Is Paying For A Mortgage Broker Worth Your Money?
There is an ongoing question being asked about whether you should have to pay a small fee for engaging the services of a mortgage broker. In some countries mortgage brokers don’t charge for their services as they get paid a commission by the lender who finishes up writing the loan, so why should we pay for the service here.
Mortgage Choice Home Loan Health Check
There are new home loan products released to the Australian market all the time and the loan which was right for you when you bought your home, may not be right for your now. Use the Mortgage Choice Home Loan Health Check service to find out if there is a better loan product out there which could save you years off your mortgage, and interest off your repayments.
- Interest Rate of
- Comparison Rate of
- Application Fee of
- Maximum LVR With LMI:
- Minimum Borrowing: $0
- Maximum Borrowing: $0
For most of us, whose expertise lies in other spheres, the time is just not available nor are we overly familiar with the ins and outs of the mortgage market generally. For a moment let’s be honest about what is needed if you decide to ‘go it alone’ and not engage the help of an experienced mortgage broker. This is what you would have to be prepared to do yourself:
1. First up, if you are not willing to take your annual leave in order to give yourself adequate time to carry out due diligence you will be well advised to approach your employer to give you leave in lieu of being paid so that you could knuckle down and give it a fair go.
2. Your first day on the job will most likely have you sitting at your dining room table with a heap of home loan books and magazines to give yourself a feel of what goes on in the industry, as well a computer, so you can browse through the almost endless number of web sites belonging to different lenders trying to explain their various products. You will need to record where to find any mortgage you feel might make up your short list so you will be able to come back to check it out further after you have visited other sites. The worse your credit rating the more lenders you will have to come back to. ‘Now that’s a point ‘, you might think, ‘perhaps I should check my credit rating now’.
3. The next step will be to contact a credit reporting company to find out just where you stand in this area. It will be a surprise to you no doubt just how much these people know about you. Remember that mobile phone you had in the distant past, the one you still owe $200 of phone calls on. You may have forgotten about it but the Telco hadn’t, you can rest assured on that. Any reminders that had been sent out to you when you were a bit slow in paying off your car will be there too. This is the information your lender will see when you put in your application, therefore if there is anything there that puts you in a bad light this is the time to do something about it, or your application could be declined. As a mortgage broker is not personally involved in discussing a less than perfect credit report with a lender, he or she stands more of a chance of putting up a plausible argument to still have your application considered, than you would yourself.
4. You have a list of lenders to contact and you have your credit rating, so it is now time to start ringing around. You have no doubt made business calls in the past so you will be familiar with the recorded voice on the other end asking you to press the ‘One’ button for this and the ‘Two’ button for that etc. so you can be placed in the right queue. After waiting patently for the best part of an hour you finally get through to a person who wants to talk to you, only to find you are not eligible to obtain a loan from that particular lender. So you tell yourself that this is only the start and you make the next call. A pattern starts to emerge and night time starts to close in as the offices close but you know there is another day tomorrow.
5. Next morning you go through the process again, and again, and again. How were you to know what the different lenders wanted in a customer and what their different lending criteria required, anyway you keep at it as this mortgage you are seeking is a big occasion in your life. This can go on for days before you finally come to the decision that you might as well make the next call to a mortgage broker and let him or her do all this hard slog for you.
Next morning after you have told the mortgage broker what you are looking for and what you are able to repay, you get a phone call that a home loan is available that seems to suit your circumstances perfectly. You can hardly contain your elation as you are asked if it would be more convenient for you to call in at the mortgage brokers office or do you want them to call around to see you at home or at work.
Start a mortgage broker comparison in your area now.
Related posts:
- Adelaide Mortgage Brokers – How A Mortgage Broker Can Help You Get A Home Loan Even With Bad Credit
- Is Refinancing Worth it
- Top 12 Mortgage Myths – How to Save Money with Your First Home Loan
- The Best Guide For Selecting A Mortgage Broker
- Tips for Saving Money on Your Mortgage
- Four Ways To Save Money On Your Home Loan
- Mortgage Brokers Disadvantages
- Homeside Mortgage Broker
- Can you Save Money by Refinancing
- How To Switch Home Loans and Save Money
Top Home Loans
| Home Loan | Details | Interest Rate (p.a.) | Comp Rate^ (p.a.) | App Fee / Ongoing Fee | Max LVR | Min & Max Borrowing | |
|---|---|---|---|---|---|---|---|
 Loans.com.au - Dream Catcher | A home loan offer with a $0 application fee and one of the lowest available home loan interest rates. | 5.85% | 6.21% | $0 / $375 | 80% | $50,000 / $750,000 |
 
|
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 State Custodians Mortgage Company Standard Variable Offset Loan | Awarded Mortgage of the Year 2012 – this multi-award winner features 100% offset and a loyalty 0.25% rate drop after 5 years. | 6.02% | 6.23% | $0 / $345 | 95% | $150,000 / $1,000,000 |
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