As a first-time home-buyer, current or previous homeowner, or investor, there are a range of lending
options available.
Finding the right home loan suited to your own personal situation, requirements and budget is crucial,
with factors such as interest rate, term of the loan, and loan conditions playing a major role.
Engaging a mortgage broker is a smart choice that makes sense.
An experienced mortgage broker can help simplify the loan application process, eliminating any
confusion and focusing on your particular circumstances.
So, what exactly is a mortgage broker?
A mortgage broker essentially acts as the middle-man between you (the borrower) and the
prospective lender (bank or other lending institution).
A mortgage broker is particularly beneficial in the initial, application stages of borrowing.
Developing a relationship with a mortgage broker can save you time and money, and simplify your
particular financial decisions.
A mortgage broker will save you a huge amount of time comparing home loan providers. Your
mortgage broker will do all the research and hard yards for you concerning suitability, terms and
conditions, fees, and interest rates.
Where a bank is limited to offering only their own products, a mortgage broker is able to shop around
for you, having access to an enormous selection of banks and lenders. Your mortgage broker can
source competitive interest rates, together with the type of loan products and conditions to suit your
own unique situation and needs.
With such a range of home loan products now available, a professional, experienced mortgage broker
will work with you to determine the right loan for you.
Mortgage brokers have access to possibly hundreds of lenders. Your mortgage broker will have their
finger on the pulse when it comes to keeping up-to-date with new products and amendments in the
industry as they arise. In this way, your mortgage broker can work with you to match you with an
appropriate lender, AND negotiate a competitive interest rate.
A mortgage broker can also help reduce your risk of a home loan application rejection, by helping you
with your budget planning process, working out a budget to determine what you can afford and
ensuring you don’t over-borrow.
Discussions with your mortgage broker concerning how much you hope to borrow and the required
deposit can boost the likelihood of your approval.
A professional broker is aware of the differences between lenders, and is able to save you time and
unnecessary disappointment by increasing your chances of your loan application being approved.
An experienced mortgage broker can also advise if you’re eligible for a home loan grant in your
relevant State, and assist with the application process.
If you think your circumstances are a little unusual, you have a less than ideal credit rating, or you’re
unsure about how much to borrow or if you’ll be approved, mortgage brokers are experts in getting
complex loans approved. A mortgage broker understands lending requirements and has an ongoing
relationship with a variety of banks and lenders.
At what point should you engage a mortgage broker?
Ideally, you should be engaging a mortgage broker in the initial stages, before you begin looking for a
property. If you have your sights set on a particular property already though, your mortgage broker
can still be of assistance.
Meeting with a mortgage broker
When first meeting with a mortgage broker, their goal is to get you the best deal and help make your
home loan search and application process as simple as possible.
Your mortgage broker will explain the home loan process, help determine your borrowing amount,
and advise you of any documents you will require for the application process, such as bank statements,
tax return, credit card statement, and identification.
Setting up an initial meeting with a mortgage broker is a great way to get the ball rolling, give you
some insight into how much you can borrow, how much deposit you’ll need, and what paperwork you
will require. Best of all, it’s usually free service so what do you have to lose?
What services will my mortgage broker provide?
Your mortgage broker can offer a range of advice and services such as:
- Assisting with your loan application
- Advice on how to pay off your home loan sooner
- Finding the right lender for your circumstances
- Determining how much you can afford to borrow
- Your likelihood of being approved
- Assisting in having a complex loan approved
- Advice concerning lending criteria
- Advising any paperwork required
- Comparing loans to find the right fit for you
- Refinancing your home loan
- Explaining fees and conditions associated with home loans
- Answering any relevant questions
Even if you may have spoken to your bank or another lender, your mortgage broker can do a check
against the range of lenders they have available to confirm you’re making the right choice.
To top off the benefits of engaging a mortgage broker, you generally won’t be charged a fee, instead
mortgage brokers are paid a commission by the lender when you receive your home loan. Engaging a
professional, industry qualified mortgage broker is a win-win!
