The Power of Professional Mortgage Advice 

Making the decision to purchase a home is one of the most significant choices in anyone's life. It involves not just a financial commitment but also a substantial emotional investment. Given the gravity of this decision, many individuals wonder why they should opt for a mortgage adviser instead of dealing directly with a bank. This question is not limited to first-time homebuyers; even experienced property investors often seek the valuable insights and advice that mortgage advisers bring to the table. To illustrate the importance of mortgage advisers in such scenarios, let's examine a real-world case study. 

A Real-World Case Study: Navigating Complexities 

Imagine a client who is not only a homeowner but also a builder with a thriving construction company. His family is expanding, and they are in search of a larger home. At the outset, they secured a pre-approval from a bank, which seemed sufficient for their dream home purchase. However, a significant hurdle emerged—the property they had set their sights on lacked the necessary building consent for some extensions. Consequently, the bank was unwilling to use the property as security for lending, throwing their plans into disarray. 

The Role of a Mortgage Adviser 

This is where a mortgage adviser comes into play. The client, having been referred by a friend, sought our assistance to resolve this complex situation. With our help, we not only managed to secure bank approval for the loan but also identified that the initial pre-approval did not provide the best structure for their unique circumstances. Our client's case perfectly highlights how a mortgage adviser can untangle the intricacies of a real estate transaction. We engaged in negotiations with the property vendor, who agreed to rectify the unconsented work before the settlement, making the property acceptable to the bank as security for lending. 

The Benefits of Professional Guidance 

One critical issue we uncovered during this process was that the client was obtaining a home loan from the same bank where they held their existing property's security. In many cases, we advise our clients not to concentrate all their properties within a single bank, emphasizing the importance of maintaining flexibility and control in the future. This diversification across different banks can safeguard one's financial future. 

Securing Your Financial Future

During our discussions, we also learned of our client's intention to sell their current home in the near future, not because the bank required it, but as part of their personal plans. Given the potential for property values to rise in the future, we recognized an opportunity. The property they intended to sell would soon generate rental income. However, the home loan for this property was small, and the client had a high income tax level. To address this, we recommended consulting a tax accountant. Changing ownership under the new tax policy could unlock tax deductions, potentially saving the client a significant amount. 

Additionally, our client shared their future development plans, which could expose them to high financial risk and responsibility due to their joint ownership of the current and newly purchased properties. We advised our client to seek legal counsel to discuss placing these properties into a family trust, a strategic move to safeguard their assets. 

Conclusion 

In conclusion, securing bank approval for our client was just the beginning. By working with a professional mortgage adviser, clients receive not only the desired loan amount but also a range of home loan product options, asset protection, and tax-saving recommendations. Without professional guidance, clients may miss out on crucial asset protection, tax benefits, and risk flexibility when borrowing from the same bank. Partnering with a mortgage adviser ensures a secure and prosperous home-buying journey, making an informed decision that encompasses not just the present but the future as well. 

In summary, the choice to engage a mortgage adviser is more than just a transaction; it is a strategic decision that considers every facet of your financial well-being. We hope this article has provided valuable insights into the essential role of mortgage advisers in the homebuying process. 

Disclaimer: The content in this article are provided for general situation purpose only. To the extent that any such information, opinions, views and recommendations constitute advice, they do not take into account any person’s particular financial situation or goals and, accordingly, do not constitute personalised financial advice. We therefore recommend that you seek advice from your adviser before taking any action.