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Book a FREE consultation
and receive your complimentary eBook

Get started with a free strategy consultation and receive a copy of the Good Fortune Guide – written by James McFall, Managing Director Yield FP and 2020 National Finalist Certified Financial Planner of the Year to help educate you on your Financial Plan.

5 Financial Resolutions for Homebuyers: Leveraging Mortgage Broker Services for a Stronger Future

A family has just bought their dream house
an icon of a house with a dollar sign in front of it
Mortgage Broking The best mortgage brokers provide financial analysis and projections and identify debt management strategies. By structuring your loans well, you are setting yourself up to achieve your financial planning goals

As the real estate market opens back up in Australia in 2024, it is an ideal time to plan the purchase of your ideal home and to explore how mortgage broker services can help you. Whether this means buying your first home or the upgrade you are dreaming about, there are steps you should take to get there. In this blog, we share five financial resolutions game-changers that can seriously make a difference in turning your home buying dreams into reality.

1. Understand Your Financial Position

A couple working on their budgets to map their financial position towards finding a best mortgage broker.

Knowing where you stand financially isn’t just checking boxes, it’s about making the right moves to find a home that fits your wallet and your dreams. As the first step, take a moment to see where you stand with your money. Assessing your financial standing gives you a clear picture of what you can afford. It’s not just about the purchase price of the house, you’ve got to factor in things like property taxes, insurance, and ongoing maintenance costs. Sometimes, we tend to think we can handle more than we actually can, and that can lead to some serious financial stress.

So, choosing a mortgage that matches what you earn and spend, can save you future financial headaches. Now for the good news: You are not alone with this! At Yield, our experienced mortgage brokers are here to give you tailored advice and steps that fit your unique situation, helping you level up your financial health and options.

2. Set Clear Budgets and Goals

Determining the right budget for your home purchase involves a delicate balance between affordability and quality. Are you looking for a forever home, upgrading for a growing family, or investing in a property for future returns? Each goal demands a tailored budget strategy. For instance, a first-time homebuyer aiming to build equity might focus on a smaller property but with lower budget, while a growing family might stretch their budget for more space and amenities.

So, carefully outlining your goals and budgets customises your journey to homeownership, personalising it to your needs. With a mortgage broker’s expertise, you get a tailored plan considering factors like down payments, closing costs, and ongoing expenses. This ensures your ideal property today isn’t just a wish but a wise investment for your future.

3. Educate Yourself on Mortgage Options

Mortgages come in various shapes and sizes, and navigating these options can be overwhelming. Understanding the differences—like fixed-rate versus variable-rate mortgages, government-backed versus conventional loans—is crucial to find the best fit for your situation.

Depending on your future plans, your mortgage strategy is critical to making your cashflow stretch further, and therefore the flexibility for your entire financial plan. For example, if there is a chance you will upgrade your home in the future and retain the property you have as an investment, then strategic use of an offset account and consideration for an interest only loan would typically be advantageous.

The Reserve Bank of Australia (RBA) often adjusts the official cash rate, affecting interest rates overall. Government-backed initiatives, such as the First Home Loan Deposit Scheme (FHLDS) and state-based grants, bring added complexity. Additionally, considering refinancing an existing mortgage can unlock lower interest rates, access additional features, or adjust your loan term to better suit your needs.

Take a look at the graph below, capturing changes in refinancing figures for owner-occupiers and investors from July 2019 to November 2023. It includes both negotiations with external lenders to refinance for Owner Occupied and Investment Loans. It outlines that there has been more gain achieved through taking action on your mortgage (especially Owner-Occupied Loans) and changing who you bank with in recent years, as interest rates have been flying upwards. Ultimately, customers are reviewing their alternative lender solutions to maximise a more competitive home loan rate.

capturing changes in refinancing figures for owner-occupiers and investors from July 2019 to November 2023
Source: ABS

However, staying across all these details can be a real challenge. While self-education is a great starting point, seeking advice from experts can make a big difference. Their insights can guide you through this ever-evolving market, making informed decisions a lot easier.

4. Strengthen Your Credit Profile

Boosting your credit score matters a lot when you’re eyeing a great mortgage offer. It’s not just the major roadblocks like court judgments or bankruptcies. Surprisingly, even smaller slip-ups like frequent credit inquires or delayed payments can impact your score. So, making a resolution to improve your credit by paying bills on time and keeping debt in check is a smart move. Working alongside an experienced mortgage broker adds immense value to improving your credit score. They can help by giving you step-by-step advice, like focusing on paying off certain debts first or suggesting small changes in your spending habits, which can have a big impact on your score.

5. Benefit from Expert Guidance Throughout the Process

Given the complexities and constant changes in the market, the homebuying journey can be quite involved and time consuming. Furthermore, it is not something that anybody does often, so even an experienced investor, it will typically require a re-education process, that is time consuming and for most people tedious.

This is where a qualified mortgage broker can really help you. Yield mortgage brokers are experts, not only in mortgage options, but consideration for the impact to your broader financial plan. When you have a trusted and experienced mortgage broker by your side, you can be confident that you have the right support, making the whole journey more enjoyable and less stressful.

Yield Financial Planning: Leading the Way as Your Best Mortgage Brokers

At Yield, we help you bind your mortgage strategy to what you are trying to achieve with your financial plan. Our service is specially tailored to our financial planning client experience, and we are proud to have helped many clients achieve their property planning objectives.

Choosing Yield, you will benefit from comprehensive initial consultations; assistance with mortgage paperwork (for which there is a lot!); mortgage negotiations with the lenders; and we can advise on insurance covers you might need. With our expertise therefore, we make the whole process smoother, allowing you to feel assured and make decisions confidently.

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Important Note
Any information provided here is general advice only and does not consider your objectives, financial situation or needs. This information should not be taken as comprehensive and does not constitute legal or financial advice. You should seek legal, financial or other professional advice before relying on any content. Yield Financial Planning is not responsible to you or anyone else for any loss suffered in connection with the use of this information. Information is only current at the date initially published.

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Free Consultation

Free Consultation

Get started with a free strategy consultation and receive a copy of the Good Fortune Guide – written by James McFall, Managing Director Yield FP and 2020 National Finalist Certified Financial Planner of the Year to help educate you on your Financial Plan.