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Why use a Mortgage Broker?

Why You Should Use A Finance Broker

Many people wonder why they should use a Mortgage Broker instead of dealing with a Bank direct.

Even though there are thousands of Mortgage Brokers across Australia, what they do and the value they provide is not well understood.

Whether you’re looking to buy a home, finance renovations, or build wealth through property investment, a Mortgage Broker can help

Mortgage Broker Advantage - Can I Get the Money?

When you decide to buy a new home, upgrade, or purchase an investment property, the next questions that typically arise are:

  • Will I be able to get the money?
  • How much time will it take?
  • What are the likely pricing, fees, terms and conditions?
  • What information will I need to provide?
  • Who should I talk to?

The answers to these questions will be determined by:

  • Your specific situation
  • How quickly you can provide the information required by Lenders

A key advantage of using a Mortgage Broker is their ability to match your individual circumstances, to Lenders with the most competitive offers, terms and conditions.

Because a Mortgage Broker has access to many Lenders and understands the market, they are well placed to provide guidance around the prospects of approval and likely pricing, terms and conditions.

Mortgage Broker Advantage - More Options & Negotiating Power

Negotiating with large financial institutions can be daunting, and most people have limited leverage.

However, the market access delivered by a Mortgage Broker means Lenders compete for your business. This changes the dynamics and levels the playing field.

For example, at The 500 Group, we have access to approximately 36 Lenders, which includes all the major Banks.

This provides our clients with more options and invariably delivers better outcomes than they could achieve alone.

The Home Finance Handbook Updated - Mortgage Finance

Mortgage Broker Advantage - Selecting the Best Option

The home finance market has expanded dramatically over the last decade, with many new players entering the market.

This has resulted in increased competition and a diverse range of offers.

Competition has many advantages; however, the sheer volume of different products, pricing, and policies can cause confusion and overwhelm most.

While the interest rate is obviously important, other factors to consider include:

  • Possible fees or charges
  • Differing Offset Account arrangements
  • Choosing between fixed and variable
  • Cash-back deals that might be available
  • Plus more

As a Mortgage Broker, I enjoy undertaking the research on behalf of our clients to find the offers that best fit with their needs, then presenting this to them so they can make an informed decision.

Avoiding Undue Delays and Frustration

Many borrowers are surprised by the amount of information required to support a loan application & the granular detail involved.

If elements are missing or it is done in a piecemeal fashion, the result is unnecessary delays and frustration.

At The 500 Group, following our initial meeting, we will provide our clients with details of all information that will be required by Lenders and in what format.

When it is to hand, it is then:

  • Analysed (Are there any information gaps, or elements which if addressed before approaching Lenders, that could deliver a better outcome)
  • Collated to ensure we can present the finance request professionally to potential Lenders

Preserving That Valuable Resource - Time!

A major benefit of using a Mortgage Broker is the time saved:

  • Analysing & collating all information required by Lenders
  • Undertaking research & comparing offers
  • Negotiating with Lenders
  • Preparing the Finance Application and submitting it for approval
  • Managing the process through to settlement

A Mortgage Broker gives you back that precious commodity no one can create more of; time!

How are Mortgage Brokers Paid?

Mortgage Brokers are paid by Lenders for the finance opportunities they introduce, and which are settled.

Lenders do this because Mortgage Brokers absorb the cost and time of sourcing and managing the opportunity, which would otherwise be borne by their staff.

You can find out more about Mortgage Brokers on the Money Smart website.

Summary

While approaching Lenders directly is an option, understanding and effectively evaluating the different offers, can be challenging and involve a significant time investment.

By using a Mortgage Broker, you relieve yourself of this burden, and open the door to more choice and the benefits that market access provides.

If you are thinking about finance and would like to learn more, don’t hesitate to get in touch.

Carlo Colangelo - The 500 Group - Mortgage Finance
Carlo Colangelo - The 500 Group - Mortgage Finance

Carlo has a background in Senior Relationship Management, Private Banking and Mortgage Broking finance of over 30 years.

He enjoys helping clients successfully navigate the world of home and property investment finance to access the finance they need.

Carlo Colangelo is a credit representative (530636) of BLSSA Pty Ltd ACN 117 651 760 (Australian Credit Licence 391237)

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