The interest rate comparison process can be a technical one and with fluctuations occurring at often unpredictable frequencies, it can be quite challenging for a home loan applicant to keep on top of them. Without finding out about the cheapest mortgage deals it can become far more likely that a more expensive option will be signed up to. Fortunately, mortgage brokers are able to take care of this technical task, but how do they do so in a different way to an individual applicant exactly?
Access to banks
All Australian banks are governed by the Federal Reserve Bank and as a result, they are often given guidelines for interest rates and other pieces of information that they will need to abide by. Many brokers have access to these banks as well as to their information and so it can become possible to source the most up to date rates and then put them to good use within a data file.
The ability to use dedicated software
These data files are often managed by dedicated comparison software. The software can allow a broker to gather and store the information sourced from banks and then place it neatly ready for their own comparison; or that of their client. These charts need to be updated consistently to ensure that the information is at up to date as possible.
Comparing collated information
With the data collated, the next step is for a broker to compare the information available. Some interest rates will be lower but might possess stricter factors to ensure that repayments are met. When comparing interest rates, it’s not just about finding the lowest price; but about evaluating the most ideal repayment plan for a client.
Helping with a decision
At this stage, the borrower will have the option of choosing one of the deals that they are presented with. Where rates of interest are concerned, most will opt for a rate that promises to remain fair for a set amount of time (as with fixed rates), or lower and more easily spread across future repayments. In any event, a broker should be able to help with the final decision and then be there when the borrower is ready to proceed with their application.