Finance

A BIT ABOUT TERRY CHRISTO

Terry is an experienced mortgage broker with over 12 years experience in lending to clients.  Over the years he has assisted in excess of 1,500 clients meet their lending objectives.  With over $300 million in settled loans and a personal service score of better than 9 out of 10 based on feedback from clients collated by Loan Market he is passionate about making clients happy in the finance process.

His background prior to lending is also in finance – having been a Chartered Accountant for approx 15 years prior.  This means for clients that operate businesses he is experienced in understanding interpreting and presenting financial statements to the lender.

Terry prides himself on understanding the needs of clients and ensuring these needs and objectives are met.  His thoroughness in completing the finance process is second to none.

WHY USE THE LOAN MARKET AND NOT GO DIRECTLY TO A BANK?

I will be able to assist you with the entire finance process – this means being actively involved with the transaction rather than simply providing you with a product which is what many lenders do.  I am aware of ALL  of the product choices in the market place and should be able to save you money on your mortgage.  In addition to this not all lenders will deal with all clients so on many occasions I have seen clients that have seen their bank and have been told NO and there is no issue with other lenders in achieving finance approval!

My services are free as I am remunerated by the lenders at no added interest rates fees or charges to you.

My service standard includes as a minimum:

  • Assist clients with looking at lending options to suit their needs and transaction
  • Prepare and submit all documents to the lender of choice and follow up to ensure deadlines are met
  • Explain in full lending structure to clients to minimise interest paid to the lender over time
  • Review and sign off all mortgage documents to ensure they are accurate and are returned in time to meet deadlines
  • Post settlement care – ensuring that any related bank accounts etc… are established and operating correctly for you

A GOOD BROKER BECOMES YOUR ONE STOP SHOP FOR FINANCE – it means that in the future when you need assistance they understand your needs and position – banks change their staff frequently and so therefore a personal service standard is often not achievable

When we first met Terry we were having difficulty getting our loan approved with our existing lender. Terry not only managed to get the loan approved in quick time for us but also got us a better rate than we would have gotten from our lender and saved us money in upfront costs……We highly recommend Terry’s services. I have also referred Terry to people I know and they too have had brilliant service and were extremely happy with him.

Buying your first home.

Buying your first home can be a nerve racking experience for many. Dealing with solicitors, real estate agents, building and pest inspectors as well as a bank can create a lot of anxiety. That’s where a good mortgage broker can assist in alleviating this stress from a finance perspective as well as being able to guide you on the things that you may wish to consider in relation to the property itself.

A thorough mortgage broker will ensure that as a first buyer you understand any government concessions that you could be eligible for and assist in ensuring that you receive these. In addition they will look at your lending options and make sure that all of your paperwork is completed to achieve your outcome in time.

The first property transaction is often the hardest one for first buyers to achieve due to rising prices. If you do not have a 20% deposit you will pay some level of mortgage insurance (this is a protection for the lender NOT YOU). Not all lenders charge the same premium for the same debt so often there are savings that can be achieved by choosing a lender with the lowest premium.

When it comes to buying your first home it is best to talk to a broker BEFORE you have purchased a property so they can advise on the different ways that the transaction could come together. For those that are unable to raise a deposit for the property (indicatively as a minimum you require around 8% of the purchase price) using a guarantor’s property as security could be an option for getting in sooner.

If you are actively looking for your first home then you should be talking to a good broker earlier rather than later.

Upgrading your home.

For many people the next home after their first home is likely to be the one that they stay in for more than a decade so getting that transaction right is important.

There are a number of ways that these transactions can be put together from a finance perspective and a good broker will be conscious of not only the costs of sale of your existing home but also the costs to buy the new home whilst also keeping an eye on the cost of finance during the period when you may own both properties.

It is always better to sell before you buy as you don’t have the cost of the greater amount of finance during the “bridging” period however for many the thought of selling their home prior to locating their new home seems scary. Some possible ways around this concern could include:

  • Sell the existing home with a longer settlement allowing you sufficient time to find the replacement.
  • Consider that the buyer of your home may allow you to rent your existing property back from them for a limited period of time allowing you to locate your home during this period of rental.
  • Move into a rental property for a short period of time
  • REMEMBER CASHED UP BUYERS ARE STRONGER TO AN OWNER SELLING A PROPERTY

Sometimes selling before you buy is just not an option. In that case you could consider:

  • A bridging loan
  • Signing your purchase subject to sale – understand that this dilutes your offer to the owner of the house you are purchasing.

There are a number of ways that bridging can be put together from a finance perspective and it is important to seek advice early if you are considering upgrading as bridging may or may not be an option depending on borrowing power and equity or values of properties involved. Again seeking advice early is very important in this process to ensure that there are no rude surprises.

Buying an investment property.

For many purchasing an investment property is a good way to invest for the future. A good broker can assist in making this experience a more positive one.

Did you know for example that value or equity in your home can be used as a source of deposit for an investment property?

Of major importance in this process is to ensure that the debts are structured correctly. This means ensuring that the debts are appropriately secured (and explained to the client) as well as the product selection is in line with the clients financial objectives.

In recent times many lenders have differentiated the rate they charge for owner occupied debt to that for investment and furthermore have added additional interest rate charges should the said investor wish to pay interest only. The market is a very confusing one for investors and rates can vary significantly from lender to lender.

It is worthwhile talking to a good broker to assist you early in the piece if you are interested in purchasing your next investment property.

Refinancing your home loan.

I strongly recommend that a mortgage be reviewed each 2 to 3 years. For many people they take out a home loan on a set and forget basis and do not undertake these reviews. They are important as there may be better products and pricing available to you – putting money back in the family budget.

Things to consider if you are refinancing:

  • Always compare apple with apples – many people look at a rate rather than a rate and the product – you have to look at both. For example you cannot compare a variable rate with a fixed rate – they are different types of products
  • If part of your existing debt includes a component of fixed rate home loan then you need to consider any relevant economic break costs for breaking this loan. These need to be considered in light of any possible interest rate savings that could be achieved by refinancing.
  • If your debt ratio is higher than 80% - ie the debt is greater than 80% of the value of the property (and remember the banks will revalue your home – and this is subjective), you could pay a new mortgage insurance premium to move the debt to another lender – thus reducing the possible benefits or not making it worthwhile
  • Some lenders offer a refinance rebate from time to time – cash to you – as an incentive to move your debt across to them. This can counterbalance the costs to move your lending a little and should be considered.

If you are considering refinancing then you need to talk to a good broker about whether it is worthwhile in your case. A good broker will ensure that the exercise brings you some benefits over a relatively short period of time rather than just chase a rate for a product.

For more information on finance, get in touch today!

Contact Terry Christo

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