.svg)
Other options to an Offset loan
Firstly, let’s look at why a Guarantor Loan has become more popular in recent years as a facility to assist First Home Buyers.
The lenders have changed their lending policies over the years and the cash in pocket government grants that have been abolished have also had a negative effect on some borrowers.
What has changed?
There can be several factors that can prevent a first home buyer from being able to save a deposit to purchase a home.
Looking at the substantial increases in property values over the past 25 years, homes are more expensive, so a bigger deposit is now needed. In addition to this, the associated purchase costs, such as stamp duty, legal fees and in some cases lender fees, have also increased.
If you are paying rent, personal loans, car loans, credit card debt or have any other regular payments to make, then you simply may not be able to save enough. This is where the guarantor type of assistance can help you.
Possibly: The benefits of this type of loan are all based on the fact that your loan will be less than 80% of the combined security value between the home you are buying and your parents home.
However, we will still need to assess your own circumstances to ensure that you have a good chance of having your finance approved. Once we know that your situation is viable, we can provide a recommendation to you, and then speak with the person that you wish to approach to be a guarantor.
Once the guarantor understands the process, and we have their permission to set up a guarantor home loan, then the bank would basically look at the value of the property that the applicant is buying and also the value of the property owned by the guarantor.
The bank calculates the combined property values and determines if the loan will be below 80% of these values. These calculations also take into account any loans that the guarantor themselves may have on their own property.
Providing that this criteria can be met, which we will establish when we do a preliminary assessment of the situation, then the loan application can now proceed.
This means that a lot of first home buyers who may not have been able to afford to build or buy a home, will now be able to look at purchasing a home.
Loan options will consist of the following loan types, and this is chosen by the clients based on their needs and objectives.
.jpg)
FAQ
Your journey with us begins by completing our contact form or reaching out to us directly by phone. Our team is ready to assist you through the process. Please note that an initial phone call is required for all applicants regardless. This allows your mortgage broker to understand your needs and objectives and determine how we can best assist you. This call is also a valuable opportunity for you to ask questions and gain a deeper understanding of the process.
You may be wondering why you should use a mortgage broker instead of going directly to a lender.
The main benefit of using a mortgage broker is that they can provide you with a wider range of options. This means you can choose a loan that is cheaper, has a better structure, or is from a lender who is more likely to approve your application.
Not all lenders are the same, and some are better than others in certain areas. A mortgage broker can help you find the best lender and loan for your specific needs. And, since there are no fees to you for using a mortgage broker for a standard home loan, it makes sense to have someone on your side to guide you through the process.
We receive an upfront commission from lenders - only when a loan successfully settles. Additionally, we receive ongoing trail commissions for providing continued support to our clients.
To offer loans from a specific lender, we undergo lender accreditation training. This allows us to work directly with clients on the lender's behalf, completing the tasks that would typically be handled at a branch. We are responsible for sourcing our own clients and matching them with the lender that best suits their needs, and we also have a partnership with an aggregator as detailed below, which allows us to access dozens of lenders.
We partner with an aggregation group (Aggregator), a company that aligns itself with dozens of lenders and banks. Illawarra Mortgage brokers Aggregator partner is Connective Mortgage Aggregator.
This aggregator gives us access to a wider range of lenders and advanced software, enabling us to serve our clients more effectively. The Aggregator receives a monthly payment taken directly from our commission income for each loan. Working with an Aggregator is standard practice for mortgage brokers and is a requirement in this industry.
We offer comprehensive mortgage broker services tailored to your specific needs. Whether you're looking for a home loan, a first home buyer loan, a loan for a second property or investment, an upgrade to your existing home, or refinancing options, we can help.
We also work with lenders who offer guarantor options, allowing parents to assist their children in purchasing a property. View our home loans.
Illawarra Mortgage Brokers holds an Australian Credit License (ACL Number 385841)and maintains full membership with the Mortgage and Finance Association of Australia. Our brokers are required to complete 30 hours of professional development training each year to stay current on all lending practices.
The minimum qualification for our brokers – They must have a Certificate IV in Finance and Mortgage Broking and also have a Diploma in Finance and Mortgage Broking.
The business owner Peter Economos is our most senior broker. He became a mortgage broker in 1988. After working with another mortgage company for two years, he then established Illawarra Mortgage Brokers, in March 2000.
Illawarra Mortgage Brokers has also been the recipient of industry excellence awards, including the 2019 Connective Home Loans, Mortgage Broker of the Year for NSW.
We hope that this information provides you with the assurance of our professionalism and expertise.
We assist a wide range of clients with their property finance needs. Whether you're looking to purchase a home or investment property, refinance an existing loan, or explore other property-related lending options, we are here to help.
We work with clients from all income backgrounds, including salary and wage earners, self-employed individuals, contractors, self-funded retirees, and more.
Please advise if you have any specific questions about our services. We would be happy to discuss your individual needs and circumstances.
Our access to dozens of lenders allows us to offer you a wider range of lending options than brokers with smaller lender panels and therefore limited lender options. With over 25 years of experience, we can also provide expert guidance on loan structuring and interest-saving strategies designed to save you money.
Furthermore, we pride ourselves on our personalized approach, product expertise, and commitment to excellence. These qualities distinguish us from other mortgage brokers in the Illawarra.
During our initial conversation, we can usually determine your likelihood of being approved for a home loan. However, please note that only the lender you choose to apply with can grant final approval. Our role is to present you with options that offer the strongest possibility of securing your home loan.
Regarding our meeting frequency, we tailor that to your specific needs and preferences. We are always available to assist you, so please don't hesitate to reach out for any reason. Additionally, we do not charge any fees for ongoing support.
