When on the search for mortgage, most Australians head straight to their local bank. However, when a mortgage is probably the biggest expense you will ever have, it pays to get professional advice before you sign the papers.
Mortgage brokers are independent businesses that have relationships with multiple lenders. In most cases they receive a commission from the banks so there is no cost to the customer, however some brokers prefer to charge the customer an up-front fee. Regardless of the fee structure, you can often save tens of thousands of dollars over the life of your loan through the preferential rates and packages that brokers can obtain through their relationships with the banks.
So how exactly does a broker obtain these rates? And how will your mortgage broker work for you?
The broker works for you, not the bank.
A common misconception about brokers is that they work in partnership with the banks. In fact, the opposite is true: the broker works for you, the customer, and it’s in their best interest to provide excellent ongoing service. Unlike the banks, brokers do not have a network of millions of customers, so they work hard to maintain relationships with their existing network.
At Track Financial, we aim to assist our customers throughout the life of their loan. After the initial loan is completed we provide annual product reviews to ensure you’re still getting the best deal, and can help with loan related queries or product swaps. We are proud of the fact that our best source of clients is mums and dads who refer us to their children, friends, cousins and neighbours. We know we’re doing something right!
Mortgage brokers provide a personal touch
When you apply for a mortgage from a bank, you are treated as a number within a sea of loan applications. Conversely, the broker does not get paid until your loan has been secured, so will work hard to earn your trust and provide the highest level of service.
Banks are notoriously bad communicators, so having the barrier of the broker between yourself and the lender can be a huge stress-reliever during the application. What’s more, your broker will have processed hundreds of loans, so has a solid understanding of what the banks require in order to get an approval.
A broker can help maintain your credit rating
An unknown issue that many loan applicants face is a drop in their credit rating due to multiple loan applications. In Australia, credit ratings are maintained across two major databases, both of which record a credit check each time a loan application is processed in your name. Having multiple credit checks against your name in a short period time will lower your credit score, making it harder to obtain a mortgage or loan. A broker will advise you on your best loan options before submitting the application to the most suitable lender, meaning your credit rating stays intact.
Mortgage brokers are experts in complex lending portfolios
Brokers deal with hundreds of applications every year, so there’s a very real chance that they have dealt with a situation like yours in the past. Whether you are buying your first home, a self-employed borrower or buying your sixth investment property, a broker will be able to help structure the loans to help meet your long term goals.
Mortgage brokers have access to a range of lenders and products
Each bank offers slightly different products and packages, however brokers have access to a range of lenders so can choose the best deal for your individual situation. Even better, brokers are often informed of new special offers and discounts through internal networks before they are available to the public.
A mortgage broker works for you, and there are a number of benefits to applying for your home loan through a mortgage broker rather than directly through the bank. Contact Track Financial today to see how we can help you get a simple financial solution for your mortgage needs.