Because they can save you time and money
As the home loan market becomes increasingly complex, more people are seeking to finance brokers. Here are some of the reasons.
A finance broker can save time
The choices available in the mortgage market nowadays can seem limitless and completely overwhelming. You can choose to research the subject, the lenders, and their products yourself, or work with a finance broker who already has that knowledge. Often you will find the information available on the lender’s website is very limited and hard to interpret all the jargon and hidden meanings at times. A finance broker can close the gap so you have a clear understanding of the product while you are offered the most suitable product among all available options in the complex mortgage market. You may not be flexible with your working hours and find it hard to arrange a consultation meeting with a bank during their business hours. A mortgage broker can accommodate your convenient time as they work for the clients, not the lenders.
A finance broker can save money
Mortgage brokers often work closely with lenders, so they may have access to insider knowledge, deals, and rates the average home buyer doesn't. Mortgage brokers also often have strong negotiating power and may help you to get a lower interest rate on your mortgage because the banks want their business. CoreLogic data found the share of broker-originated loans approved continue to increase and stay strong with 60 percent of residential mortgages were written by brokers and more consumers continue to turn to brokers for credit advice. With their extensive knowledge of financial product offers available at the time, a mortgage broker can find you the product that can save your loan-related cost while catering to your unique financial needs. Mortgage brokers know which lender offers the most cash bonus for refinancing or purchasing depends on how many properties involved in the case. Also, they can find you a lender that offers lifetime annual fee waivers, or complimentary multiple offset accounts, etc. The features and special offers constantly change for each lender and mortgage brokers should understand all these latest offers so they can find you the most suitable product. In addition to all of these, brokers provide repricing and refinancing services for consumers.
A finance broker give you choice
All finance brokers have a panel of lenders from which they recommend a loan. They have to become accredited with the lender to offer their product and are required to keep up-to-date with their latest offers. When it comes to product comparison across the lenders, you will need to organize a meeting with each lender individually which is very time-consuming and not efficient either so often end up with the first bank you entered without a proper comparison process to avoid the hassle. However, are you sure the product offered by one particular bank is the most suitable product for your financial needs? The bank that you have most accounts with does not automatically mean their product is the best-representing product for you. Broker does all the hard work to compare the products to find out the most suitable product for your very own financial situation. It is a one-stop shop for financial products just like what a shopping centre or department store can offer for the clients’ easy access to multiple products.
A finance broker can help find the right loan
The best deal is not necessarily the cheapest rate. It could be the most borrowing amount of money offered or it could be a cash bonus offer for the eligible case. It could also be a particular loan feature that you are after like a fixed-rate loan with a 100% offset account. A good finance broker will examine your circumstances and future plans to recommend a loan that is right for you. There is no one size fits all product when it comes to the loan market. You will need to find the best fit for your own financial needs. Having an appropriate loan that works for you can help you to build wealth over the lifetime of the loan considering its proportion take up in your monthly expenditure budget.
Most finance brokers don't charge you
Most finance brokers don't charge a fee for their service as the lenders pay them a commission for the loans they write. Most lenders offer the same rate via the finance broker as they would directly, and a finance broker could save you money in other ways. In simple words, you don’t pay for the broker service and you don’t get disadvantaged by a higher rate when you borrow money through a mortgage broker. It is a lender(bank) who pays the broker and there is no hidden cost as they will always reveal what they are paid on the paperwork clearly.
A finance broker can help you avoid pitfalls
Many products seem to offer a great deal but they could have penalties, fees, and charges you may not be aware of. Or, they may not offer the flexibility you require in the future. Any hidden cost associated with a particular loan product can easily be explained by a broker. Also, any financial jargon that makes it hard to understand the product feature can be answered by a broker. There is no such thing as a silly question. Make sure you are comfortable with the product and clarify any uncertainties you may have with your broker. A good finance broker can help you avoid taking out a loan you might later regret.
According to ASIC’s research, the top reason given by consumers for taking their loan out through a mortgage broker was ‘knowledge and expertise. Other popular reasons included ‘do the work for me’, and ‘provide the best deal’.
A good finance broker can save you time and money, and give you peace of mind.
Jenice Lee at Finance Star is MFAA approved finance broker and is not your average mortgage broker.
Contact us if you want to find out more about how we can help with your finance options.
This article provides general information only and has been prepared without taking into account your objectives, financial situation, or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax, or financial advice and you should always seek professional advice in relation to your individual circumstances.
Comments