Jan292025
Mortgage BrokingNews Mortgage Broker

How to Choose a Mortgage Broker and Home Loan

Mortgage Broking, News

1. The role of a mortgage broker in Australia

What a mortgage broker does

A mortgage broker acts as an intermediary between borrowers (you) and lenders (banks, credit unions, non-bank lenders). Rather than you going to each lender to compare, a broker:

  • Has access to a panel of multiple lenders and home-loan products.
  • Compares rates, features, fees, and lending criteria across that panel.
  • Helps you with your application (gathering documents, negotiating with lenders, structuring the loan).
  • Often handles the submission and settlement process.
  • After settlement, may assist with future refinancing or re-negotiation.

Brokers are regulated in Australia (must hold a credit licence or act under one) and are subject to disclosure and conduct requirements.

Because brokers can shop through multiple lenders, they may find a better fit or cheaper product than you might find on your own.

However, brokers are (in part) remunerated via commission from lenders (both up-front and trailing commission). Always ask what fees or commissions the broker receives, whether there is any conflict of interest or panel restrictions, and whether the broker offers “fee for service” or commission-based models.

The use of brokers has grown significantly in Australia, with brokers now originating a large share of home loans. (Wikipedia)

A recent study also examined how brokers mitigate borrower confusion regarding loan features. (ScienceDirect)

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Jan132025
NewsSuperannuation Fund Understanding Superannuation

Understanding Superannuation

News, Superannuation Fund

One of the many financial services we offer at Approved Financial Planners is help with your superannuation fund. Whether you choose self managed superannuation or any of the super funds available to you, we can provide sound financial advice and improve your understanding of superannuation.

How Superannuation Works

Money is placed into your superannuation account, also known as a “super account” or “super,” by you, your employer or both. The money in your super fund is then invested with the intent of it growing in time, even though it will occasionally return a negative result for the year. *

As a super grows, the money earned is reinvested and also earns a return, helping your balance grow even more. On member contributions for which you claimed a tax deduction or on contributions from your employer, your tax is only 15% of any contribution up to $30,000 per year. The $30,000 limit is known as the “concessional contributions cap.” *

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Apr42023
Retirement Planning Financial Mistakes Retirees Make

What Are The Biggest Financial Mistakes Retirees Make?

Retirement Planning

Australian retirees increasingly report financial insecurity as a reason for returning to work or delaying retirement. The biggest financial mistakes retirees make are key drivers, including rising living costs, inadequate savings, unexpected expenses, misunderstanding of retirement entitlements, and unsound investment or spending decisions. (The Guardian)

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Apr42023
Retirement Planning How Long Will My Money Last When I Retire?

How Long Will My Money Last When I Retire?

Retirement Planning

Retiring early is an appealing idea: more time for travel, hobbies, family, and personal fulfilment. But there’s a price. More years off work mean more expenses, more risk, and greater demands on your savings, which raises the question: How long will my money last when I retire? In Australia, with rising life expectancy, increasing cost of living, and a changing superannuation and Age Pension environment, planning for early retirement requires careful, data-informed calculations.

This article explains the effect of extra years in retirement, what research shows about returning to work, and gives a straightforward method to calculate how much you’ll need if you choose to retire before traditional ages.

What is “Early Retirement” in Australia

  • According to the ABS (Australian Bureau of Statistics), in 2020-21 the average age of retirement (people ceasing full‐time work or exiting the labour force) was ~ 56.3 years for all retirees aged 45+. (Australian Bureau of Statistics)
  • The average intended retirement age is older (~ 65.4 years in 2022-23). (Australian Bureau of Statistics)
  • Many people wishing to retire before that are hoping for what might be called “early retirement” — permanently stopping or significantly reducing paid work before the mid-60s.

Thus “early retirement” might mean retiring at, say, age 55, or even earlier, depending on one's expectation and health, housing status, lifestyle etc.

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