The home-buying process can be stressful, particularly if you’re navigating it on your own. You’ve got to hunt out the best banks, try and communicate with several at once, and fight for the best deal to save money.
This happens in between house hunting, talking with real estate agents, and managing your everyday life. If you want to save time and money, contacting a mortgage broker may be how you do it. In fact, they can assist with these five things below.
Finding Competitive Interest Rates
A mortgage broker Geelong residents rely on is there to walk you through the purchasing process and help you find competitive interest rates.
You may not realize, but the advertised lending rate is not always each bank’s best rate.
However, you may not be able to find out how low a bank is willing to go on your own.
It can take aligning yourself with a mortgage broker who has an existing relationship with many banks.
Even being able to secure a slightly lower interest rate than advertised could save you several thousand dollars.
Negotiating Bank Deals
After putting in so much hard work to save money for your house deposit, you’re likely feeling like you’re getting nothing in return for your efforts.
A mortgage broker can work hard to ensure they are getting you the sharpest deal, especially if you are changing banks to take advantage of a home loan offer.
This might involve a cash bonus for switching, which can go a long way to giving you a helping hand with those initial mortgage repayments.
Customizing the Loan’s Features
Even after a small amount of homework, you will likely find that mortgages are reasonably straightforward to understand.
In saying that, you may not be aware of the many customizable loan features.
This is where a mortgage broker comes in.
They can add on loan features that make your repayments flexible, and maybe even lower.
For example, if you have $500,000 principal and $200,000 in a savings account, they may be able to talk to the bank about adding an offset account which means you may only have to pay interest on the difference between the two figures.
Tailoring the Loan to Your Lifestyle
We all have different borrowing and repayment capabilities, which means there isn’t a one-size-fits-all approach to lending.
Your mortgage broker understands this and can tailor a loan to suit your lifestyle.
You may be able to save money by paying more money off faster or lengthen your mortgage and use the leftover funds to undertake renovations and lift its value.
You can then put other money-saving measures in place throughout your homeownership term to bring down your costs as much as possible.
Managing Everything for You
Rather than contacting banks yourself that take up your precious time, a mortgage broker will manage everything for you.
They will approach different banks, handle the paperwork, and keep in contact with you every step of the way.
Going to a bank for a mortgage, or reverse mortgage might not be the best idea for a number of reasons. One reason is that banks may not offer the best rates or terms for a reverse mortgage.
Banks may have stricter lending standards and may not be able to offer as competitive rates as specialized reverse mortgage lenders.
Additionally, banks may not have as much experience or expertise in reverse mortgages as specialized lenders.
While you’re focused on your job, errands, saving, and providing for your family, your mortgage broker can be doing everything else so that you’re in a desirable position to receive a home loan.
You might think that directly approaching a bank will be a money-saver on its own, but that’s not always the case. Mortgage brokers have connections with multiple banks to ensure you’re able to access the best deals available.