In this insightful conversation with seasoned mortgage broker Rebecca Jarrett-Dalton, Director of Two Red Shoes, we dive into the essentials of finding the best loan options in today’s shifting financial landscape.
Here are the key takeaways for anyone navigating the complexities of mortgages and home loans:
1. The Role of a Mortgage Broker
Mortgage brokers do more than find the lowest rate. Using a combination of filters, they assess a borrower’s qualifications, preferences, and financial goals to recommend lenders that best meet the borrower’s needs. By doing this, they ensure the likelihood of approval and assess the best loan match, beyond just competitive rates.
2. Fixed vs. Variable Loans: Which is Best?
Choosing between a fixed or variable loan isn’t straightforward. Fixed loans offer stability but come with penalties if broken early. Variable rates provide flexibility, though they are subject to market fluctuations. The current market suggests rates may drop, making fixed rates less appealing, though recent bank specials on fixed loans have piqued interest. It’s best to decide based on how long you plan to stay in the property and your financial flexibility.
3. Visualizing Financial Decisions
To help clients make informed choices, Rebecca often diagrams cash flow, spending patterns, and financial goals. She helps her clients by using a unique process to map out the options available to them which makes it easier to grasp the trade-offs involved in loan decisions.
4. Staying Updated on Rates
Mortgage terms are dynamic. While variable rates get more media coverage, fixed rates also shift frequently behind the scenes. A check-in every 6 to 12 months with a broker ensures your mortgage still aligns with the best available options.
5. Avoiding the ‘Single Bank’ Trap
Having all loans with a single bank can be risky. By spreading loans across multiple lenders, borrowers retain flexibility, avoid excessive fees, and gain bargaining power. Smaller banks or credit unions, like Tasmania’s MyState Bank, offer excellent rates but are often only accessible through brokers, underscoring the value of working with a knowledgeable mortgage advisor.
6. Tips for Securing the Best Deal
- Ask for Recommendations: Family and friends can often suggest a trusted broker. Most brokers don’t charge fees, making this a low-cost way to explore your options.
- Be Proactive: You don’t have to be buying property to change your loan or get a better rate. Check in with a good broker to get an assessment on what you could achieve in the current environment.
- Stay Informed: Even small adjustments to your mortgage can lead to substantial savings over time.
Choosing the right loan can be complex, but with the guidance of an experienced broker, the process becomes clearer. Watch the full interview for more information, or to get in touch with Rebecca – https://www.tworedshoes.com.au/ | https://www.linkedin.com/in/rebeccajarrettdalton/ | https://linktr.ee/tworedshoesmortgagebroker
About the author
Debra Beck-Mewing is the Editor of the Property Portfolio Magazine and CEO of The Property Frontline. She has more than 20 years’ experience in buying property Australia-wide and has extensive experience in helping buyers use a range of strategies including renovating, granny flats, sub-division and development. Debra is a skilled property strategist, and a master in identifying tailored opportunities, homes and sourcing properties that have multiple uses. She is a Qualified Property Investment Advisor, licensed real estate agent and also holds a Bachelor of Commerce and Master of Business. As a passionate advocate for increasing transparency in the property and wealth industries, Debra is a popular speaker on these topics. She is also an author, podcast host, and participates on numerous committees including the Property Owners’ Association.
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Disclaimer – This information is of a general nature only and does not constitute professional advice. We strongly recommend you seek your own professional advice in relation to your particular circumstances.
