By Alexa Tran from Finance and Coffee
Do you know that almost 60% of Australians don’t go to the bank directly? This majority go to a mortgage broker instead because brokers are awesome at finding you the right loan and guiding you through the whole process.
We’ve picked up five solid reasons to let us all remember why you should go to a broker when you want to buy a home. Allow us to fill you in.
Brokers give you more options
OK, banks can only offer their own sets of products. This means your options are limited and you may be missing out on a better deal from another lender. There has to be a better way.
If you are in a unique situation, self-employed or have poor credit history, no worries. Brokers are flexible in matching you with a home loan that best fits your needs and financial situation.
Brokers have access to a wide range of products allowing you to compare interest rates, loan features, charges from various banks AND non-bank lenders. Total game-changer.
Brokers have strong negotiating power
Brokers can haggle a better deal for you. Considering there are more than 40 lenders in Australia and they all want brokers to refer customers to them so they are most willing to offer better deals to the brokers.
Brokers are your discount detectives when you think about it. They have access to special offers such as reduction in fees, discounts on rates, cashback offers across a large range of lenders. So yeah, at the end of the day, they help you save more of your hard-earned dosh.
Brokers are with you every step of the way
Buying a home can be an overwhelming experience, on top of everything else you’re dealing with in life. To make it less anxiety-inducing, seek out people who know their stuff and are happy to work with you on your specific case.
With the help of a broker, you can just relax and go through every step with ease. You will get expert help from a professional in the industry to break things down into plain ol’English and sort through all the jargon, paperwork and uncertainty from application to settlement. Seriously, it will save you a ton of time and hassle if you were to shop around for a home loan yourself.
Mortgage brokers are not paid by you
The best part, though: brokers work for you and usually don’t charge any fee. They instead earn a commission from lenders for signing you up for a home loan.
Brokers work in your best interest
This differentiate brokers significantly from the banks – a big part of the appeal for many people, too.
Brokers regularly review your mortgage to make sure you’re getting competitive rates because they’re obligated to do so. Brokers work under Best Interests Duty that came out of the Royal Commission’s recommendations when providing credit assistance to consumers. This however doesn’t apply to banks.
You can rest assured knowing that your broker is legally required to act in your best interests and put your priorities first.
So next time you’re planning to buy a home or refinance a home, you know where to look to score big. Make sure you choose your broker carefully – those with good credentials, ask them to break down their recommendations and justify why it’s a good deal. You can also do your own research to compare together with your broker.
Call me on 0411 849 804 if you'd like to chat more!
Message from CAtherine
Occasionally I come across an interesting article to do with Home Loans. I thought I'd share some of these with you here.