Mortgage Brokers Demystified
Although more and more people are turning to a mortgage broker to help them find the most appropriate home loan in order to buy their first home, many are still trotting along to their local bank manager. This is quite understandable, especially if a close relationship has built up over the years between the bank manager and his client, but no matter how enthusiastic your bank manager may be in building your loyalty, he or she remains restricted to the products the particular bank he or she represents.
Mortgage Choice Home Loan Health Check
The process of finding the right home loan or a better home loan is not a complicated one, but one which takes time, and expert knowledge of the industry. Therefore, use the Mortgage Choice Home Loan Health Check service to draw on expert mortgage broker knowledge and high level comparison tools, to check whether your home loan is still the best product for your needs.
- Interest Rate of
- Comparison Rate of
- Application Fee of
- Maximum LVR With LMI:
- Minimum Borrowing: $0
- Maximum Borrowing: $0
Of course it could happen that your bank manager, over many years, just happens to work for a bank that has the best mortgage available to suit your particular situation but the odds are against this occurring, anyway, if that was to be the case it would only mean that this is precisely where a mortgage broker could finish up obtaining your home loan, but at least all the other home loan providers would have been eliminated. It all come down to business and misplaced loyalty. The bank your local manager works for will no doubt be a rather large organisation and he will have to refer you to a specialist loans officer, another bank employee who is going to get paid whether he gets you your home loan or not. It will be an impersonal process, it has to be for it to work properly in the bank’s interest. A mortgage broker on the other hand will be working for you and he or she will have your interests in mind the whole time because if he or she fails to get you the mortgage you want, there will be no pay day coming their way.
The old accusation aimed at a mortgage broker was that they were only interested in selling you a mortgage and had no personal interest in you as a client. Because if intense competition and the ever widening scope of home loan products now on the market this accusation has effectively been reversed.
Today it is, unfortunately, the bank manager who is restricted to simply selling you a product, a product that might be inferior to that offered by another organisation. Nowadays it is the mortgage broker alone who goes further afield in seeking the right product, no matter who the provider is, a bank or non-bank establishment. It will always come back to you, the borrower, to be satisfied that the loan being offered is the right one for you personally. There will be no ‘take it or leave it’ attitude, as the mortgage broker engaged by you will be working for you and an unsatisfactory result will mean no sale being made.
Obtaining a home loan through the services provided by a mortgage broker is a modern way of doing business, the old fashioned way is that of going to your local bank manager. A mortgage broker is a home loan professional who specialises in mortgages only. He or she will be continuously studying all the new products coming onto the market, they keep a close relationship with all the various lenders and in turn are kept up to date by those organisations every time any new product, option or benefit is included to their particular suite of home loan products. Many are presently closely studying the issue of short sales so they can give important assistance in this area should a client wish to go down this path to avoid foreclosure. It is a never ending endeavour to stay in front of market trends so that they remain at the cutting edge of any changes in the industry, survival in such a competitive field demands nothing less of them.
Interest rates are constantly changing, a fact you will have become fully aware of if you have been looking around for a home loan of your own. Some lenders will offer ‘honeymoon’ rates to help get you started which, after a certain stipulated period of time, will revert to that particular lenders standard rate. Other may cut rates but replace the loss to the borrower by imposing various fees and charges.
In times of rising interest rates a mortgage broker will be in a position to lock in a certain rate that may have been quoted, at least up to the time of settlement. A mortgage broker can do this by negotiating with the lender and coming to an agreement that the interest rate advertised at that particular time of inquiry will not be changed while further negotiations take place, prior to the loan finally being taken up. Some lenders will charge a small fee for locking in an interest rate in this way but this fee is often credited back to you when closing.
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- Australian Economy and Home Loan Market
- Concern Over Motivations For Home Loan Lender Choice
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- All the Factors That Contribute to Your Mortgage Rate
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