5 reasons to use a broker instead of shopping around
Securing finance is one of the biggest hurdles to jump over when buying property. That’s why so many of us struggle to decide who to go with when securing a mortgage: a broker or the banks?
Here are five reasons why a mortgage broker is the better option.
1. Access to lower rates
When you go directly to your bank and sit down with a mortgage manager, they’ll rarely offer you their best rate. They might approve your mortgage quickly but often they’ll do so at a rate that’s up to 1 per cent higher than what they’d be willing to offer.
Your average broker has pre-existing relationships with banks and arranges dozens of mortgages a month so they have access to those lower rates straight away. To give you an idea of how valuable this could be, a rate of 4 instead of 5 per cent could save you almost $90,000 over a 30 year term for a $500,000 loan.
2. Advice on structuring and repayment
The right structure can help you pay your mortgage off faster and save you thousands in interest repayments.
A good mortgage broker will provide you with all the advice and guidance you need to ensure you make the right choice. Unlike some banks, a good mortgage broker won’t simply clone the last mortgage they put together – they’ll offer you a structure and repayment term that is best suited for you.
You could be closer to buying your next property than you thought.
3. Convenience and ease
Applying for a mortgage can be confusing and time consuming, especially when it’s your first time.
It’s a mortgage broker’s job to make it as easy as possible for you by meeting you at your home at a time that suits you – even after hours. They’ll also give you a hand filling out forms, getting all the information you need together and explaining any jargon you don’t understand.
4. Help securing a low-deposit loan
It’s a common misconception that you need a 20% deposit to secure a mortgage. You may be able to get over the line with as little as 5%.
These days when banks are increasingly strict with their lending, having a mortgage broker can make it easier to secure a lower deposit loan. Brokers know how to make your application more appealing to banks as well as which banks are more likely to approve your application despite your low deposit.
A good mortgage broker will guide you though the entire application process.
5. Your own representative and guide
A mortgage broker’s purpose is to guide you through the process of securing finance, to represent your interests, negotiate with banks on your behalf and to shop around several providers to get you the best deal.
A good one will be around to help you out however you need, making the entire process friendlier, easier and less stressful. That personal touch makes all the difference.
If you’re looking for a mortgage and don’t want to go it alone, get in touch with the team at PTR Mortgages today.