Should you be looking at your Home Loan in Isolation?

Do you want someone to help you pick a home loan (Mortgage Broker) or do you want to seek financial advice when it comes to “crucial financial arrangements” by having the guidance of a Finance Advisor?

So you have decided to either buy your first home, your next property or to refinance because you want a better deal or you have plans to do something with the equity in your property.  A Mortgage Broker can help in so many ways.  They can do the shopping around to find the best mortgage deal, do all the leg work, and help with the reams of paperwork, saving you time and energy.  These are all great reasons to seek out the services of someone who also doesn’t charge you for their professional time, as they are getting paid by the lender to source and secure you your new home loan.

So should you just be looking at your loan in isolation of everything else going on in your lives and what does it all means from a finance point of view?

It is my observation from the hundreds of initial consultations I have with clients, the majority of people have a mindset of just getting a home loan.  This is completely understandable as this is the immediate need they wish to solve, however what happens when I pose the question of – what are your short, medium and long term personal and financial goals?  Well, from those who haven’t paid much thought to it, I get an initial pause in thought as they take a moment to think – he’s right, this is a big financial decision!  It needs to be part of our overall financial situation and incorporated into the broader, bigger picture of the life we want our money to provide us.

Things to consider are:

• future money needs for items or decisions like having a family, buying a new car or several cars over the next few decades, home renovation, money for holidays and hobbies or special events.
• should we (or can we) afford to keep our existing home to make it an investment property as well as still buy our next or dream home?
• can we afford to buy an investment property or two and what will it mean to our wealth position and the income it will provide us in the future?
• what type of retirement do we want to have, one with enough money to do the things we love doing or are we willing to sacrifice this to live the lifestyle we want to live now and have a lower standard of living and quality of life later on?
• when do we want to retire and how are we going to ‘make it happen’?

Everyone’s circumstances are different and unique and as such, decisions about debt (home loans/mortgages) are part of their journey to also ensure they achieve the life they want.  So when you seek advice on a mortgage you should look for finance advice from someone who can also map out and understand your bigger picture.  This will allow you to not only find a greater loan for today, but their lending advice and potential cashflow management advice will also have lasting long term benefits that will prove invaluable for today and tomorrow.

The Empower Wealth team are more than just mortgage brokers – we are Finance Advisors.  We want to advise you on the road ahead and the best options for you to make your money work harder and to set up a loan that factors in the strategic planning around what your life goals and objectives are. It’s where we separate ourselves from the standard Mortgage Broker and it’s why our services are in such strong demand.