Good mortgage brokers (also known as finance brokers or home loan brokers) can save you money, time, and a whole lot of legwork in finding and securing the best loan for your property. They can help you avoid some common pitfalls and ensure your home or investment loan is correctly structured. As mortgage brokers in Melbourne we understand our local market better than anyone and can offer a truly personalised approach to helping you achieve your financial goals and aspirations.
Here are just some of the benefits of partnering with a professional finance broker.
Save Money: How a broker could save you six figures over the life of your home loan
Based on your individual requirements, your broker will search through tens of lenders and hundreds of loan products available in the marketplace to find the very best option for you. This means you will receive the best possible interest rate for the type of loan you require, saving potentially thousands of dollars over the life of your loan.
If you already have a home loan, a broker could review and refinance your existing loan to potentially save you money. For example, let’s say you currently have a mortgage for $500,000. If you could refinance to drop your interest rate by one percentage point, say from 5.50% down to 4.50%, the savings over a 30-year loan term could exceed $100,000.00. And some home owners may save even more. As home loan brokers in Melbourne we understand the local median house price is now closer to $900,000, and for a larger loan amount the savings can really add up.
Save Time: You’ll save time on boring paperwork and maximise your chances of success
Filling out lengthy finance application forms is painful and boring—not to mention a waste of the valuable time you could better spend picking out furniture for your new home. Furthermore, your broker does this every day of the week and will help ensure all the i’s are dotted and the t’s crossed, and all necessary information is included before your application is lodged, maximising its chance of success.
Save Legwork: A broker can save you the legwork of comparing different banks
Good mortgage brokers have access to hundreds of different loan products from many different banks and financial institutions. At Marksman Finance, we have over 30 lenders and 500 plus loan products on our books. Can you imagine the time it would take to compare the merits of each product and find yourself the best mortgage deal on your own, without the help of a broker? Hiring a broker will save you a lot of legwork.
Save Your Credit: Avoid the trap of multiple consecutive credit checks ruining your chances
Did you know that multiple loan applications within a short timeframe can seriously damage your chances of success in securing a loan? Every time you apply for a loan, the lender will enquire on your credit record to ensure your credit history is sound. These credit enquiries remain on your record as evidence of your loan applications. Having a lot of enquiries within a short period of time doesn’t look good to potential lenders, who may begin to consider you an unnecessary risk.
Even if you have a great relationship with your everyday bank and want to give them an opportunity to win your mortgage business, you should avoid submitting any applications before you talk to your broker.
Structure Effectively: A broker can advise you on the best loan structure to suit your needs
Should your loan be structured as principal and interest, interest only, fixed, variable, split, with or without an offset account or redraw facility? How much can you really afford to borrow—accounting for future interest rate rises and other uncertainties—and how quickly should you pay it off? If you’re borrowing for business or investment purposes, who (or which entity) should be responsible for the loan, and how much security is required? How much of a deposit will you need?
Each of these questions and many more can be answered by a good finance broker. Structuring your loan correctly in the first instance could save you money and potential headaches in the future.
Free Service: A broker’s service won’t cost you a cent
This is really the best part—mortgage broking services are provided free of charge to the consumer. Your mortgage broker is paid on commission from the lender (which doesn’t affect the cost of your loan), so you only need to pay for any additional services you may request from your broker.
Want to learn more? Marksman Finance are your local finance brokers in Melbourne. Contact us to learn more about how we can help you achieve your financial goals.