While the ‘mortgage broker vs bank’ conundrum is an age-old debate that isn’t going away anytime soon, it’s important to understand their key differences. 

Since purchasing a home is generally not an everyday purchase for the average Australian, obtaining finance is arguably the biggest hurdle that a prospective homeowner has to face. Unless the buyer in question has recently won the lottery, this usually means taking a trip to the bank in the hopes of obtaining a home loan.

However, that process has changed in recent years, with the services of a mortgage broker now providing an alternative to the traditional bricks and mortar lending providers. While the two industries certainly have more similarities than differences, what’s the better choice when comparing a mortgage broker vs bank?

Comparing Mortgage Brokers And Banks For Finance

Australians have a reputation for being loyal creatures, so it should come as no surprise that the first stop for many prospective homeowners is a trip to their everyday banking institute. Approaching a bank for a home loan can work to your advantage if you have a good credit history and if you are in a stable financial situation, as banks big and small will often deem you to be an ideal loan candidate and the type of person they want to do business with. 

Unfortunately, what this process also translates to is that buyers only receive information about their specific bank’s range of products – which ultimately may not be the most suitable fit for them. In addition, self employed applicants, sole income households, applicants with smaller deposits and even someone who missed a phone bill payment in 2016 may have a much harder time getting approved for a home loan when applying directly through a bank. For a growing number of Aussies, partnering with a mortgage broker provides a solution. 

In simple terms, the role of a mortgage broker is to act as an intermediary, or someone who navigates home loan products and their applicable terms on behalf of individuals or businesses. They serve as the ‘middleman’ between the lender and the borrower and handle the time-consuming process of securing the loan and gathering the considerable paperwork involved. 

When comparing a mortgage broker vs bank, it’s important to remember that their key point of difference is that a mortgage broker has access to a wide variety of home loan options, and it is quite literally their job to find you the best match to suit your individual circumstances – they work for you, and not the banks. 

Even applicants with a spotless credit history and strong “on paper” credentials can benefit from the services of a mortgage broker, as they’re able to help customers explore all the options. In addition, “packaging” your application is where a mortgage broker really shines. There is never a one size fits all approach with a mortgage broker, as they know what works and what doesn’t, and how it varies between each lending provider. 

Trying to juggle work, social and home life around bank appointments has the potential to add extra stress to a home loan application. Mortgage brokers are all too aware of this, and instead apply a level of flexibility when it comes to ensuring that they’re on call and available for their clients, even if that means outside of business hours. This is often a wildly different approach to what consumers can expect from a bank, and the added convenience of only having to submit one set of documents also helps to push mortgage brokers as the ideal choice between the two. 

However, one common reason that consumers stick with a bank that they’ve used all of their life is security – after all, they’re unlikely to go bust anytime soon. The thing is though, banks are not obliged to ensure that your interest rates are competitive, and are generally not renowned for rewarding loyalty. If you partner with a reputable mortgage broker with the right credentials, it’s not uncommon to keep them in your finance arsenal for future transactions, as they’re already familiar with your personal circumstances and long term goals. 

As of September 2021,  mortgage brokers wrote 67% of all residential home loans in Australia – the highest number ever recorded. What’s more is that 90% of these customers reported that they were happy with the services provided to them. If the feedback is that good and over two thirds of the nation’s home buyers are using the services of a mortgage broker, the winner of the debate between mortgage broker vs bank is pretty clear. 

Partnering With Home Loan Professionals 

Navigating the complex world of home loans has long been regarded as stressful, frustrating and time consuming – but if you can find the right advice on sourcing how mortgages work, then the good news is that it doesn’t have to be.

Since their inception in 2012, the team at Madd Loans have worked tirelessly in providing over 2,000 Queenslanders with finance options to help turn their dreams into reality. With the entire brand being built on referrals, owner George Samios takes great pride in making the loan process both fun, educational and stress free – and he has a swag of awards to prove it.

If thinking about your financial future strikes a chord with you, then it might be time to speak to a professional. Whether you’re chasing mortgage solutions or a financial fairy godmother, the team at Madd work together as a collective to turn your goals into reality.

Although interest rates are expected to finally rise sooner rather than later, it’s important to get organised now and ensure you’re ready for the changes.

On average, Australian house prices experienced a whopping 22% increase over the course of  2021 – the strongest annual growth the nation has seen since 1989. Nevertheless, what goes up must come down. According to Westpac, skyrocketing property rates are predicted to stall across the nation by May and even drop by the end of the year. 

However, it’s worth noting that these reductions were not expected to happen until the RBA increased the cash rate. With buyers reaching the limits of what they can afford, banks reducing how much they will lend, and more properties being listed for sale, house prices in capital cities like Sydney and Melbourne have begun to drop anyway in anticipation of rising interest rates. 

Four Ways To Prepare For Rising Interest Rates

For prospective home buyers and existing property owners alike, the timing and magnitude of any changes to interest rates will often be closely watched. Even the smallest increase could mean hundreds of dollars more in mortgage repayments per month, so it’s important to have a game plan as a means to protect yourself against these types of rising costs.

Should interest rates rise by as little as 1%, it can have massive ramifications on the everyday cost of living for millions of Australians. As an example, if your mortgage has a home loan principal of $500, 000, expect to pay an additional $269 per month. Although some households can easily absorb the hypothetical $67.25 per week as just another expense, others aren’t so lucky – but what can be done about it?

Home Loan Health Check – Before you start panicking about how increases to interest rates will affect you, it’s a good idea to make an appointment with your lending provider or mortgage broker. In simple terms, a home loan health check is a free discussion or “check up” aimed at fine tuning all the complexities involved with your current mortgage.

Consider Fixed Rates –  It’s not uncommon for lenders to offer lower rates to entice new customers, but fail to look after their existing customers with the same benefits. Banks are not known for their loyalty, so ensure you know what’s on offer and don’t be afraid to ask for the best possible interest rate structure, even if that means opting for fixed over variable. 

Use Your Offset Account – Making extra repayments to your mortgage or syphoning off extra money into a separate account or your offset facility could pay dividends in the long run, especially if your current interest rate is sitting lower than what it traditionally would be. In simple terms, getting ahead with your mortgage is one key way to avoid future stress. 

Explore Refinancing – When done well, refinancing your home loan offers a wide range of potential benefits to borrowers, such as securing a more favourable interest rate, changing loan terms to fixed or variable interest rates, gaining access to home equity, consolidating existing debt, and even unlocking certain home loan features like offset accounts. 

One of the most common mistakes that people make when it comes to preparing for rising interest rates is that they spend more than they can afford. Thankfully, taking the time to conduct a lifestyle audit via a budget is a relatively easy and straightforward way to get a hold of your finances, and to ensure that your household can absorb any increased cost of living expenses. 

If you’re in the market to buy this year or are feeling nervous about the prospect of rising interest rates, it’s worth partnering with the professionals who can help you navigate the ever changing property market – but where do you find them?

Partnering With The Home Loan Professionals 

Navigating the complex world of home loans has long been regarded as stressful, frustrating and time consuming – but if you can find the right advice on sourcing how mortgages work, then the good news is that it doesn’t have to be.

Since their inception in 2012, the team at Madd Loans have worked tirelessly in providing over 2,000 Queenslanders with finance options to help turn their dreams into reality. With the entire brand being built on referrals, owner George Samios takes great pride in making the loan process both fun, educational and stress free – and he has a swag of awards to prove it.

If thinking about your financial future strikes a chord with you, then it might be time to speak to a professional. Whether you’re chasing mortgage solutions or a financial fairy godmother, the team at Madd work together as a collective to turn your goals into reality.

Depending on where you are in the property market, whispers of falling house prices will either fill you with joy or dread – but what’s triggering this change?

While the past twelve months have not been so great for the average first home buyer, sellers have had extremely favourable conditions to work with. In 2021, capital city buyers across the nation forked out an average of $1,066,133 to buy a house, surpassing the million dollar mark for the first time in history. 

This astonishing figure represents an annual increase of 25.2% and a quarterly rise of 6.5%, with the latter demonstrating that the market bounced back in a big way at the end of the year following months of uncertainty linked to ongoing lockdowns and travel restrictions. 

Although what goes up must eventually come down, house prices are stalling at a faster rate that anyone initially predicted. While the property market hasn’t quite hit its peak in regional areas of Australia, all factors are pointing to a downturn in house prices in the not so distant future, particularly for Sydney and Melbourne. 

Australia’s Property Market Is Finally Set To Cool Down 

On average, Australia experienced a whopping 22% increase in house prices over the course of  2021 – the strongest annual growth since 1989. However, according to Westpac, skyrocketing property rates are predicted to stall across the nation by May and even drop by the end of the year, with the bank predicting that house prices will drop by 2% across the country for the whole of 2022. 

However, it’s worth noting that these reductions were not expected to happen until the RBA increased the cash rate. While this is yet to happen, house prices have begun to drop anyway. With buyers reaching the limits of what they can afford, banks reducing how much they will lend, and more properties being listed for sale, Sydney and Melbourne are leading the pack with falling house prices before the market has seen a single change to interest rates. 

While Australian home prices rose an average of 0.7% in March 2022, house prices in these two major cities actually fell by 0.2% and 0.1% respectively, with their growth rates in the March quarter lagging well behind other capital cities. Although the figures aren’t astronomical drops, industry experts are marking them as the beginning of the end of the Australian property boom.

One way or another, there is a limit to how much buyers can afford to pay. According to Gareth Aird, the head of Australian Economics for the Commonwealth Bank, house prices have dropped due to the budgets of buyers being stretched to their maximum. 

“The evidence is pretty clear. Although prices have peaked in the two biggest capital cities, affordability has become stretched because prices have gone up so much. There is a limit to how high they can go, and you can’t continue to grow indefinitely – that affordability picture has kicked in earlier in Sydney and Melbourne.”

However, there is one state in particular that is bucking this trend: Queensland. While this may not mean good news for everyone, annual price growth in Brisbane alone is now sitting at just under 30%, with particularly strong gains noted for standalone dwellings and top tier properties. Brisbane’s western suburbs originally led the pack, but regional areas further away from the CBD such as Ipswich, the Gold Coast and the Sunshine Coast are the locations keeping the momentum going. 

Overall, falling house prices will be linked to the tightening of lending criteria, increased interest rates, decreased affordability, international borders reopening, and the ongoing construction boom. As such, if you’re in the market to buy this year, it’s worth partnering with the professionals who can help you navigate the ever changing property market – but where do you find them?

Partnering With The Home Loan Professionals 

Navigating the complex world of home loans has long been regarded as stressful, frustrating and time consuming – but if you can find the right advice on sourcing how mortgages work, then the good news is that it doesn’t have to be.

Since their inception in 2012, the team at Madd Loans have worked tirelessly in providing over 2,000 Queenslanders with finance options to help turn their dreams into reality. With the entire brand being built on referrals, owner George Samios takes great pride in making the loan process both fun, educational and stress free – and he has a swag of awards to prove it.

If thinking about your financial future strikes a chord with you, then it might be time to speak to a professional. Whether you’re chasing mortgage solutions or a financial fairy godmother, the team at Madd work together as a collective to turn your goals into reality.

Whether you’re already a local or are making the move from interstate, there’s a few unique factors to consider before buying a house in Queensland. 

As a natural wonderland, Queensland is famous for its white sandy beaches, stretches of rainforest, tropical islands, waterfalls and more. In fact, travellers are often spoilt for choice when it comes to choosing just one destination for their next holiday, particularly for those looking to escape the cities and get up close and personal with the great outdoors. 

When coupled with a relatively lockdown free two year period, it’s no surprise that our southern counterparts have been flocking to the Sunshine State in droves. With our current property market still going gangbusters, limited availability and skyrocketing prices has meant that buying a house in Queensland has never been more tricky for long term residents and new arrivals alike. 

However, our unique climate and local legislation does indeed differ when compared to some of the other states and territories, so what should prospective buyers take into consideration when purchasing a property in this special part of Australia?

Five Things To Consider When Buying In Queensland 

As many homeowners already know, buying any property comes with an eclectic assortment of fees, applications, and warning signs. However, Queensland homes often have their own unique considerations that require attention, and anyone looking to purchase property in this part of the world should take note of the following before signing on the dotted line. 

Be Wary Of Termites – Given that our state’s signature properties are largely made of timber, Queensland homes do often have a reputation for being prone to termites. Once you’ve made an offer on a property and are waiting for the settlement period to arrive, it’s imperative to conduct a thorough pest inspection to scan the property for termites. 

Flood vs Cyclone – Queensland is famous for its famously moody weather swings, particularly when it comes to water. While the top half of the state is exposed to lashings from cyclones during the wet season, the bottom half of the state can experience dangerous flooding events much like we’ve just seen. Be sure to check your zoning before committing to a purchase. 

Check For Insulation – Buying a house in Queensland requires much more “weatherproofing” than the other states and territories, and checking the quality of a property’s insulation will go a long way when it comes to reducing your reliance on the air conditioner over summer. In addition, it may also help to soundproof the property as well. 

Exposure To Construction – As the state begins the clean up from the recent floods, there’s a lot happening in the way of construction. In addition, there’s also quite a bit happening with building in Brisbane and on the Gold Coast thanks to the upcoming 2032 Brisbane Olympics. An agent is unlikely to inform you on these factors, so do your own research before committing. 

Renovate With Care – When buying a house in Brisbane to renovate, proceed with caution. Some extensions and renovations to a pre-1946 house in the Traditional Building Character Overlay require planning approval. Houses constructed in or before 1946 may require assessment against the Traditional Building Character (Demolition) Overlay Code. 

Dubbed “Australia’s Hippest City” by Lonely Planet, there’s no denying that Brisbane has finally started to shake off the perception of being a little bit daggy. Instead, the spotlight is shining bright on the local arts scene, pumping nightlife, and great coffee and restaurants alike. 

Hugging the Brisbane River, the appeal of the city stretches far beyond the central business district. Each suburb of Brisbane doubles as an urban village, and even despite skyrocketing property prices, buying a house in Queensland is still the affordable choice when compared to the likes of Sydney or Melbourne. 

However, finding the right financial product to secure your new Queensland home is no easy feat. Since purchasing a home is not an everyday purchase for most Australians, navigating the many options can be overwhelming – which is where the services of a local Brisbane mortgage broker can be a lifesaver. 

Partnering With The Home Loan Professionals 

Navigating the complex world of home loans has long been regarded as stressful, frustrating and time consuming – but if you can find the right advice on sourcing how mortgages work, then the good news is that it doesn’t have to be.

Since their inception in 2012, the team at Madd Loans have worked tirelessly in providing over 2,000 Queenslanders with finance options to help turn their dreams into reality. With the entire brand being built on referrals, owner George Samios takes great pride in making the loan process both fun, educational and stress free – and he has a swag of awards to prove it.

If thinking about your financial future strikes a chord with you, then it might be time to speak to a professional. Whether you’re chasing mortgage solutions or a financial fairy godmother, the team at Madd work together as a collective to turn your goals into reality.

Given the fact that the whole nation has experienced skyrocketing property prices, what are regarded as some of the cheapest suburbs to buy in Brisbane?

On a national scale, it’s not surprising to learn that home values are currently up over 20% when compared to the same period just twelve short months ago. Considering the change in spending habits, shortage of building materials and just about everyone in the Land Down Under reevaluating the quality of their lifestyle, buyers in particular have flocked to property in droves. 

While a surge in demand has affected all corners of the country, it’s Brisbane that came out on top. Although the long and lengthy lockdowns that plagued New South Wales and Victoria no doubt played a role, the Australian Bureau Of Statistics reported that Brisbane’s population had the highest interstate growth rate of all capital cities, and with property prices growing due to the added demand. 

Thankfully, there’s still affordable options to be had providing that you know where to look. Regardless of whether you are an interstate migrant, a first home buyer or even someone looking to downsize, the cheapest suburbs to buy in Brisbane might just surprise you. 

Buying A House In Brisbane For Under Half A Million

As of October 1 2021, Brisbane’s median house price came in at $709,000, while the median house price was $962, 000 in Melbourne and a whopping $1,311,000 in Sydney. At $430,000 Brisbane’s median apartment price is almost half of that in Sydney, which sits at $825,000.

There are multiple markets in the diverse sprawling city of Brisbane, divided by geographic location, price point and property type. While you’re unlikely to get a house within ten kilometres of the CBD for less than $500,000 to $1,000,000 anymore, the cheapest suburbs to buy in Brisbane are closer to the action than you might think. 

Beenleigh – With a median house price of $432,000, buying a house in the south side suburb of Beenleigh is significantly much more affordable than Brisbane’s average. Perfectly positioned between Brisbane and the Gold Coast, its access to the Logan Motorway and Gateway Motorway has seen it soar in popularity amongst families migrating to Queensland. 

Redbank Plains – Not quite Ipswich and not quite Brisbane, Redbank Plains sits in the heartland of the Eastern Corridor of South East Queensland. Given the significant upgrades currently being issued to transport and infrastructure, it’s unlikely that the median house price of just $400,000 is likely to stay that way for too much longer. 

Caboolture – It’s not just the low vacancy rates that make the Caboolture area a great place – with a median house price of $468, 500, it’s also one of the cheapest suburbs to buy in Brisbane. In the region, there is an abundance of schools, including a range of primary and secondary schools and plenty of parklands for families. 

Inala – Inala is well-placed to be a strong real estate performer. It is well-located, has good transport links and sits in an area with good services, including education, health and shopping facilities. With a median house price of $450, 000, it’s a great choice for investors looking to buy a rental property without the pressures of a large mortgage. 

Browns Plains – Situated just twenty four kilometres from Brisbane’s CBD, the median house price in Browns Plains is $475, 750. With lots of affordable homes and a growing infrastructure and facilities. There’s lots of commercial opportunities and there have been many job creation projects in the area, which is leading the current boom with families moving to the south side. 

For those who aren’t adverse to purchasing a unit, townhouse or apartment, it often means being closer to the big smoke of Brisbane City. Other suburbs that feature some of Brisbane’s cheapest unit prices include East Brisbane, Coorparoo, Clayfield, Nundah, Taringa and Kedron. 

Bowen Hills, in Brisbane’s inner northeast, is the cheapest suburb in Brisbane to buy a unit. Here, prices have actually fallen by 13.7% over the past twelve months to a median price of $362, 500, providing a unique window of opportunity for buyers before the arrival of international students and tourists to our shores. 

Whether you opt to buy or sell property in the near or distant future, there’s a great number of variables to consider when determining if it’s better to wait or strike while the iron’s hot. For buyers in particular, the services of a reputable mortgage broker can help you to understand the ins and outs of the world of home loans and ensure that you’re matched to a product that’s best suited to your own individual set of circumstances – but where do you find one?

Partnering With The Home Loan Professionals 

Navigating the complex world of home loans has long been regarded as stressful, frustrating and time consuming – but the good news is that it doesn’t have to be.

Since their inception in 2012, the team at Madd Loans have worked tirelessly in providing over 2,000 Queenslanders with finance options to help turn their dreams into reality. With the entire brand being built on referrals, owner George Samios takes great pride in making the loan process both fun, educational and stress free – and he has a swag of awards to prove it.

If thinking about your financial future strikes a chord with you, then it might be time to speak to a professional. Whether you’re chasing mortgage solutions or a financial fairy godmother, the team at Madd work together as a collective to turn your goals into reality.