The ultimate teammate, cheer squad, and coach for first home buyers
Buying a home can be daunting, particularly when it is your first time. For most people, purchasing a property will be the biggest financial decision of their lives, and to make that purchase most people will need to borrow the money. This is where your local mortgage broker can come in.
According to Deloitte Access Economics, mortgage brokers provide credit assistance to consumers by:
1. Helping them select an appropriate loan that meets their needs
2. Arranging documentation for the loan application
3. Assisting in negotiation with lenders
4. Providing consumers with guidance and support throughout the life of the loan
Mortgage brokers can provide an array of options to give a prospective customer more choice when deciding where to source their funds.
In fact, brokers have access to an average 34 lenders, from which they can help identify the best option for the customer’s particular wants, needs and circumstances.
But its more than just superior choice that brokers provide. There are a number of reasons why around 60 per cent of residential home loans in Australia are facilitated through a local mortgage broker.
Mortgage brokers know the industry, the lenders, their products and their requirements, and can save the customer a lot of time and energy on research.
They will also put the time into finding out about your particular credit situation and have a wealth of experience to draw on to help simplify the process for you.
In fact, mortgage brokers on average have 13.8 years of experience in the industry.
Translate industry jargon
Mortgage brokers can make sense of what loan documents and lenders are saying. There are many complicated elements to the home buying process, and it is vital to have a full understanding of what everything means to know what is going on.
Get you what you want
Mortgage brokers will determine your borrowing needs and affordability and help you to choose the appropriate product to suit your requirements. They are well placed to help consumers work through the complexities of the home loan market.
Act as your advocate
A good mortgage broker wants the best for you, the client. They will be your teammate, cheer squad and coach throughout the process.
Mortgage brokers also have a Best Interests Duty when dealing with consumers. This is a legal duty to act in the consumer’s best interests, which sets the mortgage broker apart from other options.
Provide support in difficult times
Over the past year brokers have actively assisted customers to take advantage of the record lows in both variable and fixed interest rates whether it was by refinancing or assisting first
They have also assisted many other consumers to work through the hardship options made available by lenders in response to COVID-19.
Find a good deal
Loan providers are usually offering a special deal or two, and these could make a big difference to your repayments or success rate. A mortgage broker will know which deals that are on the market may be appropriate for you.
They're in it for the long haul
Once you have secured your finance, a mortgage broker will oversee and manage the loan’s progression right through to the end on your behalf.
That isn’t just when you sign the documents and buy your property, you can expect your broker to keep track of you and your changing needs, helping you should you need to switch products or wish to purchase another property.
The Mortgage & Finance Association of Australia (MFAA) is the peak national body representing finance brokers, mortgage managers, lenders, aggregator/broking groups and other industry participants.