5 Reasons Why Mortgage Brokers are Borrowers’ Preferred Option
Data recently released by CoreLogic Business has determined that mortgage brokers are the preferred option for borrowers looking to obtain a home loan. In the September quarter of 2018 brokers settled 59.1 percent of all residential home loans, an increase on the 53.6 percent recorded in the same quarter in 2017. This represents the largest year-on-year increase for any quarter in the last four years.
In this volatile lending climate and in the wake of the Royal Commission it would appear consumer confidence in mortgage brokers has not waned, and rightly so. There are several reasons to use a mortgage broker and here are the top five reasons we think proves that it pays to have one on your team.
- A Broker Doesn’t Cost a Thing
There are not many professional services that come with a $0 price tag but engaging a mortgage broker will not set you back a cent. If anything, a broker will help you save money by giving you the information and tools to manage your banking facilities better and help you be debt free sooner. Brokers are paid by the lenders to whom they refer business, not by the clients they service.
- A Broker has access to a panel of lenders
If you choose to use your own bank to help secure a home loan you are only going to be given the options that institution offers. A branch lending manager is not going to offer a more suitable or competitive product at another lender, only what they have available. A broker will assess your unique circumstance and identify the lenders and product most suitable for you.
- A Broker Acts as your advocate
Whether it be finding a great deal, ensuring your application is assessed efficiently at the bank or navigating you through the minefield that is mortgage paperwork, your broker will guide you every step of the way and will go into bat for you when required. Liaising with not only the bank but other interested parties such as real estate agents and settlement agents makes a mortgage broker worth their weight in gold. A property purchase can be an emotionally charged and high stress experience, having a mortgage broker on side that will ensure approval and settlement deadlines are met alleviates stress levels and creates a seamless experience.
- A Broker has leverage to obtain additional pricing
Brokers have professional relationships with lending institutions which gives them leverage to often secure more competitive pricing than advertised rates. In addition, it’s not uncommon for brokers to have access to incentives and deals not available at branches.
- A Broker will partner with you for the life of the loan
Once your application is settled, it’s not the end of your working relationship with your broker – in fact its just the beginning. A good broker will keep in touch at regular intervals, by way of industry updates and contacting you directly to review your loan annually at the very least. The lending landscape is constantly changing as are your own personal circumstances and a broker will be on hand throughout your financial journey to tweak your products to ensure they are in line with your goals.
It’s no wonder mortgage holders are using the services if a mortgage broker when they are purchasing or refinancing their homes, the advantages are clear, and the results speak for themselves.