Why do you need a mortgage broker?

A mortgage broker is an independent person or business who specializes in finding the most suitable home loan for a customer, based on the customer’s individual needs and circumstances. Basically, like any broker, the mortgage broker liaises between you as the property buyer and the banks or lenders who will lend you the money for your mortgage.

So why go to a mortgage broker when you can contact the lenders directly?

Open communication

Unlike banks and other lenders, the mortgage broker isn’t looking to sell you a specific product whether it suits you or not – the broker wants to give you a full view of the market and find the right product for you. This opens up communication, as the broker needs to find out as much as possible about your requirements in order to select the most suitable loan package. And when you have questions or concerns, your broker will answer these directly.

The broker’s communication skills work both ways – as they have an ongoing relationship with the lenders, they can negotiate to tailor the loan for your needs.

Your broker will also know how long each lender generally takes to approve a loan application giving you a realistic timeframe, so you know when you can start house hunting in earnest.

Wide range of options on offer

Some lenders will work exclusively with brokers, so they can offer you options that would not be available to you as an individual. Different lenders will differentiate their products with honeymoon rates and special deals, making it more difficult for you to work out who is offering what you actually need and want. The broker will also help you make realistic comparisons between different lenders, so you have a better understanding of what features you are looking for in your own loan agreement.

Convenience

Your loan agreement is an important financial commitment, and there could be a huge cost difference over the long term between two loans that seem right on the surface. It can take you a great deal of time to navigate the mortgage marketplace, making comparisons and calculations and filling out loan applications… and if you take a wrong turn, it can be a costly error. A mortgage broker can navigate the market on your behalf, saving you valuable time and money.

If you would like to know more about how a mortgage broker can secure the best home loan package for your needs, contact us today for a free consultation.