Benefits of Using a
A ustralians won’t stop talking about the real estate market. We are currently in a period of historic low interest rates with more home loan products to choose from, if anything, having more choice has just made it more complicated.
In other words, a large number of Australians find the finance industry too complex and yet they have little or no clue about ways in which they, as the borrower can benefit.
If we looked at a sample of just 91 of the 150 approved deposit-taking institutions (ADI’s) in the Australian mortgage market, there are more than 3,000 mortgage products available.
As overwhelming as that is, one still has to consider necessary factors to qualify for a loan like application criteria, interest rates, establishment fees, terms and conditions.
Besides that, there’s also the issue of assessing the value of a package, interest only v’s principal & interest or taking a fixed rate over a variable rate.
It’s great for the borrower to have a competitive market, however along with it comes the complexities.
In order for the lender to stand out in the crowded market place and attract the attention of a borrower. They may also offer, honeymoon rates, freebies and other incentives such are refinance rebates for signing up with them.
Customers are presented with these offers all the time with mobile phones, cars and internet.
The difficulty comes for the consumer in differentiating all these offers and getting a larger view of the market.
If a borrower just walked into a local bank branch, would they be limiting themselves of their options?
If a borrower decided to do some research online and comparing loans, the difficulty arises as they have so many loans to research and compare.
Online offers tend to lead with an attractive interest rate but are you really comparing home loans if you’re skipping over the fine print.
Using a Mortgage Broker can even the playing field.
Your broker assesses it by placing you at the center, looking at your specific situation and then finds the lenders in the market that suit your situation.
Let’s compare it to buying some new tyres for your car. The first thing you do is look for the size of the tyres that fit your car. Equipped with the right information of what is a good fit, then you start looking around at brands and prices.
So many people have it around the wrong way, looking for the brand and pricing first only to discover later that the tyres don’t fit.
You save time & conserve energy when you utilize the services of a mortgage broker. You are more likely to find a mortgage that suits your situation with the features that you desire and at the lowest cost.
You are tapping into their professional knowledge base and experience from working in the market on a full time basis. After all the average person may only look for a mortgage every 4 years and your Mortgage Broker may be processing 4 applications a week.
Some other benefits of using a broker includes greater access to various kinds of home loans since brokers are usually experts in the industry and have many software platforms to draw on.
Banks and other lending institutions are not in competition with brokers, they both need borrowers and brokers have the borrowers. Bank view paying a commission to a broker is more efficient then maintaining a network of branchs.
In countries such as the UK and the United States, people are now opting for finance brokers against other channels of lending.
In Australian, 53% of borrowers in 2017 chose to use a Mortgage Broker and the number is climbing every year.
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