Oct 19

In Australia, what does a mortgage broker offer you?

Published in new car loannew car financemortgage brokerhome loan financehome financecheap home loan by Vicky Edema
While the banks have been trying hard to undermine the role of a mortgage broker in the new home loan application process, there is no doubt that borrowers who utilise the services of a mortgage broker are much better informed and invariably obtain a home loan that is better suited to their needs.

If a home loan borrower approaches their own bank for a home loan one would hope that the bank will offer them the best deal they have available for that customer. A mortgage broker can offer exactly the same deal to a borrower but in the process the mortgage broker also provides the home loan borrower with a multitude of choice in loan product. What home loan borrowers fail to realise is that banks are driven by profit. You will never find a bank recommending a loan product available from a competitor even though they know that the product is either better priced, better featured or both!

This is where the services of a professional mortgage broker in Australia are invaluable. The mortgage broker is not driven by profitability. Mortgage brokers are independent. They are not pushing one product but have access to a wide range of home loans and generally receive the same commission no matter where they place the home loan application. Furthermore, the mortgage broker is a specialist in his or her area – you are not dealing with a bank employee who may have a general knowledge of the bank’s products and services but does not have the same qualifications of a mortgage broker. Today a good mortgage broker will be a member of an industry body such as the Mortgage Finance Association of Australia and as such is required to undergo continuing professional training and pass tests concerning the laws relating to mortgage broking and the home loan application process.

Sure, the mortgage broker wants to earn a living and make a profit but he does this on the basis of his accessibility to a wide range of excellent products and the referrals he hopes to receive when he looks after his clients interest by ensuring that he or she recommends or suggests the most appropriate loan for a particular home loan applicant. A mortgage broker who does not act in the best interests of his clients will not stay in business for long. A dissatisfied customer can be the ruin of a mortgage broker while a less than happy bank customer will have little impact on the banks profitability or on-going business.

By all means check out what your bank has to offer but before submitting a loan application speak with a mortgage broker first. It would be most unusual for the mortgage broker not to be able to find you a better priced and featured loan. Because the mortgage broker is a specialist, he will be up to speed on which lenders have special offers going which could you save you thousands of dollars over the term of your loan. By dealing with some mortgage brokers you can also be helping a worthwhile charity. Recently some mortgage brokers have taken the initiative and partnered with a charity to provide them with on-going income out of their margins – with no increase in the interest rate or fess to the borrower. These mortgage brokers are not just providing you with an excellent service they are also small but very good corporate citizens.
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