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Meeting a mortgage broker: How can you come prepared?

By Andrew Bell

Organising your property finances is a major part of successfully moving into Surfers Paradise real estate. Without the funds to back your dreams, it will be nigh on impossible to purchase a home. And unless you've been extremely lucky – or viciously saving your entire life – chances are you'll need to take out a home loan to achieve these goals. 

The time to consider looking into the market is definitely upon you, especially with Queensland's new home building sector expecting to see some serious expansion over the next few years. The latest Queensland State Outlook report released by the Housing Industry Association highlights this, with Queensland executive director Warwick Temby stating that this growth in activity will be a boost to the state's economy as a whole. 

"Queensland's residential construction industry is benefitting from the very low interest rate environment, as well as improved dwelling price growth in the Brisbane area. Population growth in the state has been significant over the past decade, and it is clear that new building activity has started to reflect this," said Mr Temby in a 22 February statement. 

The state has a forecast growth of 14.9 per cent for new dwelling commencements across 2014/15, with this rate expected to rise by another 2.6 per cent over 2015/16. As the housing supply continues to grow, the potential for buyers to make moves into the Surfers Paradise market could increase. 

So it can be expected that more people will want to get in touch with a mortgage broker to discuss their financial situation and the options available in the near future. These professionals are well equipped to help buyers find the most suitable home loan product for their real estate needs, which is important given the wide range of loan products and features associated with them.

Preparing for your mortgage broker meeting

Before you head into the meeting, it's important that you bring along the right documents to help the process begin smoothly. Because a lot of this questioning will revolve around your financial situation, you'll need to bring along things like recent pay slips, your current bank statement and other documents relating to credit products or tax assessment.

This gives your mortgage broker a decent idea about your current  financial situation. By providing as much documentation as possible, you will also make your broker's job easier, helping them have a better idea of which loan products are suited to you. Remember, too, to bring identification – documents like a passport, driver's licence and birth certificate, among others. 

One thing to keep in mind when you're chatting with a mortgage broker is that you can ask any questions you have about the process, the different products available, and even the short and long term effects of choosing one loan over another. Don't be afraid to ask them to explain or clarify anything you aren't grasping – especially if you're a first time buyer. 

What is a home loan comparison rate? 

When you're looking for a home loan to buy real estate in Surfers Paradise, something to keep an eye on is a mortgage broker's home loan comparison rate. While a good indicator for the differences between different mortgages is the interest rate being charged, this doesn't take into account the other costs associated with the home loan – which could end up being more than you're willing to bite off. 

This is what a comparison rate provides. It's a percentage value which takes into account all of the different costs that come with a home loan. 

A home loan comparison rate consists of:

  • the amount the home loan is worth
  • how long the term of the home loan is
  • the frequency of repayments
  • the interest rate charged on the mortgage
  • any charges or fees associated with the home loan

Before committing to any particular mortgage, it could be worth comparing this rate with other products or lenders to help you find the most bang for your buck. Comparison rates encapsulate the whole cost of the home loan, so they can be relied on to more accurately seek out the right product for you. 

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