What to Look for Before Hiring a Commercial Finance Brokers in Adelaide

Are you looking to get your first commercial loan here in Adelaide and are considering hiring a commercial finance broker? You are making a good choice. A commercial finance broker can help you get the most competitive rates when it comes to commercial loans and give you the support you need in growing your company using solid financing. Here are the things to look for when hiring a commercial finance broker in Adelaide: 

·         Work with a commercial finance broker that has a proven track record. Have they won industry awards? Some of the best in the industry have been awarded as the ‘Commercial Finance Broker of the Year’ by reputable organizations like the MFAA or Mortgage & Finance Association of Australia and FAST.

·         Look for a commercial finance broker with extensive experience in the type of finance or lending that you need. Top-notchers in the industry have years of success in handling corporate and commercial banking, agribusiness lending, property development finance, trade and debtor finance, private finance, debt restructuring and advisory, asset finance and fund lending.

·         Hire a commercial finance broker who has your best interest in mind. They should be able to negotiate and structure commercial loans based on your capability to pay. The finance broker should have connections with different lenders to get the best interest rates and terms for your specific circumstances. Look for a commercial finance broker that can clearly present all your options to you, and then guide you in choosing the best arrangement for your goals and needs.

·         Hire a commercial finance broker that treats every business as unique. Your company is like no other. A good broker will take time to truly listen to your requirements and give you solid financing advice. They work closely with you to determine your commercial financing needs and are 100% committed to getting the best outcome for your business. 

Leading Benefits of Equipment Finance in Adelaide

Smart business owners know when and where to seek aid when it comes to their business finances. Companies as small as mom and pop operations and as significant as Fortune 500 conglomerates choose to finance their equipment for a good reason—and this is access to a whole range of benefits. Below are few of the best advantages of equipment finance Adelaide businesses stand to get when they decide to go the equipment leasing and financing way:

·      Unlike traditional loans, equipment financing can be arranged so that you can have 100% funding for your equipment without having to pay anything in advance (no down payment). This can be especially helpful when cash flow is an issue to your business at the moment of equipment acquisition.

·      Equipment financing is a useful means of acquiring funding that allows you to hold on to your working capital or your cash so it can be used for core areas of the business such as marketing, R&D, expansion, or other improvements.

·       With equipment financing, you avoid the uncertainty of investing in capital asset until the desired return is achieved. This results in a lot of cost savings, increased efficiency, and the fulfilment of other business objectives as you manage the risk of a huge purchase. Equipment financing also hedges inflation risk.

·       This type of business financing is likewise helpful in maintaining cash flow and providing greater certainty in budgeting as you are given the opportunity to customise payments in a way that matches your cash flow as well as your seasonal cash flows.

·      Equipment finance enables your business to acquire more equipment, and better, more advanced ones than you could ever have without seeking financial aid. This means technology upgrades and even equipment replacements you otherwise won’t be able to afford.

·     Tax-oriented leases may also produce lower rents as you retain title and depreciation. This means better tax benefits for the lessee.

ALL YOU NEED TO KNOW ABOUT HOME LOAN BROKERS IN ADELAIDE

A home loan broker acts as the perfect middleman that everybody has been waiting for as property dealing is not an easy task. The seller cannot always be present at his property to give the buyers a guided tour. In this blog, you will get to know about home loan brokers in Adelaide.

Home loan brokers always get you better price

In the scenario where you were to directly approach lenders for a home loan, it is highly probable that they quote higher prices. Since they don’t know you and you don’t know them, rate discovery is going to be absurdly high. With a common man in between – someone appointed by both parties – rates can be negotiated.

Home loan brokers know people

To purchase a property, you need funds. And to get funds, you only know a limited number of options. This is not so with a home loan broker. He knows many lenders and lending institutions ready to lend money for the same piece of the property. He can compare prices offered by them all and offer you the best deal.

Credit score is not the criteria

Credit score can never be a holistic criteria to judge someone’s capability to pay a loan back. Moreover, a one-time-goof-up reflects in credit scores forever, which is unfavourable to buyers. Some home loan brokers have an arrangement with lenders that forgo credit score ratings of the purchaser. This works in great benefit for the buyer as he does not have to worry about his score being unreliable.

When you contact a home loan broker the next time, rest assured that you’re getting the best deal.

Why You Should Focus on Home Loans in Adelaide

Home loans can be complex, which is why anyone considering taking out any form of mortgage should learn the ins and outs of the different types of loans that lenders allow. This way, you won’t fall into the common mistakes that the uninformed tend to trip over where credit contracts are in question. Mortgages are credit contracts that are specially designed to help individuals purchase property without the need for the total cash amount up front. Taking out a significant investment such as a home loan is a huge commitment, as these kinds of loans usually involve large sums of money.

Finding the right loan requires a great deal of smart decision-making in terms of the amount you wish and can afford to borrow, the amount of interest you are willing to pay or is charged by the lender, as well as other loan details like the frequency and type of repayment structure you need to follow, and other additional features of the mortgage. There is also the question of whether or not you want to package the loan with some other financial product that the lender is offering. Taking time to consider your options is crucial if you want to get the best mortgage deal for your home purchase.

There are two general types of home loans that mortgage borrowers can take out, namely the variable rate and fixed rate home loan. A variable rate home loan requires a variable repayment rate based on the changing interest rates on the loan. If you want flexibility on your mortgage repayment, a variable rate is a viable choice. A fixed rate home loan, on the other hand, requires a fixed repayment amount for a pre-determined period of time. After this fixed rate period has ended, the loan will then revert to a variable rate, which allows you to take advantage of the flexible features of a variable rate loan.

Pros and Cons of Hiring a Mortgage Broker in Adelaide

To broker or not to broker--this is a question in many home buyers’ minds. Working with a mortgage broker can be advantageous, especially when you are unsure about going to directly to a lender or a bank. However, hiring one does come with its own set of disadvantages. Below are important pros and cons you should know about when deciding whether or not you need professional help from a mortgage broker when seeking home loan approval:

• Pro: Mortgage brokers are one-stop-shops that help you find any type of loan you might need to finance your purchase. They work with a wide variety of lenders, banks, and mortgage companies that you may not have access to and they can make the process of comparing mortgage options faster and easier so you won’t have to shop for different lenders yourself. Mortgage brokers can help you through the entire mortgage process, starting from loan pre-approval to closing the deal.

• Con: In cases where you wish to pursue mortgage approval from a lender or a bank in which you have an existing borrower-lender relationship, applying directly might be more beneficial than working through a mortgage broker who doesn’t have an existing relationship with the lender.

• Pro: Mortgage brokers know the business, which gives you the advantage of having professional guidance as you wade through the loan application process. Instead of learning about mortgages and the confusing language lenders use on your own, you have the guidance of a broker to help you understand what you need to know about the financing you wish to gain and establish.

• Con: Mortgage brokers work on commission, meaning they are likely to ask for a fee that is equivalent to a certain percentage of your mortgage amount. This means additional cost on your part. However, many borrowers find the investment worthwhile, especially since there is less work involved when hiring brokers.  

Pros and Cons of Hiring a Mortgage Broker in Adelaide

To broker or not to broker--this is a question in many home buyers’ minds. Working with a mortgage broker can be advantageous, especially when you are unsure about going to directly to a lender or a bank. However, hiring one does come with its own set of disadvantages. Below are important pros and cons you should know about when deciding whether or not you need professional help from a mortgage broker when seeking home loan approval:

• Pro: Mortgage brokers are one-stop-shops that help you find any type of loan you might need to finance your purchase. They work with a wide variety of lenders, banks, and mortgage companies that you may not have access to and they can make the process of comparing mortgage options faster and easier so you won’t have to shop for different lenders yourself. Mortgage brokers can help you through the entire mortgage process, starting from loan pre-approval to closing the deal.

• Con: In cases where you wish to pursue mortgage approval from a lender or a bank in which you have an existing borrower-lender relationship, applying directly might be more beneficial than working through a mortgage broker who doesn’t have an existing relationship with the lender.

• Pro: Mortgage brokers know the business, which gives you the advantage of having professional guidance as you wade through the loan application process. Instead of learning about mortgages and the confusing language lenders use on your own, you have the guidance of a broker to help you understand what you need to know about the financing you wish to gain and establish.

• Con: Mortgage brokers work on commission, meaning they are likely to ask for a fee that is equivalent to a certain percentage of your mortgage amount. This means additional cost on your part. However, many borrowers find the investment worthwhile, especially since there is less work involved when hiring brokers.  

What Exactly is the Role of Mortgage Broker?

If this is your first time buying a home, then you are probably wondering if you should apply for a mortgage yourself or engage the services of a mortgage broker. You might have questions in your mind. What exactly can a mortgage broker do for you? Is hiring one absolutely necessary? Let’s answer them in today’s blog. 

In a nutshell, a mortgage broker is the go-between person or the middleman between you (the borrower) and the lender (which in most cases is a bank). A broker essentially negotiates the loan with the bank on your behalf. Mortgage brokers do all the legwork with regards to researching the best loan instruments, offers, and plans among the hundreds available in the market, and then deal with the lender throughout the application process. You don’t actually pay your broker as they earn their money in the form of commissions from the lender. 

So, what advantages can a broker offer you—and why should you hire one instead of self- managing your mortgage application? First off, they can do the research—which, with the number of available loans these days, can be a very tedious and time-consuming process. Their job is to show you the best loan offers suitable for your requirements. Loan brokers usually have connections with lenders, so they can negotiate on your behalf to arrive at the best plan that fits your needs and budget. They act as the point of contact between the lenders and you to keep negotiations neat and tidy, as well as all communications clear. Brokers also help you out in meeting lender guidelines and ensuring that you have all the documentary requirements in place.

Your financial needs can evolve over time, and your broker can help you out with these changes, too. They can guide you in financing your next home or purchasing a property investment. They can even help out if you need to refinance your existing property. With the help of a broker, the process of buying a home becomes much less stressful. 

How Difficult It Is to Become Mortgage Brokers in Adelaide?

Becoming a mortgage broker in Adelaide may be an attractive career due to the potentially high earnings. The key is to be experienced and knowledgeable in the field—and to have a competitive mindset. Now is an exciting time to be part of the mortgage industry, as interest rates are lower and more home buyers are emerging. Your chances of becoming a mortgage broker in Adelaide will be higher if you have a strong background in residential lending and you possess the ability to build good relationships with your referral partners. Likewise, you will need to understand the ins and outs of credit.

It is estimated that there will be 19 percent more mortgage brokers in Australia by 2020. Competition may become tougher, but you should still be able to stay ahead of new brokers as long as you display sound judgement, an aptitude for calculations and numbers, motivation and perseverance, excellent negotiation skills, attention to detail, and great communication skills. Getting certified in mortgage broking can help boost your credibility as a mortgage broker in Adelaide, too. Hence, you might want to consider getting a diploma in finance and mortgage broking management, or a certificate IV in finance and mortgage broking.

Once you become a certified mortgage broker, consider becoming a member of the Finance Brokers Association of Australia. The organisation ensures that all members have the right credentials and have received proper training to meet industry standards and regulations. The best mortgage brokers in Adelaide are focused in their customers’ needs and best interests, and they are driven, committed, and determined to build credibility with all their customers.  The demand for mortgage brokers in Adelaide is not likely to dwindle as long as there are customers seeking commercial or residential loan products. Your customers will trust you and your expertise to help them find the best home or commercial loan.

Get a Perfect Home Loan Package with Mortgage Brokers in Adelaide

A new home is a long-term investment that requires commitment. Getting the perfect home loan package is essential so you can benefit from flexible terms and lower interest rates, and a reputable and seasoned mortgage broker can help you find it. Leading mortgage brokers in Adelaide can assist you in selecting the right loan that will make sense for your situation and finances. With their guidance, you should be able to understand the pros and cons of every home loan package that is available to you, and make an informed decision when it is time to choose a loan.

There are many different types of home loan packages in the market today. Each one has different benefits and features you must consider along with the interest rates. Moreover, you need to consider other factors like the lender’s mortgage insurance (LMI), offset accounts, redraw facilities, and assessment of income. For instance, LMI must be factored into your mortgage budget and that you must consider borrowing structures that may reduce your LMI premium expenses. Some lenders allow borrowers to capitalise their LMI premium over or above a 95 percent loan to valuation ratio.

It is essential to assess your own income, too. Keep in mind that lenders can have different requirements in terms of the income they accept and how they assess it. Some lenders will accept dividends, casual employment, family allowance, maintenance, bonuses, and commissions. Self-employed borrowers must typically prepare their financial statements, although there are lenders that will not require you to submit all the common tax reports and financial statements to verify your income.

The best mortgage brokers in Adelaide are seasoned commercial and personal finance brokers who are connected with the leading banks in the country. Hence, they are able to source competitive pricing for their clients and you can be confident in their ability to source the best lending products, lenders, and borrowing structure. Be sure to work with a seasoned mortgage broker that has a good track record of helping its clients secure their new home successfully.

Understanding the Various Types of Mortgage Brokers

Looking for a mortgage broker to help you find the perfect loan product or the best interest rates? There are two major types of mortgage brokers, and it’s important that you go to the right person to get the assistance you require. 

Home Loan Brokers 

Thinking of buying a house for yourself or your family? Home mortgage brokers can help you deal with the financial side of the home buying process, from budgeting for mortgage insurance to finding lower interest rates. They can also assess your income and match it with the ideal loan interests and products that you can comfortably afford. Home loan brokers can provide you access to home loan products that are only made available by banks and lending institutions through brokers—which are often some of the best in the market. Be sure to work with a broker who has years of experience in helping people find the best mortgage deals. 

Commercial Mortgage Brokers 

Business mortgage brokers can help you secure the best sources of financing for buying additional space for your expanding business. They also serve business owners who are looking to buy their first retail or commercial premises, warehouses, power plants, factories etc. If you are looking to buy occupied places or management buyouts, then business loan brokers can also provide their expertise and knowledge. Some financial companies also offer financial consulting for a fee. 

Business loans typically last from one to five years, but business mortgage loans have longer terms that can last up to thirty years. These types of loans also offer lower interest rates plus higher loan to valuation ratios. A good business loan brokers can assist you in scoring the best possible loans in the market so you can free up as much of your capital as possible for growing your operations.

Know the Best Way to Get Home Loan Brokers in Adelaide

Buying a home and selecting a home loan are some of the biggest financial decisions you will have to make in your life. It’s important to proceed with caution and take your time in choosing the right funding—one that makes paying for your dream house easy instead of stressful. Consulting with a home loan broker in Adelaide is a good way to ensure that you can get the best mortgage product that suits your financial situation and your requirements. In fact, it is recommended that you work with a home loan broker if you are overwhelmed or confused by the number of lenders and mortgage products available to you.

Home loan brokers aim to help you make an informed decision when choosing home loan products by giving you unbiased information. At first glance, it may seem like banks and lenders are offering the same kinds of mortgage products, but these loans actually differ in terms of interest rates and features. Home loan brokers in Adelaide have access to all the best mortgage products and lenders, and they can narrow down the choices to only the ones that you need. Their goal is to help you select the right home loan and lender that makes sense to you.

When choosing a home loan broker, start by looking them up and examining their experience and expertise in helping clients, like yourself who are searching for the right mortgage. Consider the background of the broker and verify his or her experience by looking up feedback and testimonials. Find out the types of clients he or she has worked for and if they are satisfied with the quality of work and services provided to them. Consider how the broker works, too. Seasoned home loan brokers in Adelaide are aware that there are many other factors beyond the interest rate that you must consider when choosing a home loan, such as your income, off-set accounts, re-draw facilities, and lenders mortgage insurance. 

Make an Informed Choice of Home Loan in Adelaide

Interest rates may be a crucial factor when choosing a home loan in Adelaide, but there are other things you must consider. It’s important that you also take a look at factors like the features of the loan, the lender or the bank, and the fees. Getting the complete picture allows you to make an informed decision and secure the most competitive home loan in Adelaide—one that suits your needs and your budget. If you are currently searching for the best home loan, here are some of the factors you must examine to make a wise choice:

• Loan offset or redraw – A redraw or offset account may help you save money throughout the life cycle of your loan. A redraw lets you put money directly on the loan to pay down your principal, and the offset lets you put money indirectly against the loan to reduce the interest that must be paid. 

• Variable and fixed rates – Fixed interest rates may provide you with certainty on your mortgage repayments, but they may not provide the flexibility you need in case your situation changes.
  
  
• Loan term – The length of your home loan will impact your repayments and the amount of interest you will have to pay on it. 

• Loan fees – These may include redraw fees, monthly account fees, application fees, rate lock fees, break fees, and additional repayments. An experienced home loan broker can help you explore and understand the fees and features of a loan. 

• The lender – Make sure the lender or the bank is reputable, has a good standing with local authorities, individuals, and businesses, and offers reliable 24/7 support. 

• Getting a home loan broker – This is a professional who can help you gain access to many different banks and lenders, and narrow down the selection of home loan products to make it easier for you to make an informed choice. A broker can give unbiased advice on choosing a home loan in Adelaide, too.