Loan Market Solomon Mendis

04/05/2026

How to choose the best home loan for you

Taking out a home loan is a huge financial commitment and it is particularly important to choose a loan that suits your needs, so you can make repayments on your terms without worrying about hidden fees or excessive interest.

Yet it can be bewildering to navigate all the different loan options available and pinpoint the loan that is best for you. It is important to keep in mind that lenders are determined to minimize their risk so for every benefit they offer to make the loan seem enticing, there is always another fact protecting their investment. So you need to look at the loan package as a whole rather than being drawn to one particular feature.

Choose the right structure for your circumstances
You need to consider your financial needs and your plans for the property as you want the loan’s features to cater to your circumstances. For example, you will require different features and flexibility from your loan if the property is to be a family home rather than an investment, your first home or second home, or if you are planning to renovate.

You also want a loan that is compatible with the size of deposit you can afford. Most lenders will only agree to lend 80% of the value of the property unless you agree to pay lender’s mortgage insurance (LMI) which can be expensive.

Additional payments without fees
One key feature to look out for is the ability to make additional payments at no extra cost. This enables you to make faster progress on your mortgage, and gives you the flexibility to pay more if you happen to have extra funds, such as an annual bonus from work. A home loan that penalizes you for making extra payments is apt to be more costly in the long term.

Flexibility to adjust interest rate
It is also useful to know that you can adjust your interest rate or split your loan at no extra cost if your situation or the market changes. You don’t want to be penalized financially for seeking out a more suitable loan structure.

Communication
Ultimately, you need strong communication and a trustworthy relationship with your lender to ensure your home loan matches your needs, and that you can change your options as your circumstances change. Alternately, you can discuss your loan requirements with a mortgage broker who will stay one step ahead of the market and help you find the home loan that is the best fit for you.

Contact us today if you need assistance in finding the right home loan for your property.

01/05/2026

Did you know that your borrowing capacity can vary by over $200,000 + depending on which lender you use ...

So if your current lender isn't giving you the funds you need - get a 2nd opinion ... you may just get the loan you want with better terms ...

30/04/2026

Myths about mortgage brokers

Wary about engaging a mortgage broker to see you through the loan application process? There are numerous myths about mortgage brokers that have put people off using their services. Here we debunk some of the more common myths so you can see how a mortgage broker can help you secure the best possible loan for your next property purchase.

1. Mortgage brokers are aligned with one particular lender
Many people believe that mortgage brokers are simply a “front” for a specific lender, so their job is to lure you to that lender. In fact, a mortgage broker is fully licensed, and relies on their knowledge of the whole mortgage market to provide you with the best mortgage for your individual needs.

2. Mortgage brokers will charge you for their time
As the client, you do not pay the mortgage broker – once you are approved for a loan, the lender pays a commission to the mortgage broker. The commission is calculated according to the size of your mortgage.

3. Getting a home loan through a mortgage broker costs more because of commission
The mortgage broker’s commission is a percentage of your home loan, so it is not an additional cost for you nor is it paid by you in any way. It has no effect on the fees or interest rates you pay on your mortgage.

4. Mortgage brokers deal with shady lenders
While mortgage brokers have connections with smaller lenders whose names might not be familiar to you, they generally also deal mainly with the major lenders with high-profile reputations. Many of the smaller lenders are affiliated with the larger banks, or they could simply be low profiles businesses with a long-standing reputation. A mortgage broker relies on the professionalism of the lender to maintain their own business reputation and income, so even the smaller lenders will have a strong reputation within the industry.

5. Mortgage brokers are only for people with bad credit
Another pervasive myth is that only people with bad credit need assistance from a mortgage broker. While mortgage brokers can certainly assist someone with bad credit find a suitable loan for their circumstances, they can also help anyone who wishes to save time and money by sourcing the best loan possible for their requirements.

6. All mortgage brokers are fully licensed
Unfortunately, anyone can call themselves a mortgage broker, but only a licensed mortgage broker is qualified to give you advice and assistance in securing a loan. A licensed mortgage broker should have the license on display in their office or on their website – if they do not, you are entitled to ask them to confirm their qualifications.

7. A mortgage broker will force you to refinance with a new lender
If you are happy with your current lender, there is no reason for you to refinance your loan with someone else. However, your mortgage broker could renegotiate the terms of your current loan on your behalf and perhaps get you a better deal.

Contact us today if you need independent assistance in finding the right home loan for your needs, whether it is for an existing property or an upcoming purchase.

29/04/2026

27/04/2026

🧐 Top tips for young property investors

It is possible for people to launch into the property investment market in their early twenties – in fact, this is a great time to start, when you are first launching into your career and don’t yet have any other financial responsibilities such as a family to support.

However, buying an investment property can never be an impulse decision – it takes self-discipline and applied knowledge to start building a profitable investment property portfolio.

Set a budget and save
The first step of course is to start saving for your first deposit, which is usually at least 20% of the purchase price (can be lower, check with your broker). You will need to be focused and realistic, and quite single minded in order to save a sufficient amount. Your best option is to set a budget and create a clear financial plan that will help you remain focused and prepared once you do buy your first property.

Think long term
While some of your peers will be looking into short term gratification – visiting pubs and night clubs, booking overseas holidays or buying a new car - you need to establish a mind-set that focuses on the long term rewards of building your investment portfolio.

Learn from the experts
While you are saving your deposit, take this time to educate yourself about the property investment market and the best type of property for your first investment. Read articles about property investment and monitor the real estate section of your local newspaper, so you can build a vision of an affordable and profitable investment property. Consult local agents and mortgage brokers as soon as possible so they can offer their insight into the market. Seek advice from a professional accountant, who can oversee your savings plan and advise you on your first home loan.

Consider a family guarantee
If you have the option, you could ask a family member to act as guarantor of your bank loan. The guarantor allows the equity in their property to act as additional security for your home loan. This strategy could potentially reduce the amount of deposit you need to save. You can split the loan into two portions, so your guarantor is only guaranteeing one portion of the loan. That way, you can pay off that portion first, so you can release your guarantor from the agreement as soon as possible.

Invest, don’t gamble
Gambling is a game of chance where you can hope to win big but you are perhaps more likely to lose it all. Investment is based on knowledge and experience, so you make decisions that will be profitable in the long term. Learn everything you can about the property and the market, so you can make objective, beneficial decisions.

27/04/2026

Pros and cons of a reverse mortgage

A reverse mortgage allows a home owner aged over 62 to borrow against their home’s equity while still maintaining ownership of the home. You can receive a lump sum or regular payments, and the loan is due to be repaid when you die, sell the residence or move permanently from the residence. The amount of the loan will depend on the value of your home, current interest rates and your age – the older you are, the more you will be entitled to borrow.

So what are the pros and cons of a reverse mortgage? And what factors do you need to take into account if you are considering this option?

PRO – A great source of retirement income
Your home is your largest personal asset, and you can channel this asset through regular payments. If you are on a small fixed income through your pension, it can make sense to release some additional income through this asset.

CON – Value of your property is reduced
As these payments are being made from the equity in your home, so you gradually lose equity in the property. This means that your heirs will inherit a property of reduced value when you die. Alternately, if you need to sell the home to move elsewhere (such as into an aged care facility) you will need to repay the loan while still having enough equity to fund your next home.

PRO – No monthly mortgage repayments
While you are living in the home you are only required to pay the costs of taxes and property maintenance.

CON – High fees
Fees are usually higher than a traditional mortgage, further reducing the equity in your home.

PRO – You can continue living in the property and leave it to your heirs
One of the myths about the reverse mortgage is that you can be evicted from the property if the loan exceeds the property value. This is not correct. You can live in the home for as long as you wish and still leave the home to your heirs but they become responsible for repaying the loan balance, either by refinancing through a traditional mortgage or selling the home.

CON – The loan is due when a “maturity event” occurs
Maturity events include the death of the last surviving borrower, or when the home is no longer your principal residence or you vacate the property for more than 12 months. It will also become due if you fail to maintain the property or fail to pay the relevant taxes or insurance. This means that the loan could become due during a crisis time for your family when you actually need financial resources rather than having to confront a huge loan repayment.

While a reverse mortgage can be a fantastic option for some retirees, it is not for everybody and you should never embark on this type of financial commitment without independent advice. Contact us today if you wish to discuss whether a reverse mortgage is the right option for you.

24/04/2026

What's your best tip for staying out of debt?

23/04/2026

Pros and cons of debt consolidation with your mortgage

If you are struggling to keep up with multiple credit repayments – credit card, car loan and mortgage – one option for simplifying the issue is to consolidate all the debts into your mortgage. However, there are also potential negative consequences for consolidating all your other debts with your home loan, so you should consider this strategy carefully and ask for independent advice before making a decision.

So what are the pros and cons of debt consolidation with your mortgage?

Pros

Shifting from multiple payments to one payment
When you consolidate your debt, you only need to make one regular payment, so your finances are more organized and you don’t have the stress of doling out minimum payments to multiple lenders. Once you have streamlined your repayment plan, you may even be able to increase the amount of that one repayment.

Lower interest rate
Multiple debts is equivalent to multiple interest rates, yet when you consolidate all these debts, you are only paying interest on one loan, which is generally at a lower rate than before. This is an automatic saving. With one interest rate and one regular payment, your monthly payment will probably be much lower than usual, giving you the option of increasing the amount of your regular repayment to get on top of the loan faster.

Cons

Reduces the equity in your home
Unlike your car and the items you purchase with your credit card, your home is an investment which will appreciate in value. Your goal is to increase the equity in this asset for your own financial security. Yet when you combine your home loan with your other debts, you are reducing your equity without any increased value of assets to balance it out.

Risking your secured loan
Another difference between a mortgage and your other debts is that a mortgage is a secured debt – if you can’t pay it, the lender can take something from you in lieu of the debt. In contrast, if you cannot make your credit card payments, it will affect your credit rating and your ability to get another credit card but it won’t have a significant impact on your overall security.

Consolidation loans are also secured loans. When you consolidate all your debts into your home loan and then cannot manage to make the repayments, your home is at risk.

More costly in the long term
While your minimum monthly repayments may be reduced in the short term, your long term debt may be increased. For example, if your car loan was taken over a five year term and then consolidated into your 30 year home loan term, then the interest on the original car loan will actually be increased so you are ultimately paying more for your car.

Debt consolidation can be a valuable tool for some borrowers, but can be difficult for others. Contact us today if you would like expert advice on whether debt consolidation is the right strategy for you.

22/04/2026

What caption would be best for this picture?

20/04/2026

Did you know if a home loan interest rate varies by 0.5% (on a $350K loan), that's a saving of $41,875.00 over the life of the loan?

My free loan comparison service tells you how much you could save!

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