What does a mortgage broker do?

Mortgage brokers are professionals in the home loan industry. They work with you to determine your borrowing needs and how much you can borrow. Brokers help ensure you don’t take out a loan that is too big for you. Brokers have access to a wide variety of loans. This mean your broker can find a loan that is tailored to your needs.

Why should I use a mortgage broker if I can go to a bank?

When we talk about a ‘loan product’ we are referring to thousands of options that are currently available to you for your loan. Each bank (or lender) has loans with different options – low doc, package loans, re-draw facilities, plant and equipment loans, fixed, interest only, interested in advance, variable, introductory variable… the issues you face as a consumer is ‘which loan is right for me?’. This is where a mortgage broker comes in. If you go directly to the bank, you will only be offered the loan options available through that one lender. As your mortgage broker, we do all the leg work for you. We search across many lenders and all of their loan products in order to find the best loan for you.

Which lenders do you deal with?

As a Connective Broker, I have access to many lenders including the major banks, second tier lenders and credit unions. We can source you a loan from a lender of your choice.

Don’t you just recommend the lender who pays you the most commission?

Absolutely not! The National Consumer Credit Protection Act or NCCP is designed to protect consumers and ensure ethical and professional standards are upheld in the finance industry.

Who sets interest rates?

The Reserve Bank of Australia meets on the first Tuesday every month to determine the official cash rate for the country. The lenders then use this information to set their own rates. Mortgage brokers do not set rates.

Do you charge fees for home and investment loans?

Some mortgage brokers charge a fee and some don’t. When you take out a loan via a Mortgage Broker, it does not cost you more. That is an absolute myth. Brokers get paid commission by the bank for bringing new business to them. This does not impact your rate or level of service. If a broker charges a fee, they must disclose this fee upfront to you so you know what you will be up for if you engage their services.

How much can I borrow?

This depends on how much you have saved for a deposit and what you current expenses are. Give us a call and we can go into your options in more detail, or check out the loan calculators page on our site!

I am not in your area, can we still work together?

Sure, we can come to you!

What is a SMSF?

A Self-Managed Super Fund is a superannuation fund controlled by the individual investor. It provides flexibility to the investor and allows them to choose their investment types.

Are SMSFs easy to set up?

It is easy to set up a Self-Managed Super Fund when you are dealing with professionals. There are many regulations surrounding the superannuation environment and leaving it to professionals may be a better option. Whilst you can be involved in the process it is imperative that your SMSF abides by specific regulations.

Note: JSP Financial Services does not provide SMSF set-up and management services. We only offer services surrounding SMSF loans.

What are the fees?

There is an upfront cost to set up the SMSF which varies between $1,000 and $3,000 depending on circumstances. The ongoing fees are between $1,000 and $2,500 depending on SMSF investments and complexity.

Note: JSP Financial Services does not provide SMSF set-up and management services. We only offer services surrounding SMSF loans.

What fees am I currently paying?

Different superfunds have different fees. Typically they range between 1% – 3% of the total fund balance.
What sort of property should I purchase inside my SMSF?
The individual has full discretion as to which property they purchase. Ultimately the investment performance of the property should be the highest priority. There are specific guidelines on property types that SMSF cannot purchase. You can discuss this with our professionals.

Should I go fixed or variable?

This depends on your situation and what you would like to get out of your loan for example, to pay your loan off quickly or guaranteed repayments.

Generally, if flexibility is important to you, take a variable rate loan. If you want budget certainty, choose a fixed rate loan. If you are still indecisive, discuss it with a professional at JSP Financial Services.