Taking out a mortgage is one of the largest financial commitments many of us will make in our lives. Navigating the mortgage highway can be a daunting experience, particularly if it is your first home, you are refinancing an existing loan or you are in the process of selling one home and buying another.
Happily, mortgage brokers can take the hassle out of the process by doing much of the legwork for you. We spoke to Collins Mayaki a highly experienced mortgage broker, for the scoop on how having a broker on your side can be a good thing for prospective borrowers.
A Collaborative, Relationship-Based Model
According to Collins, as your broker knows the ins and outs of each potential lender, they can walk you through the process. Collins actively works on your behalf with the lenders.
You gain access to more product options thanks to their affiliation with a panel of lenders, both large and small. The wealth of knowledge amassed from working with different lenders, allows brokers to identify the most suitable loan option for you.
7 Moments When You Need A Mortgage Broker By Your Side
Not all loan situations are the same. Identifying the right lender for your personal situation is the key. Complex situations or those with special requirements can be challenging to match with a sympathetic lender, however, your broker will help you find a lender who meets your needs:
- Home buyers: Whether you are taking the plunge and buying your first home, refinancing or looking for a new mortgage, your broker can help find you the loan that’s right for you at a very competitive price.
- Investors: Enjoy a highly competitive interest rate together with advice on your investment strategy.
- Commercial: Commercial property is vastly different to residential so having strong affiliations with potential lenders will help your loan get approved.
- Construction: These loan products can be complex. Your broker will help streamline the financing aspects of the project with advice on documentation and identifying potential problems well in advance.
- Poor Credit Rating: Your mortgage broker can help match you with the right lender if you suffer from a poor credit history.
- Contractor or self-employed: Your broker can compose a compelling, narrative for potential lenders.
- Unconventional Property: Whether you are looking to buy a hobby farm, high-density housing or studio apartments, your broker knows which lender to approach.
If you find yourself in any of these situations, having a mortgage broker by your side can make all the difference in successfully taking out a mortgage that works for you.
Remember, not all loans are equal. There are lenders that specialise in specific types of loans and your mortgage broker will identify find the most suitable match for your personal circumstances.
5 Reasons To Work With A Mortgage Broker
1. They Can Make The Mortgage Process Easy
Most lenders have large distributed credit teams. Every day they receive hundreds of loan applications. So, little wonder the major banks struggle to return your phone calls on time and occasionally misplace your client file.
Brokers, on the other hand, enjoy personal relationships with lenders making them well-placed to guide your loan application through the process keeping you regularly updated along the way through to settlement.
Moreover, your mortgage broker will also correspond with your chosen conveyancing firm and real estate agent, ensuring the process is seamless and stress-free.
2. Brokers Can Coach You On Your Buying Strategy
Stressing out over your buying strategy? Are you a first home buyer? Are you unfamiliar with the loan approval process and what’s involved in buying a property?
Great mortgage brokers will not only guide you through each step of the loan approval process, they can also educate you on the delicate art of what to look for in buying a property and clear up any areas that are potentially confusing along the way.
3. They Take The Legwork Out Of Comparing Lenders And Loan Products
For a quick understanding of the value, an expert mortgage broker like Collins Mayaki bring to the mortgage process, meet with your bank manager and ask them about the loan products they can offer you and then do the same with Collins.
You’ll find that your mortgage broker can compare products on offer from a broad range of banks and lenders while a bank manager will only offer you their bank’s limited choice of home loan products. And with Collins you can do it all conveniently over the phone!
You’ll not only avoid confusion and save lots of time sorting out what your options are, you’ll have a better chance of getting an attractive interest rate.
By partnering with a broker, you’re not only more likely to get a better loan, you’re also more likely to get a ‘yes’ for your mortgage application thanks to your broker’s advice on how to navigate the application process.
4. Brokers Can Accelerate The Mortgage Application Process
Taking out a mortgage can be a painful process. You need to get from the start to the finish line without hitting one of the many potential potholes waiting for the unwary or the unprepared.
Bank managers may give you directions. Brokers, in contrast, drive you there via the swiftest possible route.
Having excellent relationships with a range of lenders allows your mortgage broker to anticipate your lender’s requirements and potential concerns, accelerating the application process.
5. Benefit From Their Industry Experience
When you’re selecting a mortgage package, a small difference in the interest rate can have a major impact on just how much you pay over the life of your mortgage. With years of experience, your broker can anticipate your requirements, identify the right product for your circumstances and answer your questions, taking much of the stress out of the mortgage application process.
Crucially, your mortgage broker understands the lender’s loan criteria and documentation requirements enabling them to know what is required to get your application approved and what type of mortgage will work best with what you’re trying to achieve.
Not all mortgage products are the same. If you are unfamiliar with them, looking over a list of the different features that can come bundled into home loan products can leave you feeling lost and confused. Experienced mortgage brokers like Collins Mayaki can help you understand which mortgage product is right for you, regardless of whether you are buying your first home, refinancing or taking out a new loan after selling your existing home. Collins can provide you with helpful tips, such as how getting a standard loan with redraw facility may prove to be a smarter option for couples on a single income with kids, or why an offset account with a credit card is a good feature if you’re a high earner and good with managing your spending. Either way, you enjoy an easy, seamless application process where you get the mortgage that’s suitable for you at a very competitive price.
HashChing is an online mortgage marketplace that enables Australian homebuyers to compare broker pre-negotiated home loan rates online. Besides, 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.