Planning to buy a new home can be an overwhelming experience, especially for first-time owners. Apart from finding the perfect property that will suit their needs and budget, they are also faced with the challenge of negotiating the kind of mortgage they can afford.
This challenge alone can be stressful for first-time homeowners, but the whole process can be manageable. Working closely with the right mortgage broker can make all the difference.
What is a Mortgage Broker?
Mortgage brokers are professionals who mediate between lenders and borrowers to ensure that the latter get the best mortgage deals that won’t break their budget. Licensed professional mortgage brokers can offer their clients a wide array of products to choose from in comparison to some of the limited offerings of financial institutions.
Studies reveal that four out of five Aussies who have worked with a mortgage broker before said they would do it again.
There are several reasons why those who have done it before recommend it to others. These normally include:
- Personalised service that will meet clients’ specific needs
- Ample knowledge about emerging trends in real estate
- Wealth of experience in real estate mortgages
- Assistance in processing application and documentation
- Detailed business approach
- Use of reliable and helpful modern technology
Interestingly, the Mortgage & Finance Association of Australia (MFAA)’s most recent Industry Intelligence Service report reveals that 70% of new residential home loans in the country have been made possible by mortgage brokers. Mostly, they are trusted by millennials who are buying their homes for the first time.
Find and hire mortgage brokers without losing your mind. We've compiled the best rated firms for you.
| Find Mortgage Brokers In: | |
|---|---|
| Altona Meadows | Altona |
| Williamstown | Newport |
| Altona North | Seabrook |
| Laverton | Spotswood |
| South Kingsville | Seaholme |
| Brooklyn | Williamstown North |
What Do Mortgage Brokers in Victoria, Australia Do?
Understanding what professional licensed mortgage brokers can do can help greatly in your decision on whether or not to avail of their services.
It is widely known that they are able to help their clients save on time and energy as they have direct knowledge and contact with the available products that various lenders have to offer. Whether for a new mortgage loan, remortgage of a current home, or the administrative fees involved, they have full knowledge of the details.
Apart from the above mentioned description, mortgage brokers are also trained to do more tasks to help their clients:
- Process loan applications
- Negotiate the best deals for their clients with lenders
- Research details about the products being offered by banks
- Understand what the clients want and look for
- Educate clients about how mortgages work
- Come up with win-win solutions that will satisfy clients
- Evaluate the client’s capacity to pay
It is the responsibility of professional licensed mortgage brokers to get to know their clients well before moving forward with their plans. They are expected to be honest to their clients, especially where it involves their borrowing capacity.
They can also be relied upon to facilitate the completion and submission of massive amounts of documents before the loan is released. They help their clients follow their own timetable without compromising other areas that need their attention.
Pros and Cons of Working with a Mortgage Broker
Just like all other professions, there are advantages and disadvantages involved when working with professional licensed mortgage brokers. It is good to know the pros and cons that you can weigh your options.
Pros
- Mortgage brokers always protect the interests of their clients.
- In Australia, mortgage brokers don’t usually charge borrowers anything.
- They can negotiate the terms of your mortgage.
- Brokers understand industry best practices.
- They educate their clients about mortgages and their legal responsibilities.
- Clients can confidently make decisions.
Cons
- Some brokers charge their clients with fees.
- Not all brokers have the same network of lenders.
- Some brokers do not find suitable lenders for their clients.
Studying the pros and cons will help you greatly in determining whether or not you are ready to work alongside a professional mortgage broker. When in doubt, it is best to just talk directly to the broker to be clarified about his track record and credentials.
When it comes to the fees of some mortgage brokers, it is best to ask them early on. While lenders generally pay mortgage brokers their fees, there is also a possibility that some will still charge borrowers.
Is Working with Mortgage Brokers Worth It?
The answer to this question is highly dependent on what your needs are at the moment. Do you need someone to give you financial advise? Do you need someone to take care of the processing of documents?
Whatever it is, you also need to ask yourself whether or not a broker can potentially lighten your load. If the answer is yes, then that should be enough to determine whether working closely with them will help you greatly.
As mentioned above, a lot of Australians trust professional licensed mortgage brokers and it is most likely because the advantages of working with one far outweighs the disadvantages. If you are looking for someone who will not deplete your savings account overnight, you need to find a broker who is not eager to charge you his fees.
Normally, their charges can vary from a fixed fee to an hourly rate, commission basis, and by percentage.
Final Thoughts
Go for the stress-free experience that mortgage brokers at EasyHome provide to make your decision-making and transition seamless. Committed to making your home moving experience meaningful and hassle-free, allow us to walk you through the simplified processes involved and see how it makes your entire journey extra special.
