If you live in Australia it is easier to choose a mortgage broker as it is not you, as the buyer, that will pay their fees. In most other countries where the buyer has to pay the mortgage broker’s fees, buyers probably look around to find one that is the cheapest but in Australia, as the lender pays, the fees charged by the broker are of no concern. This obviously means that Australians can choose a choice Mortgage broker without regard as to how much they may charge.
Being able to get the services of a mortgage broker without any charge is very beneficial as brokers can save you a lot of time, hassle and stress. Having gotten yourself a broker, you then tell them what type of house you would like and they in turn ask for your financial details. Armed with those two pieces of information, a broker will look for a house for you that will be in a price range that you can afford. Once you have agreed to the broker’s choice of house, the broker will go to the various lending establishments to find you the loan that you require. As the brokers know all the better lenders, they will more easily and quickly know the right one to go to with your specific requirements and will proceed to get you pre-approval for the necessary loan. As the brokers are very experienced in these matters, they will be able to explain all the small print which accompanies the loan and thereby ensures that you know exactly what the conditions of the loan are before you actually sign.
As most of us are very unfamiliar with home loans, some of the conditions or wordings on the loan documents are a little confusing and without the assistance of a broker, we may sign an agreement without knowing all the subtleties that go with it. That plus the ease and speed with which the mortgage broker can usually get the loan completed saves a lot of stress and frustration for the buyer.
In Australia today it is thought that upwards of 50% of loans are completed by brokers on behalf of buyers and that number would probably increase if people realized that the brokers can help with other loans apart from just home loans. As the brokers are dealing with the lending establishments all the time, they are also the best people to go to for assistance if you need a business loan or personal loan, as well as home loans. To ensure that brokers can be trusted, they are regulated by the Australian Securities and Investments Commission who insist that brokers are financially responsible for any misleading information that they may pass on to buyers. Some brokers have today become members of stature in business with some even being accredited by the Mortgage & Finance Association of Australia (MFAA), a very prestigious organization.
With all the benefits of using a mortgage broker and no expenses to be paid, it will not be surprizing to see that more than 50% of loans in Australia are facilitated through their services in the future.