Why should you work with a mortgage broker?
Did you know that 6 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.
Whether you are a first home buyer or purchasing an investment property, here’s how a mortgage broker can help you:
- Brokers have access to better interest rates and discounts
- Brokers offer you a wider choice of lending products
- Brokers are industry experts who can match you with the best-fit loans for your situation
- Brokers speed up the financing process by preparing and lodging your home loan application promptly
- And, last but not the least, except in very complex cases, broker services are FREE
Brokers also provide value-added services to their clients.
When you are looking for a home loan, it is not just about finding the lowest price. It is also about finding the best product with the right features at the right price. Mortgage brokers, through their experience and knowledge, guide their clients throughout the home loan process, helping them make informed decisions.
Brokers also expedite the overall application process by ensuring that borrowers provide all the necessary documentation for risk assessment in a timely manner. Investors can also benefit by working with an experienced mortgage broker who will help them plan their loans in a manner to avoid, or delay, hitting the serviceability wall as their portfolio grows.
According to Siobhan, “Brokers often help clients improve their financial position – something the lender staff may not always do. For example, a broker may consolidate a borrower’s credit card debts as part of a mortgage to help them manage their debt repayments better.”
Presently, nearly 60% of all new residential lending in Australia is introduced by mortgage brokers, and that growth rate has increased at about 2.5% year on year. In short, more people are choosing to work with a mortgage broker than walk into a branch to arrange their home loans. This figure clearly indicates the growing trust of Australians in the services provided by mortgage brokers.
A well-structured home loan can save thousands of dollars over the years. Get in touch with a verified HashChing broker to find a home loan that’s not only competitive but also tailored to your situation.
By Vidhu Bajaj,
HashChing Content Writer