Looking for a mortgage can be challenging. It is not easy to know if you are getting the best rate or if you could do better elsewhere. You will likely have dozens of questions regarding the complexities of mortgages and possibly have some misinformation as well.
This is why working with a mortgage broker is an excellent idea for many people. Your mortgage broker is working for your best interests. Representatives of banks and large lending corporations are not; they keep the interests of their employers front and centre.
There are many reasons to work with a mortgage broker. Here are the top seven.
1. Access to a Broader Range of Lenders
When you go to a bank or other large financial institution, your choices are very limited, and your hands are tied in many ways.
A mortgage broker can offer you a large selection of terms from several lenders. Additionally, a broker can sift out lenders who have standards that mesh well with yours.
2. Expertise and Personalised Guidance
Unfortunately, when you are dealing with large financial institutions, you stand a good chance of being pushed into the most convenient cookie-cutter loan.
When you work with a mortgage broker, you also have a financial advisor on your team. Your mortgage broker will speak with you regarding the details of your life, finances, and even where you would like to see yourself at various points in the future. So, you can look forward to access to loan advice, savings, investments, interest rates and more.
Additionally, your mortgage broker can offer tips on other matters like improving your credit score, insurance, and ways to help you build your wealth.
3. Time-Saving and Convenience
At Freedom Wealth Services, we are here to streamline the loan process. Our clients have the advantage of one application going to many lenders for consideration. We know what goes into securing a home loan and understand that potential buyers are often too busy to diligently hunt for the best mortgage. Our team of experts does the following:
Take Care of the Application
Guide You Until You Have Settled
4. Negotiating Power
When you seek a mortgage and deal with a large financial institution, they hold the lion’s share of the power in the transaction. However, with an experienced mortgage broker in your corner, the balance of power shifts to be more favourable to you. Not only do brokers have negotiating skills, but they also have working relationships with many lenders they will approach on your behalf. This grants access to select arrangements as well as to interest rates the average person is unable to secure. This allows your mortgage broker to negotiate lower interest rates on your behalf. There are times when it may be possible for your broker to get you a discount off the standard variable rate from a specific lender.
5. Transparency and Clarity
Mortgage brokers in Australia must put their client’s best interests first, not that of lenders or themselves. Known as best interest duty, the regulation means your broker is legally bound to be clear and fully disclose costs or any other allows to noteworthy events. Having this transparency makes clients feel secure that no surprises are around the next corner. The rule goes a long way to instil confidence in clients, especially those who are new to mortgage hunting.
6. Ongoing Support
Once your transaction is complete, many lenders will disappear, leaving you without expert advice or support. However, your mortgage broker can often help you with more than securing a mortgage. Whether you need information on interest rates, future investments, saving, or other financial topics, your broker can help you or put you in touch with someone who can advise you.
7. Free Service
Because your broker gets a commission from the lender, you will be able to have professional help without a hefty price tag. Your broker only gets paid if they arrange a loan for you. The incentive to find an excellent mortgage is high when there is no payday after the work is complete.
FAQs About Mortgage Brokers and the Process
What questions should I ask my mortgage broker?
There are numerous questions to ask your mortgage broker. You will likely come up with several of your own, and here are a few questions to help you get started:
Ask about credentials and licensing
You should ask about fees
Find out about loan types
Ask about who is a part of their panel of lenders
What is the settlement time frame
What information do I need to gather before I talk to a broker?
The more information you have at the start of the process, the easier and faster your mortgage will be ready. You can ask about what to have on hand when you speak with your mortgage broker. Here is the most typical information you will need:
Proof of Identity
Evidence of Income
Previous or current bankruptcy
Will I have to wait long?
The beginning of the home-buying process is exciting. Naturally, you will want to get everything moving as soon as possible. Your wait may not be long. The more detailed and organised your information, the fewer hold-ups you will experience.
Buying a new home does not need to be a dreadfully frustrating experience. A mortgage broker will do the legwork and gather what is necessary. Additionally, they will keep you in the loop as far as developments are concerned. Typically, your broker will have a system in place so you are on top of the situation, and your questions will be answered right away. When you have an experienced mortgage broker in your corner, the entire process becomes much simpler and faster.
If you need mortgage advice or a broker, feel free to contact Freedom Wealth Services. Our team of professionals will listen to your thoughts and help match you to the best financing option available.
*General Advice Warning – “Any financial product advice is provided by Freedom Wealth Services Pty Ltd AFSL 502934 The advice provided is general and is not personal financial product advice. The advice provided has been prepared without taking into account your objectives, financial situation or needs and because of this you should, before acting on it, consider the appropriateness of it regarding your objectives, financial situation and needs. You should carefully read and consider any Product Disclosure Statement (PDS) that is relevant to any financial product that has been discussed before making any decision about whether to acquire the financial product.”