November 29, 2012
When it comes to buying a home, there many questions that play on the minds of Australian property buyers. One of the most common is how do I find the best home loan deal? As competition for the home loan dollar has heated up, it’s become an increasingly confusing area, surrounded by contradictory information – and, to be frank, misinformation.
To help clear the confusion, we'd like to answer some common questions and set the record straight on key misconceptions about mortgage brokers and their role in helping Australians find the best home loan deal for their needs.
“Buying a property is a big decision. It doesn’t matter whether it’s your first, second, or third home, you will always have some serious questions, and at times, doubts. You also face a barrage of information about the property and mortgage markets that can make such an important decision seem overwhelming. Thankfully, there are experts who can help you through the process,” said Mortgage Choice Greensborough franchise owner, Hannah Fox.
“Mortgage brokers can help you with researching and comparing your home loan options from a wide range of lenders all in the one visit and, more often than not, at no cost to you. To some people this sounds too good to be true, which could be why there is some confusion about exactly what our role as a mortgage broker is in helping you find the right home loan.”
Here, Mortgage Choice answers five commonly asked questions from Australian property buyers:
1. How do I find a home loan that’s best for me?
To ensure you’re getting the best deal for your needs and financial circumstances, it’s important to have a realistic budget and clear financial goals in mind before you set out researching the home loan market. You want to compare your options from a wide range of lenders and consider all aspects of a home loan such as the interest rate, fees, features and flexibility to find a competitive deal that matches your goals.
2. Am I better off searching for the loan myself or relying on someone else?
For those that want to take control; searching for a loan themselves via word of mouth, comparison websites such as HelpMeChoose.com.au and visiting a range of lenders is a great starting point. However, this takes time, the information may not be current and you may not find answers to complex loan questions about your individual circumstance and needs. This is where an expert like us can help!
3. What is the benefit of using a mortgage broker?
The help of a professional mortgage broker can save you time, effort and often money. Mortgage brokers take the legwork out of finding the most suitable home loan for your needs by searching the vast array of options available through their particular panel of lenders. Professional mortgage brokers go the extra mile to negotiate with lenders to structure a better property finance outcome for your unique needs.
4. If the service is free, how do mortgage brokers get paid?
Lenders pay mortgage brokers an upfront commission for arranging a loan plus a trailing commission for looking after you, the customer, throughout the life of that loan. Customers can be assured that new legislation requires mortgage brokers such as us to always make lender and product recommendations based first and foremost on customers' requirements, objectives and financial circumstances.
5. Are all mortgage brokers created the same?
It’s the added extras that sort the best mortgage brokers from the rest. Stand-out professionals will leverage their lender relationships to secure interest rate and fee discounts, faster turnaround times and they will present evidence to negotiate more accurate property valuations. What also sets Mortgage Choice apart from other mortgage brokers is our unique 'Paid the Same' policy, which ensures that we get paid the same commission rate, regardless of the commission rate paid by the lender. This means we are always working in the customers’ best interest to find the best deal to suit their needs.