THE LOAN ROOM - MARCH 13 2024
BROKERS VS BANKS
In an age when technology helps us research, shop and even – at times – think, we might wonder what other help we could possibly need when it’s time to buy our next home. But, unless you have weeks of spare time and a brain that can store hundreds of home loans, plus their fees and conditions, and then match them to your situation, log off and set up a time to see a mortgage broker.
TOP 10 REASONS TO USE A MORTGAGE BROKER
1. SAVES YOU TIME
In today’s fast-paced world, people are often short on time due to work and family obligations, leaving little room for anything else.
Instead of struggling to find a home loan during those rare moments of free time, why not let a mortgage broker handle the task for you? We take care of all the necessary research to evaluate your situation and find the most suitable loan that fits your requirements. Additionally, we manage the application process on your behalf, ensuring a seamless experience.
With our expertise, independence, and unwavering support, mortgage brokers are dedicated to guiding you through every stage until settlement.
2. DECADES OF EXPERIENCE
Mortgage brokers live and breathe home & investment loans and make the property purchase dreams of thousands of clients come true each year.
Our expertise extends beyond just interest rates, as we consider various factors to determine the most suitable mortgage for each individual’s circumstances and which banks you’ll get approved or the best offers from.
By understanding your needs, financial situation, and objectives, we tailor a loan that fits you perfectly - a service not typically offered by banks or online platforms.
3. CONVENIENCE
Mortgage brokers are flexible by nature and motivated by their customers’ best interests, and that often extends to schedules. Work odd hours? Need to meet at a café near your kid’s school between an appointment and the 3pm pick-up? A broker can usually make it work.
4. MORE CHOICE
When you go direct to a bank, you’re presented with the home loan products that they offer. And there might be quite a few, particularly at a big bank which has a mortgage for every type of customer.
But when you enlist the services of a broker, we give you access to hundreds of different home loans from over 40 of different lenders.
It means you’re not limiting yourself to one bank and a handful of loans, but instead venturing out into the full market to get the best possible deal.
5. A WEALTH OF KNOWLEDGE
A mortgage broker not only assists in finding the best home loan for you, but also goes above and beyond.
With our extensive experience, we provide valuable knowledge to educate first-time buyers and new investors about the real estate market. We guide you through the entire finance process, help you identify market trends, explain the conveyancing process, and advise on important questions to ask your solicitor.
Furthermore, we share insider tips and tricks that sales agents use, empowering you to approach the property search with confidence. Having personally experienced the journey ourselves and continuously working for our clients, we possess a deep understanding of each step along the way.
6. FASTER APPROVALS
Speak to anyone who works in banking lately and they’ll all tell you the same thing – it’s flat out.
Post covid, buyers are eager to find their next home or make an investment. As a result, the pressure on banks has intensified.
This increased demand has resulted in delays and uncertainty for individuals who are directly working with banks to secure loans. In such a fast-paced market, speed is of utmost importance. Reducing the time it takes to navigate through the various processes and requirements of a bank is highly valuable.
This is where we come in. Brokers have established reputations and strong working relationships with banks. As a result, they can expedite the loan application process by a couple of days on average, compared to if you were to handle it on your own.
7. IN IT FOR THE LONG HAUL
A good broker will make your life easy during the entire home loan process, but we’ll also stick with you for many years to come.
When it comes time to review the health of your home loan and whether you could be getting a better deal, we’ll reach out to remind you and help make it happen. Should you need to refinance or buy elsewhere, we’ll be there too.
8. NAVIGATING COMPLEX FINANCIAL SITUATIONS WITHOUT AFFECTING YOUR CREDIT RATING
Let’s say you’re in the market for a home loan and you’re going it alone. You go to your bank’s website, enter your details in the application form… and wait.
Maybe your circumstances are a little tricky – you’re single, your partner isn’t working at the moment, your salary is a little low or something else – and the bank knocks you back. Their individual and precise assessment tools just weren’t in your favour.
It’d be disappointing, but you’d probably move on to the next lender down the list and try your luck again. But because that first go was an actual application, there’s now a mark on your credit file. And as we know, credit inquiries can trip you up when you’re next going for loan.
By comparison, we use sophisticated software that builds a profile of you, your circumstances and your aspirations and compares it to loan products in the market and the lending criteria that’s likely to be at their foundation.
Without hurting your credit history, we can get a sense of your likely borrowing power and success, saving you even more time and stress.
9. CUT THROUGH THE CLUTTER
Everyone has an opinion when it comes to home loans. Just go to a BBQ and mention that you’re buying a property and see what people suggest. Get this. Ask for that. Don’t bother with this. It’s confusing. The finance industry has also changed a lot over the years, so relying on the experiences of your parents may also not be what’s best for you and the current market.
A broker can cut through the clutter, whether it’s an offset or overdraft, lenders’ mortgage insurance or low-doc, to make things as clear and concise as possible.
10. FREE SERVICE & ADVICE
Given all of the compelling reasons to use a mortgage broker when buying property, this is perhaps the best.Brokers work for you but get paid by the lenders. Yep! Brokers earn a commission from your chosen lender. And it’s regulated, meaning there’s no preferential treatment for particular banks or products. Your best interests are the only consideration.
Mortgage Brokers now introduce over 55% of all mortgage business in Australia each year due to all the factors mentioned above. They are bound by Best Interest Duty ensuring all consumers get the best outcome (banks are not bound by this duty as they only sell you 1 product) for their individual circumstances.
It seems pretty compelling why you’d use a professional mortgage broker to assist you in probably your biggest financial decisions you’ll ever make, don’t you think?
CALL US FOR FREE TO LEARN MORE
If you’re looking to buy your first home, purchase your next one, invest in property or refinance your current home loan just let us know.
We would love helping you achieve your home ownership, so please get in touch.