You might be wondering why so many people encourage the use of mortgage/finance brokers and other similar agents during a mortgage application process.
We can explain this for you with three simple facts:
These professionals understand the financial industry incredibly well, allowing them to get straight to the heart of an application, whilst dedicating themselves to finding the right deal for a client.
Mortgage brokers possess a strong understanding of the policies of 20 to 30 different lenders. By going to a reputable mortgage broker, clients won’t have to go to multiple banks to source the most suitable home loan products.
Mortgage brokers will provide valuable advice throughout the entire application process, which helps ensure that you make the right decisions.
The thing about a mortgage broker is that they will receive commission for every new customer that they are able to sign up to a bank’s mortgage services – meaning that they will want to find the most suitable deal for you, or else risk you going elsewhere.
This might not seem like a huge deal, but the fact is that this is all the inspiration that a mortgage broker will need to ensure that they get the right deals for their clients; after all, their financial income will usually rely on the commission that they receive from lenders.
It will be their responsibility to ensure that their client receives the most suitable deal (now and in the future), whilst obtaining another customer for a lender – who will certainly appreciate the new business.
Again this puts you, as the home buyer, in a competitive position. You will never have to accept terms that you aren’t happy with. In fact, once you’ve found a reputable broker, they will do their best to source a variety of options, present them to you and then negotiate with the bank on your behalf if you’d like to see if they can offer more competitive conditions than originally proposed.
Fortunately, brokers offer their services throughout Australia, whether you’re in Melbourne, Tasmania, or anywhere in between.
From finding the right loans and competitive interest rates, all the way to negotiating with banks, submitting documents and handling all relevant paperwork; a good broker can go a long way.
If you’re still in two-minds about hiring one, then you might want to look at a few statistics to help with your decision.
Those that take on the services of a broker are several times more likely to receive approval on a loan, according to the Mortgage Market Review (MMR). All applications follow a credit assessment process, and may be a reflection of the direct channels of correspondence with lenders that can provide timely advice on particular loan scenarios.