One in two Australian home buyers now organise the funds required to purchase via a mortgage and finance broker. A dip in sentiment towards traditional banks, tighter lending criteria for investors and better-educated consumers have all helped boost mortgage and finance brokers’ popularity over the past decade.
Even though we are in a digital age, many borrowers still long for a relationship with someone they can trust to help them wade through the maze of information and decisions when they need a loan. It is for this reason that mortgage and finance brokers have come into their own.
However, there are a raft of value added reasons as to why you should use a broker to arrange your next home loan.
Here are eight reason to get you started
Freedom of choice
Brokers give you access to multiple loans from multiple lenders. Compare that with the loan options you might be presented with by a single lender. At the end of the day, competition and choice are the most powerful benefits a broker brings to the table and it’s the reason so many Australians have one onside.
You don’t pay a fee
Most brokers don’t charge their clients to use their services (and if they need to, it will be with your consent). Brokers receive payment from lenders and are required by law to disclose the details of these payments under to ensure transparency. Your broker will explain how they are paid when you meet, and the first meeting is always free.
Why spend your valuable time researching home loans when a broker can do it for you? It’s the broker’s job to do the hard yards when it comes to your homework. A broker will make the most of your appointment time to understand your situation, needs and objectives to narrow down and present you with easy-to-understand options, saving you hours of online research and hard-to-translate comparisons.
It’s all about you
A mortgage broker aims to find a loan that’s right for you, they focus on finding a loan that is right for your unique circumstances. Such as if you are planning to start a family, take a study break or save for an overseas trip. A mortgage broker can recommend a loan that makes financial sense for you.
More accessible finance
Stricter credit rules means traditional lenders are unable to assist borrowers who have had problems meeting payments or less predictable incomes. While no magic wands are waved, and higher interest rates might apply, a broker may be able to suggest an alternative option that’s right for you.
Buying a home and taking out a loan is an exciting and momentous milestone, but also a stressful process. Brokers ease many of the pain points by dealing with the lender and managing your application process through to settlement. Brokers are also more than happy to arrange after-hours appointments to fit your schedule, rather than during business hours.
The latest information
It’s also a broker’s job to stay up to date with the constant changes to qualification criteria, products and pricing, so they can make the right recommendations to their customers. A key part of this process is qualification, which is a constantly moving target. Financial Institution’s have tightened lending policy in recent years making it more difficult than it has been for a long time.
Home loan health checks
Just like you get a check-up with your GP, your broker can run a regular health check on your home loan to see if it’s still right for you. Competition remains high in the mortgage market so it’s always worth asking your broker to review your options. You could be paying off your loan sooner and saving thousands on interest repayments with a product that is better suited to your needs or more competitively priced.
Our team of professional Mortgage and Finance Brokers are available to meet with you day or night. Check here which of our brokers is closest to you. If you would like to discuss your lending needs before contacting one of our brokers please call our office on 1300 888 299 or email our office.
General Advice Warning: This blog is not designed to replace professional advice. It has been prepared without taking into account your objectives, financial situation or needs. You should consider the appropriateness of the advice, in light of your own objectives, financial situation or needs before making any decision as to what is appropriate for you.