We Are Regulated Financial Advisors
As a mortgage broker we are regulated to give financial advice. We have qualifications in place and operate under a license which allows us to give advice on what we believe works best for you (the client). Many of the bank staff are not registered financial advisors. They will often hand you bulky economic reports and ask you to make your own mind up with the information you have been given. Us brokers on the other hand will give you tailored advice depending on your personal financial requirements. We will give recommendations on how to structure the loan and how long to fix (if you should fix at all). Our advice will be recorded and we will summarise our advice to you once complete. This means as a client you are getting advice from an individual who deals with loans day in and day out. Without offence we are in a better position to guide you in this area, thus allowing you to concentrate on what you are good at!
Your One Constant
You might have a good relationship with the local banker whether that is a business or private relationship manager, however that one particular person might leave the bank. This means you have will have to re-tell your story to the new banker. You might potentially not get on with them or they might not be very good at their job, which makes your life harder. With a mortgage broker they are your constant. The same person at the end of the phone or email. The same person to bounce ideas around with. The same person who understands your financial position. Everyone has their builder, plumber, electrician, accountant etc…. That same person should have their mortgage broker to add to this list!
Access To Multiple Lenders
Let’s face it, getting a mortgage is hard these days. Especially for first home buyers. The banks are assessing loans at high test rates, and they are still looking closely at your personal expenses. The chance of getting a NO from the bank is becoming more likely. If you got a NO after going to the bank directly you might stop trying, and be put off the whole process. This is when a home loan finance company can help. We have a universal form, and much of the information you have provided is the same information multiple lenders need. If the application gets declined, we can quickly re-work the application and send it away to another bank or lender. If you did this on your own you would have to most likely call an 0800 number, and book an appointment, and re-tell your story and fill in ANOTHER form. A mortgage broker might also send the application to a lender you have never heard off, which might turn that NO into a YES. Let a mortgage broker do the leg-work. You save your time for whats important to you, things like family and your work.
I like to ask questions on top of questions. It is important to dig into your personal financial position so that I fully understand your current position and the direction you want to head in. The reason for this is once time to present your loan application to the banks it is important to write a strong proposal along with the supporting information. This gives the lender comfort that they understand your position. In this proposal we might even mitigate risks that we foresee the banks will see. Having a strong narrative on your situation can sway the application, and obtain that approval which could be life changing to you. If you went direct to the bank you do not write a proposal yourself, you just supply the information. The lender at the bank will write their proposal based on their interactions with you, however you might not know what they are writing to their credit team who often approve or decline the loan. Your mortgage broker will take time to understand you and your financial position, which in terms will allow your mortgage broker to present the application in the best possible light to the bank or lender.
Are You Getting A Good Deal
Mortgage brokers can be dealing with multiple lenders at one time for various clients. They know what the market is offering. Say you have a fixed rate coming up for maturity, and we request new rates to re-fix the residential property lending from the bank. The rates they offer do not seem to be on par with other lenders. At this point we would have a discussion with you on the potential to re-finance your loan to another bank who has sharper rates. We will work through the cost to re-finance, cash you will get to move, and how much you would save on your loan on those rates. This will allow you to make an informed decision on whether to re-finance or stay with your current bank. If you went to re-fix the loan yourself you would most likely accept what they offer without question, which could cost you thousands in interest over the life of the new fixed term you accepted.