What is a mortgage broker and how you can benefit from it? - Option Home Loans

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Option Home Loans - What is a mortgage broker and how you can benefit from it?

Many Australians are using a mortgage broker but what does this actually mean?

There are many definitions for mortgage brokers, here’s one of them that also defines how do mortgage brokers fit into the home buying process;

“Mortgage brokers are licensed and regulated financial professionals who act as the bridge between borrowers and lenders. They originate loans and help you connect with a variety of lenders who best fit your financial situation and rate requirements. Mortgage brokers act as the middleman between you and the lender, securing loans and gathering paperwork. They work in tandem with real estate agents, underwriters, lenders, title companies and attorneys through the entire purchasing process.” (loans.usnews.com)

Brokernews.com.au recently published an article where it stated that the Australian Securities and Investments Commission (ASIC) released a report detailing the consumer experience of looking for a home loan, with a strong emphasis on the broker’s role in the process.

“The report, entitled Looking for a mortgage: Consumer experiences and expectations in getting a home loan, found that all participants expected their broker to get them the ‘best’ home loan, which hinged on their understanding that the crucial difference between brokers and lenders is the access a broker has to a wide range of lenders and products.” (brokernews.com.au)

“ASIC’s survey acknowledged the ambiguous nature of finding the “best” home loan, with approximately two thirds of respondents linking it to the lowest interest rates and the remaining third more interested in securing a product with flexible features catered to a range of specific needs.” (brokernews.com.au)

Why using a mortgage broker instead of using a bank?

  1. Free service: brokers get fees from lenders when they connect them to borrowers.
  2. Brokers work for you, not the lender: brokers will put your financial needs first and look for the loan that suits best for your circumstances.
  3. The number of choices: brokers have access to hundreds of loans.
  4. You can relax: brokers will do the work for you.
  5. Flexible service: brokers come to you at a time that suits.
  6. Smooth process: banks like to deal with brokers because they put forward home buyers who meet all the lending criteria.
  7. Long-term view: brokers navigate through all the lenders’ fees, terms and conditions to make sure you’re not paying more than you should over the full life of your loan.
  8. The perfect match: brokers will recommend the loan that makes the most financial sense for you.
  9. Switching is easy: brokers will manage the inquiries and all the paperwork.
  10. Check that you don’t pay too much: at any time, request or change of circumstances, brokers can scan the lending environment to make sure you’re still getting the best deal.

“A good mortgage broker will tailor their home loan offering to meet their client’s needs. Mortgage brokers are able to work one-on-one with each client, evaluate their specific needs and find a lender that suits them. The customer can then come back to that same broker for future loans, with the benefit of that background knowledge and previous research.” (domain.com.au)

Let us help you!

To learn more about:

Buying your first home –download our e-book

Refinancing –download our e-book

Investing –download our e-book

If you have any questions, we can come to see you in your own home to help guide you through your financial journey. At Options we have in-house financial planners, credit advisers, properties specialists and a legal team to assist you by making your property investment experience an easy and rewarding process.

How it works?

At Option Home Loans, we will meet you at a time and place that suits you. As soon as you contact us or book an appointment, one of our lending specialists will be into touch.

Make your life changing decision and contact us today!
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References:

https://www.brokernews.com.au/news/breaking-news/asic-demands-brokers-step-up-265844.aspx

https://www.domain.com.au/news/why-it-pays-to-use-a-mortgage-broker-when-choosing-a-home-loan-20170531-gwgwp9-362566/

https://loans.usnews.com/should-i-work-with-a-mortgage-broker