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What you probably don't know about mortgage brokers

Shopping around is the key to getting a good deal on any purchase, which is why mortgage brokers continue to gain popularity with financially savvy borrowers. Choice and convenience are major reasons why 40% of all new home loans in Australia are sourced through brokers.


September 29, 2010

Shopping around is the key to getting a good deal on any purchase, which is why mortgage brokers continue to gain popularity with financially savvy borrowers. Choice and convenience are major reasons why 40% of all new home loans in Australia are sourced through brokers.

The latest Mortgage and Finance Association of Australia (MFAA) / Bankwest Home Finance Index saw respondents list the top three benefits of using a broker as doing all the legwork (77%), having a wider loan range (75%), and being experts in a range of mortgages from numerous lenders (73%).

However, few people are aware of the great lengths a broker's valuable service can extend to. There are extra efforts made on behalf of their customers that most wouldn't ever expect.

Australia's largest independently-owned mortgage broker, Mortgage Choice knows that satisfying each borrower's unique needs involves much more than sifting through loan options.

Company spokesperson Kristy Sheppard said, "Professional mortgage brokers often undertake work on behalf of customers that go well beyond catering to fundamental borrowing needs. Not only do they source a loan suited to individual needs and circumstances, they put in substantial extra legwork at no cost. People are usually unaware of what this entails unless they've experienced it."

"Knowing what your broker is or is not doing will really help you set apart the best from the rest. Stand-out brokers don't just go to great lengths to ensure the loan search, application and settlement process is stress free.

"They also negotiate with lenders while liaising with a real estate agent and solicitor on your behalf. Importantly, a broker should bring to your attention any potential for an interest rate or fee discount and negotiate it for you. Many borrowers don't realise such things may be possible.

"These are not the only bargaining tools used to help their customers save money. I know brokers who put great effort into going in to bat for higher property valuations when needed for equity purposes, by sourcing comparable sales data for a particular area to prompt a reconsidered valuation.

"Once the loan application is submitted it's often thought a broker's job is done. This is not the case. Carefully tracking its progress enables them to escalate potential problems before they impact on the approval outcome. This is vital in a competitive property market as delays can see buyers miss out.

"Extra free services brokers regularly provide include submitting state/federal grant and concession applications, organising rental lodgings for a customer who's between selling and buying, running seminars, sourcing property reports, educating about loan structuring and home loan health checks.

"Also, a professional mortgage broker will not charge customers for their services and will not be swayed by higher commission rates paid by particular lenders. If a broker doesn't offer these benefits then perhaps it's time you shopped around for one who does."

MFAA CEO Phil Naylor said, "It is important for consumers to seek out an 'MFAA Approved Broker', whose professionalism and education standards are a key differentiator. A good mortgage broker can navigate and resolve a range of issues on the borrowers' behalf."

 

For further information or to arrange an interview, please contact:

Belinda Williamson                                                                  
Mortgage Choice                                                
(02) 8907 0472  or 0407 416 124               
belinda.williamson@mortgagechoice.com.au


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