When you add in the challenge of sourcing the right loan, first homebuyers can be forgiven for thinking twice about taking that first step on the property ladder.
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Research has shown that mortgage brokers are helping buyers with over 50pc of all new housing loans, and for good reason – buyers know that brokers can provide a level of advice that banks simply can’t. If you feel like the door to your perfect home is permanently locked, here are five keys brokers could be holding.
Choices
Brokers have a direct line to a large panel of quality lenders, so they can crunch the numbers and give buyers a comparison of the best interest rates and products available. The panel is likely to include the four major banks, as well as niche lenders that might suit borrowers. Brokers have a deep understanding of the products available and can offer sound advice on options. While your lender is likely to do everything possible to accommodate an application, they won’t recommend a competitor down the road. It’s always best to shop around and the right broker can do that for you.
Answers, not questions
Brokers are steeped in product developments and trends, and can make sure borrowers consider questions such as the advantages of a fixed, variable or split home loan; understanding the difference between redraw and an offset account; or what a good rate discount looks like at any given time.
Flexible service
Brokers are human beings that borrowers can talk to face-to-face who will often come to their homes or answer their urgent calls, even after work hours. They also do the legwork of ensuring application and loan paperwork is processed efficiently and can speak to the right people if something goes wrong.
Savings
Brokers advocate for borrowers to save them money over the life of their loan. They may be able to source more competitive interest rates while using their relationships to negotiate rate discounts or other benefits, such as fee waivers.
Consider lifestyle
As part of the loan-application process, mortgage brokers often sit borrowers down to ask a range of lifestyle-related questions, as well as to assess the basics of income. By breaking down the mortgage with the borrower into monthly and weekly chunks and comparing them with lifestyle expectations, brokers can help borrowers adjust their expectations.
Dealing with the right Mortgage broker will help you get your foot in the property door!
