Why should you use a mortgage broker?

Purchasing a property will be one of your biggest financial decisions. Engage a Broker to ensure you get it right the first time.

With more than a thousand different home loans on the market, this overwhelming choice has led a strong increase in the popularity of using a Mortgage Broker. Within Australia, around 53% of residential home loans are put in place with the assistance of a Broker.

To help understand why there has been a huge increase in the number of people utilising this service, below you will find my top 5 advantages of using a Mortgage Broker.

Top 5 advantages of using a Mortgage Broker

Choice

Going direct to a lender means you will only have access to their products. This means that you will not necessarily get the best loan structure or interest rate. Brokers are accredited with multiple lenders, which ensures the right product is found for your borrowing needs.

Save Money

Having access to multiple lenders allows Brokers to find competitive rates for you. Brokers actually have access to specialised products that can only be obtained by using their services. Additionally, Brokers are able to ‘sell’ your story to the lenders in return for a interest rate discount.

Get it Right the First Time

Taking the time to ensure the product suits your needs prevents unexpected costs being incurred during the life of your loan.

A lot of products have significant break fees. Without using a Broker, you may sign yourself up for a product that doesn’t meet your needs. Refinancing that loan into something more suitable may incur fees and charges.

A good Mortgage Broker will carefully assess your situation, then work hard to find the right mortgage for you.

Save Time

Don’t stress yourself over what one bank does compared to the next or what fancy terminology is used to explain complicated fees and charges. Brokers will do all the research, comparisons and explain in understandable language how your loan will work for you.

Brokers will also do all the paperwork for you. No need to fill in bank forms or complicated financial statements. Just a couple of signatures are all that’s needed.

Long-term Support

Once you have found a great mortgage Broker, you’ll stick with them. Your Broker will become your touch point for all lending enquiries over the life of your loan. Additionally, your Broker will stay in contact with you to ensure you have the right mortgage from the right lender at the right price.

What does a mortgage broker do?

SAVE TIME, STRESS AND SHOE LEATHER

Take the leg work out of financing your property by engaging a mortgage broker.

If you’re buying your first home or investment property – or looking to move to a bigger and better one – speaking to a mortgage broker is the first step. A broker will sit down with you, usually in your own home or another location convenient for you, and show you the range of loans available from different lenders. They will then help you narrow them down to a loan that might suit your needs.

The role of mortgage brokers has evolved. As well as identifying the most appropriate mortgage they’re becoming a key partner in helping borrowers secure other finance – such as personal loans, or leasing – as well as insurance and property-related services.

Assessing your needs

A mortgage broker will take the time to understand your needs, discuss your financial circumstances, and identify your loan requirements. As a first step, they’ll discuss your property goals, factoring in your loan requirements in light of your lifestyle, job, family and other aspects. They’ll also discuss the type of documents needed to assist you to make a loan application – such as pay slips, tax returns, and personal bank statements.

Once they have a clear understanding of your financial situation and goals, your broker will be able to advise you on your home loan options.

Comparing loans

As part of their service, your mortgage broker will recommend one or more home loans that fit your borrowing needs. They can compare hundreds of loans to find the one that suits you and discuss the product’s details and features with you. Brokers can give you a broad view of your lending options, but will also provide an analysis on important specifics of the loan that have been identified as meeting your needs. You can then make the decision on the product you’d like to select.

Managing the loan process – from start to finish

Once you’ve chosen the loan you’re comfortable with, your broker can help fill out the necessary paperwork to get the loan process underway. This might include submitting your home loan application on your behalf, communicating with all the relevant parties and managing the entire process until your home loan is approved. If you decide you want to switch home loans or refinance at a later stage, your mortgage broker can also help you source new loans that will suit your financial needs and help you through the process every step of the way.

Your mortgage broker can also refer you to a specialist to assist with your other financial needs – such as arranging home and contents insurance, income protection insurance or personal loans.