Shopping around for a home loan can be time-consuming and stressful – so many lenders, so many loan features, so many rules. But what difference does a broker make? We speak to one of Aussie’s customers to see how he fared before and after seeing an Aussie Broker.
When Kevin bought his first home seven years ago, he approached his existing bank for a loan but soon discovered the options and the rate on offer were not as competitive as he could see on the market. Deciding to go it alone and research what other lenders were offering, he began his search to find a better deal.
“It was probably at least a month between me starting to talk to banks and heading in the right direction,” he says. “There was a fair bit of to and fro.”
When it was time to buy his second home with his partner, they decided to see an Aussie broker instead and worked with Aussie Mobile Broker Reema Katrib to find the right loan for their needs.
Here, Kevin tells us the five most important lessons he learnt from his two experiences of getting a home loan with and without an Aussie Broker.
1. A broker helps you make an informed decision
“Understanding my options was the first real insight I had the second time around,” Kevin says. “There are dozens of lenders and many more home loan options with a variety of features.”
“You never know what it is you want or need unless you line them all up next to each other, and it can be impossible to do that on your own. The 360-degree view a broker brings, gives you a comprehensive view of the market.”
As Kevin found out the second time around, an Aussie Broker has access to a range of 21 lenders and multiple home loan products by each lender, all with different features, fees, specifications and interest rates. A broker can search this extensive range of loans very quickly to find the right home loan for your needs. By contrast, going to a bank can get you financial advice and loan options from that lender only.
“With Reema, we were able to look at least three or four times as many options as I considered the first time. When you make these big decisions in your life, you need to put in the right amount of effort and thought into it. When you’re doing it on your own, the fact that you’re burning a lot of hours and doing a lot of research doesn’t mean you’re doing a thorough job because there are many things you miss.”
2. You can save time
“Finding a loan without a broker was massively time consuming,” recalls Kevin. “Each time you speak to a bank, they start calling you to follow up, which was an extra interference when you just want to focus on finding a home.”
“With a broker, I was able to cut weeks’ worth of searching and enjoy the convenience of one point of contact.”
Because they work daily with many different lenders, mortgage brokers have inside knowledge on the lending process, including application approval times if you’re working to a tight timeframe. They can speed up the process if needed and generally save time by outlining your options straight away.
3. You can minimise stress
Dealing with one person rather than a host of bank representatives not only saves time, it also means you have someone on your side – an Aussie Broker’s job is to guide you through the process of finding the right loan for you needs and help you complete your application to ensure you are successful. This makes the process much less stressful than going it alone.
“The second time with a broker was definitely less stressful – it was all sorted within two weeks; it was very fast and simple,” Kevin says.
4. You can get the right loan
Every lender and loan is unique with different fees, charges, options and features, and a broker helps you compare like for like to ensure you’re getting the right deal for you. As an added bonus, an Aussie Broker can even help you secure a deal that doesn’t have the additional bank fees and charges by knowing which lenders will negotiate or potentially offer discounts below their advertised rates – insider knowledge you wouldn’t be able to access if you go solo.
“With a broker, we were able to look at rates, conveniences and features across a huge variety of loans and lenders to make sure we didn’t miss any options,” Kevin adds.
5. You can feel empowered
Beyond finding the right loan for your needs, mortgage brokers can help you calculate your exact borrowings and repayments so you know what you’re up for. This, in addition to showing you ways to save money and reduce your loan term, can help remove the daunting feeling often associated with buying a home.
“I felt more empowered the second time because I had a lot more information available to me,” Kevin says. “As it was my partner’s first time buying a home, working with a broker gave her the confidence of committing to buy.”
Choosing a home loan is quite possibly the biggest financial decision you’ll make in your life. Whether you’re looking to buy your first home, a new home, or for an investment property, an Aussie Broker can save you money, time and effort in the process.
If you’re planning on buying, speak to an Aussie Mortgage Broker today for help.