Mortgage Broker

5 Reasons to Use a Mortgage Broker

Using a mortgage broker is something that thousands of potential buyers consider every year. With a great variety of services and features available, even the most simplistic broker could help a home buyer to save money, enjoy low interest rates and refinance their mortgage. Here are 5 reasons to use a mortgage broker if you haven’t before.

Reason 1 – Finding the cheapest interest rates

Bank rates are prone to fluctuating from time to time. With so many lenders trying to offer their own take on rates of interest, it can be quite hard to find the lowest and be sure that it’s the ideal solution for your financial situation. Where a broker can come in handy is in their ability to source information on the cheapest deals available and then set about comparing them.

This can help you as a buyer to ensure that whichever mortgage you decide to apply for – you do so with a bank that is keeping their rates at the lowest possible amount.

Reason 2 – Negotiating with banks

Some brokers will have developed their own working relationships with banks and in these cases, their access to internal contacts can be very useful. Even those that don’t have this access can help with negotiations, as they will typically be able to propose alternative terms on behalf of you as their client.

These terms may not be accepted – but considering that you are a viable borrower, the bank may be more willing to reduce particular fees, or overlook surplus charges to get you on board.

Reason 3 – Comparing home loan deals

Another major advantage of hiring a mortgage broker in Melbourne is their ability to compare the differences between deals on home loans. This could be done from home and by you – but the time that it would take to collate this type of information can be very expansive. As many brokers have access to databases and pieces of information that can help them to stay on top of the latest deals; your search time could be minimised.

Once a good deal has been found, the only thing left to do will be to decide on one and then move forward with an application.

Reason 4 – Helping you to re-mortgage

For those of you that already have a mortgage and may be considering your options as far as minimising your expenses are concerned, you might have heard about the potential to re-mortgage. This process involves approaching a bank (which can be the same one or a different one) and then asking them if it would be an option to re-calculate your loan in favour of a cheaper solution.

Mortgage brokers can typically help with this process and at the very least they should be able to assist you with properly preparing your documentation ready for a submission with your local bank.

Reason 5 – Equity benefits

Another major advantage of using a mortgage broker when it comes to those of you that already own a home, is the potential to receive a more comfortable deal on your equity release. Your LVR (loan to value rate) may allow you to receive the difference between your purchase price and the current value of your home in ‘credit’. This is called equity and although it is technically yours to enjoy – banks can charge to allow you to have access to it.

And this is where a broker can come in handy. If they can negotiate with a bank on your behalf, the interest that your lender adds to your equity repayments can be much lower – and this could free up more cash for you to enjoy. So contact your local broker and see what they can help with.