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New LVRs 'mean home buyers should seek professional advice'

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Fuseworks Media
Fuseworks Media

New loan-to-value ratio (LVR) restrictions mean home buyers should be fully informed before committing to a loan, says mortgage and insurance advisory company, Mortgage Express.

"Mortgage advisers are up to date with the regulations and lending climate and are able to advise on the full range of options for each individual’s situation," says General Manager of Mortgage Express, Sarah Johnston. "Navigating home loan lending can be quite a complicated exercise. Mortgage advisers are involved with lenders on a daily basis so can give the best advice for their clients. I would strongly recommend that home buyers seek out professional advice so they are fully informed."

Mortgage advisers can be useful to scope out a range of options broader than what the traditional banks can offer. Some of these options include second-tier lenders, or specialist lenders, that offer competitively priced loans, often available only through mortgage advisers.

"Since the Global Financial Crisis, all lenders, including these specialist lenders, have much more stringent compliance, and are underwritten by the banks. Often, their fees are no more than the commercial banks, their rates are competitive, and feature many other facilities that borrowers are used to and expect from a lender," says Johnston. "So there are alternatives out there that a mortgage adviser can help people negotiate."

Advisers can often get better deals on home loan packages because they are up to date with the lenders’ policies in the market and also talk within their adviser network to find the most competitive deal.

"Many people aren’t aware that mortgage advisers have long-standing relationships with lenders and thoroughly understand the ins and outs of applying for a loan," says Johnston. "I believe a mortgage adviser can be invaluable in helping clients navigate the world of home loan lending. I would strongly recommend to people that they get professional advice before they make any decisions."

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