If you’re in the market for a home loan or looking to refinance your existing home loan, you might have considered using a mortgage broker to help you through the home loan application process. A mortgage broker liaises with lenders to help their clients to get home loans. According to recent statistics from CoreLogic, mortgage brokers arrange 59.1 percent of all residential home loans in Australia.
Here are 6 reasons why you should use the services of a mortgage broker to arrange your home loan.
1. To Save You Money
Getting a home loan is a huge financial commitment, the biggest financial decision that most people ever make. Did you know that even a small difference in home loan interest rates or other loan features, fees or conditions can make a huge difference to your repayments over the standard 25 or 30-year home loan term?
For example, the repayments on an average Australian mortgage of $400,000 over 30 years at an interest rate of 3.5% are $1,796. But those repayments jump to $1,910 per month if the interest rate is just 0.5% higher, which results in extra repayments of a whopping $40,854 over the 30-year loan term!
A good mortgage broker will take the time to understand your individual needs before recommending a lender, a home loan product and home loan features that will save you money and best suit your financial circumstances.
2. To Negotiate With Lenders On Your Behalf
There’s an old saying that ‘you don’t get what you deserve, you get what you negotiate.’ It certainly applies to the home loan market. The Australian home loan market is highly competitive. Lenders compete aggressively with each other for the home loan business. Many are prepared to negotiate on home loan terms and conditions to secure new business.
Mortgage brokers negotiate with lenders for a living. A good mortgage broker will use their experience to negotiate the best possible home loan deal for your individual financial circumstances.
3. To Save You Time & Hassle
There’s a huge number of lenders and loan products in the Australian home loan market. Researching the market yourself is time-consuming and it can be confusing. But mortgage brokers are across the entire market. They know the pros and cons of different lenders and different home loan products and features.
Once a mortgage broker has found the best lender, home loan product and loan features for your individual needs, they’ll also help you through the entire home loan application process, through to approval and settlement. This can be especially important if you’re a first home buyer, self-employed, or if you’ve had previous home loan applications rejected.
A good mortgage broker can help you to put your best foot forward to maximize your chances of a quick home loan approval on the best possible terms.
4. To advise you on different home loan features
Home loans can come with a range of optional additional features(like flexible repayments, offset accounts, redraw facilities and lines of credit). Those features can be a real benefit to you if they’re appropriate for your needs and you take advantage of them.
But it’s also important to understand that you’ll be charged fees for additional home loan features, so it’s important that you aren’t paying for any that you don’t need or that you won’t use.
A good mortgage broker will advise you on the home loan features that you need and how they will benefit you. They’ll also advise you on how to make the best of use of those features.
5. To Help You To Refinance
If your existing home loan isn’t the best deal that’s available for your needs (or if your circumstances have changed since you took out your home loan several years ago), a good mortgage broker can help you to evaluate whether you’d be better off refinancing to a better one.
And if you have multiple debts (for example, your home loan plus high-interest personal loans and/or credit card debts), a good mortgage broker can also help you to consolidate those debts by refinancing them into a low-interest home loan.
Debt consolidation can save you money by reducing the amount of interest you pay. It can also make your debts easier to manage by only requiring a single regular repayment on one consolidated debt, rather than requiring you to make multiple repayments on several debts.
6. To Advise on Different Types of Home Loans
Good mortgage brokers have experience in dealing with different types of home loans. Whether you’re looking for a residential home loan, a construction loan, or an investment property loan, a good mortgage broker will be able to find you the right lender and the right loan for your needs.
How Our Melton Mortgage Brokers Can Help You
At PAT Finance & Mortgage Broking, we can help you to find the right home loan. We’re based in Melton in Melbourne and service nearby areas including Bacchus Marsh, Caroline Springs, Plumpton, Rockbank, Gisborne and Sunbury. We take the time to understand your individual home loan needs and goals. We work for our clients, not for lenders.
Finance your dreams, secure your future. Contact us today to book your free home loan assessment to find out how we can help you.