5 Top Benefits to using a Local Sydney Mortgage Broking Firm

The decision to buy a house and to arrange for its finance is an important one. These will have lasting implications for your way of life and your expenses in the decades to come. Therefore it is good to choose wisely.

We will provide for you the top 5 benefits of using a local Sydney Mortgage Broking firm:

What Options Do You Have?

The first important choice you will have to make is should you go directly to a mortgage lender or choose the indirect approach of using a mortgage broker.

Let us imagine that you live in Sydney. What are your options? You may go directly to a large international bank. Or you may choose a large national bank. You may opt for an online mortgage loan from one of the digital lenders. Or you may choose a local small lender. Local / international? Small/large? Online / Brick and mortar?

By now you probably realise the issue.

1.    Have A Well Prepared Friend

Yes, whatever your education, or whatever your background, whatever your information sources – you will do best to have a consultant, a friend, someone on your side. These types of folk are called “Mortgage brokers”. They are well-informed, perfectly prepared, licensed intermediaries between you and the financial jungle, which is full of crocks.

Just as you need a friend when venturing into the bush, you need one when venturing into the financial jungle. Just imagine the case in which you visit each bank and lending institution, one by one, in order to find the best for you.

Say you have the time. Now imagine the discussion you will be having. Each financial institution will be saying more or less the same things:

  • They are the best in the country;
  • Their rates are the lowest globally;
  • They are flexible and fast;
  • They can finance up to 100% of your property;
  • You are lucky, as this is their promotion week;
  • And so on and so forth …

Even if you take this time for investigation, chances are that you will wind up just where you started – without a clue to which bank to choose. This is why you need your “friend”. Brokers know the scene, they know the players and they know which questions to ask.

This benefit is both on the financial side as well as on the time-saving side.

2.    Get The Insights On All The Latest Mortgage Products

The job of mortgage brokers or home-loan brokers(depending on what type of financing you need) is to facilitate their clients in finding the best suited financial package there is on the market. In order to do this, they are riding on the tip of the wave of their market. This is important, so that they may be informed of who is launching what financial scheme, promotion, or product.

Mortgage brokers are qualified and licensed. But the most important thing from which their customers benefit is that they know the market. Constantly they are on the lookout for new lenders, new mortgage product lines, new promotions. In this way, they can help their customers find the most appropriate financial service at any given time.

Although financial institutions say the same things over and over again, the truth is that they have their specific targets – be it lending to first home buyers, be it lending only to clients with a first home deposit scheme with them, be it doing only established home mortgages or only rendering guarantor home loans. They normally will not share this information with their clients, however, they may just do that with a mortgage broker, who is working with them.

Actually, some financial institutions will not even talk to a client without an intermediary. These have mortgage brokers as their main distribution channel. What this means, is that if you are not employing the services of a broker, you will not even hear about such lenders.

Knowing all of the above, and knowing what you need and what type of client you are, your mortgage broker will be able to provide the Goldielocks product for you – the one that is at just the right price, just the right tenor, just the right collateral, just the right acceptance rate for your area. All of these parameters are constantly changing. However, brokers are keeping their hands on the pulse of the market. Thus your benefit is to know immediately where your needs fit.

This benefit is both on the financial side as well as on the time-saving side.

3.    Cut Those Fees

Financial institutions collect interest and fees on the loans they render. These could be engagement fees, administration fees, document fees,

Try asking your bank to reduce their interest on a loan. Sounds funny, right? And we all know what their reply will be.

Well, with professional mortgage brokers, this is usually not the case. Brokers know just where to push, where to pull, and eventually how to make the financial institution waive one or two fees.

This benefit is a true financial one. 

4.    Negotiation Assistance

Mortgage brokers are responsible for overall communication between the lending institution and you as a client. This will include everything from standard document requests, routine information, and true negotiations. Brokers will be by your side all along the way. They will explain what exactly is required of you. It will make your point in front of the lender. They will translate your requests to the financial lingo of the creditor.

This benefit could result in both financial savings as well as in achieving seamless communication with the lender. 

5.    Paperwork Support

As they say, the job will not be finished until the paperwork is done. And home purchases and mortgage lending tags along with a lot of paperwork. Your broker will be able to facilitate you in collecting and preparing all the necessary documentation, which your lender will require. These include, but are not limited to tax returns, payment slips, credit reports, details on assets, etc.

Mortgage brokers will also collect and check information on the property, which you have chosen – deeds, ownership, permits, and the rest.

Having gathered these, they submit them to the selected lender for their consideration and review. After this, the lender will supply yet another heap of documents for signature. Brokers are useful here too, as they will explain what each of them means. Thus you as a client will be entering into the financial agreement which will impact the next decades of your life fully knowledgeable.

To summarise – mortgage brokers are much like a one-stop shop. All the client has to do is point them in the right direction. Their clients will:

  • save on money by getting access to the best mortgage at the best rate and with reduced fees right away;
  • save time by not having to fish around town for a reasonable mortgage loan;
  • have great communication with the lending institution, via the knowledgeable support of the mortgage broker;
  • always get approved for the funding at hand, as the brokers will have made the credit assessment far ahead of the banks;
  • always know what financial agreement they are getting into, by the competent advice of their broker.

Make the right choice and get yourself a mortgage broker in Sydney.

Adrianna Tori

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