Why Using a Broker is the Right Way to Go
More Australians than ever are enlisting the services of a mortgage broker to secure the right home loan for themselves and their families. With a variety of options available, it can be hard to determine what lending institution or solution is going to provide you with the most value. To help navigate the sensory overload that can come from the seemingly endless options, here’s why a broker is the right way to go.
What Does a Mortgage Broker Do?
A mortgage broker is a type of financial adviser that exists to find the best home loan for you. They operate as a middleman between you and a lender (bank or credit union), comparing existing rates to find the best deal in the market and earning a commission from lenders to sign you up for a home loan. A mortgage broker will also help you renegotiate and re-finance an existing mortgage to match changes to your current financial situation.
Why Not Just Go to a Bank?
Your instinct might be to cut out the middleman and negotiate a rate directly with a bank. This is not advisable given the flexibility that a broker can provide. Unlike a bank, brokers have access to a wide range of mortgage products from an even wider range of lenders, giving you ample choice and the ability to decide what is right for you based on real comparisons.
A mortgage broker will also provide you with a greater level of detail and depth in the information they provide, such as changes in market interest rates, additional charges on a product, and specific features of a mortgage. Moreover, a broker will actively consult you about the status of your current loans and alert you if there’s a more competitive deal on offer, something a bank may not obligated to do.
What Benefits Can I Expect from Using a Broker?
Employing the services of a broker can provide you with a range of benefits:
- They make the process easier
Brokers are flexible and will be able to provide you with updates at a time and place that suits your needs, giving you the peace of mind that they are dealing with the mortgage process or finding the right lending solution for you while you’re at work.
- They make the process faster
Brokers have access to a large network of lenders and contacts within the financial services industry, which cuts down on time to secure access to the finance you need.
- They provide benefits outside of the loan
Lenders will often ask you to take out insurance on a new property. A broker can provide the best standards of cover while also speeding up the approval process. They also provide financial advice pertaining to other products or services they are aware of that may be relevant to your current financial situation.
- They make it about you
Remember, a broker works for you. They use their experience to find the right solution and negotiate with the bank to deliver an outcome that’s right for you. No matter what stage of the loan process you are at, or the type of loan you’re interested in, a broker is able to provide you with solid advice and walk you through the process.
If you’re interested in more information about enlisting the services of a broker, get in contact with our team at Provide Finance today.