So, you have decided you want to buy a new property and need to organize finance. With over 1000 home loans available to Melbourne Home Loan customers do you have the time to find the best deal for you?
Like most of us, the answer is No. Home loans are becoming more and more complicated, quoted interest rates are not the true interest rate so you have decided to use the services of an expert – a Mortgage Broker.
What to Look for in a Mortgage Broker
When you’re looking for a mortgage broker, keep in mind that not all mortgage brokers are created equal. Leading Melbourne Mortgage Broker What If We Finance says “The larger mortgage brokers are similar to a fast-food chain. They claim to serve customers and meet their interests but if you have a major shareholder that is a major bank or shareholders not happy with the return on investment or mortgage brokers being expelled for not meeting industry standards — how objective is the advice you are getting?”
When looking for a mortgage broker, don’t forget to do the following:
Evaluate potential brokers
It’s always important to conduct research on the brokers in your area and gather as much information as you can about each one. Do they seem credible? How many years of experience do they have in the industry? Do they have a website? Have you heard about their services before?
Another important factor to keep in mind when you’re looking for a mortgage broker is to see whether or not the broker is listed and licensed. For instance, do they hold a Credit License with ASIC and accreditation with the Mortgage Finance Association of Australia?
Check for references
If your potential mortgage broker has satisfied clients, you will be able to check their website or Google Reviews to see what people are saying about them. By going through reviews and testimonials, you’ll get to know the broker better and see if their abilities align with your needs and values.
Ask about appointments
Independent mortgage brokers tend to more flexible with their hours, but go for those who are willing to meet up during the weekends at a time and place convenient to you. This is especially beneficial for families or full-time workers selling up or wanting to find an investment property.
Meet brokers in person
When you’re assessing what to look for in a mortgage broker, it’s best to meet up with them if you are interested in their services. This gives you a clearer idea of what your dynamics and your experience with them might be like. Meeting in person also provides you with an opportunity to bring up all your major concerns and queries and gauge how attentive they are.
Ask important questions
During the first meeting or consultation, make an effort to ask your potential mortgage broker some crucial questions that will help you make informed decisions about the future of your finances. A few sample questions include:
- Who are their lenders?
- Why do they choose to work with those specific lenders?
- What information do I need to have ready for my home loan application?
- What does the application process look like?
- Will they stay with you even after settlement?
The Advantages of Using an Independent Mortgage Broker
If you want to get the best deal, use the services of a fully independent mortgage broker. As they are not restricted to any particular loan provider, independent mortgage brokers will act solely in your best interests. You can therefore be confident that the deal they recommend will be the best available one for your goals and circumstances.
Using an independent Mortgage Broker delivers the following benefits to you:
To obtain truly independent advice about the best product that suits your needs
Most large Mortgage Brokers in Australia are owned, controlled or affiliated with a major bank. So ask yourself am I getting truly independent advice? A mortgage broker takes the time to explore your individual goals and current circumstances. They have access to a wide range of loans from many lenders, from the big four Australian banks to international and foreign banks with local operations. They also have access to lenders, credit unions and regional banks — providing you with a bigger scope to find the loan most suitable to you.
A simplified way of understanding and evaluating home loan products
A mortgage broker also has the ability to explain thoroughly the various subtleties of the different lenders and options — potentially saving you thousands of dollars in interest payments and making a huge difference to your bottom line. With an independent mortgage broker, you can outline the pros and cons of different loan options and ensure you have the right one to suit your long term goals.
A Mortgage Broker saves you time
With an independent mortgage broker, you only need one application after they have provided you with a formal comparison of all recommended loans — guiding you to the information that portrays accurate cost differences, with points, current rates and closing costs reflected for each loan. This eliminates the need to complete forms for each individual lender.
To ease the stress of the home loan application process
An independent mortgage broker will do all the legwork for you. They will find the perfect home loan for your needs and circumstances and act as your personal advisor during the entire application and settlement process. This is inclusive of sourcing pre-approval, gathering requirements, paperwork and assistance when applying to government grants or incentives such as the First Home Owner Grant.
A good mortgage broker will have a system in place to ensure you are kept informed throughout the entire process. This enables you to stay focused on finding your ideal home.
To get a better deal
All independent Mortgage Brokers have access to calculators which allow you to access 1000’s of home. While anybody can operate a calculator, the real value that a Mortgage Broker delivers is the ability to deliver independent advice and recommendations.
No charge for home loan service
Most independent mortgage brokers earn money on commissions paid by the lender and they solely rely on this, giving you fees-free services.
Seek Help from What If We Finance Today
What If We Finance recommends you ask your mortgage brokers if they meet industry standards and also if they are truly independent. The changes in the Melbourne Home Loan Market mean you may still be ultimately dealing with a major bank.
Alternatively, contact What If We Finance and see why not all Mortgage Brokers are created equal. As the top independent mortgage broker in Melbourne, we’re more than happy to answer all your concerns and enquiries.