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Can you afford to sell your home


Central Mortgage builds on success in finance


Whatever stage you are at in your property cycle we can help you learn how to better manage and reduce your mortgage.  Almost all of our clients who take up our free mortgage reviews will be debt free many years before the 30 years of their mortgage is up.


“Don’t sell your home”


These are not the words you expect from your average Real Estate Agent. Central Mortgage recently started selling Real Estate to help our clients, as we saw too many cases where houses were being sold poorly and undervalued.  In many cases selling the house was not in the customer’s best interest, but a real estate agent is simply in the business of selling houses (So it is hard to blame them, it is how they get paid). Don’t get me wrong, sometimes selling is a good decision or it is necessary; however this can still be done the wrong way and end up costing you thousands of dollars.  The essential link between selling and buying is often financing.  “We don’t let you list your home without lending pre-approval to buy your next home.”  We do this because we know it may be the biggest mistake of your life. Imagine later finding out that borrowing was not as predictable as you once thought or that lending policies changed and you couldn’t borrow what you needed. You will then wish you didn’t sell first and seek advice second.  Talk to us in the early stages of decision making, before listing your home and find out if selling is really the right the option for you.


Here are our 5 golden rules


Rule 1: Don’t sell your home without pre-approval to again buy!


Thankfully an appointment with us starts before you put your home on the market.  We establish what it is you want to achieve, the value of your home, other debts you may have, calculating living expenses, how much you can borrow and how much your future home/investment will cost. We take the time to make sure your plan can be successful ‘before you start the sales process’


Rule 2: Work out if you can afford to sell your home!


There are many, many factors to consider when thinking of selling your home. The first questions we ask are “Why do you want to sell? What is your property goal?” Whatever the answer to that; available equity, selling fees, loan value ratios, mortgage insurance and Stamp Duties all work together to make it happen.  When all of the numbers are calculated it may be that keeping your existing property to help you buy your new one might be a better option than selling. Selling doesn’t necessarily mean you can borrow more. You need to know if you can ‘afford to sell’.


Rule 3: Is a finance of mortgage product really ‘not-unsuitable for you?’


Sorry for the double negative but that’s how lenders work. What it means is; can you afford the new debt? We help you by making sure you do a ‘real’ budget and know that a new loan repayment will not cause you hardship when you next purchase.  A real danger when approaching an agent is being given an expectation of a higher return than is a reality.  Listing your home on the promise of a high return is a big trap for anyone with a tight budget.  It could even end up costing you thousands extra and what if it doesn’t sell quickly.


Rule 4: Don’t over pay for Real Estate fees!


Our sales commissions start at just 1%. Yes, we know we are well under what others charge.  But we want our clients to succeed in property and in life, so we do our very best every time to win your ongoing support, loyalty and referrals.  In the long run, that is much more valuable to us than a commission fee. We understand the real value of your property, do a full appraisal and sales marketing plan for you. You’ll be confident when selling your home, that you’re getting the price you wanted and support to move forward.


Rule 5: Use a Buyers Advocate in your purchase


It doesn’t matter if you are buying your first home, upgrading the family home, or growing your property portfolio. Before making any decisions talk to an expert.  Central Mortgage now offers a complete advocacy service.  We can help you research and finance your next purchase and even assist in negotiating the price or bidding at the auction. We’re here to help you develop a plan and a strategy so you don’t let emotions ruin a good decision.