“As mortgage interest rates are expected to return to more ‘neutral’ levels of between seven to eight percent, first time buyers need to put the First Home Owner Boost aside and research their true limits - financially and emotionally - before taking on what is often the largest financial commitment many Australians will make.

“For those wanting to meet the deadline, the key to achieving a property purchase you are satisfied with is to be prepared - research your options, borrow within your means and stick to your limits.”

Visit Tony’s website at www.mortgagechoice.com.au/tony.fornaro or call 07 3624 0755.