More than a third of Australians intending to take out a home loan said they would use a mortgage broker over going to a bank directly and this figure is likely to rise as the next generation of homeowners begin to enter the property market.
That’s according to the 2015 QBE Barometer report which also found that the number of people deciding not to deal with a bank directly has increased from 9 per cent to 16 per cent in the past year.
Here are 8 reasons to consider using an expert mortgage broker when applying for a home loan.
Brokers can teach you how to buy
Stressing out over the how’s and the what’s in buying? No more!
Good mortgage brokers can not only guide you through each step of the home buying process, they can teach you how to buy and clear up all of your confusions along the way.
They can compare a range of lenders and products for you
Here’s a simple experiment: sit in front of a bank manager and ask them what they can offer you and then do the same with an expert mortgage broker.
You’ll find that a broker can compare the products on offer from a number of banks and lenders while a bank manager will only offer you their bank’s home loan products.
You’ll not only save time and avoid confusion but you’ll have a better chance of getting a great interest rate.
With a broker, you’re not only more likely to get a better deal, you’re also more likely to get a ‘yes’ for your home loan application.
Their services are usually free
Many mortgage brokers in the United States and the United Kingdom charge for their services. Maybe that’s why it’s widely believed that mortgage brokers are costly.
Fortunately, brokers in Australia don’t charge anything for their services, unless your application is unusually complicated or you’re borrowing less than $200,000.
You can benefit from their experience
When you’re choosing a home loan, a small difference in the interest rate you get can make a huge difference in how much you pay over the life of your mortgage.
With years of experience, a broker can answer your questions and relieve much of your stress.
Most importantly, they know what it takes to get your application approved and what loan type will work best at what you’re trying to achieve.
Brokers can speed up the application process
Taking out a mortgage is like trying to get from A to Z.
The bank managers will walk you there. Brokers, on the other hand, will drive you there and take the shortest route.
Having an excellent reputation and strong relationships with a number of lenders allows brokers to speed up the application process by as much as 2-3 days faster than most banks.
They can make the home buying process easy
Most banks have large credit teams and because of that they tend to be really disorganised.
They receive literally hundreds of applications a day and it’s not unheard of for banks to lose entire client files let alone return your phone calls on time.
Brokers, on the hand, are always ready to update you at all stages of your application and settlement.
Not only that, they’ll also liaise with your conveyancer and real estate agent. This way, the entire process is seamless and stress-free.
Brokers are there for you for the long term unlike bank staff where great loan officers can get promoted to positions that actually keep them away from customers!
There are brokers that specialise in specific types of loans
Complex situations or those with special requirements are difficult to handle but there are specialist brokers out there that understand:
- Property investing: Get a competitive interest rate and guidance on investment strategy.
- Construction loans: Simplify the entire finance process with advice for what you need to provide upfront and where things can go wrong.
- Commercial properties: These brokers know that commercial property is different to residential property and have strong lender relationships to get your loan approved.
- Bad credit: Australians with poor or adverse credit files may get declined without the help of a specialist mortgage broker who can build a strong case and match them with the right lender.
- Non-resident: People who aren’t Australian citizens should speak to a mortgage broker who understands government and bank policy related to visas and FIRB requirements.
- Employment: Short-term, contractor, temporary or self-employed worker? These brokers can put together a strong case and go with a lender that takes a common sense approach.
- Non-traditional properties: Be it large blocks of land land or hobby farms, high density apartments or studio apartments, these brokers know which lender to go with.
They can help you make your mortgage work for you
If you don’t know much about them, a look at a list of some home loan features can make you feel like you’re lost at sea.
A good mortgage broker can help set you on the right path though.
They can give you hot tips regarding these loan features, like how getting a standard loan with redraw facility may be a better option for couples on a single income with kids, or why an offset account with a credit card is a good feature if you’re a high earner and good with managing your spending.
Our mortgage brokers have many years of experience in credit and have relationships with more than 40 lenders.
What this means for you is an easy, streamlined application process where you get the home loan that’s right for you at a competitive price.
Call us on 1300 889 743 or complete our free assessment form to discover how we can help you with your home loan needs.