Why use a Mortgage Broker?
A large percentage of people believe dealing with your bank will help ascertain a more competitive product and interest rate. It is becoming common knowledge that this is not the most beneficial strategy and you could be missing out on significant savings.
There are numerous reasons why using a mortgage broker to search for your next home loan is beneficial, even if you want to use your bank, a good mortgage broker can assist with processing the paperwork and managing the application on your behalf, without any additional costs to you.
If you don’t have a preference for a lender, a mortgage broker can be your best friend. A mortgage broker is also known as a loan expert. There are many mortgage brokers available and majority them can complete a home loan application, but you want to find one that can provide professional advice and match your needs with suitable lending solution. Given a home loan is probably the most significant financial decision of your life, it pays to get professional assistance and advice.
Mortgage brokers are paid a commission for their services, but these commissions are paid directly by the lender you choose for your home loan. They have access to broad range of products and in most cases can offer solutions for any circumstances. Until your loan has settled, in most cases, mortgage brokers don’t charge a fee for advice.
A good mortgage broker will save you time, effort and also save money by selecting a suitable home loan. They can help you avoid taking out a loan that you will later regret and provide a plan for a better mortgage.
There are hundreds of home loan products and features available on the market that can be overwhelming for anyone. A good mortgage broker will know what questions to ask, to assess your financial circumstances and find a suitable home loan for your situation. Once you have chosen a product, the application process will begin. This is where a good mortgage broker will stand out from the competition. Unless there are circumstances that are out of the Mortgage Brokers control, this is where a good mortgage broker will stand out from the competition.
A good Mortgage Broker should
Be able to request all the required documentation up front, so they don’t have to go back and forth asking for further information
Unless there is an influx of applications with a particular lender or circumstances that require extra work, be able to respond to your application within 24-72 hours
Aside from signing loan documentation, take the remaining work out of the application right through to settlement
Provide advice throughout each step of the process to assist you in making the right decision about your home loan
Approximately Six years ago some major changes took place in the Mortgage Broking industry with the introduction of the NCCP Act (National Consumer Credit Protection Act), which is responsible lending obligations on mortgage brokers. The reason these obligations were introduced was to ensure that the credit contract was ‘not unsuitable’ for the consumer. This means that the agreement meets the needs of the clients and that the decision was not made for things such as income received from one lender over another.
These new obligations also require Mortgage Brokers to document the choice of lenders fully, reflect all fees from the lender and the mortgage broker and provide vital information to the consumer to confirm the loan contract is “not unsuitable”.
What is a mortgage broker?
A mortgage broker is an advisor who specialises in assisting you to find a home loan
What is a bank lending manager?
A lending manager is practically the same as a mortgage broker but limited to only one lender and a handful of products.
What is the difference between a mortgage broker and a lending manager?
A mortgage broker is essentially a middleman between a lender and an applicant. Their initial job is to assess your financial circumstances and confirm if you’re in a position to afford a home loan then determine what type of home loan will suit your needs. Mortgage brokers should give you some options to choose from, provide the pros and cons of each choice and assist you in choosing which is best for you based on the information you have provided.
Like any industry though, the quality of service can vary from broker to broker and lack of experience can be a huge factor which can make the process more difficult than it should be. Our brokers offer years of experience and have dealt with many different circumstances. We pride ourselves on our customer service and do everything we can to ensure your loan is submitted and approved with little to no headaches. Contact us today.