10 Reasons Why Savvy Borrowers Use a Broker

Are you missing out on these benefits? What they don’t tell you about mortgage brokers and your home loan

There are many reasons why savvy home buyers work with mortgage broker… and even more benefits

As the home loan market becomes increasingly complex, more people are recognising the value of a mortgage broker.

Why? Brokers move beyond the transactional, delivering more holistic solutions to a borrower’s financial challenges. You don’t just save money – you also benefit from:

  1. Huge time (and energy) savings
  2. Reduced stress and overwhelm, and
  3. Confidence in your loan.

And here’s why.

1. Mortgage brokers save oh-so-much time and effort

The products choices in the mortgage market can seem limitless (and overwhelming). You can choose to:

(a) research the subject, the lenders, and their products yourself; or

(b) work with a mortgage broker who already has that knowledge.

We work closely with lenders every day, so we understand how they’re different and why certain lenders may be ideal for your financial situation. And while we may not do your weekly meal prep, we do do all the rate research and fee comparisons, negotiate for you, and keep the process on track.

2. We’re all about choice

Brokers have a panel of lenders from which we recommend. We must be accredited with each lender and keep up to date with their latest products.

This means that not only do we know what’s out there, but the longer you’re with us the more you’ll benefit from new and improved loan features. And with access to special deals from lenders that aren’t available to the public, we offer more variety and greater choice.

3. We’re neutral in helping you find the right loan

The best deal isn’t necessarily the cheapest! A good mortgage broker help you build wealth by looking at your circumstances, goals, and future plans when recommending a loan.

Importantly, we’re a neutral third party that’s not trying to sell you on a specific product. The law states that brokers must act in the best interests of consumers, which means we’ll do everything possible to find you a suitable loan.

4. We represent YOU – not the lender

While a bank lender represents the bank’s best interest, the role of a broker is to represent your best interests.

This means that we don’t look at one lender to find the lowest interest rate. To find the ideal loan for your situation, we compare, negotiate, and them recommend the most competitive product and rate from a range of lenders.

5. We’re awesome at negotiating

Where circumstances may make the process difficult – you may have a credit issue or need a larger loan than you’re been approved for – we work with the lenders directly to address them. Our help in overcoming hurdles and negotiating favourable terms can save you thousands of dollars in interest.

6. We provide big picture guidance

As buyers, it’s natural to focus on saving for the deposit, making it easy to overlook critical expenses such as loan fees, insurance, stamp duty, conveyancing, and more.

With a broker guiding you through the process, you’ll won’t fall short financially.

7. Most brokers don’t charge you a fee

Ever wondered why most brokers don’t charge a fee for their service? It’s because we’re generally paid a commission, like a referral fee, that’s consistent across lenders.

Why? Instead of a bank investing more in sales teams and marketing to sell more products, they pay the broker. It’s less overheads for the bank, and it’s us brokers who hold the relationship with clients. And it’s our relationship with lenders that enables us to compare and introduce the lender’s products to those clients.

So not only is our service free to borrowers, but also potentially delivers a better deal on your home loan.

8. We help you avoid the black hole of DIY trouble

It can be oh-so-tempting to find a product appealing because it’s fresh, glossy and seems to be a great deal!

But to the trained eye, many loans reveal themselves to have not-so-obvious penalties, fees, and charges that borrowers aren’t aware of, while others fail to provide the flexibility you may require in the future.

So instead of taking out a loan you might regret, be guided by a broker committed to identifying the ideal solution for your circumstances, goals, and plans.

9. Behind-the-scenes lender information protecting your credit score

One part of the loan application process is the lender requesting to review your credit report. The actual request itself is recorded on your credit report and, every time an application is unsuccessful, further impacts your credit score.

But not with us brokers.

Our software provides insight into your borrowing power and, as a result, guide you to those lenders with a high chance of approving your loan.

10. We’re here for you long-term

Unlike banking, where lending managers can turnover frequently, brokers are in it for the long haul.

Monitoring new loan products across our lenders means that when we see a potential loan that meets your needs and provides additional benefits to your existing loan, we share it. Because answering questions and guiding you through the loan application process is only one part of helping you achieve your financial goals.

Whether you’re looking to invest, minimise your interest, or pay off your home loan faster, a proactive broker maintains a lookout for any changes that may benefit your current loan.

Believe us – we’re not stage 4 clingers but, when it comes to our clients, we’re definitely committed.

Considering applying for a home loan? Reach out to Educated Finance.

Call 1300 338 228 and take up opportunities today with the team that’s also with you for tomorrow.