Did you know that mortgage brokers now assist customers with close to 70% of all home loans in Australia? There are good reasons why this is the case.
Firstly, what is a mortgage broker and what do they do?
A mortgage broker is an intermediary between a borrower and a lender. They have the knowledge and expertise in the residential loan market to find the most suitable loan product for the borrower. They are also there every step of the way from researching a suitable loan, to managing the paperwork, to when the loan is settled, and to doing it all again in the future.
What are the major benefits of using mortgage broker?
- Access to a wide range of lenders and products: Most mortgage brokers have access to at least 20-30 lenders and thousands of products.
- A better match: Mortgage brokers work with you to understand your own unique circumstances, goals and preferences and utilise their expertise and access to leading technology to find a more suitable product in a short amount of time. This could mean saving you money in fees, avoiding lenders mortgage insurance or access to certain features like offset accounts.
- Convenience: Mortgage brokers are a single point of contact and are often more flexible with their working time. They do all the leg work to get your loan approved, giving you the time back to get on with your day.
- No charge and obligation free: In most cases, lenders pay a fee (often referred to as a commission) for providing services to a borrower meaning that you won’t have to pay. Furthermore, you are under no obligation to proceed with their recommendations.
- Reducing your interest, saving you money: This could save you thousands of dollars over the life of the loan putting more money back into your pocket.
- Help you to growth wealth & become debt free sooner: Mortgage brokers can work with you to understand your options to grow your wealth and become debt free sooner.
- No impact on your credit score: When you apply for a loan directly with a lender, this is recorded as an enquiry on your credit file. Multiple enquiries by you as a borrower could adversely affect your credit score. Checks requested by mortgage brokers do not get recorded as an enquiry.