Every year thousands of people in Australia turn to the services of mortgage brokers when applying for loans on their homes. Mortgages, unlike regular loans, typically feature interest rates instead of APR (annual percentage rates). There are two types of home loan rates; the first being fixed and the second being variable.
Both offer their own individual disadvantages and benefits, and the ideal type will depend on an applicant’s preferences and financial situation. In either event a good mortgage broker can go a long way, but what is it that they will do to ensure that their clients receive the best deal on their loan, as opposed to the types proposed to people applying to lenders directly?
It’s all in the relationship
Most brokers will have dedicated years to establishing relationships with lenders, and the main benefit of this is that they will be able to offer exclusive deals and savings to their clients. Rather than approaching just one, or perhaps two, brokers for a quote on their current deals, they will instead select a variety of suitable candidates when finding low interest rates.
Once a selection of rates have been sourced, the next thing to do will be to compare them and narrow the choices down. At this point, a good broker will get in touch with their client and present the results of their findings. The purpose of this phase is to allow the applicant to identify the types of offers that they may like the sound of, before requesting that their broker puts forward an application on their behalf, or returns to the lender for negotiations.
The latter option can be a great advantage, especially as many lenders will be willing to drop their rates, or offer exclusive deals in a bid to get new clients on board. With the help of a broker, the entire process can be handled by an expert, whilst offering the best results for an applicant. Considering the duration of an average mortgage, it makes far more sense to come to a suitable deal on interest rates, as opposed to settling on one that could leave the applicant out of pocket in the future.