Author: Frank Barragan

Something I’m asked quite regularly is, what on Earth is a mortgage broker?   It’s not a silly question.   Unless you have experience purchasing property it’s not a term people spend time thinking about and to be honest, finance isn’t always the most riveting topic.   Simply put, a broker: Is a mortgage expert who is there to help you for the entirety of your loan Negotiates with lending institutions to help find you the right deal for a great price Has a database full of lenders who are all wanting your business Can organise special discounts on your behalf Will even do your paperwork for you!   Most importantly though, a mortgage broker is there to support you through one of the biggest financial undertakings of your life. Your success is their success, so they will do everything they can to make your home loan experience a fulfilling one.   If you are ready to begin your property journey ...
Read More

The basic concept of refinancing is switching from one loan to another. There are many reasons people choose to do this but one of the most common is because they want to lower the repayments on their home loan.   It’s pretty simple, really.   If you find a lower interest rate than what you’re currently on, you’ll end up paying less interest on a weekly and monthly basis. If you calculate those savings across a few years, you can potentially save yourself thousands of dollars.   For example, if you had an interest rate of 4.2% p.a on a loan size of $500,000 for 30 years your monthly repayments would be $2,694. If you then found a new interest rate of 3.6% p.a your repayments would drop to $2,530 a month, saving you $164 a month. That’s nearly $2,000 a year!   If this is something you’re keen to look into, we’d have to do some other calculations and have a look at your loan structure to make sure refinancing is the right option for you. I...
Read More

There are plenty of arguments to support both sides of this debate. Some people value space and others prefer something small and easy to manage.   Overall, houses are more likely to grow in value than units but they require large upfront deposits. Maintenance and repair can cost an arm and a leg and despite being located in suburban areas, they can be victim to higher council rates and insurance premiums.   Units tend to be located in popular and bustling metropolitan areas with good public transport and utility options. They may include shared facilities such as gyms, pools and elevators and whilst they’re more affordable than a house, they may have strict body corporate conditions that limit your freedom with future home improvements.   The type of loans you can apply for will vary depending on your decision.   To run through some numbers, call me anytime.   My Very Best To You Always,  
Read More

If you want to turn your investment into a sure bet, you should buy in an area that’s attractive to as many tenants as possible.   This means, infrastructure and amenities.   Before you put in an offer make sure you visit the property and ask yourself the following questions:   Are there good public transport options nearby? Can shops and services be easily reached from the property? What about parks, recreation and entertainment complexes? How far is the property from major employment centres like the CBD? Are there major facilities in proximity such as schools, medical centres and hospitals?   Sometimes an area may not tick all these boxes straight away but this doesn’t mean there aren’t plans underway to upgrade local infrastructure. Speak to the local government and check out historic growth data in the area.   If you have any questions about what the next hot investment property suburbs are, re...
Read More

You might be thinking about putting your money away in brick and mortar to save for your future. Investing in property isn’t rocket science but there are a few rules savvy investors should follow for success. Here are some things we’ll cover in the next couple of weeks to get you started. Should I invest? Investing isn’t right for every one.The first thing you need to do is make sure you’re in the right financial position to take the risk. How do I build a strategy? Before you start your journey you need to do plenty of research and build a strategy around your specific budget and financial needs. How do I choose the right loan? Once you get your finances in order, start shopping around for a great loan. Make sure you get pre-approval from your lender before you start looking for your investment property. How will I manage my investment? It’s important to remember that an investment property is a long term commitment and yo...
Read More

    It’s easy to get carried away when you find your dream house on the internet or attend an auction where the adrenaline is pumping and you’re ready to bid! The unfortunate reality is that most of us have budgets and unless you have a clear outline of what you can afford, you might find yourself trying to purchase something that’s out of your reach. That’s why home loan pre-approvals are so important. Whilst there are plenty of online applications out there offering ‘instant’ results, there’s no guarantee they are accurate and they don’t hold the same authority as approval from a lending institution. Why not let your broker use their contacts and expertise to secure you an official, fast and low-rate pre-approval, so you can start spending with confidence! If you have any questions about pre-approval or would like me to start organising yours today, let's talk! My Very Best To You Always,  
Read More

  It’s Time To Start Comparing Navigating the mortgage loan market can be a really confusing experience. There are plenty of numbers and legal issues to consider and that’s before you even get down to choosing a great interest rate. Once borrowers get to this stage, they’ll often call and ask me about ‘comparison rates’ and whilst it’s always best to speak to a personal broker who can evaluate your situation, I thought I’d give you a brief rundown. What is a comparison rate? A comparison rate is a single percentage figure that gives you a more realistic idea of what your loan will cost you. It combines the lender’s interest rate with all the extra charges and additional fees related to that loan. Lenders are legally required to disclose this rate in their advertising. How Can it Help Me Choose a Home Loan? Without guidance from a broker, most people simply compare loans based on the loan interest rate. This can be a mis-guiding practice as they won’t...
Read More

    If you’ve ever done it before, you will know that refinancing can feel a bit like starting your home loan journey from scratch. You’ve got to compare interest rates and loan terms and make sure you have enough flexibility to cover your repayments for the next few years. When refinancing, my clients often find themselves switching between fixed and variable rates depending on their current financial situation. This can alter how they pay off their mortgage completely. Here are some things you should consider before switching to a variable interest rate. Exiting a fixed rate contract before the term finishes could be costly Be prepared for your repayments to fluctuate as interest rates change You can split your loan between fixed and variable rates if you would like to lock in a portion of your repayment to a set amount If you’re looking to refinance and you’d like to discuss whether a fixed or variable rate is right for you, let's talk! My Very Bes...
Read More

    Should you refinance? Maybe you need a little extra cash for a home renovation or to consolidate your credit cards, or perhaps you simply want to save some money. Whatever your reason, refinancing your home loan can be a smart move as long as you get a low rate and equally important, the right loan structure. This combination can save you thousands of dollars in mortgage repayments over the life of your loan. Here are some simple tips that can ensure you get the lowest rate possible on your Home Refinance Loan. Many lenders are now using your credit score as one tool for determining your interest rate. In general, the better your score, the lower your rate. Before applying to refinance your mortgage, check your credit report and look for any errors. If you find a mistake that's negatively affecting your score--such as a payment marked as "late" when you sent it on time, or a line of credit that doesn't belong to you--be sure to correct th...
Read More

    ‘Rentvesting’ is a relatively new term that is being used to describe the action of buying property in an affordable area, renting it out to pay the mortgage, while renting in an area that you would like to actually live in, or that makes more financial sense.   Identified as the “most common new buying habit” people rentvesting, or renting where they want to live and buying where it’s smart to invest.   Types of Rentvestors:   There are a couple of types of rentvestors. Young people utilising the strategy and saving for a first home and an increasing number of professionally employed people of any age taking advantage of tax breaks and creating wealth through property investment rather than ownership.   Tommy Lim also comments rentvesting allows numerous clients to remain ‘globally mobile’ – either pursuing valuable work experience or further studies in overseas markets such Hong Kong, London or in the United States. ...
Read More