A mortgage broker can be a very useful partner for a first home buyer. The broker will assess your financial situation as part of a ‘needs analysis’, and match your requirements to a wide range of loans from banks and other financial institutions; managing the process right through to settlement.
There are good reasons to consider using a broker:
- Brokers will suggest loans from lenders they are ‘accredited’ with, known as their ‘panel of lenders’. These lenders may include the large banks, plus specialist ‘non-bank’ lenders and mortgage managers
- A broker will search for a deal that meets your needs, from their panel of lenders. This provides access to a large range of loan options without you having to do any of the legwork
- A broker has access to loan rates as well as fees and charges at his fingertips so it’s easier to make a straightforward ‘apples for apples’ comparison of loan costs
- Brokers also have good relationships with lenders, and can often negotiate a very competitive rate. Lenders receive a significant amount of business through the broker channel so it’s in their best interest to work closely with brokers
- The broker’s experience in the mortgage industry will help you make informed decisions and allow you to feel confident throughout the process
- The best news is that generally you won’t need to pay your broker: the broker receives an upfront commission from the lender on the loans they settle as well as a trailing commission
Bear in mind that not all brokers have the same level of qualification or experience. All Aussie Brokers are fully accredited and industry qualified holding either a Certificate or Diploma in Finance and Mortgage Broking.
To speak with an expert Aussie Mortgage Broker, book your free appointment here, or call Aussie on 1300 44 55 66.
What to expect when you meet with a broker
Your first meeting will usually take around an hour, and in that time, a qualified broker will:
- Ask what you are looking for in a home loan and understand the particulars of your situation
- Calculate how much you may be able to borrow and what your repayments will be so you’ll know what sort of range you can buy in
- Help you choose the loan and associated features that meet your needs from a panel of lenders
- Explain the application fees and other charges associated with a loan
- Explain the home buying process end-to-end including making an offer, getting legal advice, exchanging contracts and settlement
The broker can also take you through some helpful information like:
- How Lender’s Mortgage Insurance works and whether this cost applies to your circumstances
- Whether you may qualify for the First Home Owner Grant or any other government assistance as well as how you may be able to access any assistance or concessions
- How you could save by consolidating your debts
The broker will walk you through the application for the loan of your choice - if and when you are ready. Most loan applications can be lodged online, but you’ll need to have some documentation and information handy for the broker to see.
The documents you need will depend on the type of borrower you are, and the type of loan you’re after. Your broker will tell you what you need to submit to the lender you’ve chosen.
You should feel informed and confident in the next steps in the process when you leave your first appointment. And the good news is, the broker will be with you every step of the way making the process very clear and simple.
Continue to information about buying your first home.