Mortgage Broker?
What does a mortgage broker do?
A mortgage broker is an intermediary between the borrower and the bank or lender. A mortgage broker helps you compare the suitability of different loans to find a loan that is suitable for you. Your mortgage broker then negotiates with the bank or lender on your behalf to arrange your loan.
Why use a mortgage broker?
A loan/mortgage is probably the biggest expense you will ever have. Differences between loans can add up to thousands of dollars over the life of the loan. Good mortgage brokers have access to a wide range of lenders and loans. Therefore, getting advice from a mortgage broker can make a big difference to your financial situation.
There is a multitude of different home loans and other finance products available on the market today and lenders are constantly updating and changing their products. This means that if you are not constantly analyzing and reviewing what is available on the market, you are unlikely to be able to find the most suitable loan products for your circumstances and the best way how you can manage your money. When dealing with the amounts of money involved in something like the purchase of your home, an investment property, construction project or commercial purchase, seemingly small differences in loan products can amount to thousands of dollars difference over the life of the loan.
Furthermore, you may have an unusual situation or unusual employment, be on a temporary visa, 457 visa or other work visas, reside overseas or otherwise be less understood by the majority of banks and lenders. In this case you may need a specialist mortgage broker.
This is where a good finance broker (mortgage broker) can assist you!
Click here for: Questions to ask a mortgage broker.
When should I contact a mortgage broker?
You can contact any reputable mortgage broker any time, but it is recommended that you do so before you make an offer to purchase. This way you will know how much money you can borrow and what the repayments will be before you commit.
How much does a mortgage broker charge for a service?
A mortgage broker service is at no cost to you for most home loans. The lender pays them a commission to finalize a loan. Furthermore, the loan will not cost you any more when you go through a broker than it would going directly to the lender. How is this possible? If you go directly to the lender, they have costs to run the branch or office, etc. and pay their staff. By using a mortgage broker they can minimize these costs and pay the broker to finalize the loan instead. Moreover, as the mortgage broker has access to a much large number or range of lenders you can get a better deal. To show a fair transaction, they will always disclose their commission, so you can have confidence in their services.
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