What goes on ‘behind the scenes’ at MMO before we recommend a home loan?
31 May 2017 MO'R Mortgage Options
Many of our clients come to us saying one of two things:
“I want to buy a house and I need a loan to buy it.”
“I’m paying too much. I want a better loan so I don’t pay more interest than I have to.”
Sounds like a simple enough request, hey?!
I mean it should be pretty easy to find a loan to do the trick. It’s not like you need to consider multiple lenders, compare fees and charges, analyse long term benefits of one home loan over another, check changes to lending policies, compare interest rates or consider different structuring options.
Oh, hang on a minute… That’s exactly what we do!
Before we recommend you go with a particular home loan structure, our team will go to great lengths to ensure it’s the right one.
Whilst this is by no means an exhaustive list, here are just a few of the things our team will do behind the scenes before we recommend a particular home loan.
- We perform preliminary calculations to ensure you can meet repayments on the proposed new loan.
- We run numbers through lender-specific servicing calculators to ensure the proposed loan meets the servicing criteria of any shortlisted lenders.
- In some cases we check with specific lenders to determine how much of your income is allowed for servicing purposes. For example, some lenders will treat bonuses, commission, overtime, special allowances or maternity leave income differently – meaning you may need to meet additional requirements.
- We rank loan products in accordance with their ability to help you achieve your property goals. For example, if your only concern is paying down your loan as quickly as possible, we’re likely to suggest a different loan structure than if you were planning to grow an investment property portfolio.
- We assess the flexibility of lenders and the ease with which additional equity can be accessed later on.
- We compare the Interest Only periods available.
- We compare how your borrowing capacity varies between lenders.
- We compare costs across lenders. This means we take into account ongoing fees, interest rates and additional benefits provided by loan features (like an offset account, for example) to ensure you don’t pay more than you need to.
- We check security registers to ensure the property you want to buy is going to be acceptable to the lender.
- For complex borrowing scenarios, we often liaise with Specialist Assessment Teams within specific lenders to ensure your application is acceptable and can be assessed and approved quickly. We have access to these Specialist Assessment Teams due to our level of industry experience.
- We contact lender assessment teams to gauge current processing times – if there’s a tight window of opportunity to secure a particular property, we want to ensure the recommended lender can meet your deadline.
- We contact lenders to clarify any details around upcoming special offers/ cash-backs/ or discounts they’ve promoted – we’ll help you take advantage of any special offers that are available.
- We negotiate further interest rate discounts off your new (and possibly existing) loan/s, when and where possible.
- Some lenders are better at handling certain types of applications (self-employed applicants, property constructions or family guarantees for example). So, we’ll also take into account the expertise of specific lenders before recommending one to you.
We sort through hundreds of different home loan options each and every day to determine the most suitable loan structure for each and every client and we’ve been doing it for the last seventeen years. Only once we’ve considered all the above factors will we tailor a home loan solution and present it to you.
If you would like to see what we would recommend for you, please give us a call.