Use a Mortgage Broker

Why Use a Mortgage Broker?

Every year, thousands of Australians approach banks and lenders in an attempt to obtain loans to cover the cost of their new homes. Of this number, only a handful are actually approved for mortgages and this has led people to question the likelihood of them having their application granted. Most applicants would want to increase their chances of being given the go ahead by their bank and one very effective way to maximise this possibility is by hiring the help of a professional. The services provided by a mortgage broker can be invaluable for getting you next home loan.

Mortgage brokers are the experts and it’s their job to source the best deals, the lowest interest rates and take care of the negotiations on behalf of their clients. But why use a mortgage broker in the first place and what benefits can they offer to applicants?

Insider knowledge

If there’s one thing that most good brokers will be able to offer above all else, it’s a lot of insider knowledge. Many will have been working in the industry for years and this can certainly give them an edge where loan applications are concerned. Not only will they be able to find a selection of the best deals – they will even be able to help to narrow them down until their client finds the ideal one for their requirements.

Direct connections

When applying for a loan on a home, most individuals will need to deal with front of house advisors and although helpful, these employees definitely won’t be in a position to call the shots where approval is concerned. A reliable broker will understand that part of their job involves developing relationships with high ranking officials within a financial institute. These types of connections can be hard to find for individual applicants and so brokers can often fast track applications, or at least get them to where they need to be.

interest ratesAn understanding of interest rates

Where many sole applicants can go wrong is when settling on an interest rate with a lender. As these rates are prone to fluctuation, it can be just as important to decide on the best time to apply – or simply opt for a fixed rate mortgage instead. A broker will have a firm understanding of the way in which these rates work and as they will have an idea of their client’s financial potential, they will be able to recommend the best option for their needs.

Flexible terms

There are many brokers out there that charge very little, if nothing at all, for providing their services to their clients. This is simply because they will have a policy in place with any lenders that they are able to obtain clients for. The policies work in much the same way as affiliation, with the brokers receiving a set fee each month for obtaining a new customer. The client will be paying the broker in the long term, just not directly – as the bank will have agreed a percentage to pay their affiliate as commission.

Many Australians are turning to mortgage brokers to assist with their applications, whether it’s their first or second time applying for a home loan (after receiving a rejection). Brokers can certainly increase the chances of being approved thanks to their superior knowledge and access to deals that individuals simply can’t hope to come by.