These days it appears simple to just search for home loan rates online. But there’s a lot more to a great home loan deal than the advertised rate alone.
We chat with Andrew Bartzis, the Franchisee of Aussie Bulimba, to find out what’s involved in finding the right home loan. Andrew is a broker with seven years of experience in finance and banking and understands just how Aussie is able to get a better deal from lenders.
Q: Is using an Aussie Broker better than an online search?
A: Yes. You’ll see a lot of products online with attractive rates, but they might not be flexible or even be suitable for your situation, plus you may not be eligible for the rate listed.
Aussie Brokers have a set process and software suite that makes the initial search process a few minutes rather than a few hours.
Q: How can a broker find a better deal than I can myself? What’s involved?
A: We chat to our customers to find out their particular needs and motivations, including factors they may not have initially considered important. Once we have that, our software lets us shortlist products by the necessary features, and will then rank them by the benefits and the lowest rates on offer.
A huge advantage is an Aussie Broker can negotiate directly with the lenders. When I call on a customer’s behalf, the bank or lender knows I’ve got a multitude of options available and they need to be competitive by offering me the lowest interest rate possible for my customer. This is something they may not offer to an individual customer doing their own research.
We also examine products over a period of time, which means that all fees, initial and ongoing charges and mortgage insurance is taken into account, as well as those ‘honeymoon deals’ – which are rates that look attractive online, but might only last two or three years then revert to something much higher.
So, the cheapest rate might appear to be a really good deal right now, but not a great deal over the longer term.
Q: What makes a good home loan? Is it simply the lowest interest rate?
A: The right home loan is one that fits in with the customer’s needs: a competitive interest rate, particular loan features, the desired flexibility, and fits in with their employment situation and, importantly, their timeline. Some lenders are busy and might need three to four weeks to process a loan.
Q: An online search or speaking with my bank requires no commitment. Am I committed to a broker if they find me a better deal?
A: We encourage people to explore their options and do their research and use Aussie as they need. I don’t ever want a customer to feel they’ve been shoe boxed into a lender. We look at their entire situation and then present all the options available to them. There’s no commitment to accept and the customer will choose their own lender.
Q: Does involving a broker mean there’ll be additional expenses?
A: No, that’s a common misconception.
You get the choice of exactly the same products that are available from lenders, but sometimes with lower rates. Our remuneration comes from the lender – Aussie and our team of mortgage brokers get paid a commission by the lender when you receive your home loan, but we don’t charge you a fee for your appointment or for our service.
Q: Is using a broker a good deal then?
A: Absolutely. Hands down it’s the service that makes a broker worthwhile – the ability to meet after hours, negotiate rates on your behalf, chat about contracts any time and save you time during all parts of the process.
Some lenders have great rates online, but you are responsible for the entire process, including submitting paperwork and understanding what needs to be provided. It can be very frustrating, time consuming and labour intensive without a broker.
Education is important too, sometimes we chat with people over many years to help them prepare until they’re ready to buy.
Q: Once the right deal has been found for me and the property has settled, is an Aussie Broker still helpful?
A: Yes. Your broker can keep you updated with relevant property related information and also help review your loan if there’s a change in circumstance, or perhaps the loan is no longer competitive.
We’ll continue to be there to make sure the customer’s still getting the right deal for them.
If you’d like to speak to an Aussie Broker today and get your property plans moving get in touch here.