Did you know that 51.8% of all new residential home loans in 2015 were through a mortgage broker? This is higher than the year before and it doesn’t look like this is slowing down any time soon.
So what value are customers finding in mortgage brokers that they are not finding by going direct to a lender?
1. Find The Right Solutions
In a low interest environment, lenders are increasingly differentiating themselves based on policy. In fact, where one lender is unable to assist, another lender may well have a healthy appetite for your business.
With the lending landscape constantly shifting, it requires a finance professional, who makes it their business to remain on top of these changes, to find just the right solution for your needs.
By going direct to a lender, you will only hear about the solutions they are able to offer you. You can be quite sure that they won’t tell you what the competition can do to assist.
2. Get The Right Structure
When writing a home loan, there is often multiple ways it can be structured.
By nature, lenders want to take as much security as possible in case you default on your loan. If you approach a lender directly, don’t be surprised when they ask for everything except for your cat and dog as security!
In contrast, a good mortgage broker can structure the same deal in such a way that, while it still ticks all the lender’s boxes, it best protects your interests.
And if you’re worried that you may already have given the banks too much, you can always speak to a mortgage broker about cleaning up the security on your existing home loans.
3. Compare Your Options
Aggregators provide their brokers with advanced software which can compare the rates and features on thousands of home loans quickly and easily, helping you find the needle in the haystack.
Even if you know what to look for, the amount of legwork required to do this yourself would be astronomical!
4. Be Confident In Your Decision Through Education
Choosing a home loan is a big decision, so it’s important to understand exactly what you’re signing up for, as well as how it will support your long-term goals and objectives. A good mortgage broker not only assists you in finding the right solution, but also takes the time to educate you along the way.
5. Give Your Application The Best Chance Of Success
An important part of putting together any application is preparing comprehensive submission notes for the credit assessor to read.
A good mortgage broker will ensure that your application is presented in the best possible light. If there are any hairs on the deal, you can be sure the credit assessor will find them. So addressing these upfront and providing detailed explanations and strong mitigants can give the credit assessor the comfort they need to approve your application the first time.
6. Benefit From a Long-term Relationship
Most mortgage brokers are self-employed and take great pride in building strong relationships built on trust with their clients. They are not looking for quick wins and will not cut corners.
This contrasts with staff who work for lenders, who generally tend to progress to other roles every few years. Even private banking clients, who have dedicated relationship managers, don’t have the same relationship manager for long.
7. Position Yourself For Your Next Property
Different banks service existing debt in different ways. If you’re looking to build an investment portfolio, the best brokers will help you to maximise your borrowing capacity, ensuring that you’re in a position to borrow again for your next property as quickly as possible.
8. Stay On Top Of Your Options
There are many reasons people refinance their home loan. If you’re not reviewing your home loan every 2-3 years, you may well be missing out on a better deal. Your broker can help you to regularly review your lending, as well as estimate your equity position.
9. Have a One-stop Shop
Although your initial need might be a home loan, there are many related financial services which you may benefit from. Solid brokers maintain close relationships with such professionals as financial planners, accountants, property consultants and lawyers/conveyancers.
By leveraging your broker’s relationships in these areas, you can ensure that you have a cohesive team of professionals, who are in regular communication with you and with each other, all working together to advance your interests.
10. Enjoy Convenience
Many people do not have the flexibility to take a day off work to visit the bank to discuss their mortgage. And who wants to give up their Saturday morning to do this? Most mortgage brokers are more than happy to visit their client’s homes, even after business hours.
So why not join the growing number of Australians who are partnering with true finance professionals who have your best interests at heart and who can give you all the facts you need to make the best decision?