- It’s free: mortgage brokers don’t charge you anything as they are paid directly by the lender. It’s important to know that this does not mean that you end up paying more than if you went direct to the lender, it just means the lenders make smaller profits. Why are they prepared to do this? Because they rely on brokers to bring them business and it costs them less than having to employ staff themselves.
- A good mortgage broker can save you money by finding a loan that better suits your needs from a large range of lenders. Not only can we tell you which product from a particular lender is suitable for your situation, but we can also tell you what the competition is doing – not something that your local branch would share with you. There are more ways to save money than just reducing the interest rate – the “cheapest” home loan isn’t necessarily the one with the lowest rate – similarly, “no ongoing fees” can cost you more in other ways.
- Mortgage brokers can save you time. It could take you weeks to research all the lenders to find the best loan and chances are you don’t really know what you should be looking for or comparing. In addition, have you dealt with a bank lately – it can be a frustrating and time-consuming exercise.
- Convenience. Many mortgage brokers are available after hours so you don't need to be restricted to the bank hours – particularly helpful if you have a question whilst you are out house-hunting on a weekend. What sets mortgage brokers apart from a bank is the service they deliver.
- Simplicity. Mortgage brokers know the requirements of lenders and are able to streamline the loan application process by knowing which lenders are likely to consider your application favourably.
- Better chance of approval. Experienced brokers have a good idea of the lenders more likely to be receptive to your particular situation especially where you have special circumstances (e.g. contracting, temporary residents, investors, etc). Brokers know how to best present your application to maximise the chance of approval.
- Follow-up service: A mortgage broker will follow up the loan to ensure the lender is able to meet your finance obligations.
- Mortgage brokers should liaise directly with your solicitor and outgoing lender (if refinancing) to ensure the transaction runs smoothly.
- Ongoing service. Mortgage brokers should offer you ongoing help due to the fact that the lending market changes constantly. At a minimum, your broker should be doing a health-check on your home loan at an annual review. This keeps you on top of changes to interest rates as well as packages available and features of loans. Additionally, refinancing your home loan can also open the way for you to consolidate debts, reduce costs and improve your cash flow. Instead of paying high interest rates on personal loans and credit cards, you can use the equity in your home and repay the debt quicker by taking advantage of the lower rates on home loans.
- Complete service. A good mortgage broker should also be referring you to all the other professionals you will need if you are purchasing, for example; a solicitor/conveyancer, accountant, building inspector and also a financial planner if you need one.
By Sandra Crossland
Sandra is a qualified Mortgage Broker with a Diploma of Financial Services (Finance/Mortgage Broking Management FNS50504) and has been helping people achieve their dreams of home ownership since 2006.