Australia has got one of the most competitive lending markets in the world, with more than 100 lenders offering thousands of different home loan products.
Which is great news … except for the fact it can make it pretty challenging to figure out which is the right home loan for you. Where do you even begin?
Enter your new best friend: a good mortgage broker.
But what exactly is a mortgage broker – and why should you use one?
What’s a mortgage broker?
Think of a mortgage broker as a matchmaker. Their job is to find you the home loan that best suits your individual circumstances. To do that, they:
- Assess your financial needs and goals
- Work out what you can afford to borrow
- Find you options to suit your situation and help you compare them
- Manage the application process all the way to settlement
How a good mortgage broker can help you.
Around six in every 10 new home loans in Australia go through a mortgage broker.
So why is it such a popular way of arranging a mortgage, when there’s nothing they do that you can’t strictly do yourself?
Well, it’s because mortgage brokers can:
- Save you time and hassle – as they do all the ‘shopping around’ on your behalf
- Find you a great deal on a home loan – saving you a significant sum in the process
- Explain how each loan works – so you know exactly what you’re signing up for
- Walk you through the application process – to increase your chances of approval
- Protect your credit rating – by protecting you from failed applications
As a first home buyer, you can also benefit from their in-depth knowledge of government incentives that can get you on the ladder faster, such as the:
- First Home Loan Deposit Scheme
- First Home Owner Grant
What’s more, brokers are legally obliged to work in your best interests or risk fines of $1 million.
Do you want expert advice about buying your first home? Property AU can help. Contact us anytime for more information on 1300 771 911.
