Strategic Mortgage Broking

Strategic Mortgage Broking 2017-11-10T12:40:37+00:00

Your mortgage is the single largest expense in your lifetime

The importance of your Mortgage Strategy is underestimated and misunderstood due to the focus on interest rates.

This is costing Australians many thousands of dollars over their lifetime.

Your mortgage strategy can either inhibit or optimise the following:

  • Minimising non-deductible debt
  • Acquiring new assets
  • Holding property
  • Money management
  • Risk management
  • Future tax deductions

The bad news, if you are set up incorrectly, is that you will already have incurred an opportunity cost that you can never get back.

The good news is it is never too late to get your Mortgage Strategy right.

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Your Mortgage Strategy is vital to property success

Loan products have evolved significantly since the deregulation of the banking industry in the 1980s.

This creates opportunity if you know where to find it.

Your mortgage and money management strategy has a long term and lasting impact on property, financial and opportunity costs.

Effective Mortgage Strategies provide wealth creation opportunities

One of the biggest financial killers is selling property!

An effective Mortgage Strategy will:

  1. Allow you to hold property while acquiring new assets
  2. Stabilise your financial situation during life’s changing circumstances
  3. Optimise tax deductions you can legitimately claim
  4. Allow you to take control of your money management and manage your risk
  5. Optimise the use of offset accounts

If you get it wrong, the opportunity cost will increase dramatically.

Does your Mortgage Broker provide education and help you plan during life’s major property decisions?

Smart Money Management

Understanding your loan structure and how it interacts with your day-to-day banking is vital to success.

Integrating feedback loops to enhance your Money Management will create superior savings habits, reduce interest, limit spending and manage risk.

It is time to learn how an effective Mortgage Strategy underpins your life’s property and money management decisions.

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We like to think differently and challenge the norm

There are many ways to manage your risk within your mortgage and banking structure

This is logical given:

  • your mortgage is your largest financial commitment
  • your banking set up is where all your income and expenditure is managed

Yet the focus is often on the interest rate – the simplest aspect to comprehend.

Peace of mind – does your Mortgage Strategy pass the pillow test?

An effective banking and Mortgage Strategy can create enormous peace of mind.

Empowering you to take control of your Money and Risk Management.

What is the point of growing your wealth and improving your lifestyle if you cannot sleep at night

Lenders and mortgage brokers do not understand Mortgage Strategy

They sell products and the interest rate. This is to your detriment.

No one focuses on Risk Management as part of the mortgage conversation.

An intelligent Mortgage Strategy is the foundation of growing and protecting your property wealth.

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5 Steps to Strategic Mortgage Broking

“Thanks for negotiating it down – much appreciated. It’s after-sales service like this that means I would happily recommend you guys for anyone looking to make property decisions in the near future.”
Andrew, Thornbury
“I’m cognisant of the vast amount of effort and ongoing assistance you have provided throughout this process. Not only have you grasped the understanding of the type of loan that I’m after, but you’ve been able to work with the various Companies and Trusts that I have set up and have found a solution that meets my criteria. You’ve been proactive through the whole process. Your proclivity for matching loans with customer needs has been refreshingly delightful to say the least.”
Martin, Melbourne

Understand your Mortgage Strategy

Ask yourself these 20 questions and determine whether a Mortgage Strategy would benefit you:

  1. Do you have a money management system in place?
  2. Do you have a mortgage strategy that will optimise holding properties into the future?
  3. Do you have strategies in place to legally maximise your investment deductions?
  4. Do you want to understand how your loan structure can be set up to help you manage risk?
  5. Do you optimise the use of offset accounts to enhance the benefits of your mortgage strategy?
  6. Is it possible you might turn your current home into an investment property in the future?
  7. Do you only have investment debt but plan to purchase a home in the future?
  8. Do you have a complex loan and banking structure that you would like to simplify to provide you with clarity and to ensure you are maximising your future opportunities?
  9. Do you currently own, or plan to own more than one property and would like to optimise your mortgage strategy to support you on your journey?
  10. Do you understand cross-collateralisation?
  11. Do you plan to start a family or have more children?
  12. Do you want to consider the pro’s and con’s of one lender verses multiple lenders?
  13. Will you be on one income at some stage in the future?
  14. Do you have a mixture of deductible and non-deductible debt in the same loan?
  15. Would you like to understand the ‘purpose test’ to ensure you do not fall foul of the ATO, and to enable you to maximise your investment interest?
  16. Do you redraw cash for personal spending from an investment loan?
  17. Do you want to understand how to utilise equity to invest?
  18. Would you like to better understand how to take advantage of future investment opportunities that may arise?
  19. Would you like to review refinance opportunities that may be available to you?
  20. Do you plan to purchase shares/managed funds in the future, or currently own shares/managed funds which you funded from cash savings?

If any of the 20 questions resonate with you, contact us for an obligation free review of your Mortgage Strategy.

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Interest rates, the elephant in the room

Is securing a low interest rate your number one priority?

If you want the lowest interest rate you need to refinance weekly.

Most lenders have almost identical products and similar rates.

Always searching for the lowest rate is as futile as thinking the grass is greener on the other side of the fence!

Did you know comparison sites, mortgage brokers and lenders access the same rates

Interest rate competitiveness fluctuates between lenders and products month to month.

Selecting a specialist should be based on their ability to provide an intelligent Mortgage Strategy, supported by ‘award winning’ customer service.

A poor Mortgage Strategy will cost you more than a poor interest rate.

We are focused on proactively ensuring your loan remains competitive into the future

It is not just about the rate today, but what the rate will be in the future.

Has your lender or mortgage broker ever initiated an improved interest rate for you with the same lender?

We will obtain a great rate, actively manage your Mortgage Strategy, assist with Property Planning and provide exceptional customer service.

You can always call us ongoing – why wait on hold to a lender!

We have a Private Banking team dedicated to supporting you and minimising the need to call the lender or visit a branch.

If your primary focus is to simply gain the lowest interest rate in the market, we are not the people to be working with.

The ‘lowest or best rate’ is a thing of make believe, made up by the advertising gurus!

Frequently Asked Questions

What is a Mortgage Broker?

Someone who saves you time researching mortgage products. They should have access to at least twenty different lenders.

Only a Strategic Mortgage Broker will help you to develop a Mortgage Strategy.

Why use a Mortgage Broker?

  • Mortgage Brokers have access to exactly the same interest rates, products and fees as a lender direct and the website comparison sites.
  • Mortgage Brokers are held to a higher level of compliance by ASIC than employees of lenders and they must provide you with a Credit Proposal
  • Once upon a time, there was little choice beyond the major banks. Using a mortgage broker is a vote for choice remaining, and not being taken away.
  • A great Mortgage Broker saves you significant time and leg work. They inform and educate you and provide excellent customer service.
  • A great Mortgage Broker provides ongoing support and advice.

We overlay this with in depth Mortgage Strategy and Property Planning all supported by our ‘award winning’ Private Banking service.

How do the Lenders derive an income from Mortgage Brokers?

Exactly the same way they do when you take out a loan direct – the earnings from your interest rate, savings and fees.

With loans originated by a mortgage broker, lenders earn this income without paying for marketing, employee salaries and business overheads.

No wonder most lenders, with the exception of the majors, do not have a branch network and ONLY use mortgage brokers – imagine the savings!

How does a Mortgage Broker get paid?

A Mortgage Broker receives a fee from the lender your loan is placed with. A Mortgage Broker can access the same rates and products as when you deal with the lender direct. Half of all mortgages in Australia are originated by Mortgage Brokers.

A Strategic Mortgage Broker does a whole lot more than just find a lender, product and a rate!

How do I find a Mortgage Broker?

You are not looking for an average mortgage broker.

The better question is how do you find a Strategic Mortgage Broker?

You have now found a Strategic Mortgage Broker. 

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pkoulizos“For superior property and financial decisions, speak to the experts at Property Planning Australia. I have worked closely with David Johnston and the team for a decade. Their desire to place consumers’ needs first and provide holistic advice rather than product based selling is one of the many aspects that sets them apart. Sit down with them for a chat and you will be pleased with the outcome.”

Peter ‘The Property Professor’ Koulizos
Australia’s leading property university and Tafe lecturer