Are you looking to buy your next home in Brisbane? Are you planning to take out an investment loan? Perhaps you’re looking to move to a bigger home, or you’re getting ready to downsize. Maybe you want to move to an area that is closer to work or school. Or you may be realizing your long-awaited dream of buying an investment property in Brisbane. Whatever the reason, North Brisbane Home Loans is a top-rated home loan mortgage broker in Brisbane with over 100 years’ combined experience in helping clients buy their Next Home or Investment Property.
Second Home Mortgage
Buying a second home can be a really exciting process, but it can also be more complicated than buying your first home. You’ll need to consider loan structure, the equity of your current property, and how you plan to service two mortgages. You’ll also need to think about the pros and cons of selling one property before you buy another and whether or not you should stay with your current lender or consider refinancing. This is why it makes so much sense to partner with an experienced team of brokers for your next home mortgage loan. Our knowledgeable next home mortgage brokers will be able to talk you through the entire process step-by-step, ensuring that nothing is overlooked along the way. We’ll be able to discuss your current situation, your future financial goals, and which next home mortgage products would be most suitable for your needs.
Offering tailored advice, coupled with prompt and professional service, North Brisbane Home Loans are the ideal choice for second home buyers in Brisbane. Contact our friendly and professional team for a free consultation on a second home mortgage or buying your next home!
What are the Benefits of Using a Mortgage Broker for Next Home Mortgage Loans?
Being the next home buyer in Brisbane, there are lots of good reasons to use a second home mortgage broker. Here’s a list of the best 5 benefits of using a mortgage broker that you can get when buying your next home in Brisbane.
1. Help to comply with tough lending criteria
The lending criteria for a next home mortgage loan can be tougher (when compared to a standard first home loan or refinanced loan) because some lenders view a second mortgage as carrying the additional risk. Because of this, it’s worth getting advice from a mortgage broker who has experience in securing second mortgages. At North Brisbane Home Loans, our brokers understand complex lending criteria and can guide you through the entire lending process.
2. Minimize lending fees
By working with an experienced broker, you can ensure you won’t get hit with unnecessary and unexpected fees. When comparing loan products, we won’t just look at interest rates and loan features – we’ll compare the total loan product, including any ongoing fees or upfront charges. We’ll also look at alternative options, such as refinancing. Next home mortgages can sometimes attract higher fees due to their higher perceived risk. Because of this, it could be more cost-effective to refinance your existing home loan instead of applying for a second separate mortgage. Refinancing could allow you to incorporate the purchase of the second property into the same loan as your current property.
3. You’ll get the best next home mortgage to suit your needs
Your current bank or mortgage lender may be able to assist you with a second mortgage loan – but that doesn’t necessarily mean it will be the best solution for your specific needs. North Brisbane Home Loans has access to a wide range of lenders and home loan products, meaning you’ll have a better selection to choose from for your second mortgage or refinanced home loan. These could include products that offer interest-only repayments, the ability to make additional repayments in the future or access to an offset account or redraw facility.
4. Access to local industry knowledge
With over 100 years of combined experience, our brokers have an intimate understanding of the Brisbane mortgage industry. This includes any special deals on offer, which lenders are most likely to approve an application for a second home mortgage, and what kind of loan features will be most beneficial for a borrower in your situation. As long-time residents of Brisbane, our brokers can also recommend reputable local businesses to assist with other aspects of your property purchase, including conveyancers, pre-purchase inspectors, builders – even movers and cleaners for once the sale is finalized.
5. The reassurance of knowing your best interests are being put first
Working with an impartial mortgage broker means that you can trust the advice you’re being given without having to worry about ulterior motives. Not only do North Brisbane Home Loans abide by the newly introduced ‘Best Interests Duty’ policy, but we also take pride in our reputation for offering trusted advice and excellent customer service. As accredited members of the Mortgage and Finance Association of Australia (MFAA), we’re determined to achieve the best possible outcome for our customers.
8 Tips for Second Home Buyers in Brisbane
Buying a second home? Here are the top 8 tips for second home buyers in Brisbane that will help to make the next home buying process simple.
1. Use a Local Brisbane Mortgage Broker
With online appointments and the ability to send documents electronically, you may feel that the location of your mortgage broker is irrelevant. But choosing to work with a local Brisbane mortgage broker ensures you’re partnering with someone who is familiar with the Brisbane property market and who has established contacts with local businesses (such as pre-purchase inspectors and property conveyancers). A local broker will also be on hand and readily available to assist with any issues that may arise before, during, and even after settlement of the new property has been finalized.
2. Consider Which Mortgage Features are Right for You
Before you decide on a home loan product it’s important to consider what your short and long-term financial goals are and whether or not the mortgage will support these goals. For example, are you planning to start renovations in the next few years? Do you want to pay off the loan as soon as possible? Would an offset account be useful in lowering interest repayments? Planning in advance will allow you to choose a home loan product that includes the right features for you.
3. Plan Ahead to Maximise Your Borrowing Capacity
Before you move ahead with applying for your next home loan there are some simple things you can do to potentially improve your borrowing capacity. These include:
- Making additional repayments on your current mortgage to increase your equity.
- Complete any needed property repairs to improve the appraised value of your property.
- Obtain a copy of your current Credit Report to ensure everything is up to date and in order.
- Pay off any lingering personal debt, such as high-interest credit cards.
- Talk to a mortgage broker to see if there is anything else you should be doing.
4. Have a Realistic Budget
Before you get started with house hunting it’s important to know exactly what you can and can’t afford. Start by completing a detailed written budget of your current living expenses. Next, make a list of all potential purchase costs, including conveyancing fees, pre-purchase inspections, and transfer duty costs. Work out how much of a deposit you have to offer, either as cash savings or in the equity of your current home. You’re now ready to talk to a broker about how much you can afford to borrow.
5. Invest in a Pre-purchase Property Inspection
Buying a second property is a huge investment, so it’s well worth organising a pre-purchase property inspection. A pre-purchase inspection ensures that any major structural issues, water leaks, or pest infestations (such as termites) are discovered before the sale is finalised. Not only does this give you peace of mind about the property you’re buying, but if the inspection identifies any issues then you’ll be in a stronger position to negotiate on the final purchase price.
6. Consider Using Your Current or Next Home as an Investment Property
Interest rates are currently at an all-time low and house prices in Brisbane are tipped to see solid growth in the coming few years. With the high demand for Brisbane rental properties and strong rent yields, it could be worth using your next home purchase to secure an investment property.
7. Do Your Research
Before you commit to buying your next home it’s a good idea to do thorough research. To help you get started, we’ve put together ‘A Buyer’s Guide To Home Loans Brisbane’ which includes helpful information on the Brisbane property market, real estate purchase considerations, and a list of top 10 suburbs for property investors to consider.
8. Use a Mortgage broker You Can Trust
Talking to a trusted mortgage broker can reassure you that you’re getting the right home loan product to suit your unique circumstances. With over 250 online reviews and a 5.0 star customer rating, North Brisbane Home Loans has an established reputation as a mortgage broker you can trust. To ensure your best interests are always put first, make an appointment with one of our dependable brokers.
Why Choose North Brisbane Home Loans?
5 Star Customer Rating
We put you first and genuinely want to help you achieve your next property ownership dreams with our best rated home loan mortgage broker services.
We have hundreds of happy customers, find out what they’ve said about working with North Brisbane Home Loans here.
Experienced Mortgage Brokers
With more than 90 years’ combined experience in the industry we can confidently offer you the best advice when it comes to finding the best value second home loan for you.
You can find experienced mortgage brokers in brisbane with our top rated home loan mortgage broker website.
We Work For You, Not The Banks
We don’t charge any fees for our home loan Brisbane services, our commission comes from the lender.
So we’re by your side every step of the way to ensure you select the best loan product for your individual circumstances. Please, feel free to discuss your second home loan needs with our mortgage Brokers brisbane.
Exclusive Partner Network
Not only do we provide you with the best advice on your next home loan needs, we also introduce clients to our network of trusted partners offering discounted rates.
Save time and money searching for reliable building and pest, real estate agents, solicitors and more.
5.0 Star Reviews from Next Home Mortgage Loan Customers
We can’t thank Pat and Debbie enough for their professional efforts in helping us get into our Forever Home. When our bank failed us, Pat walked us through the process with such confidence and it left us feeling assured that we could count on him. Thanks to Pat and Deb, we are now enjoying our own home. We have definitely recommended their services to our friends and family. Thanks again Pat and Deb.
I recently approached Pat and the team at NBHL for a refinance on my existing home to prepare me for a new upcoming purchase…the team at NBHL were so helpful and professional, they really know their stuff and made it as easy as it could possibly be… more importantly they saved me thousands of dollars in the process…I can’t recommend NBHL enough. Thanks for everything!
My wife and I found Pat at North Brisbane Home Loans extremely helpful when we purchased our first property that we didn’t have to think twice about engaging his business to purchase our second property. Pat was always willing to answer questions even after our properties settled. We will definitely recommend North Brisbane Home Loan for anyone looking to purchase a property especially if you want to receive high quality and professional services! Pat makes the whole process simple and easy – always with you every step of the way. Thanks again Pat for your ongoing support.
I have been using Pat from North Brisbane Home Loans for over a decade now for finance on various homes and investment properties. Pat is very knowledgeable about his industry and is one of those people who is always willing to go that extra mile to ensure he comes up with the best solutions for his clients. Pat is driven and committed and I have always found his service to be excellent. If you are looking for great service, advice and results then talk to Pat!!
Contact North Brisbane Home Loans
If you’re looking for a next home mortgage or investment home loan, the experienced mortgage brokers at North Brisbane Home Loans can help find a tailored loan solution for you.
Contact our professional and friendly team of second home mortgage brokers today!
FAQ For Buying Your Next Home
How much of a deposit do you need for a next home mortgage loan?
How much of a deposit do you need for a next home mortgage loan? Most lenders will require a borrower’s deposit of at least 5-20% of the total property price. So, if you’re buying a property that is worth $395,000, you’d need a minimum deposit of $19,750 (5%). But keep in mind that if you’re borrowing more than 80% of the purchase price, you’ll also need to factor in the cost of Lender’s Mortgage Insurance (LMI). To avoid LMI when buying a second property you’ll need to have a 20% deposit.
What kind of loan should I choose for my next home purchase?
There is no “one size suits all” option when it comes to home loans. There isn’t even a “one size suits most”. This is why it makes sense to talk to a broker before applying for your second home loan. At North Brisbane Home Loans, we take the time to talk things through, do the research and compare suitable loan products before we start making recommendations to our customers. So, our clients can rest assured they’ll get the right home loan product to suit their needs.
Should I take out a second mortgage or should I refinance my existing home loan?
This is an important point to consider, as refinancing has the potential to save you time and money on your next home purchase. To find out which option is going to deliver the best result for you, make an appointment to speak with one of our experienced next home mortgage brokers.
How does a bridging loan work?
Unlike a standard mortgage which is paid back in installments over 30 years, a bridging loan is designed as a short-term stop-gap measure. The length of a bridging loan is typically only 12 months in total since it is designed to be paid off in full as soon as your first property is sold. Since bridging loans are available with interest-only repayments they can make it easier to manage two mortgages during the interim period between buying and selling.
Can I use the equity in my current property as a deposit for my next home mortgage loan?
If you have built up equity in your current property, then this can be used as a deposit on the purchase of your next home. How does equity work? Well, imagine you previously purchased a property for $250,000 and after 10 years you’ve reduced your mortgage balance down to $160,000. But during those 10 years, the value of your property has also gone up by an estimated $120,000. This means that you now owe $160,000 on a property that is worth $370,000. As a result, you now have $210,000 in equity, which you can use as a deposit to secure your next mortgage.
What are the pros and cons of accessing equity?
Using the equity in your existing property comes with various pros and cons, so it’s important to consider all the ramifications in detail before you make a final decision. For example, accessing the equity in your home will increase your debt, could take longer to repay and may lead to higher repayments. However, accessing your equity can put you in a stronger position as a borrower. If your cash deposit is less than 20% of the purchase price, then accessing your equity could save you from paying Lender’s Mortgage Insurance. A higher deposit (thanks to equity) may also mean that you’re eligible for a better range of products, which could result in future savings.
Can I get an interest-only loan for my next home mortgage loan?
Some lenders will offer interest-only loans to borrowers who are looking for a next home mortgage loan. This means you’ll only have to make repayments on the interest accrued and not on the amount that was borrowed (referred to as the ‘principal’). The interest-only period will only apply for a set time (usually 1-5 years), after which you’ll be required to start making repayments on both the principal and the interest portions of the loan. This sort of loan can be beneficial for next home buyers who want to purchase an investment property in Brisbane or who are planning to sell their current home only after they move into their new home. For more information on interest-only loans and whether or not they may suit your circumstances, talk to one of our experienced brokers.
What other buying costs should I be aware of?
When you’re planning to buy a second home it’s important to factor in all of the costs, not just the property purchase price. This could include conveyancing fees, pre-purchase inspections, stamp duty, loan application fees, council rates, and the costs of relocating to the new property (this is particularly important if you’re moving to a new area).
How much can I borrow for a next home mortgage loan?
The total amount you can borrow will depend on your current financial situation, including your assets, expenses, and employment situation. You’ll also need to consider how much of a deposit you have saved or how much equity you have built up in your current property. For an estimate on how much you can afford to borrow, try using our free online calculators, or for a more detailed assessment, make an appointment with one of our brokers.
Next Home Mortgage
Next Home Mortgage