If you need a home loan, or want to refinance an existing home loan then you might want to consider using a mortgage broker. A good broker can save you time, and offer expert advice, can do most of paper work for you, will try and match you to a loan product given your circumstances and future requirements, a good broker is usually very accessible, and what’s more, their services are usually free.

The following guide explains what a mortgage brokers can do for you, the benefits of using a broker, and tells you the most important things to consider when dealing with a broker.

A mortgage broker is very much like an insurance broker in that they will:

• identify your requirements;

• identify mortgage options that meet your requirements;

• act as your advocate in negotiations with lenders; and

• arrange all paperwork necessary to secure the mortgage.

Effectively, in a market where you are literally spoilt for choice, the role of a mortgage broker is to wade through the good, the bad and the ugly and ultimately arrive at a solution that best meets your current and future needs.

What are the benefits to me?

It’s Free!

There aren’t many things in life that are free, but mortgage brokering (for the most part) is one of them. Brokers earn their living via commissions on each mortgage they secure. This benefits the customer who does not have to pay a cent for expert advice and assistance. A good broker will evaluate your current and future needs and suggest a loan product to suit.

Time Savings

A borrower today has a large selection of lenders to choose from. If you don’t have the time to go through the terms and conditions of each lender, why not let a mortgage broker do the work for you? Once you have your loan approved, most brokers will manage the whole process from completing most of your paperwork, to liaising with your solicitor, the lending institution, to arranging the settlement and finally completing the settlement.

Expert Advice

Mortgage brokers, like other professionals, are experts in their field. As subject matter experts, a good broker know the mortgage market intimately and are able to provide you with best advice regarding the options available to you.

Capitalise on the Broker / Mortgager relationship

Mortgage brokers have a close relationship with the lenders and as such are able to get things finalised faster than if you approached the lenders directly. For example in one particular case an individual had applied for a loan directly with the bank, but was rejected. On advice from a friend this individual decided to approach a broker as a last resort, who was able to secure this individual a loan with the same bank in less than 2 days.