A mortgage broker is the middleman between the borrower (yourself) and the lender (banks), who can get you the best home loan or finance to suit your circumstances.
Mortgage brokers do all the legwork, researching products on the market from the hundreds available and work directly with the borrower to support you through the application and settlement process.
Mortgage brokers will help you have a full understanding of the paperwork and terms and conditions before signing the bottom line.
Here are 6 benefits of using a mortgage broker.
1. Convenient appointments
Mortgage brokers are more flexible with their hours and sometimes willing to do after hours or weekends, meeting at a time and place that is convenient for you.
This is a huge benefit for full time workers or families with commitments to consider when wanting to find an investment property or selling up and moving on.
2. Brokers do the legwork
Mortgage brokers can find the right home loan for your needs and circumstances and support you throughout the entire application and settlement process.
This is inclusive of paperwork, sourcing pre-approval and assisting to apply for government grants or incentives.
A good mortgage broker will have a system for ensuring you are kept informed throughout the whole process, saving you time and enabling you to stay focused on finding your ideal home.
3. Quick and easy loan comparisons
A mortgage broker will take the time to explore your individual circumstances and goals.
They have access to a range loans from a lot of lenders, from the big four Australian banks to foreign and international banks with local operations, as well as small regional banks, lenders and credit unions, which gives them a bigger scope to find the best loan suitable to you.
When you meet with a mortgage broker, you are effectively getting access to multiple banks and their loan options whereas a bank only has access to what they are offering which may not be suited to your needs.
4. Experience and Expert Advice
As a property investor, find an experienced mortgage broker who is focused on providing property investment finance.
Your broker should be able to thoroughly explain the various subtleties of the different lenders and loan options which can make a big difference to your bottom line and potentially save you thousands of dollars in interest repayments.
Outlining the pros and cons of different options can be very valuable in ensuring you have the right finance option that suits your property investing strategy and long term goals.
Every time you apply for a home loan and are unsuccessful for various reasons, this leaves a mark on your credit history.
Mortgage brokers use software that has access to the latest loan information across the board of lenders, they then can match this against your individual situation and goals.
This allows it to become very clear of what your borrowing power really is and which lenders are the most likely to lend to you.
This helps you to identify which lenders your application is most likely to be successful with and reduces the chance that you’ll be turned down numerous times and marks against your credit history.
6. No charge for home loan service
All mortgage brokers will vary in terms of fees, it is wise to ask about your new broker’s fee structure before the use of their services.
Most brokers (however not all) earn money on commissions paid by the lender and will solely rely on this, giving you their services free of charge. Some brokers may earn a higher commission from a particular lender, in which they may be in favour of and lead you towards.