A mortgage is a loan used to purchase a house or a real estate. The property will serve as a collateral. The borrower and lender will go into an agreement regarding the payment terms.
It is normally paid monthly which includes principal, interest, insurance, and taxes.
What is a Mortgage Broker?
A Mortgage Brokers job is a matchmaking service.
They match the borrower with a lender.
The broker will gather your financial position such as your assets and liabilities, employment records, a credit report or any other information they will require to assess your ability to secure financing.
The broker will be the one to determine a suitable loan amount from the borrower’s ideal loan amount and will submit to a lender for approval.
The broker will communicate to the lender and borrower during the application.
What are the Benefits of Using a Mortgage Broker?
A broker can save you so much time during the entire application.
All mortgage brokers have a list of numerous lenders to match the borrower with. They also have a constant contact with different lenders that you might even know about.
These brokers can also help to find the greatest possible deals that may offer a borrower a more flexible payment terms with no hidden penalties and charge.
Most of the mortgage brokers don’t charge you because they are being paid by the lender. If they do, they normally charge a small percentage, generally between 0.5% to 2% of the loan amount.
What to Consider When Using a Mortgage Broker?
You’ll find a lot of options in the market if you’re looking for a broker. But what are the things to look out before hiring one?
Although brokers are required to meet a minimum education level before becoming qualified, these requirements are quite minimal.
Fortunately, there are national guidelines that brokers must adhere and to how they should deal with their clients/borrowers.
It would be better for the borrowers to become aware of the broker’s experience and how long has this broker been in the industry.
When a broker is already recommending a loan to you, make sure you ask why it would be the most suitable loan for you and why is it worth paying in a span of years.
The Bottom Line
Mortgage brokers can help you find the perfect loan to finally get your dream house. So, make sure that you will get an accredited mortgage broker before you apply for a loan.
If you are a borrower or a broker who has a client and was rejected by a lender because of a bad credit, we are happy to help you.
Loans are necessary to some of us, and it’s important you know the best ways on how to protect your Credit Report.
So, you might start building a good credit history and maintain a high credit score as it may affect the quality of your life and your future.
If you are planning to apply for a house loan for your dream house or applying for a student loan for your college, you should start to understand on how you can protect your credit report as early as now.
Below are three easy steps on the best way to protect your Credit Report:
Monitor your credit score
What is a credit score?
A credit score is a number, it ranges from 0 to 1200.
Do you have a credit card? Or a loan from the bank? Do you pay those bills on time?
If your answer is yes, then you probably have a high credit score, which means you have a good credit.
But if your answer is no, then you might have a bad credit.
Low scores are around 300 whilst the high scores are around 700-850.
You can purchase a credit score from a National Credit Reporting Agency or other providers;
You can ask your credit card lender or your financial institution if they offer a credit score;
Be Mindful of Identity Crime
In Australia, identity crime costs upwards of $1.6 billion each year, based on the report of Australian Federal Police.
These people will steal your personal information most likely for financial interests.
You don’t want others to apply for a credit card under your name and maximise your credit limit, do you?
These are some ways on how you can protect your personal information:
Do not divulge your credit card information to someone over the phone or through email you don’t really know. You can have the email encrypted for better security;
Do not use unsecured WiFi Hotspots or public computers to do an online bank transaction; instead, consider using a Virtual Private Network (VPN) to ensure online security
When purchasing a product online, make sure that it’s a trusted online payment website;
Review your Bank Statement;
Check your Credit Report regularly to examine if there are fraudulent activity happening.
Examine Your Credit Report Often
Check your Credit Report regularly to examine if there is fraudulent activity happening.
There are three reporting agencies in Australia, Equifax (Previously Veda Advantage), Dun and Bradstreet and the Tasmanian Collection Service.
You’re entitled to get one free copy of your credit report once every year from each of the three credit reporting agencies.
Basically, your credit history has a great significance to lenders, credit providers and employers.
Lenders may use this to evaluate on how you manage your financial responsibilities before they can extend their services.
If you are currently suffering from a bad credit, we are happy to help you. Talk to an expert today! Call us on 1300 436 569! Email us at [email protected] or check out more articles at our website.
Something you have possibly heard before and if you haven’t, this could be a very positive step for you to follow to improve your credit rating!
If you happen to find a credit report error that is significant enough to lower your score, then this is like winning the lottery.
Of course, ALL errors should be fixed, but if you have one that is affecting your score, then you might get a boost and improve your credit rating shortly once the error is removed.
You are entitled to a free credit report from each credit bureau every 12 months.
If you need guidance on how you can obtain these then please don’t hesitate to send a contact form to us today and we can walk you through the process.
Or call 1300 43 65 69 to improve your credit rating today.
#3: Know your current bill status
Are you aware of what bills you have and when they are due?
Many people find themselves in a stressful situation when all of a sudden they have an unexpected bill.
They have instead spent the money to pay for the bill, on shoes, video games or other leisure items.
Does this sound like you and your need to improve your credit rating?
Be organised, set yourself a monthly budget.
Get the family involved in the process!!
This can be something as simple as an excel spreadsheet.
This can help you to know what you need to put aside for bills and how much you have left over to spend on the more enjoyable things.
Although we appreciate that credit cards are a valuable tool to assisting you in keeping up with those life essentials and whilst it’s an exciting time spending the money, it can be less exciting when you don’t keep up with your repayments.
Pay your credit card bill on time and keep your utilisation ratio under 30 percent.
If your ratio is higher than this, you can lose points from your credit score.
For example: You have a credit card with a $4000 credit limit.
If you have a $2000 balance, then you have a utilisation ratio of 50 percent. ($2000/$4000 = .50, or 50 percent).
This is quite high!
Again, know when your payments are due and ensure you keep ahead of these at all times. The last thing you want is being lumped with an excess amount to pay and lost points on your credit score.
Be smart when using your credit card, remember even though it seems like free money at the time, it is still your money that you have to repay in the long run.
All these tips will help you improve your credit rating dramatically.
How about you outsmart the credit score by making two payments per month instead of just one?
This will not only keep you ahead of the game but in some instances like a mortgage, it will keep your repayments down and mean that you will pay less interest in the long term.
Wouldn’t it feel nice to pay your mortgage off years earlier than what you originally thought?
By being diligent and organised, this thought can definitely become a reality.
For more budget help and financial planning assistance and to improve your credit rating, then you can head to this link here.
True debt consolidation programs in Australia can be tricky to find.
There are companies advertising debt consolidation services that are masked Part 9 bankruptcies and they are not the only debt consolidation programs available.
These companies promise to stop the phone from ringing….
Unfortunately, they don’t tell you that they’re actually putting you into a part 9 bankruptcy that stays on your credit report for 7 years.
This is not a true debt consolidation program and can ruin your chances for finance for years to come.
Want to apply for debt consolidation or credit repair? Watch this short video on HOW TO!!
3 easy steps to fix your credit today!
So what is a real debt consolidation program and where can you find one?
Follow these 4 simple steps to find a trustworthy debt consolidation program:
Get a referral
Do you have a trusted financial advisor, or maybe finance broker? Many professionals have a hub of experts that they can refer you to free of charge.
If you don’t have a financial advisor, find one in your local area, and ask them about a debt consolidation program.
To be referred by someone you trust or a trusted professional in your area is a lot safer than calling any company you find on the internet.
Do your research before you apply
Before you sign up for any debt consolidation program do some research online to find out what services are out there.
A great place to research about finance is at www.moneysmart.gov.au, a government website that offers information on consolidating and refinancing debts.
This website also offers other great information on budgeting and other areas of finance.
Be wary of TV ads offering to stop the phone ringing
Case Study: Belle had $10,000 in personal debt and had just separated from her husband. However, she had a great job and could still afford rent, she just wanted to consolidate all her debts.
Belle saw an ad on TCV offering to consolidate her debts.
She applied online and was told that she would be put into a 4 year payment plan.
Belle thought this was great, and submitted her application.
However, what Belle didn’t realise was that the payment plan was actually a Part 9 debt agreement.
This is a form of bankruptcy.
For $10,000, Belle now had a bad credit rating for the next 7 years and could not borrow any money.
When she met her 2nd husband, they couldn’t buy a home and had to stick to renting.
Be careful of Part 9 debt agreements that are disguised as payment plans.
A true debt consolidation program will not any form of bankruptcy.
Look at your budget with your family
Often a debt consolidation program can be started at home.
We suggest sitting at home with your family and writing out your budget so you can work out a reduction of expenses.
Maybe you can decrease your spend on entertainment?
Or transfer a credit card to a no interest card to start paying it off sooner?
Follow these steps above, get some professional advice from your trusted financial advisor, and we hope you find the best debt consolidation program for you and your family.
How can you pay to clear your credit?
Case Study:
John and Alice had a credit card with Bankwest.
They had some financial difficulties as John lost his job.
He couldn’t find employment for several months and they fell behind with repayments.
Unfortunately, the bank defaulted John due to non-payment.
Fortunately, John then found new employment and caught up with the arrears on the card and they were up to date.
Alice was worried about their credit.
So she asked her finance broker, can you pay to clear your credit?
Her finance broker referrer her to us, and we answered the following question:
Can you pay to clear your credit?
NO! Just because you pay your debt, doesn’t mean you clear your credit.
This a hugely common misconception across Australia.
Contact a credit repair specialist today!
We are asked daily, ‘Can you pay to clear your credit?’.
Many new clients call, and say, ‘But I paid the debt, and the default is still on my report!’.
And whilst we understand that it’s fantastic that you’ve paid the debt.
If you have paid the debt late, then just because you catch up later, does not mean that the default will be removed from your name.
In fact, the default will remain for 5 years, REGARDLESS of whether you have paid OR NOT!
Call us on 1300 43 65 69 to discuss your credit score.
The only way you can remove a default is to prove that it was listed in error.
Are you unsure about what is on your credit report?
Follow these simple steps:
1. Get a copy of your credit report for free (LINK) and find out about your credit report.
2. Do not trust any company that promises ‘yes’ to can you pay to clear your credit.
3. Do not give any company money upfront for credit repair, unless a reputable company has referred you.
So whilst the answer is NO to can you pay to clear your credit, you can ask a credit repair company to try to investigate your report.
At Credit Fix Solutions we offer no win no fee credit repair.
We promise in 99% of cases we do not charge anything upfront.
We offer no win no fee credit repair options which proves we are the best credit repair agency.
Do you pay the hairdresser before they cut your hair? Do you pay your accountant before you get your tax returns?
Well why would you pay a credit repair company BEFORE they fix your credit. Being the best credit repair agency means putting our money where our mouth is and offering no win no fee credit repair.
And GENUINE no win no fee, not, give us your money and then we’ll pay you back if we’re not successful – minus half of it, and maybe in 6 to 12 months time.
Click to watch this short video on 3 easy steps to fix your credit
How is that the best credit repair agency?
It’s not! We DO NOT take any money from you UNLESS we are successful with your credit repair.
100s of Australians have come to us and fixed their credit, and if we can’t remove the listing, we will give you all the info from the credit provider as to why, and we do not charge you a cent.
Credit Fix Solutions is one of the best credit repair agency BECAUSE you can trust us. It’s that simple!
Our success rate is over 95% and our fees are around half of the major competitors.
Our team update you regularly and you get a dedicated credit repair expert so you know you are with the best credit repair agency when you apply to fix your credit.
Credit Fix Solutions is proud to help Australians everywhere with their credit repair and we hope that you call us so we can help you.
It’s as easy as picking up the phone and having a chat!! Call us today and ask to speak to a credit repair expert 1300 43 65 69 or 02 8896 6256 and let us prove to you that we are the best credit repair agency!!
