Renovation Loans

Getting a mortgage in Queensland mostly comes down to five key things:

• Your income and expenses – Lenders want to see that you earn enough to comfortably repay the loan. That includes your salary, any other income, and how much you spend each month.
• Your deposit/savings – In most cases, you’ll need at least 5–20% of the property price saved as a deposit. A bigger deposit usually gives you better loan options.
• Your debts - how much you are already repaying and credit card limits
• Your credit history – Lenders check your credit report to see if you’ve paid off debts reliably in the past. It doesn’t have to be perfect, but they want to know you’re consistent.
• Employment stability – Ideally, you’ve been in your current job for a while or have a steady income if you’re self-employed.

If you’re not sure how your situation stacks up, we’re happy to have a chat. We’ll go through where you’re at and give you a clear picture of what’s possible.

It usually costs you nothing to use Blackk to get your loan approved and settled. This is because we are paid by the lender with whom you have your home loan with after your loan has settled (i.e. when you pick up the keys), similar to how bank staff are paid. There are some exceptions to this which we will discuss with you if it is relevant. These broadly include the following, if (i) your situation is really complex involving significantly more time, or (ii) you refinance your loan away from Blackk within 18 months of your loan settling, to another bank or mortgage broker.

We recommend you have a think about what your goal is and we can help you work out the rest on our initial free 20min call with Victor. Have a think about:

1. Immediate property goal, for example where do you want to buy, how much you think you can spend, when you think you can buy?

2. Do you want to renovate shortly after?

3. How long do you want to stay in the property?

4. Will your lifestyle change significantly in the next few years, for example going down to one income as starting / growing a family or taking time off work to travel or start a business?

5. Do you ideally want to buy an investment property or a car?

6. A good estimate of your incomes, assets, debts.

These are my top 6 x biggest reasons to not use your local bank for your loans.

1. The bank will only show you loans from their bank (a mortgage broker can see loans from at least 50 different banks and lenders). The loan the banks shows you could be an ok option for you but it may not be the best option. Did the lender take into consideration your goals in the near future like wanting to access equity to renovate or buy an investment property or the flexibility of being able to pay off a chunk of your loan sooner?

2. Banks don’t show you how to prepare before hand for a home loan (we do). Most people need to tidy up their finances for 3 to 12 months before applying as this gives them the best chance of getting their home loan approved easily when the time comes to apply. If you’ve had a loan declined in the past then you know first hand what I am talking about.

3. Banks don’t advise you on how to improve your borrowing capacity which allows you to (safely) borrow and spend more on your home, renovation or investment property. With higher interest rates and tight credit rules, banks are not lending people as much as they were a year ago. There are a few awesome tips we can share that will help to boost your borrowing capacity back up to the budget you need.

4. Banks staff usually aren’t as familiar with the steps to buy or build a property as we are. We do it day in, day out. Knowing what to do first and where to go next simplifies the entire home buying / renovating / building journey for you.

5. Banks certainly can’t help with your negotiation when making an offer to buy a property. Advice when you’re in the thick of it going back and forth with a savvy real estate agent (who does this for a living) over the price and terms goes down well with our clients. We have helped our clients get their offers accepted time and time again.

6. At Blackk Mortgage Brokers we also review your home loan interest rate every year to see if we can negotiate a lower rate or refinance you to a better situation, something a bank rarely proactively does.

A Mortgage Broker works for you. We act as the bridge between you and the bank when you need home loan advice and home loan approval.

We find you a great home loan, handle the application process, then get it approved on time so you don’t miss out on buying the home you really want.

We keep you updated on where your application is at so you always feel informed and in control.

If you went directly to a bank for a home loan, you would only hear about the 2 or 3 home loans they offer. Mortgage Brokers give you choice, as we can access the hundreds of home loans on offer from 50 banks and lenders in Australia from our leading edge software.

Choice and options are important, as where one lender may not approve you for a loan, there may be others that will.

All this aside, I believe the biggest benefit of using a Mortgage Broker for your home loan is the advice and guidance we offer to buy well and get you ahead financially.

Home loans these days are more complicated to navigate so I don’t recommend going it alone.