First Home Buyer

What does a mortgage broker do?

Mortgage broking is an industry that has taken a beating in the media where the acts of few have shaken a broader confidence in brokers. However, the good news is this has created a system where successful brokers prove that they have their clients’ confidence in finding the best loan for them. This is why we’re alive and kicking!

• Brokers are service providers – We help you navigate the financial system and make sure that we know the latest rules and regulations so that your home loan is a smooth and successful process.
• Brokers are advisors – We will suggest home loans that meet your needs and take into account your financial situation so that you can feel secure that you’ve found a safe and secure solution that will work with your plans for the future.

It is important to make sure that you find a broker that you can trust when embarking on a financial journey into your new home or next investment. Bayside Residential and Commercial Mortgages is a referral based company that relies on the satisfaction and trust of its clients. We see our role as helping you find a path to your financial goals. We will ‘tell it like it is’ and offer options that are going to work for you, given your financial situation. You will have a thorough understanding of your loan, the terms and conditions and the risks before you sign any papers.

First home buyer checklist

When looking for your first home, there are many things to consider before you put down a deposit.

1. Map out your cash flow and allow for costs such as pre-purchase inspections, loan application fees, property valuation costs, Lenders Mortgage Insurance (LMI), stamp duty, insurances and legal fees
2. Determine the amount you will be able to put down as a deposit
3. Determine your borrowing capacity based on your income, assets and deposit
4. Learn about the different types of loans and loan features available to you
5. Apply for the pre-approval of the loan value you seek
6. Begin house hunting
7. Make an offer on the property you are interested in keeping in mind cooling off periods which differs by state.
8. If the offer is accepted, organise your final inspections and conveyancing. Auctions do not have a cooling off period and this step should be done before making an offer if bidding for a home.
9. Have your solicitor or conveyancer oganise the transfer of the property to you
10. Send us a selfie with your new home!

When shopping for a home loan, it is important to remember that banks are not credit analysts. Independent brokers are able to provide you with options and honestly communicate the benefits of different loans to give you the best solution. It is always worthwhile to speak to an independent broker before you make your final decision. Show us your offer and we will tell you if we can beat it. If we can’t, you can feel confident you’ve got the best deal.

Home Loan types

The most common types of home loans are fixed, split and variable (standard and basic) rate home loans. They fall under the Principal and Interest Home Loan facility.

A fixed rate home loan nominates an interest rate that is to be ‘fixed’ for a set period of time, usually 3 years. This gives borrowers the ability to plan ahead as their repayments do not increase over the period. This can be useful if the borrower is concerned about interest rate rises. On the other hand, if the rates fall, the loan is still locked into the fixed rate. At the end of the 3-year period, the borrower can decide whether to enter another fixed rate term or move into a variable rate loan for another period. In a fixed rate home loan, additional repayments are penalised.

A split rate home loan allows the borrower to decide what percentage of their loan they would like to put under a fixed rate, and what percentage they would like to leave as a variable rate. This offers homebuyers some stability in planning repayments with the ability to take advantage of market fluctuations too. In a split rate home loan, borrowers are allowed to make some additional payments on the amount on the variable rate without being penalised.

A variable rate fluctuates in accordance with the interest rates as set by the Reserve Bank. A basic variable loan has a more attractive variable interest rate but is very limited in the features that are attractive in a standard variable loan. Standard variable loans afford borrowers the flexibility to make additional repayments, redraw extra payments and attractive introductory rates. In a standard variable loan, you are not penalised if you make additional payments.

Other types of loans that we can help you with include:

• Bridging Loans
• Introductory Loans
• Low-doc Loans 
• Line of Credit (Equity) Loans
• Investment Loans
• Personal Loans
• Car Loans
• Business Loans
• Home renovation loans
• No Deposit Loans
• Interest Only Loans
• Construction Loans
• Guarantor Loans
• Non-confirming Loans

Contact us for more information on the loans listed above or for advice on which loan will best suit your needs. The team at Bayside will carefully consider your financial situation and offer you a solution.

Planning other buyer costs

Carefully considering the loan features that you would like to have is important as you need to weigh the pros and cons of features and penalties. Some loan features to consider are:

Bayside have access to the most competitive rates offered by the big four banks and other lenders. We have a platinum status with a range of lenders which allow our team to find you the best rate available. Access competitive home loan rates with Bayside –

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First home buyer Kit

Our first home buyer’s kit is a comprehensive guide to the home loan process and an essential resource for anyone looking for a home loan.

For a soft copy of our guide, please enter your email address below.