By Louisa Sanghera, Director, Zippy Financial
Usually, the first time that people learn about mortgage brokers is when they are trying to enter the property market. But… we are more useful than just helping you get a home loan.
Here are a few ways a mortgage broker can save you money, time, and stress.
Mortgage brokers can get you a better deal than a bank
Getting a mortgage with your bank is not always going to be the best way.
Your bank has a handful of home loan options, but a mortgage broker has access to hundreds or even thousands of home loan options as they have access to lots of lenders.
They could get you a cashback offer, a cheaper interest rate or a package deal that saves you money on other things such as credit card fees.
Mortgage brokers provide independent advice
Banks are in the business of selling products – which is the way they make money – a mortgage broker wants to earn money but recognises that the best way to operate is to build long-term relationships with their clients.
This means helping clients to pay off their debt faster, providing independent advice around loan structures and suggesting products that are in the best interests of the client.
This is not just good business practice, but it has now become law. Mortgage brokers must act in the customer’s best interests and legally cannot suggest a loan unless it is a good match.
Banks, on the other hand, are not held to the same legislation, which is why it really pays to work with a mortgage broker.
Mortgage brokers save time
Researching the mortgage market takes a lot of time and effort, whilst a mortgage broker can save you this hassle.
They focus on getting the best deal at the beginning of the property journey and will work with their client’s overtime to make sure that they are all still getting the best deal.
Mortgage brokers do regular check-ups every year on the borrowing status of all their clients to ensure that they are not paying too much interest.
This is a service that mortgage brokers provide at no cost and could save thousands of dollars every year!
Mortgage brokers help you grow wealth
Good mortgage brokers recognise that building a long-term relationship is not just about getting a good deal on a mortgage right now but setting up the best possible structures with a clear road map to achieve all future goals.
This may be upgrading to a bigger home, investing in a holiday home, building an investment property portfolio or renovating to build equity. Whatever the goals are, a mortgage broker can help to work out what the borrowing capacity is now and what it could be in the future.
Here are just a few things mortgage brokers do to help their customers and remember – they don’t charge anything for their services! Mortgage brokers are paid by the banks in the form of commission, which is the compensation for managing the loan process and introducing new clients to the bank.
Mortgage brokers will also work to show how to take advantage of interest rate specials with different lenders when they become available, advise on how to prepare the application for the best chance for approval and be a source of independent advice, to help work out the next steps.
