No matter whether you’re buying a first home, next home or planning to refinance your existing home loan, a mortgage broker makes it a lot easier to track down and apply for the right home loan for you.
Not sure how a mortgage broker can help? We take a look at six ways a mortgage broker makes getting a home loan easier.
1. A mortgage broker saves you time researching the market
A home loan is probably the single biggest financial product you’ll ever apply for so it makes sense to shop around for the home loan that suits your needs and has a competitive interest rate.
The trouble is, the home loan market is packed with over 90 lenders, all with a range of loans, and all competing for your business. It means there are literally thousands of home loans to choose from.
Choice is a good thing but the sheer volume of home loans available makes it difficult to research and compare even a fraction of what’s available on your own. And that’s assuming you have the time to do so!
That’s where a mortgage broker can make a difference. A mortgage broker works closely with a panel of lenders – ranging from the big banks through to smaller lenders you mightn’t have even heard of. This gives you access to a generous selection of home loans without lifting a finger. Your Aussie Broker can sift through the loans using our exclusive comparison software to find the loans that suit your needs in minutes.
Of course, it’s your home loan, so you make the decision about which loan you want to apply for. But your mortgage broker is right there to answer any questions or clarify uncertainties so you can be comfortable you’ve made the right choice.
2. A mortgage broker helps you save money and avoid the cost of “lazy tax”
Worryingly, one in two Australians take what can seem to be the easiest path, and just go with their regular bank for all their needs. But that can mean paying “lazy tax” – the cost of paying a higher rate or loan fees, simply by not shopping around.
In fact, KPMG found as few as 9% of people who take out a home loan with their existing bank believe they are getting ‘the best deal’.
This is where a mortgage broker can help. As home loan experts, mortgage brokers have an up to date knowledge of the home loan market –the different types of lenders and deals, any strings attached to a particularly low rate loan, what proportion of a home’s value different lenders will let you borrow and so on.
It means your mortgage broker can find competitive deals on the home loans that are right for your needs, and that can see your mortgage broker save you both time and money.
3. A mortgage broker matches a home loan to you – your lifestyle, your needs and your budget
When you’re in the market for a home loan it can be tempting to look for the loan with the lowest rate. But that can be a mistake. Interest rates can change over time, but your loan features will remain in place, and importantly, some home loan features may help you pay off your loan sooner.
A mortgage broker can explain how various home loan features work, and by taking the time to understand your needs and circumstances, your broker can recommend the loan features that may be of most benefit to you now, and in the future.
4. A mortgage broker provides a clear picture of your borrowing power
Just how much you could borrow to buy a home can seem like something of a mystery. Sure, there are plenty of online calculators you can use to estimate your borrowing power but nothing compares to home loan advice tailored to your needs.
That’s because different lenders have different lending criteria, and this can even vary according to the type of property you plan to buy.
Your mortgage broker can help you figure out just how much you can afford to borrow based on your income, assets and liabilities, and that gives you a great head start in developing a home buying budget and some direction for your property search.
5. A mortgage broker helps you maximise the likelihood of loan approval
As a home loan expert, your mortgage broker knows what it takes to get your home loan application over the line.
From trimming back other debts to gathering evidence of income, your mortgage broker will explain any steps you may need to take to tidy up your finances before applying for a loan, and identify any possible red flags that could work against you. It’s great advice that may prevent you from applying for a home loan you won’t get approval for – something which can impact your credit score.
6. A mortgage broker completes the loan paperwork on your behalf
Let’s be honest here, paperwork is seldom any fun. And there’s a lot riding on your home loan application so it pays to be sure the paperwork is completed correctly.
The good news is that your mortgage broker will take care of the paperwork on your behalf. Even better, your Aussie Broker will liaise with your lender, answering any queries, and keeping you up to date with the progress of your loan application all the way to settlement.
For a fun look at how your Aussie Broker can make choosing a home loan easier, check out our quick video. Then set a date to meet with your Aussie Broker and discover for yourself just how streamlined the home loan process can be with the help of a home loan professional.