The Australian real estate market is changing. Sellers want more for their property and buyers seem less inclined to pay up. This situation has not been helped by changes in State and Federal budgets and the commentary around interest rates increasing in the next 6-12 months.
The uncertainty in the market is leaving lenders a lot more cautious, reflected in recent lender policy changes and the “cherry picking” of clients.
For first time buyers, obtaining a mortgage will involve some serious hoop jumping but a little help from a professional could go a long way…
Aside from helping with the often daunting and tedious process of applying for finance, a mortgage broker can ensure that the best-suited loan is matched to a first time buyer’s financial profile.
So what can buyers except to get from a mortgage broking service?
Researching loan types and lender policies can be a long and often overwhelming process, especially if you are a first time applicant. A mortgage broker can help save you hours of work by providing up to date industry knowledge and offering best practice advice.
Picking the right mortgage for your situation is crucial. A mortgage broker will generally have access to multiple lenders, of which, some may suit the applicants more or less, based on their current financial situation. Any recommendation made to the applicants will be made based upon the information provided, and on behalf of the lender with whom the mortgage broker feels offers the best chance of a successful application. In addition, brokers are up to date with industry changes, including policy and Government assistance.
No extra cost
Many people are unaware that most mortgage brokers do not charge a fee. Rather, they are paid a commission from the financial institution with which finance is eventually sought. Brokers, using specifically tailored mortgage comparison software, are able to show applicants first hand the different loan types available, the various interest rates on offer, lenders fees and other important features for comparison such as offset accounts and re-draw facilities. The broker acts, as more of a guide throughout the process, however ultimately it is the applicant’s decision on who to pursue finance with.
Having your application denied is a possibility. However, unlike the banks, a broker will take the time to get to know you and to understand your current financial situation. A good broker will gather as much information about your finances as they can; in order to ensure that you meet the selection criteria nominated lenders are looking for. The broker will, more often than not, be able to predict the likelihood of an application’s success, prior to its submission.
Mortgage brokers work for “you”. Their industry knowledge can save you time and money and make the finance process almost stress-free. The personalised service can give you the peace of mind that the choice you are making is the right one for you and with hundreds of companies in Australia, buyers have an oasis of choice.