Whether you’re a first home buyer in Sydney or an experienced property investor, there are good reasons to use a mortgage broker to help you get a home loan.
Here are five reasons you should talk to a Sydney finance broker:
1. You’ll save time and effort
If you use a mortgage broker, you can compare home loans from multiple lenders through a single point of contact.
In contrast, if you apply to multiple lenders yourself, you’d need to keep filling in application forms. You might also apply to lenders that reject your application, which would be a waste of time.
Mortgage brokers can also stay in touch with all the parties – like the lender and real estate agent – so you don’t have to.
2. You’ll get expert advice
Mortgage brokers have formal qualifications and are licensed by the Australian consumer credit regulator, ASIC.
They may also belong to professional associations like the Finance Brokers Association of Australia (FBAA) or Mortgage & Finance Association of Australia (MFAA).
Qualifications aside, mortgage brokers work in the mortgage market every day, so they’re experts in lenders, home loans and interest rates.
So if you’re a Sydney first home buyer, a mortgage broker in Sydney could be your mentor and help you handle the finance process.
And even if you’re an experienced investor looking for the best refinance home loan offers, a finance broker in Sydney could help you by discussing alternative ways to finance your next investment property.
3. You can compare multiple offers
Although you could apply to several lenders yourself and then compare the offers, it’s likely the lenders would each draw a credit report which might affect your credit score.
In contrast, the mortgage broker could unofficially present your application to several lenders to sound them out, and only submit it once the lender has indicated they’d be willing to make an offer. This could not only save you time, but also preserve your credit score.
4. You can save money
Mortgage brokers work with a large, diverse group of lenders, so they can shop around for their clients and help them secure competitive interest rates.
The best deal for your situation might turn out to be with a lender you’ve never heard of – but that the mortgage broker regularly works with.
5. You’ll have an ongoing relationship
Once your home loan is in place, you shouldn’t just pay it and forget about it. Instead, you should check every few years if the interest rate you’re paying on your home loan is still competitive.
Many factors can impact the interest rate you’re offered like:
- Your credit score
- Your income
- How much debt you have
- The size of your deposit
- Your employment history
- The property itself
If your financial position improves – for example, you get a raise or the value of your property increases – you might qualify for a lower interest rate from the same lender. You might also find that another lender is offering a comparable loan at an even lower rate.
If you contact a mortgage broker, they can reexamine your financial situation and help you refinance your home loan with a great lender.
Mortgage brokers may also take the initiative to reach out to you to refinance your home mortgage, when:
- Lenders have special offers
- Property values in your area have increased
- You stand a good chance of getting a lower interest rate than you’re currently paying
