Why Should I Use A Mortgage Broker?
Given the wealth of information that you can access online these days about every topic you can imagine, you may wonder how a mortgage broker could help you.
Comparison sites offer you a good picture of which lenders offer the lowest rates, but they don't really tell y ou about the other features of the home loan, and how the loan will work within your own finanical situation.
With all the info online, can't I find a mortgage by myself?
The number of people using mortgage brokers is actually increasing as our clients become better informed, with mortgage brokers arranging 51.9% of new home loans in March 2015 - an increase of 19% on the previous year.
Here's a few of the key reasons why more Australians are seeking advice from a mortgage broker to get ahead:
Why Australians choose to use a mortgage broker:
A mortgage broker can mentor you right through the home buying process, connecting you with the other real estate professionals that you'll need for a successful purchase.
You have the advantage of being able to talk to a real person about what you're trying to achieve. Unlike online comparison sites, a mortgage broker can think outside the box to match you with the most suitable loan product to reach your goal.
Take advantage of expert insights and individually tailored home loans.
You'll have access to the absolute latest, most up-to-date information and loan products, even if they haven't been published or advertised elsewhere yet.
You'll also save yourself tons of time spent trawling through online information, crunching numbers and trying to understand how different loan products compare.
If you're in a hurry to get a mortgage because you've found the perfect home, a mortgage broker will make the process smooth and as quick as possible.
A mortgage broker will be able to connect you to the other real estate professionals that you'll need to buy your home, such as real estate agents, conveyancers, building inspectors.
Get connected to the real estate professionals that you'll need throughout the home buying process.
They have comprehensive knowledge of all the different lender criteria, and will ensure that your application is 100% complete and has a high liklihood of approval with the selected lender before you submit it.
This is much quicker and easier than if you were trying to research the best loan and complete an application on your own.
My bank already has all my info - it's easy to just stay with them!
You certainly could use your regular bank for your home loan. In fact, after seeking the advice of a mortgage broker and doing some research online, it may turn out that your bank has the most suitable product for you.
A mortgage broker's services are free to you (find out how a mortgage broker is paid), so it pays to take advantage of their expertise.
Then you'll have the peace of mind that the choice you make in the end is the best one possible, using all the information available.
What's different when I choose a mortgage broker and not a bank?
One of the key difference between a mortgage broker and a bank is the range of products available. A mortgage broker will build relationships with the major banks, as well as with smaller lenders who offer the latest innovative products.
You'll find a mortgage broker can access home loans that you can't get online or through retail.
It pays to check out these options before to settle on a final mortgage, after all this is a very long term commitment!
As a mortgage brokers, our number one job is to match our clients with a mortgage that is the best fit to what they want to achieve. It's actually our legal obligation to find the most suitable product for you.
A good mortgage broker will also be able to negotiate the terms of the loan, on your behalf, to make sure that they find a product that will fit your needs, even when that might be outside the standard loan structures.
Step by step guidance to home loan approval.
A mortgage broker stays up to the minute on:
- exactly what each lender will require,
- how they will assess your income, and
- the subtle differences in the loan features offered by each lender and how these will work for you in practice.
Plus, you'll spare yourself time by getting all the information in one place, from someone who's already done the extensive research and has answers for you right away.
How Do I Choose A Mortgage Broker?
Most first home buyers will choose a mortgage broker that a friend or family member can recommend.
Word of mouth is the best way but you can still try before you buy
Once you start to talk to a broker you'll get an idea pretty quickly of whether they are listening to you and whether they can really help you out.
If you're not 100% confident that they're listening to your needs and can help you to achieve your goals, then you're free to try another broker until you're satisfied with the service you're getting.
After all, this is one of the biggest financial decisions you'll ever make, so you want to be confident with the person who's guiding you through.
Check that the broker is licensed and accredited with a range of lenders
A licensed broker will usually have accreditations across a range of banks and lenders. If you're looking to buy a commercial property, you'll need a commercial mortgage broker
If you so go to a residential broker first, they should be able to refer you to someone with expertise in the area you need if they haven't got the right experience or accreditations themselves.
So what do we do here at Positive Home Loans?
At Positive Home Loans we're aiming to arm you with all the knowledge that you need to make the decision that are best for you.
Our focus is on giving you a clear understanding of the mortgage application process, and empowering you to make a well-informed decision about your first home loan. We're committed to doing this whether you eventually decide to take out a mortgage with us or not.