A home loan is generally a long-term proposition, but in some situations it can make sense to refinance your mortgage. Refinancing involves taking out a new loan and using those funds to pay off your existing mortgage.
During the refinancing process, your broker will conduct a full review of your current situation to determine if there is a benefit of refinancing, which may include, obtaining a better rate, consolidating existing debts, or accessing equity for personal purposes.
Considering that lender policies, products and pricing can change weekly, getting the right advice is just as important for your first home as it is for your tenth. A broker will have their finger on the pulse of current changes affecting your lending options and can ensure you get the best deal available.
Before any new purchase, a review of your financial situation is a wise and prudent course of action to take to more accurately allow you to purchase within your budget. A broker will ensure all of your financial circumstances are taken into account so that you don’t over commit yourself.
Why a mortgage broker is right for you
Purchasing a property in today’s housing market is not for the faint-hearted. Would-be homebuyers need only turn on their TV or social media feed for the latest news informing them that their dream home is slipping further out of reach.
Research has shown that mortgage brokers are helping buyers with over 50 per cent of all new housing loans in Australia, and for good reason – buyers know that brokers can provide a level of advice that banks simply can’t. If you feel like the door to your perfect home is permanently locked, here are four keys a broker could be holding:
Brokers provide a face-to-face service and liaise with a variety of lenders so that you don’t have to. They offer flexibility to fit in with your busy schedule and answer urgent calls, even after work hours. A broker will maintain an ongoing relationship with a client, helping with finance needs now and into the future.
A mortgage broker will also do the tiresome legwork of ensuring application and loan paperwork is processed efficiently, and can draw on both expertise and professional contacts within their network if things don’t go according to plan.
The panel of lending options is likely to include the four major banks, though brokers can also take the pulse of highly competitive regional and second-tier lenders, as well as niche lenders that might suit borrowers like those who are self-employed.
Brokers have a deep understanding of the products available to customers and can offer sound advice on your home loan options.
As part of the loan-application process, a mortgage broker will ask the customer a range of lifestyle-related questions and assess the basics of their income.
A broker will work to understand a client’s personal budget and lifestyle expectations, taking into account both current and future expenditure in order to achieve a realistic mortgage solution to suit their circumstances. Brokers can help borrowers adjust their expectations before they find themselves sacrificing their lifestyle.
Mortgage brokers are steeped in product developments and trends, and can make sure clients are asking themselves the right questions at the right times.
Whether it’s considering the advantages of a fixed, variable, or split home loan; making sure customers have an offset account; or what a good rate discount looks like at any given time, brokers can put their knowledge to work for borrowers.