Should you use a mortgage broker?
Acquiring a mortgage is easily one of the biggest commitments that you’ll be making in your adult life, and as such it behooves you to make a decision on your mortgage responsibly and it requires you to take your time, and do your research.
Remember that a difference in 1-3% on the scale of a mortgage can mean a few thousand dollars – you don’t want to hastily rush into an agreement, only to find out you could have been paying thousands of dollars less, just by paying a little extra.
In your journey to getting a mortgage, whether it’s your first or your tenth, you’ll eventually ask yourself, “Should I use a mortgage broker?”.
Well here are a few things to think about to help you make your decision.
What exactly is a mortgage broker?
A mortgage brokeris someone who is an expert in the field of buying home loans for other people. They know exactly which rates certain houses should be going for, and where best you should apply for a mortgage for that home.
They can offer you support in your decision, and offer crucial advice to help you find the best deals on the market.
If you’re in Australia, over half of all mortgages are acquired by mortgage brokers. So you know that there are people out there ready to help you.
What do mortgage brokers do?
A mortgage broker will take a look at your unique situation, including your finances, your needs in the housing market, and your aspirations moving forward, and use that to paint an idea of what mortgages you should be looking for.
Maybe you intend to keep this property until retirement? Maybe it’s just for a few years? Regardless they’ll take your needs and apply them to their financial expertise. Check here !
Once they’ve done this, they’ll act as a link between you and the seller of the loan (most likely a bank) and work to get you’re the best mutual deal.
It should be noted however, that a mortgage broker will normally work on the side of the bank, so don’t take everything they say literally – as perhaps they may have more allegiance to their bank than to you, the buyer.
What should you ask your mortgage broker?
How much is their fee?
It’s important to shop around, even for your broker. Many different brokers are out there, and they all offer different services, be sure to pick the one that’s best for you, taking into account that you’ll be forking out a lot of money for your mortgage – a little extra to find a good broker will do you amazing favor in the long run.
Are they a member of the MFAA?
This association is the highest mortgage broker body in Australia, and to be a member of it you must adhere to a strict Code or Practice. Asking your broker this can help ascertain as to whether they are reputable.
How many lenders do you work with?
If they only communicate with a few institutions, it may be an indication that they are unwilling to put in the serious effort needed to acquire a suitable mortgage for you. They may simply have deals with these few banks that offer them great rates.
More so, if their research isn’t going to be extensive, you can do it yourself!
Where can you find a mortgage broker?
Even if you’d prefer your mortgage brokers Melbourne based (or wherever in Australia you happen to be, you can head on over to www.mortgagebrokerco.com.au and they’ll offer you a variety of different services to help you find what you’re looking for.