Aug 17, 2018 10:24:47 AM

Using a broker vs. going direct

Topics: Mortgage Broker, Home Loan, lending options, Australia Mortgage, Tips for buying, Home Loan Advice 0

According to data sourced by the Mortgage & Finance Association of Australia (MFAA), consumer confidence in mortgage brokers is growing, with over 55 per cent of Australian home loans now underwritten by mortgage brokers. And it’s not hard to see why! With access to a panel of lenders, market and industry know-how, and the ability to negotiate on your behalf, it makes sense to work with a mortgage broker.

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More choice

Traditionally, most Australians simply got in touch with their bank when applying for a home loan, seeing it as a safe option. These days, consumers are switched on to shopping around for the best deal, and are working with mortgage brokers to source a financial solution that fits their specific needs, instead of simply contacting their bank.

Banks can only offer you their lending products, whereas a mortgage broker has a panel of lenders and products to choose from, providing you with a much greater selection and a better chance of securing the deal by only applying with the lender most likely to approve your application. The end result is you save time and avoid unnecessary credit enquiries listed on your credit file.

Credit experts

By working with a range of home loan products, mortgage brokers develop a sound understanding of credit policies and lending conditions. Through their experience, they understand complex situations and know that many borrowers often don’t fit into banks’ tick boxes or lending criteria.

They’re adept at helping complete loan applications that highlight your strengths, often making the difference between being approved and being declined. And more importantly, mortgage brokers know when and how to negotiate on your behalf, largely down to the relationships they’ve built up with the lender.

As your one point of contact, mortgage brokers can usually answer all of your questions without directing you to various departments, which makes communication that much simpler. 

Technically free

Most mortgage brokers earn a commission from the lender which means you don’t pay them directly. What’s more, under the Mortgage and Finance Association of Australia’s National Consumer Credit Protection Act, mortgage brokers are in fact compelled by law to reveal the details of their commissions in a disclosure document.

With all this and more, why wouldn’t you work with a mortgage broker instead of going direct? 

If you haven’t already benefited from working with a mortgage broker, contact Mortgage Express and we’ll put you in touch with one of our team. We’re located countrywide and our experienced team of mortgage brokers have access to a wide range of lenders and home loan products.


Disclaimer:

While all care has been taken in the preparation of this publication, no warranty is given as to the accuracy of the information and no responsibility is taken by Finservice Pty Ltd (Mortgage Express) for any errors or omissions. This publication does not constitute personalised financial advice. It may not be relevant to individual circumstances. Nothing in this publication is, or should be taken as, an offer, invitation, or recommendation to buy, sell, or retain any investment in or make any deposit with any person. You should seek professional advice before taking any action in relation to the matters dealt within this publication. A Disclosure Statement is available on request and free of charge.

Finservice Pty Ltd (Mortgage Express) is authorised as a corporate credit representative (Corporate Credit Representative Number 397386) to engage in credit activities on behalf of BLSSA Pty Ltd (Australian Credit Licence number 391237) ACN 123 600 000 | Full member of MFAA | Member of Credit and Investment Ombudsman (CIO) | Member of Choice Aggregation Services.