How a mortgage broker can help first home owners
First home buyers have returned to the housing market in a big way. According to ABS data, FHBs accounted for 18 per cent of the owner-occupier mortgages in the three months up to August 2018, signifying the highest participation by FHBs in the housing market since 2012.
Are you planning to jump on the real estate bandwagon this year?
If you intend to buy a house in the near future, it is probable that you are planning to ask your regular bank for a home loan. But, is it the right move for your finances?
Purchasing a house is a major financial decision, and it is important to understand how your home loan works before signing on the dotted line to avoid any problems in the future. Unfortunately, many first home buyers don’t have proper knowledge about home loans and lack the expertise to compare and pick the appropriate home loan for their requirements.
That’s where a mortgage broker steps in!
Your mortgage broker is also a financial expert with your best interests at heart. Therefore, speaking to a mortgage broker at an early stage can help you resolve your home loan queries and go about the home buying process with much more confidence.
Did you know that three in 10 aspiring homebuyers start their financing journey by going to a mortgage broker for help in securing a loan?
Mortgage brokers offer more choice and savings to homebuyers by introducing competition in the industry. “Without mortgage brokers, the major lenders would have no incentive to offer innovative lending products or better interest rates; the non-major lenders would be shut out of the industry due to their lack of retail network which is essential for customer engagement; and customers would have to work directly with a single lender to get a home loan and just accept whatever that one lender tells them is the best rate,” explains Siobhan Hayden, COO, HashChing.
Indeed, mortgage brokers offer their customers the triple-fold benefit of convenience, choice, and savings by finding home loan products mapped to their clients’ financial situation. Besides, mortgage brokers also educate their clients regarding their financial situation while advising them on the level of mortgage repayments they can afford, depending upon their income, expenditure, and debt level.
Here are 3 reasons why aspiring homebuyers can benefit from working with a mortgage broker:
A professional by your side – Working with a licensed mortgage broker can make your home loan journey quite simple and straightforward.
Fixed or variable, offset account, redraw facility, portability – these are just a few of the things you must decide upon when taking out a mortgage. Even if you are not sure about the features you need in your home loan, simply tell your broker what you want out of your mortgage so that they can offer you deals that match your requirements.
Remember, all mortgages are not created equal, and your mortgage broker can help you pick a deal that is right for your situation.
More choice – Many homebuyers tend to rely on their regular bank for all their financial needs, and miss out on competitive deals and offers from other banks and non-bank lenders, losing money in the process. However, your mortgage broker has access to deals from several lenders, which increases the probability of finding lower rates on your mortgage. Besides, all lenders have different eligibility criteria, and your broker could direct you to a lender that is more likely to approve your application.
More savings – Working with a mortgage broker can help you in many ways. Firstly, understanding how mortgages work is the first step towards saving money on your mortgage by subscribing to helpful features, such as a 100 per cent offset account that could lead to significant savings over the life of the loan. Besides, your broker helps you on every step of your home buying journey – from finding a competitive home loan deal to lodging your application to ensuring timely disbursement of funds – saving you precious time that you can spend on things you enjoy doing!
Most importantly, the services of a mortgage broker are absolutely free except in very complicated situations. Now that’s a win-win situation, isn’t it!
We are happy to help!
A mortgage broker can help you secure a competitive mortgage rate and features, free of cost, without any fuss or stress.
At HashChing, we have a growing network of 400+ verified brokers across Australia. Instead of going to a bank directly, get in touch with a HashChing broker who’d help you assess your financial situation and also negotiate with banks for the best home loan deal to finance your dream home.
By Vidhu Bajaj,
HashChing Content Writer