What is a mortgage broker

What is a mortgage broker?

Read | 3 MIN

Choosing your home loan using a mortgage broker is like speed dating:

  • You get a range of options put in front of you;
  • You get to skip past all the suitors you don’t find attractive; and…
  • A third party rejects unsuitable candidates on your behalf.

Once you feel the sparks fly, you know you’ve found your perfect match.

What is a mortgage broker?

A mortgage broker is like a match-maker between lenders and customers.

Instead of going through the hassle of researching different loans yourself, you can use the service of a home loan broker. They do all the legwork and present you with the best options to suit your needs.

 How do mortgage brokers work?

At your initial meeting with your home loan broker you will get to talk about yourself, your lifestyle, and your goals. A bit like filing an online dating profile.

You will also complete an application form with financial information such as employment history, income, debts and assets. One of the benefits of using a home loan broker is that you only need to go through this process once, and then the broker can present your case to different lenders using this one and only application.

With all this information in hand, the mortgage broker can get to work. He or she will talk to different lenders and do a home loan comparison between all the available options out there to find your perfect match.

After the broker looks into your options, you can expect to get the most suitable home loans presented to you. The home loan broker will help you choose the best lender for you, and when you eventually find a home, they will also submit your home loan application on your behalf.

 Why use a mortgage broker?

Shopping around for the best home loan, filling application forms, and going through the pre-approval process with different lenders is hard work. You have to kiss a lot of frogs before you find your prince charming.

Using a mortgage broker will not only save you time, but a competent broker will also save you money.

The beauty of using a home loan broker is that they can talk to numerous banks and lenders simultaneously to source the best home loan deal to suit your individual needs. Most mortgage brokers have relationships with the key decision makers at the banks, so they are in a good position to negotiate pricing.

Why use a mortgage broker?

John Symond: Founder of Aussie Home Loans

Many home loan brokers have also worked in the credit departments of major banks and are experts when it comes to the lending policies of many products.

Can home loan brokers provide advice to property investors?

If you are investigating how to invest in property, talking to a mortgage broker is a good way to get your planning underway. Brokers can look at your financials and provide advice on how much you can borrow to buy an investment property, how to use the equity in your family home to fund your investment, and the best ways to structure your investment home loans.

Thinking of investing? Head to Property Market Investor to access local market insights, research, trusted advice, and handy tools such as budget planners and home loan calculators.

By partnering with some of Australia’s leading property experts, we have created Australia’s leading community and portal for real estate investors.

How much does the service of a mortgage broker cost?

In most cases, their services are totally free for the borrower. Most mortgage brokers are self-employed and work solely on the commissions they receive from banks.

Brokers only get paid when the mortgage settles, and they may have to pay fees if you refinance your home loan within the first 2 years of getting approved. This means that it is in their best interest to present you with the best home loan to suit your needs. They don’t want you moving lenders as this will result in them losing their commission.

Relationship break ups can get messy.

Where do I find a mortgage broker?

There are many brokers out there, but finding a knowledgeable and reputable broker is key to finding the best home loan solution for you specific circumstances. Ask your real estate agent, friends or colleagues to refer you to someone they know.

Property Market Investor can also help. You can talk to one of our home loan partners free of charge.

Get your free home loan report online in 3 easy steps and find your perfect match.

Leave a Reply

Your email address will not be published. Required fields are marked *