With record low interest rates the hot topic on everyone’s lips, you may be wondering if it’s time for you to revisit your home loan.
If the answer is yes, then you’re ready for next steps. But wait, do you go direct to your current bank, a new bank or should you see what a mortgage broker is about?
So, what is the difference?
A mortgage broker acts as a ‘middle person’ between you and the banks, allowing you to identify the best lender for your unique situation.
A bank, or direct lender, is a financial institution that will decide if you qualify for a loan and hand you the money.
What happens if I go directly to a bank?
If you’re already a customer of a certain bank, you may feel like it’s easier to stick with them or you may already feel like you trust their service.
Taking out a home loan with the same lender you bank with will make it easier to set up automatic payments from your bank account as they already have your details.
However by going straight to your bank, you may miss out on comparing what else is on the market and finding more potential savings.
The advantages of using a mortgage broker
A mortgage broker can help you shop around. Not only will they help, but they’ll take the hassle out of shopping around.
They also work closely with a range of lenders and have a great knowledge base of deals and rates that the average home buyer doesn’t.
They will also collect your income evidence and other documents needed to provide as part of your application to the chosen lender and take care of the whole process.
Which option is better for me?
Ultimately, there is no correct choice. You’ll want your home loan application to be as stress free as possible, so choose the method you’re most comfortable with.
Just remember though a good mortgage broker will compare what’s on the market against what your current bank has to offer. If it’s in your best interest to stay with your current lender then a good mortgage broker should inform you of this.
If it’s in your best interest to stay with your existing lender then its most likely a mortgage broker will be able to arrange a slightly better deal with that lender as well.
Finding the right mortgage broker to trust can be hard, so it can be a good idea to ask friends about their experiences or read online reviews.
You can read our amazing reviews at Sunshine Coast Financial Solutions here.
Also, all mortgage brokers must hold an Australian Credit Licence (ACL) or be a credit representative under a wholesaler licence. This means they must not provide a home loan recommendation that will leave you in a worse off position as per the National Consumer Credit Protection Act (NCCP Act)
Remember at the end of day, brokers rely on their reputation so they will make sure you leave a happy client with the best deal on the market.