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Why Use A Mortgage Broker.

Before we start explaining why you should use Your Finance Group Pty Ltd to assist you with your home loan, let’s look at why you should use a mortgage broker.

Making the wrong choice about your mortgage can cost you tens of thousands of dollars more in the life time of the loan. Some mortgages are not interest rate competitive and could be awash with additional fees and charges. It’s all too easy for a person to get tripped up because they are not experienced to know what to look for and what to evade.
 
The costs savings is what makes a lot of sense to go with a mortgage broker.

In the past (way past) if you wanted a loan you would drop into see your local bank manager for a chat.
As recently as the early 2000s a good percentage of most mortgages were taken out directly from a bank or building society. Now days with a proliferation in home loan lenders and an increasing distrust of bigger banks, almost two thirds of all home loans are taken out by Mortgage Brokers.

It is possible this figure may grow to 75% in the before the end of this decade.
There are many reasons people prefer to use mortgage brokers than going direct to a lender.

Choice

The biggest advantage of a mortgage broker over a bank is choice. When you sit in front of your bank manager you are sitting in front of one lender and maybe three or 4 home loan products.
When you sit in front of a mortgage broker, have access to multiple lenders, at times 50+ with hundreds of different home loan all with different rates, fees and policies. You have access to all of them through your mortgage broker.

Experience

Banks are huge organisations transferring their staff around often. The good staff tend to end up in head office. Their experience dealing with home loans and you may only at times be short.

However, with a mortgage broker home loans are their life blood. They are often operating under their own business and are committed to you the client for the long term.

It’s a mortgage brokers job to know everything that is happening in the home loan market. It is a fast paced industry, changing all the time.

Personal Banker

Personal Bankers with the lenders change all the time. Whilst they look after you, they are committed to their employer and most do the best thing for them (if they want to keep their job).

Your mortgage broker as the best personal banker you could have. They know their stuff and they are committed to getting the best for you as they want to keep you as a client for the long term. They have the experience to know what needs to be done and they get it done because it’s their own business.

Savings

One key reason is the hope to find the best priced deal amongst more than 50 home loan lenders. With some home loans a suite of fees and charges, such as application fees, valuation fees, solicitor fees, settlement fees, monthly and annual charges. They all add up and they can end up being very expensive. A mortgage broker can help you select a lender and product that has less of these fees and still have a very competitive interest rate.

Different Lender Policies

Another key reason is it is harder to borrow now with increased restrictions and monitoring of lenders by federal agencies. People who in the past may have had their loan application approved, may now find it declined as lenders are forced to delve deeper into a loan application.

Lenders are required to ask more questions and search deeper into past credit history and transactions on your accounts. A mortgage broker can check out an applicant’s loan application first and then search a lender to find out which lender is more likely to approve the loan application under their policies.

Convenience is another factor in the growth in mortgage broking. Whereas you may need to wait days to get to see your local home loan officer at your bank at a time convenient to them.

Now you know why you should use a mortgage broker, find out why you should use Your Finance Group Pty Ltd.

Contact us.

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