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4 little-known benefits of using a mortgage broker
Mortgages can be confusing at the best of times. Add in a myriad of lenders offering different rates with various benefits, plus an extremely cautious banking system, and it may be easier to get an expert in – so what are the advantages of a broker?
4 little-known benefits of using a mortgage broker
Mortgages can be confusing at the best of times. Add in a myriad of lenders offering different rates with various benefits, plus an extremely cautious banking system, and it may be easier to get an expert in – so what are the advantages of a broker?
Founder and CEO of Melbourne-based mortgage brokerage Blank Financial, Bernard Desmond, considers the use of a mortgage broker as a “no-brainer” for anyone looking to take out a loan.
“If you don’t use a broker, you’re using a bank or a lender. Why will they say that their competition has a better offer?” he queried.
Noting “a lack of knowledge and awareness on how brokers get remunerated” as just one reason why Australians may not consider seeking out a broker, he shared a number of benefits he believes are largely unknown to first-time borrowers or anyone who hasn’t ever used a broker before.
Here are the mortgage broker’s top four reasons why taking the broking route is a good option for anyone looking to take out a loan or refinance an existing loan.
- They are usually free
According to the broker, his most commonly asked question from new clients is: “Who pays you?”
In most cases, Mr Desmond flagged that customers don’t have to pay to avail the services of a mortgage broker.
“We get paid by the successful lender for introducing your business to them. Our professional service to you is free.”
- They are specialists
“It’s not about taking papers and forwarding to the bank,” he explained.
“Good, experienced mortgage brokers are specialists who understand lending policy, product and processes.”
“We are professionals,” he added, noting brokers as professionals who know the mortgage market “inside out”.
From Mr Desmond’s perspective, “a good broker will diagnose your requirement first before prescribing any lender”.
“With a specialist skill set [acquired by] doing hundreds of loans a year, an experienced mortgage broker knows the lending policies inside out and can help you navigate the complex maze of products and policies.”
He said this helps broker clients avoid mistakes, save time and money, and makes the home buying process less stressful.
- They are independent
Mortgage brokers will have the best interests of their client – you – at heart.
“In comparison to mortgage brokers, direct bank sales staff are simply selling you a product. They cannot offer you anything other than [from] the employer they work for,” the broker advised.
While banks sell products, Mr Desmond said brokers do not – “they understand the requirements and then focus on ‘service’ to the client.”
- They are real people
And generally small-business owners!
According to Mr Desmond, people seeking out mortgage brokers can expect an adviser to provide “good old-fashioned customer service where customers are treated as people and not numbers”.
He commented that it’s not a helpline – when you work with a mortgage broker, you won’t be speaking to a different person every time or dealing with a bank branch where staff may rotate through.
Like a “matchmaker”, Mr Desmond said brokers work hard to understand an individual’s requirements and objectives, “and then match you to the right lender”.
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