It’s time to buy your first home, renegotiate your mortgage, buy that investment property or consolidate your debts. Do you DIY it? Do you go to your favourite bank and get the best they have on offer? Or, do you make the choice that a growing number of Australians are making and choose to use a mortgage broker?
We think it makes both good dollars and smart sense to go the broker route. Here are a few reasons we say that. And, they may just explain the growing trend.
Mortgage brokers take the time to learn your specific needs, then go about finding lenders that offer products to suit them, You will ultimately receive a home loan and repayment plan that is customised for your unique requirements.
With access to a large network of lenders, brokers can offer their clients the broadest and best choice of rates and products on offer. They can source your ideal mortgage options from banks, credit unions, non-traditional lenders and more.
Not only can your broker provide you with a plethora of options for your consideration, we do all the research and conduct all the leg-work for you, saving you lots of valuable time in the process.
Access To The Best Rates
Mortgage brokers have many Lenders keen on landing their business. Brokers represent a constant source of business for lenders so that makes them more likely than an individual to receive a lower rate from Lenders. And even the smallest reduction in your interest rate over the life of your loan can save you thousands of dollars.
Independent and Objective
Mortgage brokers don’t work for any one or group of specific Lenders. On the contrary, they work for you. Their motivation is to get you the loan that’s most suited for you, and not just fit you into one of the few loans on offer. It’s their role to give you objective recommendations on financing options provided by a number of Lenders. We are here to provide you with trusted and unbiased advice that suits your needs.
Negotiate on your behalf
We negotiate on your behalf. Our goal is to get you the rates, loan and terms that most appropriately fit your needs and sometimes that requires additional negotiation. (Truth be told, we enjoy this part!)
One Stop Shopping
Shopping around comparing numerous bank offerings can be frustrating and incredibly time consuming. In just one visit, your mortgage broker can show you products from a wide variety of lenders and provide you with a recommendation to consider. Now that’s efficient.
Special offers and deals are usually shared with brokers before the general public, so it may pay to have your mortgage broker keeping an eye out for one of these quick close offers that suits your situation.
Mortgage brokers specialise in mortgage products, interest rates and current housing market conditions. Their knowledge is derived from selling mortgage and mortgage related products day after day and matching them to situation after situation. They are constantly in the game.
Credit Rating Protection
Every time a lender checks your credit, the credit bureaus take notice, so shopping around on your own can potentially weaken your rating and ultimately affect the interest rate and terms of your mortgage. When you use a broker, we make only one credit rating enquiry no matter how many lenders you’re considering.
It’s A Free Service
A mortgage broker does all this – typically – at no cost to you. The winning lender pays compensation to your mortgage broker, but you pay nothing. We like to say that the Lender will pay a ‘Finders Fee’ to the broker. Lenders would much prefer to pay a broker rather than setting up many Bank branches to attract business, which is a way more costly exercise for the Lender.
Given this solid rationale, we suspect that Australians will continue using mortgage brokers when considering their next mortgage.And you know what? It’s a trend that is just fine by us!
It is worth noting though that Specialist Lending, SMSF and Commercial Lending products – which are more complex loan products, do usually attract a broker fee of around 1% of the loan amount, which reflects the additional work involved in preparing loan applications for these more difficult transactions.