29 minutes | Oct 16, 2017

What's Happening with Mortgages? - EP57

If you’re considering a dive into the real estate market for the first time, you may be wondering what the waters are like right now. What do you need to know about obtaining a loan from the bank? How might your credit score influence your chances? How can you use changes in stamp duty to your advantage? Today, Toni is speaking with Carl Scheriani, Senior Mortgage Broker with The Loan Market Group in Melbourne. Carl explains how the recent revisions to stamp duty affect first-time home buyers and the grants available for house and land purchases. He shares the current climate in banking, discussing the industry’s willingness to lend to first-time home buyers, the current state of valuation, and why they cannot lend more—despite being flush with funds. Toni and Carl continue with an analysis of the segmentation in the market and how general trends reported in the news don’t always reflect what’s actually happening. They cover the advantages and disadvantages of buying an investment property to get into the market and why it’s a good idea to consult a mortgage broker.   Toni and Carl also speak to the factors beyond interest rates that you must take into consideration when negotiating a home loan with the bank, the severity of penalty fees, and the fundamentals of mortgage insurance. Finally, they explain what the market is like for investors, explaining why refinancing may or may not be a good idea at the moment and why it seems as if the banks are ‘anti-investor.’ Listen in to understand how your credit score affects your chances of getting a mortgage and what to do to repair your credit if necessary! About Carl Scheriani  Since 2010, Carl Scheriani has served as Senior Mortgage Broker with The Loan Market, one of Australia’s largest mortgage and insurance broking businesses. In the last 20 years, the firm has helped secure over $50B of finance for their customers, and they celebrate an impressive 95% customer satisfaction rating. Carl specializes in all forms of residential and investment lending, and he is licensed to more than 36 banks and financial institutions. Topics Covered How changes in stamp duty are affecting first-time home buyers The government grants available for first-time buyers constructing homes The banks’ current attitude toward first-time home buyers The area of real estate in which valuations are tighter than usual Which banks have an appetite to lend for properties under 50m2 Why banks are not lending despite being flush with funds How Carl factors quality-of-life into his counsel for first-time home buyers The segmentation of the real estate market How many first-time buyers can afford the entry point introduced by stamp duty incentives Carl’s take on how government incentives affect the real estate market The pros and cons of buying an investment property to get into the market Why Toni recommends working with a mortgage broker Why being denied a bank loan may not have anything to do with you The feasibility of advertising claims that renters could buy a comparable home for $450/month Why the interest rate on a loan is just one of many factors to consider How mortgage insurance prevents banks from failing Why refinancing may or may not be a good idea for investors in the current climate How the government cap on lending is making banks ‘anti-investor’ How your credit score impacts your ability to secure a loan Learn More About the Loan Market Visit Carl’s website at https://www.loanmarket.com.au/carl-scheriani. Take Carl up on his offer for a free credit file, email him at carl.scheriani@loanmarket.com.au or give him a call at 0412 352 900. Revisit Real Estate Matters Episode 2, The Real Cost of Real Estate, at http://planinsek.com/real-cost-property-purchase-dont-get-caught-short/. Learn More About Flammable Cladding The latest news on cladding can be found at http://www.news.com.au/national/breaking-news/govt-rejects-flammable-cladding-import-ban/news-story/0eed0dd30ff47cf92f540c06c49d7213. Order your copy of Toni’s book, Her Property, at http://planinsek.com/product/her-property-book/. If you have additional questions or suggestions for future podcast topics, email Toni at toni@planinsek.com, and take advantage of her resources for beginners in real estate at planinsek.com. Additional information regarding Toni’s real estate business can be found at planinsekproperty.com.au, and her business email is toni@planinsekproperty.com.au.
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