What does the Royal Commission mean for Mortgage Advice?

For the next 12-18 months it looks to be business as usual. As banks will continue to pay commissions for this period with a reasonable amount of certainty.  More importantly it looks like existing client loans will continue to have trail paid.  The changes will effect new loans written after

Bank Loyalty doesn’t pay

The ACCC has recently reviewed the big banks and found that on average  a new to bank client will be about $850pa  better off then an existing client with the same bank.  The banks were found to make if difficult for consumers to work out what was a good rate. 

Fee for service mortgage broking and the lender commission model

Here at Mortgage Advice we are a percentage based fee for service firm (mostly*).  The royal commission and the major lenders, (Hi there big Yellow), think it could be easy for all brokers to switch to a fee for service model.  But it is not an easy thing to do, let

How Frustrating are banks right now !

The banks are moving interest rates outside of RBA movements. While annoying there are reasons for this which I won’t bore you with. But what is most disappointing is that they will likely move the rate for existing customers, while increasing the discount offered to new customers coming to the

Investment lending getting harder

As the banks fall inline  with APRA’s  demands to lower the amount of interest only and investment lending.  Borrowers are feeling the pinch in a few ways.  1)  The borrowing capacity calculators used by most banks have become less generous. With lenders changing (lowering) the amount of rental income that can

Can you pay your mortgage with a Credit Card to get rewards?

This is a question that we get every now and then.  As people look to pay their loan off and receive bonus points or rewards on their credit card. Its a great theory…….  But here are the problems.  1) Most banks don’t allow payment to be made from a credit

Mortgage Brokers and Bank Commissions

Below is an article published by Australian Broker, an industry publication . I wanted to bring parts of this article to the general public’s attention. At Mortgage Advice we are fee for service- Which means once our fee is paid we pass on the ongoing(trail) commissions to you the client.

Fixed Rates Going Up

So some of you may have seen that in the last week a couple of the major banks are lifting their fixed rate mortgages. This is generally a good indicator that variable rates will be on the rise in the short- medium term. That said many banks haven’t moved them

Credit Scoring and Mortgage Applications

Most banks use credit scoring to assess loans. This involves not just looking your credit history but the full dynamics of your application. This week, I would like to assist you by outlining some tips to get the best result on the scorecard with NAB : – 1. The higher

Is Your Home Fire Safe?

We are coming into summer and we thought it might be time to talk about what you can do to prepare and be fire safe. While not the sexiest topic of conversation it really is a good idea to have a quick think about it. All it takes is a

Housing affordability

Why choosing where you live will change your financial outcome. I have always said that money vs lifestyle is a decision. To live in Sydney and Melbourne comes with great advantages and disadvantages. Lifestyle in these cities is amazing, but the percentage of income required to service the loans is

Budget 2021

Tomorrow Budget 2021 gets announced and it likely to have implications for borrowers of all sorts. This morning I have seen an article announcing an new scheme similar to the first home loan deposit scheme (FHLDS) for single parents. Recognizing that for many people saving up the deposit is the

1st to move, NSW to review Stamp duty with many positive outcomes

NSW looking to change stamp duty !! We might finally free up the buying and selling of property somewhat. Many clients of ours would like to sell and stamp duty is a big consideration in the decision that usually tips an idea from achievable to not. As this cost is

Q&A for first home buyers buying at Auction answered part 1

Please see my responses to one of my first home buyers today. Let me know if you have any questions and I will add them to part 2. Q. Because almost everything goes to auction in Melbourne, do we need to (and can we) get unconditional approval, rather than pre-approval? 

Happy Friday and Covid update

As restrictions around the country are easing we cautiously optimistic that business will return to a more normal state of affairs. Though for the time being we are still preferring video meetings at this stage. Travel restrictions are also forcing this. Many of the banks have historically low fixed rates

Move to Video Appointments

Covid 19 Update: In line with government advice and actions to contain the spread of Covid-19, our team will be taking steps to minimise the risk to our staff, our community and to support our clients. We have now activated our Business Continuity Plan and from Tuesday 17 March we

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