Lots of people head straight to their bank when they’re thinking of buying a home and getting approved for a home loan. Below are the top 6 reasons that those buying a home should get in touch with a mortgage broker.
- They know which lenders will be suitable for you:
So you approach your bank for a loan, and you get declined for any of a number of reasons. Mortgage brokers are able to take your application to the lender which is most likely to approve your loan.
- Mortgage brokers will continue to work for you:
It’s common to see people get a great loan with a bank, until over time that loan becomes not so great. “Rate creep” is the process whereby people are put on a great introductory rate, only for that to increase over time, regardless of what Reserve Bank rates are doing in general. A good broker will periodically request rate discounts for you in order to keep your rate sharp and competitive with other banks.
- They’re unbiased:
Brokers are required to declare their commissions to you and have to show transparency in recommending a loan product. They will be able to show you a huge range of different products from different lenders, and walk you through the pros and cons of each. Banks, on the other hand, have very limited loan offerings, and are only incentivized to get you to take out one of their loans, not necessarily one that is the best for you.
- They can get it done in time:
Imagine this, you put an offer on a house, are thrilled when it is accepted, and you sign the contract with a regular 14-day finance clause. You approach your bank to apply for a loan for this house lodge a loan application with the staff there. You wait and wait, until after 2 weeks without your loan being approved, the finance clause expires. The seller, in the meantime, has received a better offer, and they elect not to extend your finance period, meaning that you have just lost your bid on the house.
Good mortgage brokers are acutely aware of turnaround times for different lenders; that is, they know how long it will take each lender to assess a loan application and approve it. If you’re running out of time, your broker will know who will be able to get your loan approved the fastest, sometimes in as little as 4 business hours!
- They help structure the loan correctly:
Knowing different lenders, products, and turnaround times are just the start. Mortgage brokers can also help you structure your different loan accounts in order to maximise convenience, give you better visibility over any investment properties and their rental income and expenses, as well as provide you with the best ways to manage your living expenses in order to increase the benefit of your offset accounts. They provide genuine advice, rather than a one-off transaction.
- It’s less stressful:
Buying and moving home can be one of life’s most stressful experiences for many people, up there with the death of a loved one and losing their job! It is your broker’s job to walk you through this process and take the stress out of what can be a fun and exciting experience. Brokers work one on one with you, and also liaise with your third parties (solicitors, real estate agents), in order to create a seamless and stress-free purchase.