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Following the Finance Act Changes in December 2022 effective from January 2023.
 

With so many websites allowing us to input our financial information and instantly get a mortgage quote, it may seem that the role of the mortgage broker is redundant. Surely we can find all the mortgage advice we need online and then apply for a mortgage directly with a lending institution? However, if you’ve just started researching mortgages as a first-time buyer, we're willing to bet your head is already spinning. When applying for that first-ever mortgage, the bombardment of new terminology, financial jargon and the staggering amount of mortgage options available can be overwhelming at best and terrifying at worst. After all the mortgage options you select will have a direct impact on your finances for years to come.
At its heart, the role of a mortgage broker or a mortgage advisor is to get the right mortgage for their client’s unique circumstances.
As financial institutions increasingly raise the bar of requirements for mortgages, it makes sense to have an expert mortgage broker on your side. For years, Nestegg Wealth Brokers Limited have been helping client’s get the best mortgage quotes for their unique needs and requirements. In today’s blog, we want to discuss the advantages of hiring a mortgage broker as a first-time buyer.

Independent Mortgage Advice

If you have already begun researching mortgages online, you have likely been bombarded with advertisements. With so much information out there it can be hard to cut through the noise to get real, independent mortgage advice. And independent mortgage advice is exactly what a mortgage broker provides.

Fully Customised Mortgage Advise

All the blogs, websites and pamphlets in the world will only ever give you an overview of what kind of mortgage and mortgage rate is right for you. However, only a mortgage broker will be able to take your information and offer fully customised advice that directly relates to your application.

Assistance with the paperwork

There is no getting away from it. Why you’re applying for a mortgage, you’re going to be filling out a lot of paperwork. An Irish mortgage broker can assist with this paperwork saving you time and frustration.

Support throughout the Process

Applying for a mortgage can be frustrating and it can sometimes feel never-ending. That’s why having a mortgage advisor overseeing your application can help support you throughout every phase of the application process. With Nest Egg Wealth Brokers, we’ll be available to answer any questions you may have and explain every aspect of the application process in plain straightforward English.

For additional information on the advantages of hiring a mortgage advisor, please review our Mortgage broker page or get in contact with our Dublin mortgage brokers office today.

At its core, financial planning consists of main concepts that include budgeting, cutting expenses, paying off any debt, and saving for retirement. Having a grasp on these points and how they will impact you, is essential to your individual financial planning.

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What are the main differences between an Annuity and an ARF?

• The key differences between an Annuity and an ARF are flexibility and risk.
• An annuity converts the money in your retirement fund into guaranteed income payable for your lifetime, fixed on the date you buy the annuity. However, on death, there will be little or no return for your dependants, unless you purchased a spouse/dependant's pension and/or had a guaranteed period.
• An ARF allows you to preserve, manage and control your retirement fund. You can invest your money into suitable assets and decide how much taxable income you want to withdraw each year, subject to the minimum withdrawal once you are aged 61 or over. Unlike an annuity, it does not provide any guaranteed income but any balance in your ARF on death is payable to your dependants.

The Minister for Finance has arranged for individuals who have a Buy-Out Bond that originated in a Defined Benefit pension scheme to be allowed to use their Buy-Out Bonds to access the flexible option of an Approved Retirement Fund or ARF option.

• At present, the ARF option is available in respect of the benefits payable from Defined Contribution pension schemes and personal pension plan arrangements, but is not, generally, available to the main benefits payable from Defined Benefit pension schemes. The only option currently available to an individual with a Buy-out Bond funded from a Defined Benefit scheme is to purchase a pension annuity with the funds in the Bond after taking the permissible tax-free lump sum.
• Access to the ARF option for Buy-out bonds was generally dependent on whether the pension scheme from which the transfer value to the Bond originated was a Defined Benefit or a Defined Contribution scheme, with the option not available in the case of Defined Benefit transfers.
• With this important policy change, and with effect from today, access to the ARF option will be available in respect of all Buy-out Bonds regardless of whether the transfer to the Bond came from a Defined Contribution or a Defined Benefit arrangement and regardless of when the transfer took place to the Buy-Out Bond.

The Minister for Finance, Michael Noonan, T.D. said:

“This change will be of particular benefit to those individuals with Buy-Out Bonds whose Defined Benefit scheme may have been wound up and who had no choice but to accept a transfer to a Bond. I have asked the Revenue Commissioners to make any necessary administrative changes to give effect to this improvement which offers greater choice to holders of Buy-Out Bonds”.

Approved Retirement Funds are investment vehicles into which the proceeds of the pension savings of the self-employed, business owners and any individual with Defined Contribution pension arrangements (including Additional Voluntary Contributions or AVCs) may be invested at retirement, subject to conditions. The Approved Retirement Fund option is an alternative to annuity purchase and essentially gives control over post-retirement income to those individuals who, generally, have borne the investment risk on their funds in the pension growth phase.

Buy-out Bonds are specialised pension products into which the cash value of pension rights in funded occupational pension schemes may be transferred in certain circumstances, including where such schemes are wound-up.