Let’s answer the million-dollar questions first – should you even use a mortgage broker or not?
Answer is 100% yes!!
Who is a Mortgage Broker?
Mortgage brokers ae an important part of Australian banking system and as per MFAA report Mortgage Broker market share has surged to a record 59.1 per cent. Mortgage brokers are playing an important role in providing help, support and provide an appropriate advice to Home loan customers. Getting a home is not a straight forward process, it requires
– As per RBA report, there are 100+ different type of financial institutes – banks and credit unions and each of them have wide variety of lending products. As a customer you have to compare different products, offers, fine prints and ascertain what is right for you and it’s a daunting…nearly impossible task for you to understand and compare all the products
– Fulfil lending requirements and these requirements are not standard across lenders, which makes it even hard for you as a customer to understand who is the most appropriate lender for your situation
Mortgage brokers are the key to understand your unique situation, lending requirements for different financial institutes and different products and offers to come up with the most suitable product and lender.
Why you should use a Mortgage Broker
1. Assess your financial position
Mortgage broker plays an important role is assessing your current financial position. One of their main objectives of doing this is to ensure they can suggest you an appropriate lending amount without putting any financial stress in future. Lot of customers doesn’t have strong understanding of their financials and its difficult for them to plan for the right level of lending for them. An experienced mortgage broker can really make this easy for you.
2. Better Market access
A good mortgage broker will have strong understanding of different products and offers in the market at any given time. That market knowledge across different lenders puts them in a unique position to suggest the best product for you. It’s critical to select the right broker and companies like Vlend, who specializes in getting you to the right broker for you can help you with this critical step.
3. Does all the heavy lifting for you
Mortgage broker can not only scan the market, lenders and offers to get the best deal for you, they will also help you with all the documentation required to close the deal with lender. After royal commission finding, lenders have implemented responsible lending guidelines, which has put on additional pressure on customers to provide detailed documents/information. An experienced broker, from companies like Vlend can really work with you to get all the documentation in place so that your chances of getting approved in first instance goes up
4. May be able to manage some of the fees
A well-connected broker may be able to manage some of the lending fees. As a part of any lending deal, customers may have to pay fees like origination fees, application fees, annual package fees, appraisal fees etc. Brokers may be in a position to get some of these waived off.
5. It won’t cost you anything extra
Best part of using a mortgage broker is that it doesn’t cost you even a single cent extra. Mortgage brokers are paid by lenders. Only thing you have to be careful is that you pick up the right broker who is not influenced by the incentives offered by lenders. Always do your research and it can be good idea to go with companies like Vlend who specializes in shortlisting the best brokers in the market.
It’s highly advised to use a mortgage broker for your next home loan, investment loan or a refinance. A well connected and an experienced mortgage broker can not just make the entire process seamless for you but can also provide most suitable option for you. Why not give a try to specialist company like Vlend who can help you with the very first and most critical step of the process – finding the right broker as per your unique situation!!