While celebrating our nation’s birthday at a BBQ a few weeks ago, I was introduced to a good friend's friend. In the course of our conversation, I happened to mention I was a Mortgage Broker. After that, he cut through the typical first meeting pleasantries and fired off a few candid questions. He was obviously looking to get into the property market, or, at the very least, was thinking about it. It’s a common party conversation that I am only too happy to engage in.

When people find out that I am a broker they often ask some variation of the same two questions. So I thought I would share those questions with you, and, more importantly, my responses.

1. What are the best home loan rates at the moment?

The best home loan rates will depend entirely on your personal circumstances and what you want to purchase, or what you may want to purchase in the future. A good finance broker will get you the best rate once they have identified a product that will best suit your circumstances and your needs. It’s important to note that the cheapest home loans tend to have the least flexibility, with the fewest features, and are often the hardest to qualify for. If you focus on the lowest rate you may lose out down the track because your deal lacks the elements you need for your financial situation.

2. Is now a good time to buy property?

What people are really asking here is: “Will property prices keep going up, or will they go down; should I buy now or hold out for a better deal?” Whilst I don’t have a crystal ball, I typically respond by asking: “Do you think property prices will be greater in 7-10 years than they are now?”

Most experts seem to think so. Property should be at least a medium to long-term investment and most people who purchase a property want to own it for 7-10 years or more.

If you can answer yes to the following questions, then things become somewhat clearer:

Can you afford to buy property now?
Do you think property prices will increase in the medium to long term?
Do you plan to hold the property for the medium to long term?

Now, I’m not in the habit of quoting ancient Chinese proverbs. However, when considering the ‘timing question’, this one is spot on:

"The best time to plant a tree was 20 years ago. The second best time is now."

So, the two questions that you should be asking are:

What are the best home loan rates for me at the moment?
Is now a good time for me to buy property?

A good mortgage and finance broker will be able to provide information and options for you to answer both these questions for yourself.

I hope 2018 is turning out just the way you planned.

Michael DeGeorge