Navigating the home loan market can prove challenging for many people, particularly with the number of lenders to choose from and the loan options available. These days more buyers are opting to utilise the services of a mortgage broker to help secure their dream home.
A mortgage broker is a middleman between the borrower—yourself—and the lender—the bank—and they can assist in securing the best loan or finance to suit your circumstances.
Mortgage brokers will help you gain a full understanding of the paperwork, terms, conditions and fees involved in buying a home before you sign the dotted line.
So what are the advantages of using a mortgage broker?
- Flexible and convenient appointments
Mortgage brokers will generally make appointments at a time and place that’s convenient for you; including after work hours, on weekends and at your place of residence. This can be a huge benefit if you’re time-poor or have work or family commitments to work around.
- They do the legwork
A mortgage broker will be across the different lending institutions and what they currently offer and will conduct research to find the home loan to best suit you and your needs. They will support and assist you throughout the application and settlement process; including doing all the paperwork, sourcing pre-approval, applying for any government grants or incentives that you may be eligible for, as well as keeping you up to date with the progress of your application.
- Quick and easy loan comparisons
Going directly to your current bank will limit you to a narrow range of home loans and rates while researching all of the options and using online comparison websites can be a long and tedious task often leading to confusion. A mortgage broker takes the time to explore your individual circumstances, commitments and goals and has access to a variety of loans and lenders to quickly identify the right options for you.
- Expert knowledge and advice
Current home loans are about much more than just interest rates and if you have taken out a loan in some time you may be unaware of industry changes. A mortgage broker can explain the various subtleties of different loans which can make a big difference to the bottom line, particularly over many years. Factors such as the ability to make extra repayments or having access to a loan offset account may end up being crucial factors in your selection process. Having someone step you through the pros and cons of different options can be extremely valuable in ensuring you end up with the right home loan and don’t end up paying more than is required.
- Free service
Many mortgage brokers offer their home loan service free of charge to clients as a result of the lenders offering a commission to them once the loan is secured. This means you can enjoy all the benefits listed above at no cost to you.