Buying a home is the biggest single investment that many people will ever make. For this reason, it’s essential to get the best deal you possibly can when it comes to a mortgage. Although it is possible and indeed, quite popular, to get a mortgage straight from your bank, it does limit your choice. The same applies to using a mortgage broker recommended by your estate agent.
Due to the inflexibility and limited choice when it comes to getting a mortgage sorted out directly from a bank, more and more prospective homebuyers are turning to independent mortgage brokers due to the wide selection of mortgages they scour the market for. In turn, they find the best deal for your circumstances. For example, Mint Equity are an experienced Sydney mortgage broker who will find you the best mortgage they can, possibly saving you money in comparison to a mortgage from the bank. They can also be useful if you are self-employed or have bad credit due to their access to more flexible lenders.
ADVANTAGES OF USING AN INDEPENDENT MORTGAGE BROKER
There are a number of advantages in using an independent mortgage broker rather than applying directly to the bank with the main one being impartiality. They are not obliged to deal with any one lender but instead use their expertise and reach to find you the most suitable option. Please see below for other advantages of using an independent mortgage broker:
- They know the market well and, by the very nature of their work, know the best and latest mortgage products and deals.
- They are in contact with a network of lenders who are experienced in providing mortgages for unusual or less conventional applicants.
- They offer impartial advice and guidance throughout, acting as your advocate to the lenders.
- Due to their position in the market, they are sometimes able to get better deals than you would get going directly to the lender yourself.
THINGS TO BE AWARE OF BEFORE YOU CONTACT A MORTGAGE BROKER
Some mortgage brokers are tied to certain lenders. If you want the whole range of mortgage products available, make sure the broker is ‘truly’ independent. Some lenders do not deal with mortgage brokers and although this shouldn’t limit your choice too much, it’s worth bearing in mind. It’s also advisable to select a mortgage broker that charges the mortgage company and not you. Some mortgage brokers will also offer you building and contents insurance and although this may or may not be right for you, they do take a commission so it might be worth shopping around.
BEFORE YOU VISIT A MORTGAGE BROKER
Before you actually get in touch with a mortgage broker, a little prior research might be a good idea. Research the types of mortgage available, using online comparison sites may help. Take advantage of any free advice from any prospective mortgage broker. This will help you make an informed decision before signing on the dotted line.