From independent rate hikes to tighter lending criteria, Aussie CEO James Symond, explains why a conversation with your Aussie Broker is definitely worthwhile.
“Information is power in the current mortgage market,” says Symond. “But most home buyers or home owners don’t have the time to thoroughly research their options – and that could mean missing out.”
Already, more than one in two (59.1%) home loans are arranged with the help of a mortgage broker according to Comparator.
“Over the last 27 years we have seen a phenomenal rise in the number of people turning to brokers. It’s testimony to the service and value that mortgage brokers provide,” notes Symond.
Lenders are looking for their preferred borrower
Adding to the complexity of the market, Symond says home loan lenders are focusing on different types of borrowers.
“Lenders are all competing for their own slice of the home buyer pie,” he explains. “Some are targeting first home buyers with a large deposit. Others are targeting refinancers. The trouble is, consumers have no way of knowing which lender covers their particular needs.”
Are comparison sites helpful?
“All information that home buyers can pull together is good, provided it is taken in context,” says Symond. “However, there is no substitute for a face to face meeting with someone who can dive deeper into your needs. That’s what a mortgage broker does – and unlike a website, your broker will be with you for life.”
According to Symond, relying on comparison sites can even lead to disappointment. “We see this all the time,” he says. “It can be a big time waster, and very demoralising, to apply for a loan that seems to tick all the boxes only to find that you’re not eligible.”
Flex your buying power
Along with the right home loan, Symond says it’s important not to pay too much for a home.
“In a market that’s softer or stabilising, buyers can’t afford to be emotional,” he explains. “This is not the time to pay silly amounts over what you intended. Stick tightly to your buying budget.”
Record low interest rates and weaker home values in a number of cities are giving first time buyers excellent buying opportunities, and Symond says first home buyers are definitely on the comeback trail.
“We are seeing a meaningful rise in first home buyers across the country,” notes Symond. “First home buyers are really on the front foot. They know there are pockets of value they can afford to buy in.”
Having the right home loan matters
Nonetheless, having the right home loan in place can be the thing that gets buyers across the line. “No matter whether you’re a first home buyer or an existing home owner, pick up the phone and make an appointment with your local Aussie Broker,” says Symond.
He adds, “For over a quarter of a century we’ve helped 1.3 million Australians find a new or better deal on their home loan.”
This article was originally published in October 2018 and has since been updated.