Purchasing a home can be one of the most significant financial milestones in life. Amidst the excitement, navigating the journey of securing the right loan for your dream home can be complex and time-consuming. A trusted mortgage broker steps in to simplify this process, allowing you to focus on what truly matters to you. Beyond their expertise, mortgage brokers typically offer access to a broader spectrum of loan products and competitive rates compared to approaching a single bank or conducting the research independently. In this article, we look at the role of mortgage brokers and the key benefits of using one. We also set out a list of questions and documents for clients to prepare themselves for a meeting with their mortgage broker.
So what does a mortgage broker really do?
A mortgage broker is a professional who will liaise with banks and other lenders or financial institutions to organise your home loan. They will have access to a range of loans and financial products and will save you the time of going to a handful of lenders yourself. After the broker has contacted banks and other lenders, they'll come back to you with a selection of loans and explain how each product works. The key things they'll cover include interest rates, features of the loan (e.g. offset accounts or no fee for early payout of the loan or extra repayments), and other fees.
And how can a mortgage broker help me?
A mortgage broker can help you by taking all of the time-consuming leg work that goes into securing a home loan. As experts in home loan products, they also have a thorough understanding of the different fees associated with a mortgage and they can find a loan even if your current lender is no longer suitable for your needs.
When should you see a mortgage broker?
If you're looking to buy a property or refinance your current mortgage, prepare all of your questions and important documents and organise an appointment with a mortgage broker. You'll need to take several documents to your appointment including recent payslips or proof of income, bank statements, a current form of photo ID, recent tax returns and recent statements for your other credit facilities.
Some questions you may want to ask at your appointment include:
Which lenders do you work with?
How does your payment work for giving me a loan? Does your payment change based on the lender?
What fees are associated with this loan?
Why are you recommending this loan?
What other options are available? Can you show me the lowest cost loan on the market as a comparison?
How can I avoid lender's mortgage insurance (LMI)?
Can I have a written quote for the loan including type of loan, loan amount, loan duration, interest rate and fees?
Get the right advice before you move ahead
Whether you’re a first-home buyer, looking to refinance, or building an investment portfolio, a mortgage broker can help you get access to the best home loan for your goals. Make sure you speak to a qualified financial professional before you make any big decisions to ensure the transaction is structured effectively for you.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent
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