Why brokers hold the keys to getting your foot in the property door

Why brokers hold the keys to getting your foot in the property door

Achieving the dream of home ownership might seem to be getting harder currently, but talking to a mortgage broker could get you to your goals more quickly.

Purchasing a property in today’s housing market is not for the faint-hearted. Prospective homebuyers have only to turn on their TV, radio or check their socials for the latest news informing them that their dream home is slipping further out of reach.

When you add in the challenge of obtaining the right financing, first homebuyers can be forgiven for thinking twice about taking that first step onto the property ladder. But the truth is – with the right help, it’s not quite as hard as you think.

Research has shown that mortgage brokers are assisting home buyers with over 50% of all new housing loans in Australia. This is for good reason – buyers know that brokers can provide a level of advice and service that banks simply can’t.
If you are looking at getting into the market or even refinancing, here are five keys brokers could be holding.

Choices, not ultimatums

Mortgage brokers have access to a large panel of quality lenders, so they can crunch the numbers and give buyers a comparison of the best interest rates and products available from that panel that suits each individuals situation and circumstances.

While the panel is likely to include the four major banks, NAB, Commonwealth Bank, Westpac and ANZ, mortgage brokers are also able to offer advice on highly competitive regional and second-tier lenders, as well as niche lenders that might better suit borrowers such as those who are self-employed. Mortgage brokers have a comprehensive understanding of the products available to borrowers and can offer sound advice on your home loan options.

While your lender is likely to do everything possible to accommodate an application, they won’t recommend a competitor down the road if their product would be a better fit. It’s always best to shop around.

Service, not sleeplessness

Mortgage brokers are able to meet outside of work hours and can arrange to meet at your home or a place where you are comfortable to discuss your financial options.

Mortgage brokers also do the hard work of filling out the loan application and ensuring that the paperwork is processed efficiently. They can speak to the right people if adjustments need to be made.

Answers, not questions

Mortgage brokers are up to date with home loan developments and trends and can make sure potential borrowers are asking themselves the right questions at the right times.

For many borrowers this means considering the advantages of a fixed, variable or split home loan; making sure borrowers have an offset account; or what a good rate discount looks like at any given time; taking into consideration current and future lifestyle choices, brokers can put their knowledge to work for borrowers.

Experience with multiple lenders can also give mortgage brokers insight into things that are important during and after settlement, such as bank service levels.

Savings, not costs

Mortgage Brokers advocate for borrowers to save them money over the life of their loan. They may be able to source more competitive interest rates while being able to negotiate rate discounts or other benefits, such as fee waivers.

A mortgage broker may also help borrowers stay on top of any penalties, fees or other hidden charges or costs that might negatively impact a prospective borrower.

Reality and dreams

First time borrowers often approach a bank or a broker wanting to borrow too much. Part of a mortgage broker’s job is to give these borrowers direction on what is possible in the current climate. Lenders also have to adhere to the ASIC responsible lending obligations, meaning they will only let you borrow an amount that you have the ability to pay back.

As part of the finance application process, mortgage brokers often sit borrowers down to ask a range of lifestyle-related questions, as well as to assess the basics of income. This can also include a pre-loan application assessment where the current budget is looked at and improvements are suggested before the application is made.

By breaking down the mortgage with the borrower into monthly and weekly chunks and looking at the borrowers current living expectations, brokers can help borrowers adjust their expectations before they find themselves sacrificing their lifestyle.

Buying a property is THE biggest financial decision most people will make in their lives, and making that decision is only getting harder.

The last thing first homebuyers or people looking to refinance need is the added hassle of applying for a loan without the knowledge, experience and service of someone who does it every day. When you know someone has the keys, wouldn’t it be best to use them?

Contact Annette Tothill today for more information about how they can help you get your foot in the property door.