The benefits of a mortgage broker

Not long ago, when seeking finance, many Australians would head to their local branch to apply for a loan. Nowadays, more than 50% of mortgages are packaged and prepared by mortgage brokers.

Australians are becoming more aware of the benefits of working with a broker.

An experienced broker can reduce the effort needed on your part to secure a home loan and they will take time to explain everything to you every step of the way. Basically, a mortgage broker does all the hard work for you!

When speaking to a broker, they will break down the fees and charges, work out how much you can save by having a lower interest rate and they will compare the features and benefits of 20+ lenders and non bank lenders on their panel.

Important facts to know before you sign to acquire the biggest asset of your life!

Taking out a mortgage can be frustrating! It is a complex process – many of us find it difficult to understand the course of action and the complications of the application process.

A mortgage broker will help process the paperwork and manage the application on your behalf. They will fill out all the forms for you to sign, liaise with the lender and the conveyancer to make it all stress free for you.

The best thing about using a mortgage broker – it is FREE!

Mortgage brokers do not charge their clients for using their services. They are paid by the lender for introducing new business.

In a nutshell, here why you should use a mortgage broker:

  1. Licenced Professional & Lending Experts

All brokers are licenced mortgage professionals and belong to an industry body like for e.g the MFAA- Mortgage & Finance Association of Australia. They are experts in their field. You will have the peace of mind that your trusted broker is trained and accredited to provide you with the correct information. They will always put your needs and financial goals first.

  1. Wide range of products

Most brokers are accredited with over 20+ lenders which in turn gives you access to 50+ products compared to speaking to a bank loan officer who has only access to a few products only from the one bank.

  1. Personalised Service

Experience First class service- When you speak to a mortgage broker, initially they will want to get to know you. They will ask you questions to understand your goals and aspirations. Your answers will help them figure out how to structure your loan correctly and what product features will benefit you better. By understanding your life story, the broker can then submit a detailed application to the lender avoiding delays and lengthy follow ups. They will negotiate with lenders on your behalf. A good broker will have a relationship with you so that you will feel very comfortable to call/or message them at any time if you require help or do not understand the application process.

  1. Education & Information

A broker will explain banking / finance jargon to you. Finance terms like offset- redraw- Fixed rate and Variable rate can be all confusing. They will also keep you informed. When speaking to a bank loan officer, you might not be kept in the loop or even be made aware of how your application is going. This can be frustrating having to go into the branch or having to call and stay on hold to get updates on your application. A good broker is your only “port of call” – you deal with one person and one person only and this will save you time and worry!

  1. Cost Free

A broker’s services are cost and obligation free from start to finish. There will be no cost to you when using the broker’s services. They are paid by the lender for bringing new business. They will disclose the commission they make to you.

Written by Corinne Jacquin- from Ma Maison Advisory Services- Credit Representative No 478751- Authorised under eChoice Home loans- Credit Licence no 390502