How much does it cost to work with mortgagehq?
At mortgagehq we have a plan to help you achieve your goals and set you up for a comfortable and stress-free retirement, our clients will save on average $3,500 working with us in the first year. So how much does all this cost you? It’s Free!
Mortgage Interest Rates
We used to update the interest rates here daily, but they change so often, and it is not important to know the advertised rates. If you want to know the best rates available to you specifically, then get in touch. We often get discounted rates and help many clients refix their mortgages without changing banks to get a better deal. If you are not happy with those options and want to see options at other banks then we can talk about what bank would work best for your situation.
What is not widely known is that servicing calculations at some banks will allow for better or worse rates depending on your profile and goals so it is important to know what bank to ask for an offer and how to present your goals to them…
Who has the best mortgage interest rates?
This actually changes on a daily basis, banks use rates to control their supply and demand. When they are looking for new business, they will be more aggressive with rates. We can see who is offering the best rates because we negotiate rates every day. Hundreds of millions of mortgages annually. Using the mortgagehq Mortgage tools is fast and free… you have nothing to lose. No credit checks, no fees, no time in line at the bank or on hold (even we have to wait on hold with the banks).
If you have access to the lowest rates on offer and maximise the cash contributions from banks, you’ll save 10s of thousands of dollars over the life of your mortgages and will be in a far better position when you try to buy your next property (if that is one of your goals). We are selective who we bring on as clients to help because we prefer working with property investors who value the extra hard work we put in and value the advice over the long term.
The best question to ask is ‘would free mortgage advice and lower rates help me save a boatload of money and time?’. The answer is ‘yes!’.
Pre-approval administration costs
There are 2 different types of borrowing power qualifications.
The first is ‘pre-qualification’, mortgagehq will assess your borrowing power across banks and non-banks. We track each provider’s servicing criteria and test rates daily and know what option best suits you based on the details you have provided and the discussions we have had to date. If your circumstances change throughout the process or the testing criteria change, your spreadsheet will be updated.
The second is a ‘pre-approval’, issued by the bank. This typically takes 2-3 weeks and will have conditions including whether or not the property you find meets the banks’ criteria.
We will clearly indicate to you the pre-qualified borrowing power you have. Our calculations take into account restructuring and likely yields from properties you will be looking at. Our goal is to help you get the maximum borrowing amount possible (factoring in the responsible lending code and our limitations from banks and lenders).
If you want to borrow more than we outline as a possibility, and feel comfortable with the repayments, the best chance you have for getting this approved with the bank is to bring a LIVE DEAL to the table. This means a sale and purchase agreement ideally signed with minimal conditions and a finance period of 10 working days.
This gives the banks enough time to reassess and for you to answer any outlying questions. You can always talk to your adviser about sale and purchase agreements.
The bank will move a lot faster and potentially overlook minor challenges (if there are any) with your application for funding on this property (and your portfolio).
Pre-qualification is, in our opinion, superior to a pre-approval because it does not expire, does not require exhaustive and repeated documentation, does not require repeated credit checks and constant delays. Most people have to get their pre-approvals renewed 2-3x and do not buy within the 3 month time period.
As you probably do not know the specific property you are looking at buying yet, pre-approval may not be appropriate as they come with conditions anyway. Some properties will have minor issues with consents or LIM, and the bank even though they provided the pre-approval, will not approve this property. It just creates more work for you and the professionals helping you.
If you first get the property under contract, then we can assess (based on our experience) whether the bank we earlier identified as best-fit is going to suit you for this purchase. Some banks are very particular about some property details (ie cladding, unconsented, flood zone, too small, wrong location or building etc).
If you still want to push forward with a pre-approval before finding a property, we are 100% happy to process this for you. The likely time frame due to bank turnaround times is 2-3 weeks.
Pre-approval administration costs
Mortgagehq will charge an administration cost following the expiry of any unused pre-approval (new purchase or top-up). The cost of this is tied to the complexity of your application, and an invoice will be issued to you upon the expiry of the approval if no purchase or meaningful progress is made within the approval’s validity period (usually 3 months with a potential extension period). Complexity level 1 has a cost of $250, level 2 a cost of $350 and level 3 a cost of $450; your adviser will explain which cost applies to your position prior to the submission of your application.