Picky is the new smart - who to get mortgage advice from?

Us, humans, are social creatures. We cling onto our friends and family, we count on them at the sight of danger and we go to them for advice when in doubt. However when it comes to getting your finances in order to buy a property, it’s a tad more complicated. That’s where the trouble with asking relatives for mortgage advice comes from. 

When you’re wrestling with a big financial decision such as buying a property, the logical solution would be to seek professional advice from someone who knows about the market and has experience in it. And it works! But what does our brain do? It drives us to people we have personal relationships with for advice they know NOTHING about. 

“Hey, uncle, can you explain to me the details of Lenders Mortgage Insurance and whether or not it will be required?” Eeeehhhh...

“Hey, mate, how do I know how much money I need to afford my dream home” to which they answer “I don’t know. My usual tactic for managing my finances is to consciously avoid looking at my bank account”

Ok, so maybe we’re exaggerating a little here. Feel free to burn us on this. 

What we’re trying to say is seeking advice from friends and family feels safe and you know these people and they want what’s best for you. But none of it means that they are qualified to give you the advice you need. It won’t bring you any closer to getting your first home, if not throw you 10 steps back. 

Another problem is the fact that there’s so much noise out there and people don’t know who to turn to for real advice. There is no denying that some of the articles and tutorials are great starting points. They are written for everyone which makes them great for educating yourself on the general matter. But when you have specific questions for your unique situation, that’s when Google’s grasp on the knowledge comes to a dead end. 

We highly recommend that you close that tab and get directions from a real experienced mortgage or property expert who is able to look into your circumstances and give you personalised help. We don’t need much more convincing than that, do we?

So, what does solid advice look like? Credentials

First thing for us is credentials. There’s a lot of free information and unsolicited advice out there but when you seek advice from the people who know their stuff, it’s presented as more valuable. The people you seek legal and financial advice from should have certain accreditations. 

To help you make the right decision about which property you can purchase and which home loan is right for you plus other pieces of the puzzle that come with it, there’s a line of experts you should talk to: 

1. Accountant: helps you decide the tax structure and understand tricky matters such as capital gains tax and negative gearing. 
2. Mortgage Broker: helps you select the right loan and apply for it.