Why consider a mortgage broker?

There's often a culture of loyalty that has property buyers heading to their bank for loan, solely because they've been with since they first opened their savings account back in school. Sometimes, those looking to purchase also like to do all the legwork themselves, comparing loans and deciding which is best for them.

Undertaking all this legwork should always be something every investor or home buyer looks to do, however having a savvy broker on your team is a consideration.

Aussie Mortgage broker Renee Taggart explained that having a liaison between the borrower and the bank means that you might not have to be involved in the negotiations.

“There are many benefits of using a mortgage broker over a bank, with an obvious benefit being time saved by the homebuyers; a broker can do in minutes what may take a buyer several days to achieve in regards to comparing and choosing options,” said Taggart.

While investors will want to ensure they're choosing the right mortgage broker - that is, checking their credentials, their panel of lenders and their experience - it might just be a useful step to consider.

“A mortgage broker will research the best product and service offerings in the market, to enable buyers to find the solution that is right for them," she said.

“Brokers can guide buyers through what can often be a daunting process, and the best part is that they’re free! The costs for the broker’s service is borne by the lender that the buyer ultimately chooses to proceed with. ”

Five reasons to consider a broker
1.     Brokers do the legwork
2.     You have one point of contact
3.     You have on-hand support throughout the entire process
4.     They’ll get you the best deal possible
5.     It saves you time, money and stress

Source: Aussie Mortgage, Renee Taggart

There are situations where heading to a bank can get a better result, with one reader noting that they'd used a broker and, being self-employed, still struggled. They went and discussed their situation with their bank manager (in a regional area) and came to a solution.

While, typically, a payment is given to the broker by the lender, there has now become an increasing trend of pay-for-service from property buyers to brokers. This cost should be weighed against the potential benefit.

Jennifer Duke

Jennifer Duke

Jennifer Duke was a property writer at Property Observer

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