It’s no surprise that recent MFAA data shows more Australian property seekers prefer using mortgage brokers, rather than bargaining directly with banks. Over half of Australia’s new home loans in the last three months of 2016, were created by mortgage brokers. While both banks and brokers can help you find a good home loan, there are many reasons you should enlist the help of your local mortgage broker first.
Why should you choose a mortgage broker over a bank?
There are plenty of reasons why you should use a mortgage broker when shopping for your home loan. The idea of a stranger handling your money can be difficult, but even if your mind is set on using your bank, you can still use a broker to process paperwork and help manage the application for you. Another plus is that there is no direct cost to you.
Time Saving & Flexible
A broker removes the time and hassle it takes to find the right loan and they will stick with you throughout the entire process. Have you ever been put on hold or spent ages waiting in line to talk to your bank? It can be extremely frustrating. The likelihood of experiencing this with a broker is much less as brokers don’t have high call volumes, they come to you and they usually have more flexible working hours than banks. Some work on weekends and are open after business hours on weekdays, making them easier to contact if you have a question or if anything goes wrong. Scouring the internet and visiting banks in an attempt to find the best loan yourself can be very time consuming, and in turn, incredibly tiresome. A mortgage broker has all of the information they need at their fingertips and they handle all negotiations on your behalf.
Brokers can offer you more options and choice than a bank can. A bank can only show you their product. On the other hand, a broker can offer you 50+ products from a panel of 10+ lenders. So if you just visit your bank you’re not really able to make an informed decision because you aren’t presented with all of your options that a broker can show you. With less to offer and strict policies, banks often have to reject people which can also be very disheartening. A broker can usually find a more flexible deal to suit your personal situation.
Specialisation & Experience
As well as wearing you down mentally, researching on your own can be confusing and it’s easy to misunderstand technical jargon that may affect your loan. A good broker will make an effort to get to know you, understand your unique situation and identify factors that are important to you. They know all the tricks of the trade and will be upfront with you about all the extra costs associated with different loans and make sure you understand what they mean, before locking down an option. Banks usually disclose extra costs in their terms & conditions but they have their own best interests at heart, which is getting the deal over the line. Therefore, they won’t always necessarily check to see if you read or understood everything, it’s without saying that the same goes for searching for loans on the internet by yourself.
Doing your own research is great, but when you are dealing with such a significant decision like purchasing a home you should always seek the advice of someone specialised in this area before going ahead. You wouldn’t attempt a root canal alone, you’d visit a dentist, because they’re specialised in their field, right? Well, a mortgage broker is a specialist in home loans, similar to a dentist, they encompass a lot more knowledge in their field than the rest of us do. Preparing for buying a home – one of the biggest milestones in your life – is supposed to be an exciting time, so speak to a mortgage broker who will make sure it’s a good experience.