Using a Mortgage Broker to Apply for a Home Loan
After a recent survey was undertaken in Melbourne, Australia, it was discovered that just over 50% of mortgage applicants turn to home loan brokers for help with securing their mortgages.
Dana from Mortgage Broker Melbourne says that this is certainly a growing trend and she expects to see a rapid increase in the number of people that apply using brokering agencies for their home loans over the course of the next few years.
Why is this?
Although experts are split on the causes behind the shift in applicants pursuing help from brokers when it comes to their mortgage – there are some facts that can’t be denied. For example these brokering agencies are often able to save time for potential borrowers by taking care of interest rate comparisons on their behalf.
Furthermore, as some brokers also offer extensive loan negotiation features, as well as being able to take care of the formal paperwork submissions and more – they can certainly be an asset to any home loan application.
Why aren’t more people using them?
The reality is that for as useful as these experts can be when it comes to helping a potential borrower receive approval on a mortgage, they have only recently stepped into the spotlight and plenty of people don’t even know that they exist, or understand what they do. Those that do often approach them for help with comparing interest rates and getting to grips with the right types of home loans on the market – but thousands more miss out simply because they don’t know how to utilise their services.
What can brokers help with?
In the majority of instances, broking companies can help with comparing rates of interest, helping applicants to properly prepare their financial data, approaching banks on behalf of their clients and taking care of negotiations in order to secure a fairer home loan. The right types of home loans are out there and unfortunately they can be overlooked without the help of an expert.
Where the majority of borrowers will aspire to approach one of the ‘big four’ banks in Australia – only a handful of them will receive approval on their mortgage application. And this is another reason why potential borrowers are turning to mortgage brokers; for help with maximising their chances of being approved, while ensuring that they apply for the right type of mortgage package.
With the demand for brokers increasing, getting a good one on board is becoming difficult and this is why it can be a beneficial idea to get in touch with a reputable agent as soon as possible to avoid disappointment.