According to research, 3 in 10 aspiring home buyers start their financing journey by going to a mortgage broker for help in securing a loan.
Kate, a HashChing mortgage broker, says, “Mortgage brokers add a lot of value to a homebuyer’s financing journey by offering seasoned insights and more savings through greater choice.” She explains that there are four situations in every Australian’s life when a mortgage broker can come in very handy.
“Those planning to buy their first home, those looking to upgrade to their second owner-occupied home, those planning to refinance, and those considering to invest in real estate can benefit greatly by working with an experienced mortgage broker,” she elaborates.
Buying your first home
Climbing that first rung of the property ladder doesn’t need to difficult or complicated. With an adequate deposit, a good credit history, and an expert broker by your side, financing your property is as easy as counting one, two, three…
Mortgage brokers work closely with banks and understand their requirements well. In addition to negotiating a great deal for you, your mortgage broker would prepare and lodge your home loan application in a timely manner, increasing your chances of approval. Your broker will also help you take advantage of any applicable grants, such as FHOG, that can boost your deposit amount significantly.
Most importantly, your mortgage broker is a financial expert who would go through your financials closely, helping you understand how much debt you can handle comfortably while suggesting home loan products most suited to your financial condition. This simple exercise can help you avoid mortgage stress in the future.
Upgrading your home
With the passage of time, a lot of things change, including your requirements. Thus, don’t be surprised if your first home is no longer the perfect abode for your family; it is probably time to upgrade to another house that fits your current requirements better.
Do you plan to sell your first home to purchase a bigger house? Or, you might be planning to move into a second house while turning your first one into an investment property. Your financing requirements will differ in both the cases and a broker can provide you with the right guidance as well as the perfect solution for your needs. Speak to a mortgage broker to know more.
Refinancing your home loan
It is easy to get comfortable with your mortgage over the years and end up paying thousands of dollars to the banks, unnecessarily. A professional mortgage broker can prevent this ‘set and forget’ attitude by staying in touch with you and reminding you to review your home loan often.
According to experts, it is possible to save thousands of dollars on your home loan by revisiting your rate every six months or so. In addition, there are several features that you can subscribe to in your home loan, such as an offset account, that could lead to additional savings over the life of your loan.
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Whether you want to refinance to access the equity in your home, reduce your monthly repayments or simply pay down your mortgage faster, a mortgage broker can make the process simpler, quicker and hassle-free. Learn more about refinancing.
Building a property portfolio
Many Australians invest in property to build their wealth. However, not every property investor ends up creating an expansive property portfolio. So, what separates the more successful property investors from the rest?
Well, good luck and a good mortgage broker can make all the difference on your investment journey. Most investors hit the serviceability wall as they try to expand their portfolio beyond a couple of properties. However, with an expert investment broker on your team, you can ensure that you have sufficient financing options available to you as your property portfolio grows.
The reason? A good broker understands the eligibility criteria of various banks, which helps them determine the options you should go with at different stages in your investment journey. For example, it is better to obtain finance from a lender with strict eligibility criteria first. For this, you might have to pay off some of your debts or give up on a credit card or two in addition to maintaining a stellar credit score. However, it would help you when you purchase more properties in the future, as you would have access to more deals from less restrictive lenders.
A specialist broker can also help you if you are borrowing through a trust or SMSF.
Why is it beneficial to work with a mortgage broker?
Today, nearly 60 percent of all new residential lending in Australia is introduced through mortgage brokers.
The right mortgage broker can make your home loan journey a breeze. From assessing your financial situation better to suggesting the right home loan products in line with your requirements to filing your home loan application correctly – a professional broker holds your hand throughout the financing process.
Save more money on your home loan by choosing one that is tailored to your financial condition and goals. Speak to an expert.
HashChing is an online mortgage marketplace that enables Australian homebuyers to compare broker pre-negotiated home loan rates online. Aspiring home borrowers can get in touch with our verified broker partners online to have their queries answered by experts in a transparent manner, free of cost. Click here to browse our broker database.
By Vidhu Bajaj,
HashChing Content Writer