6 ways a broker can help with rising interest rates

We’ve all heard it by now: rates are on the rise in 2022. It can be a stressful time for both homeowners and prospective buyers to see interest rates and mortgage repayments increase.

That’s why speaking to a mortgage broker for help may be a great idea.

At Aussie, our network of brokers can help guide you through the home buying and refinancing process to get you to your goal sooner.

In this article, we explain 6 ways an Aussie Broker can help you with your home loan, so you can feel confident you’re on the right track.

1. An Aussie Broker can help you with a rate review

If you have a mortgage and you’re worried about how rate hikes could impact your repayments, you don’t have to let your home loan goals fall by the wayside.

While it may be difficult to avoid rising rates, it might be possible to get a more competitive rate than what you currently have.

If you have a variable rate on your home loan, you might have already started to see your interest rate rise this year.

Following the first cash rate increase in over 11 years in May, many lenders have started hiking both their standard variable rates and fixed rates. Multiple rate hikes will likely occur throughout the rest of 2022.

It’s also common for homeowners to pay a ‘loyalty tax’ if they’ve been with the same lender for some time. Loyalty tax occurs when lenders charge their existing customers a higher rate than the one they offer to new customers.

That’s where a broker can help. If you want to check that you still have a competitive rate, a broker can reach out to your lender on your behalf to check if they can offer you a lower rate.

Our Aussie Brokers want you to find a great deal on your home loan, so you might hear from your broker from time to time, checking in to see if you’d like to review your home loan and interest rate.

2. An Aussie Broker can help change your loan structure

As your home loan goals and financial circumstances change, you may want to look into changing your home loan structure to best serve your needs.

You might be interested in fixing your rate to prevent fluctuating home loan repayments, opening an offset account so you can save on interest, consolidating your debt or accessing your equity.

A change in your loan structure will typically require a refinance, but an Aussie Broker can help you each step of the way.

They can also help you weigh up the costs of refinancing against the potential savings, so you can ensure you’re saving in the long run.

3. An Aussie Broker can guide you through the home buying process

Buying a home and taking out a mortgage, whether it’s your 1st or 5th time, can be a stressful and confusing process.

With so much information and paperwork to think about, it can be useful to have an expert on your side who can guide you through the process, from application to settlement.

Brokers are experts in the field of home loans. At Aussie, our brokers can help you with:

• Comparing loans and interest rates from 25 different lenders
• A shortlist of loans you may be eligible for that suit your specific needs and goals
• Your loan application and paperwork
• Finding a property in the right area for you
• Working out your borrowing power
• Calculating home buying costs
• Home loan support and advice, even through post-settlement
• Helping you find a competitive deal on your home loan as interest rates change
• Refinancing your loan as your needs and financial situation change.

4. An Aussie Broker can provide you with financial home loan guidance

Mortgage brokers are qualified professionals who are either licensed or appointed to provide home loan guidance.

According to the Mortgage and Finance Association of Australia (MFAA), in order for a mortgage broker to be able to present loans to a customer, they must:

• Be appointed as a Credit Representative of an Australian Credit Licensee (ACL)
• Have access to a panel of lenders and be accredited by the lenders
• Have a business platform.

Brokers have the expertise to provide guidance on which loan options suit your financial situation, meaning they can provide in-depth knowledge on things like interest rates, debt structure and credit advice.

Financial planners, on the other hand, are qualified to provide advice on managing financial prospects that are important for long term financial health and wealth generation. This involves things like insurance, investment analysis and retirement planning.

While it’s advised to go to a financial planner for financial guidance outside the realm of home loans, mortgage brokers can typically provide insights and information on things like:

• Debt structure and debt consolidation
• How the cash rate impacts your loan repayments
• What you can do if you’re struggling with your repayments
• How your loan structure will impact your home loan 
• Refinancing your home loan
• How the home lending process works
• Credit advice.

There may be situations where you could benefit from getting advice from both a mortgage broker and a financial planner.

Let’s say you’re interested in growing your property investment portfolio. A broker can help you refinance your loans to prepare you for your new financial venture while a financial planner can advise which investment options might be beneficial for you.

5. Aussie Brokers have expertise in your local area

It can be extremely helpful to turn to a broker when you have a question about buying a property, home loan terminology or what your next steps are.

It’s even better when your broker has the knowledge and local expertise in the area you’d like to buy a property in.

A local broker will know what the property market is like in your area and will have a thorough understanding of the local economy.

This means they’ll likely be more familiar with housing sale trends in the area, local amenities like shopping centres and parks and other information like public transport routes.

They’ll also typically have connections with real estate agents in the area. This can come in handy when it comes to sealing the deal on your new property.

Having your broker in the area can also make communication easier. So, if you’re someone who prefers in-person interaction over emails, video calls or phone calls, it can help to have a local broker nearby.

At Aussie, we have 220 stores and almost 1,000 brokers stationed across the country. This means there’s always an Aussie broker near you – just find your local Aussie store and pop in for a chat.

6. Getting help from an Aussie Broker comes at no cost to you

While some mortgage brokers charge a fee for their services, many others offer their services at no cost to you.

At Aussie, our brokers are paid a commission by lenders so we’ll never charge you a cent for any appointments, calls or questions you ask us.

So, instead of spending money on broker services, you can contribute more money towards your home loan and property goals.

Are you curious about how much you could borrow? Reach out to an Aussie Broker to learn more, regardless of what stage you’re at in your property buying journey.

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