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Benefits of using a mortgage broker for home loans

The Benefits of Using a Mortgage Broker

With interest rates at an all-time low, you may be in the market for a new home or investment property, or simply are looking at refinancing your existing loan. Whatever the case, making the most of an experienced and qualified mortgage broker is valuable and beneficial in choosing the loan that’s right for you.

Unsure of whether you could do with a hand on your home loan process? Let us look at some of the benefits of a mortgage broker.

Mortgage Brokers Can Save You Time

Time is so scarce these days. When work is not getting in the way, family and home commitments are usually and rightfully taking full priority, leaving little time for much else. A mortgage broker will take the time and do the leg work to evaluate your situation, in order to work out the best loan to suit your personal requirements.

Applying for a home loan is never as straightforward as it seems. Thankfully, a mortgage broker’s role is to make this process smoother. There are several hurdles that you will need to be aware of and information you will need to supply throughout the full home loan application process. Having an experienced and independent professional to walk you right through this daunting exercise is a huge sanity saver and can also ensure that the loan application process goes smoothly right up to settlement.

Mortgage brokers can also give you some confidence and assurance, especially if you do not have a strong deposit to begin with. A mortgage broker can help you find lenders that are more likely to accept your application even if you do not have a full 20% deposit on hand.

In a busy and high demand market, negotiating and dealing with banks can be stressful and time consuming, especially when you are keen to lock in a certain property. Mortgage brokers are established in the industry and have developed rapport and relationships with the banks that are between you and your next property. Working with a mortgage broker may speed up the application by a couple of days. When you are under pressure to secure a property, this time saved is precious.

Mortgage Brokers Can Save You Money

A mortgage broker can save you a ton, simply by making the most of their access to an array of lenders and loans, in order to pick the one that is most cost effective for you.

Some mortgage brokers have access to some inside lender deals that are not publicly available. A broker will also go beyond simply showing you the loan with the best interest rate. They will be able to uncover the true cost of your loan, considering charges and associated costs, as well as warning you of fees for paying a loan off early, establishing the loan or any other ongoing fees. A mortgage broker can also explain the implications of mortgage insurance (if applicable) that may need to be worked into the total cost of your loan.

You may realise now that the services of a mortgage broker are valuable, but what you need to remember is that this value comes at no cost to you.  Mortgage brokers do the legwork for you but get paid by the banks and lenders. They take a commission from the lender that you have chosen, however this is all regulated, which means your needs come first. Mortgage brokers are bound to comply with the ‘best interest duty’, which makes certain that the client is set to get a loan tailored to their individual needs and circumstance, with no other factors compromising this.

Mortgage Brokers Can Help Protect Your Credit History

What many do not realise is that each time you apply for a home loan and are rejected, this taints your credit history, no matter what the circumstance. This can make things a little trying when going for any future loans. Mortgage brokers can help protect your credit history by utilising industry software to ascertain your borrowing power, before you take the plunge to apply. Mortgage brokers have all the current information and lending criteria on loans from a variety of lenders, and they can put this up against to your individual needs and profile. They can then point out the lenders that are most likely to accept your application, minimising the risk of rejection.

Gain From Their Experience

A good mortgage broker will do more than just find you the best home loan. They can offer you years of industry knowledge and experience, as well as loan advice on the complete home loan process, including advice about what to ask your solicitor, identifying trends in the market and information about how conveyancing is undertaken.

Mortgage brokers experience the home and investment loan process every day and understand all the finer details of home loans. There is so much more to know about a loan than the interest rate. For instance, there are options such as variable, fixed rate or split-interest rate loans. Will you pay back principal and interest or interest only? You may or may not want to pay more for features like a re-draw facility or offset account.

A good mortgage broker will get to know you as a client and find a home loan tailored to your specific circumstance. They will also stay by your side to reassure you right through to settlement. In many cases, they will be in it for the long haul to remind you when it’s time to review your home loan, to see whether or not you could be getting a better deal somewhere else. When the time comes to refinance, your mortgage broker can be the one to recognise your history and circumstances, to offer you debt advice and suggest the most suitable loan for you.

When weighing up the benefits of a mortgage broker, there really is nothing to lose. A mortgage broker could be the helping hand to get you to your next destination in life. To speak to a professional and independent mortgage broker call Watson Mortgages on 02 4038 1623 or book an meeting online.

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