If you’re thinking if taking out a home or investment property loan, you might be wondering whether you should use the services of a mortgage broker. The latest stats show that nearly 60% of residential home loan borrowers do.

Read on to find out why you should too.

What do mortgage brokers do?

Mortgage brokers help borrowers arrange home loans on behalf of borrowers. They act as a middleman between borrowers and lenders. A good mortgage broker:

  • takes the time to understand an individual borrower’s needs, goals and current financial situation.
  • works out the borrowing power of a borrower.
  • explains different home loan options and features to suit different borrowers’ needs
  • sources lenders that will be most likely to approve each individual borrower’s application
  • helps borrowers with their home loan applications.

The benefits of choosing a mortgage broker

Mortgage brokers can save you:

  • money,
  • time,
  • and hassle.

They can save you money by finding you a home loan with better terms, conditions and features than you may be able to source yourself.

Brokers understand the Australian lending market and the different products and lending criteria of different lenders. It’s crucial to research the market before you take out a home loan, but if you use a mortgage broker, that time-consuming work will already be done for you.

A good mortgage broker will also be able to explain all the home loan jargon to you in simple, clear language. There’s plenty of it!

Tips for choosing a mortgage broker

Before you choose a mortgage broker, make sure that the broker:

  • is licensed.
  • has plenty of positive client testimonials.
  • takes the time to understand your needs and situation before making any home loan recommendations.
  • has a large panel of lenders that they work with.

Questions to ask your mortgage broker

  • How many lenders do you work with?
  • Do you charge any fees?
  • Can you show me feedback from plenty of satisfied clients?
  • How much deposit will I need to provide?
  • Am I entitled to any assistance (such as the First Home Owners Grant, the First Home Loan Deposit Scheme, the New Home Guarantee or the Family Home Guarantee)?
  • Will I have to pay for lenders’ mortgage insurance?
  • Can you provide me with a written quote?
  • Can you explain different home loan options to me in simple, clear language?
  • Why are you recommending this loan and lender to me?
  • Are there any fees associated with this loan?
  • Should I take out any additional loan features (like an offset account or a redraw facility)
  • Can you help me with my home loan application?

About us

Our experienced and licensed brokers at Wisebuy Investment Group  can help you to find the right home or investment property loan for your needs.  We can also help you with your loan application. We service a diverse range of clients in Newcastle, Lake Macquarie and Maitland, and we work with more than 60 lenders in the Australian market.

Contact us today for an obligation-free chat!