It would be painstaking for a borrower to do all the mortgage homework considering that there are about 150 banks and credit unions in Australia which offer varying terms, conditions, and interest rates on loans. Added to those, lenders would compete for borrowers by offering different bonuses, freebies, and irresistible initial rates. Mortgage coursed directly through banks may also limit the home loan options for a borrower.
This is where the mortgage broker comes in. They are professionals who have gained expertise to cater to every borrower’s specific financing needs and match it to available loan offers. Mortgage brokers can make it easy for borrowers to get a home loan that suits the latter’s means and choices.
The broker serves as an intermediary between a borrower and the mortgage market. Brokers are tasked to find not only the most affordable mortgage but also one with terms and conditions amenable to the borrower. Brokers also have more access than the average consumer to software platforms and professional networks that allow them to offer the best home loans.
Mortgage brokers have also become the favoured medium in Britain and the United States in securing home loans. Banks and other lenders support brokers who bring in the clients. Lenders found it more efficient to pay a commission to a broker than to expand their branch operations across different areas.
Borrowers are encouraged to check a broker’s credential before engaging his services. It is also highly recommended for a borrower to fully disclose his credit details to a broker before pursuing a mortgage.
It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan