The truth about 0% car finance offers

mortgage broker sydney - 0% car finance offer advertisement

Seen an offer along the lines of: ‘Drive away, 0% finance to pay’? Well, like most things in life, when it sounds too good to be true, it probably is.

mortgage broker sydney - 0% car finance offer advertisementFinance offers like 0% (or other low interest rates) for new cars exist for a reason: the seller wants you to put the pedal to the metal when it comes to making the purchase.

The truth is, however, that they can actually end up costing you more overall compared to getting your own finance through a broker.

But first: what is a 0% finance deal?

So, you’ve most likely taken out a loan from a bank, or used a credit card before, right?

Well, when you do so, you agree to pay that money back, plus any interest that’s accrued over the course of the loan.

But for 0% loans, you pay no interest.

That’s because instead of paying back a bank or a lender, you’ll likely be paying back the actual automaker.

So how do they make money?

Well, besides the fact they’re selling you a car, they routinely sell the car to you at a higher price than you’d be able to purchase it upfront for.

For example, a car that has a price tag of $24,990 with a 0% finance deal might sound great, but the automaker would most likely be willing to sell it to you upfront for $19,990.

There may also be hidden charges and establishment fees that you might not find out about until it’s time to pay them.

And in many cases you might need a very good credit rating, or a very large deposit, to secure the deal in the first place.

So how can I get a better deal?

The role of a broker is not only to get you a great loan with a very low rate, but to negotiate on your behalf to ensure you pay the best possible price for the vehicle.

Let’s do a little comparison. Say you take out a $20,000 loan with the help of a broker for that $19,990 vehicle mentioned above.

With the right finance, over five years you can pay anywhere between $23,000 and $24,000. That’s going to leave you more than $1,000 better off than it would have if you opted for the 0% finance option.

Another bonus is that by going through a broker, you’ll be made aware of all the relevant fees and charges that may be hidden in the fine print. This means there’ll be no extra costs sneaking up on you.

Final word

If you’re keen to put yourself in the driver’s seat when it comes to purchasing a new vehicle, give us a call.

We’ll make sure that when you drive-away, you’ll know exactly how much you need to pay. Not to mention just how much you saved in the process.

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Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Why you can get a better home loan deal using a mortgage broker

Mortgage broker- playing cards on a poker table

So you’ve found the ideal property and it’s time to source finance? Here’s how to play your cards right and get a great home loan deal sorted before the settlement date.

Mortgage broker- playing cards on a poker tableEducating the kids, wedding planning, plumbing – there are some things in life that are better outsourced to professionals.

Similarly, when you’ve finally found the home of your dreams, and you need to keep ahead of the avalanche of tasks that follow, using the services of a mortgage broker can make the process a lot less overwhelming.

Your three choices

Basically, there are three ways you can go about getting your loan. You can go straight to your bank, you can look for the best deal yourself, or you can seek the help of a mortgage broker.

However, as buying a home is quite likely the biggest single financial transaction that you’ll ever make in your life, it’s important to make the right choice.

1. Going to your bank

For some people, it’s natural to go straight to the bank because that’s what you know and trust and it’s probably what your parents did.

But this can be a mistake. There are dozens of lenders out there who may be offering better deals, and your bank may take advantage of you not shopping around due to your misplaced loyalty to them.

If you have established a good credit history and a steady income, chances are that you’ll still be able to get a good interest rate through a bank. What they can’t and won’t do though is tell you if there is a better deal available elsewhere.

2. Going it alone

You can jump online and start doing loan comparisons yourself. Be aware though, that there are differences in criteria, so it’s not altogether straightforward and online calculators will have built-in assumptions.

You will need to have a good understanding of the industry and a good grip on the terminology.

You’ll also need to understand the implications of loan terms, fixed interest and variable interest options, interest only vs principal and interest, mortgage protection insurance, credit history, and employee vs self-employed status.

Finally, you’ll need to consider redraw options and offset accounts. That’s a lot to weigh up in a short amount of time – especially if you need to source finance quickly.

3. Using a broker

Having a home loan broker is like having a personal shopper who will research and compare hundreds of available market options in search of the best deal for you. We’re also required to hold or operate under an Australian Credit Licence.

A broker will have access to multiple lenders and multiple products, will be able to compare and recommend suitable loan options, negotiate the loan on your behalf, and guide you through from application to settlement.

We also don’t cost any extra. That’s because we’re paid a commission by the lender. Rest assured though, that we’re driven to secure the best possible home loan deal for you.

After all, having you tell family and friends at your house warming party about how we secured you a great home loan is much more valuable to us than slight variations in commissions.

The choice is yours

Any of these three options will get you there, but choosing a mortgage broker like us is likely the best way to be fully informed before you commit to a loan.

We’re happy to answer any questions you have, any time, meaning you don’t have to trawl through pages upon pages of Google to find the correct answer.

It’s also the most stress free way of getting your finance lined up in time, so that the home of your dreams doesn’t get snatched up by someone else!

If you’d like to know more about how we can secure a great home loan for you, get in touch today.

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Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

We’ve got your back

www.mastermortgagebrokersydney.com.au - two guys joining clenched fists together as a sign of frriendship

It’s no secret that the banking royal commission has shone a light on serious misconduct and poor lending standards by some of Australia’s biggest banks.

So we thought it was a good time to address the proverbial elephant in the room and set the record straight.

www.mastermortgagebrokersydney.com.au - two guys joining clenched fists together as a sign of frriendshipYou may have seen headlines in recent times regarding the lax lending practices of some of the banking industry’s less scrupulous operators.

It’s important to note that it’s the practices of a few big players, not the mortgage broking industry generally, that are under the microscope. But that distinction is not always clear in the headlines and the news grabs.

So we thought now was a great time to set the record straight: Our number one priority is, and always has been you, our client.

Some cold hard stats

Ok, so anyone can talk the talk. But here’s proof that mortgage brokers like us walk the walk. Recent research shows that:

  • The customer satisfaction measure of mortgage brokers is in excess of 70%, which is considered “outstanding and industry leading” for financial services.
  • The amount of home loans settled each year by mortgage brokers has doubled over the last decade, highlighting strong customer satisfaction.
  • In 2017 mortgage brokers helped Australians secure finance for more than half of all home loans.
  • Only 1% of consumer credit complaints to the Financial Ombudsman Service between 2013 and 2017 were about mortgage brokers.
  • And finally, one that I find particularly interesting – especially due to the Royal Commission – is that over the last five years, mortgage brokers have moderated the dominance of the major lenders and increased competition in this space.

What motivates us

While it’s true that we’re paid a commission by the lender, rest assured that we’re driven to secure the most suitable home loan deal for you.

After all, having you tell your family and friends about us at the next backyard barbeque is much more valuable to us than any slight variation in commissions between lenders.

That’s why we’ll always fight tooth and nail to secure the best possible home loan for you and your family.

If you’d like to find out more about how we’ve got your back, feel free to give us a call anytime.

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Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Four simple ways to increase your property’s resale value

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Everyone dreams of investing in a home or business that will fetch them more money than they originally bought it for. Here’s how to roll-up your sleeves and get started.

http://staging.mastermortgagebrokersydney.com.au - man in overalls with piant roller painting a roomMaking the appearance of your property desirable is critical because yours will be among a long list of properties that a potential buyer will see.

So how do you make your property stand out from the pack?

Well, by implementing a few of the below affordable steps you may not only raise the appraisal value of your property – but maybe a few eyebrows too.

1. Kitchen and bathroom upgrade

The kitchen and the bathroom attract the most scrutiny from potential home buyers and can make or break a deal.

Therefore, you should consider allocating the larger chunk of your remodelling budget to these spaces.

If your budget allows for it, consider installing new modern sinks, updating the countertops and replacing old cabinets.

2. Improve energy efficiency

Buyers will generally be willing to dig a little deeper into their pockets for a home that will help them save on energy costs in the long run.

So hire a Level 2 electrician to inspect the property and try to follow their recommendations to the letter.

You can install appliances that have positive energy conservation ratings and also replace old windows with ones that have a durable sealing. New modern doors and increased insulation can also boost energy efficiency in your home.

3. Give it a fresh coat of paint

Painting can make a property look and feel new. Who wouldn’t want to buy a home or business that’s ready for them to move in immediately?

However, go for neutral creams and whites that will suit most people’s preferences and avoid bold colours.

Remember that lighter shades like beige and white give the impression of spacious rooms.

4. Enhance curb appeal

The appeal of your property, when viewed from a distance, is important.

If it looks abandoned and gloomy, then it needs work to make sure it ready to greet its new owner.

You can make cosmetic improvements like trimming overgrown bushes, mowing the lawns, planting grass on bare areas and growing flowers.

Final tips

Property improvement should not cost you too much if you focus on the critical areas that appeal the most to buyers. It also helps to think of the above ideas as adding to your investment – not an expense.

If you’re unsure where to start, or would like some extra tips, don’t hesitate to get in touch.

We understand precisely what residential and commercial buyers look for in a home and investment property respectively, and would be more than happy to help out.

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Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Mortgage Refinance, Are You Literally Throwing Money Out The Window?

mortgage refinance - calcuilator, notebook, small toy wood house on wooden table. Concept home loan refinance planThousands, no tens of thousands of Australian families inadvertently flush their hard earned after tax dollars down the drain.

Simply because they keep delaying doing something about a mortgage refinance.

Are you overdue?

Home loan refinancing may be easier than you think.
While there are no hard rules about a home loan refinance, it makes financial sense to review the loan whenever your individual circumstances change.

For example, you may be growing your family, moving to a new location, wanting to purchase an investment property or getting married.

There are also plenty of reasons that exist outside personal circumstances, including the major financial benefits refinancing can offer, and we’ll run through some of these below.

The No. 1 Refinance Rule is to Get a Better Rate

Refinancing your home loan doesn’t necessarily mean you have to change banks. There can be a multitude of reasons why a homeowner will refinance their mortgage in order to get a lower rate.

Today’s loan market has slowed down and it is getting more and more competitive. Any home loan that was settled two or three years ago could very well need to be looked at to see if it’s still as competitive as it could be.

There is such a thing as interest bracket rate creep. So, you need to keep an eye on what your lender is doing and any rate increases they stick you with.

Nonetheless, if your bank isn’t prepared to come to the party and give you a market competitive deal there is no shortage of lenders out there that will give you a much better proposition.

Put a Padlock on a Great Home Fixed Loan Rate

Interest rates have been at record lows for some time now. In fact, the official cash rate is still at 1.5% and has been for 21 consecutive months.

However, how long can they stay that low!

Some are saying it’s possible that by the end of this financial year, or even before we’ll see an interest rate increase from the RBA.

Although a number of financial experts are saying that official rates could go up in the next 12 months, we’re already seeing a number of lenders starting to independently move rates up.

The reason for this is the pressure they’re getting from the increased cost of sourcing funds from overseas.

There is no better time than now to get your mortgage broker to find you a great fixed rate. Lock it in and allow yourself to ride the low interest rate boat for even longer.

Consolidate Debt

Refinancing helps to reduce the interest payable on the different loans you have, which can include credit card, car loans or personal loans.

It basically involves combining all the loans into a new mortgage, giving you one simple repayment to make each month instead of a bunch of them – which can lead to late fees if you forget one.

The Best News?

All your debts are charged at the home loan interest rate – which is usually much lower than a credit card rate!

Increase your investment

If you are looking at your investment options but are financially constrained, it’s time to consider refinancing your mortgage.

Where one bank may limit how much you can borrow another one may be more liberal.

All banks are not the same when it comes to borrowing capacity.

Refinancing Fees

Generally speaking when you leave one bank to go to another your old bank is going to charge you an exit fee of $350 (some banks may vary) for each loan you discharge from them.

Going into your new lender, they may charge you a legal or settlement fee of around $200 to $220.

There will also be some Government registration fees to account for. These will vary from state to state and your mortgage broker will bring you up to speed on those.

When Should I Refinance?

Your mortgage broker should have access to refinancing comparison software that can quickly show you if it’s monetarily worth your while refinancing.

Your mortgage broker can also help take some of the inertia out of the process by scanning the market for the best deal for you and then helping you to get your documentation organised.