Benefits Of Using A Mortgage Broker
Mortgage brokers have continued to grow in popularity with Australian home buyers, and with good reason. Brokers play a big role in the home loan industry, but there are a few things you should know before using their services.
When mortgage brokers first started in Australia the industry was largely unregulated, but thankfully there are now national guidelines that all brokers must meet with regards to their qualifications and the way they deal with their clients.
It is hoped that the national guidelines for mortgage brokers will help to provide more Australians with good quality advice on their home loan needs.
What Does A Mortgage Broker Do?
The primary role of a mortgage broker is to find a loan that is appropriate for your needs. Once they have recommended a loan, the next part of their role is to guide you through the application, approval and settlement process.
Increasingly mortgage brokers are diversifying into other areas such as insurance. When taking out a home loan you may find that your broker can also assist with insuring the home as well as providing other insurance advice.
Benefits Of Using A Mortgage Broker
Here in Australia we have a very strong mortgage industry and there are plenty of different banks, building societies, credit unions, non-bank lenders and other financial institution offering a wide variety of home loan products.
Having a diverse range of lenders and loan products to choose from is great, but finding your way through the dozens of different products and all the different features and benefits can be time consuming and even impossible for some people to do properly.
This is where a mortgage broker can help. A mortgage broker is experienced in dealing with home loans, giving them a great understanding of the market. This enables them to more quickly identify which loans may suit you.
A mortgage broker acts as your point of contact between you and the bank when you are having your loan approved. Because the broker has a good understanding of the bank’s approval guidelines as well as your financial situation, they are well placed to help you if your application hits a hurdle rather than leaving you to deal with the bank on your own.
What To Look Out For When Using A Mortgage Broker
There are a few things to look out for when using a mortgage broker.
Although mortgage brokers are required to meet minimum education requirements before becoming qualified, these requirements are quite minimal. When choosing a mortgage broker it may be wise to take a close look at their experience and time in the industry rather than relying on a single qualification.
When a mortgage broker recommends a loan to you, make sure you ask them exactly why they are recommending it. Also ask them if it is the cheapest option, and if not, why is it worth paying more for the loan? A mortgage broker may suggest a particular product to you because they like dealing with that bank. Their suggestion may be valid, but it's worth asking why a recommendation is being made so you can decide for yourself if it's a good move.
Should You Use A Mortgage Broker?
There are benefits to using a mortgage broker, however there are other options available. There are now a number of websites available that allow you to compare the interest rates and fees from different lenders online, allowing you to find loans that meet your requirements on your own. You can also go directly to the websites of banks and credit unions to reserach their products and rates. You could also talk directly to a number of banks and have their representatives present you with home loan options.
If you have a good understanding of home loans you may be able to find a deal yourself using the internet, but if you prefer to seek professional assistance an Australian mortgage broker may be a good option.