Why Use a Mortgage Broker

Mortgage brokers aren’t your everyday, run of the mill financial experts; it’s their job to connect their clients with the right type of loan for their needs. Mortgage brokering services work specifically with home loans for buyers, developers and investors – and you could consider it their responsibility to get to grips with the most affordable interest rates on the market.

But why use a mortgage broker?

For those of you that haven’t used a broking service before, you might be keen to learn about what it is that these finance specialists bring to the table that couldn’t be achieved in any other way. For a start, they have access to pieces of information and data that isn’t always publically available – often allowing them to see just how flexible a bank could be with its interest rates.

That’s not their only advantage either; in fact, many brokers develop working relationships with lending agencies that can benefit their clients when it comes to the application process. And it’s these relationships that can bypass certain factors, fast track applications, or even secure cheaper rates of interest on behalf of their borrowers.

Are there any financial advantages?

There certainly are, for instance – if you hire a broker to take care of a mortgage application on your behalf, most will take care of the interest rate comparison process and get to grips with the types of features available within specific loans simultaneously. They will then usually present you with their findings and allow you to choose the ideal type of home loan for your needs.

But that still saves time, not money - or does it? Well, because you’ll have the option to choose from a selection of loan types, you will undoubtedly notice that your decision might be based around the interest rates involved, or the amount of deposit that you may need to pay upfront. By choosing a cheaper loan, you could enjoy lower rates of interest and save yourself thousands of dollars throughout the duration of a repayment agreement.

It’s not just the long term that could have your finances benefitted either; you could even save money in the shorter term by minimising the amount that you pay upfront to be considered your deposit on your new loan. Most banks will ask for anywhere between 10-25% on average, but in Australia, where deals are becoming increasingly available – you could end up enjoying a low rate of 5% if you meet certain criteria.