50 Reasons To Use A Mortgage Broker
February 13, 2023
There's more to getting a mortgage than just looking for the cheapest rates...
If you're in the market for a new home or looking to refinance your current mortgage, you may be wondering whether you should go through a traditional financial institution or work with a mortgage broker.
While banks, credit unions, and other lenders offer a range of mortgage products, working with a broker can offer a variety of benefits that are unique to this type of service. In this blog post, we'll explore 50 reasons why you might want to choose a mortgage broker over a traditional lender.
From access to a wider range of lenders and mortgage products to personalized advice and support throughout the application process, we'll examine the many advantages that come with working with a mortgage broker to help you make an informed decision about your mortgage.
- Access to a variety of lenders and mortgage products
- Personalized advice based on your specific financial situation and goals
- Assistance with navigating the mortgage process, including pre-approval and closing
- Expertise in finding the best mortgage rates and terms
- Support throughout the application process, including filling out paperwork and organizing documents
- Negotiation skills to help you get the best deal possible
- Help with identifying and resolving any issues that may arise during the mortgage process
- Knowledge of the latest mortgage rules and regulations
- Objective advice without bias toward any particular lender or product
- Time-saving convenience of having a broker do the legwork for you
- Availability of broker services outside of regular business hours
- Options for self-employed or non-traditional borrowers who may have difficulty obtaining a mortgage through traditional channels
- Access to specialized mortgage products, such as low-down-payment options or investment property loans
- Ability to shop around for the best mortgage rates and terms on your behalf
- Assistance with credit repair or improvement to qualify for a better mortgage rate
- Education and guidance on mortgage-related topics, such as amortization and equity
- Ability to lock in a low mortgage rate for an extended period of time
- Flexibility to work with a broker remotely or in-person
- Assistance with finding a mortgage lender who can provide the right loan for your unique situation
- Ability to provide a single credit report for multiple lenders, avoiding multiple inquiries on your credit report
- Access to lenders mortgage insurance options - don't underestimate the importance of checking this BEFORE applying to a lender for a home loan.
- Ability to provide guidance on mortgage refinancing options
- Knowledge of government-backed mortgage programs such as FHOG for first home buyers.
- Assistance with determining the best mortgage term, such as 15 or 30 years
- Help with calculating and understanding closing costs
- Access to tools and resources for estimating mortgage payments and affordability
- Expertise in mortgage prepayment options and penalties
- Ability to help you understand and avoid common mortgage mistakes
- Assistance with finding a mortgage lender who offers flexible payment options, such as fortnightly payments or payment holidays
- Access to a wider range of mortgage lenders than a traditional bank, credit union, or other financial institution.
- Availability of lenders who offer specialized mortgage products for medical professionals, teachers, and other professions
- Assistance with determining the right mortgage type for your needs, such as fixed-rate, adjustable-rate, or hybrid loans
- Knowledge of mortgage lender underwriting guidelines and requirements
- Ability to provide guidance on the right mortgage for your investment property or vacation home
- Expertise in helping you obtain a mortgage with a low down payment or no down payment at all
- Assistance with obtaining a mortgage with a non-traditional source of income, such as rental income or commission-based pay
- Access to lenders who specialize in unique property types, such as mobile homes or condos
- Assistance with obtaining a mortgage for new construction or renovation projects
- Ability to find a lender who can offer a mortgage to individuals with less-than-perfect credit
- Knowledge of the latest industry trends and mortgage news
- Ability to help you understand the difference between pre-qualification and pre-approval
- Assistance with comparing and contrasting different mortgage options and lenders
- Availability of competitive mortgage rates and terms that may not be available through traditional financial institutions
- Ability to help you obtain a mortgage with a low interest rate or reduced closing costs
- Assistance with resolving any disputes or errors on your credit report that may affect your ability to obtain a mortgage
- Access to multiple lenders that offer a variety of loan programs, including jumbo loans or piggyback mortgages
- Expertise in helping you obtain a mortgage when you have a history of bankruptcy or foreclosure
- Assistance with understanding and avoiding common mortgage scams or fraudulent lending practices
- Availability of online tools and resources for tracking your mortgage application status and progress
- Knowledge of how to obtain a mortgage for a property in a special zoning area.
At Logan Home Loans, we understand that obtaining a mortgage can be a complex and overwhelming process.
That's why we're committed to providing our clients with the personalized advice, support, and guidance they need to navigate the mortgage process with ease. With access to a wide range of lenders and mortgage products, our team of experienced brokers can help you find the right mortgage to meet your specific needs and goals.
Whether you're a first-time homebuyer, self-employed, or looking to refinance, we'll work with you every step of the way to ensure that you get the best possible mortgage rate and terms.
So if you're looking for a trusted partner to help you with your home loan needs in Australia, consider Logan Home Loans. Contact us today to learn more about how we can help you achieve your homeownership dreams.
Property and cash rate predictions for 2024
The Australian Banking Association (ABA) has launched a campaign encouraging borrowers struggling with loan repayments to seek help, in a valuable reminder there are options available if you're finding it hard to keep up with your mortgage. Your bank may be able to: Reduce your home loan repayments. Pause your repayments temporarily. Switch your repayments from principal and interest to interest-only temporarily. Increase the length of your loan (thereby reducing the repayments). ABA CEO Anna Bligh said banks understood many borrowers were facing challenging circumstances. “Banks stood by their customers during the COVID-19 pandemic, deferring payments for people who for the first time in their lives found themselves unable to pay. Banks stand ready to help people again now,” she said. “People who are finding their finances are stretched should not feel they have no options and they have to do it on their own. Banks have dedicated, highly experienced teams ready to help.” As your broker, I'm also here to help. You're welcome to contact me for advice; I can then speak to and negotiate with your lender on your behalf. The key thing is to move fast, because the further you get ahead of the problem, the more flexible and helpful banks tend to be.
The Reserve Bank of Australia has rounded out 2023 with the decision to hold the nation’s cash rate at 4.35%. 2023 hasn’t been an easy year for homeowners or ambitious first-home buyers. The cash rate increased from 3.10% to 4.35% over the course of eleven months in the RBA’s bid to bring inflation back within its target range. According to data from the RBA, the average home loan rate at the start of the year (for existing home loans) was 5.46% p.a.. If the lender passed on interest rates in line with the increased cash rate, that would make the interest rate 6.71% p.a.. Based on the average Australian mortgage of $599,000 on a 25-year term paying principal and interest, that equals an additional $459 per month simply to service the mortgage (from $3,661 to $4,123 per month). For first-home buyers, the average time to save for a deposit has increased to 14 years, according to a recent paper by the Australian Housing and Urban Research Institute Limited, with the national ratio of median house price to median income now sitting at 8.5. That is the hard reality many Australians are currently facing. So the question is, what will 2024 bring? Short of looking into an Australian-economy crystal ball, we can’t predict exactly what will happen with inflation, the cash rate and therefore interest rates. However, there are a couple of factors to consider. The RBA will meet only eight times in 2024 to determine whether to move the cash rate, down from the eleven in 2023. This means potentially less movements through the year. The next cash rate announcement will be 6 February. Economists from the Big Four predict the cash rate is at, or near, its peak. Some predict at least one more rate hike in 2024 and rate cuts likely not happening until at least December. Despite predictions of a decline in house prices in 2023, they have actually continued to increase in most areas around the country. This could be good news for refinancers as we enter 2024, as they could find their equity has grown. Why 2024 could be a good time for first-home buyers Despite some potential challenges, 2024 could actually be a good time to get into the housing market. Here’s why. Savings interest rates are up - the pro of the cash rate going up is that savings interest rates also tend to go up. This can help expedite saving for a deposit. It could be cheaper to be a homeowner - according to PropTrack data, it is now cheaper to buy an apartment rather than renting one in most capital cities (based over a ten-year period with a 20% deposit). In fact, a third of properties nationally are cheaper to buy than rent. The First Home Guarantee has expanded - in 2023 the eligibility criteria for the First Home Guarantee, Family Home Guarantee and Regional First Home Buyer Guarantee was expanded, enabling eligible buyers to get into the market sooner. This means if you have a 5% deposit (or 2% if you are a single parent or guardian), you may be able to use one of the schemes to purchase property without paying lenders mortgage insurance. ‘Help to buy’ scheme to be introduced - the federal government has announced plans to rollout a new scheme that will help up to 40,000 eligible buyers with as little as a 2% deposit get into the housing market with lower repayments. If 2024 is the year you want to purchase your first home, it is a good idea to speak with your broker to find out how much you may be able to borrow and set a plan in place to achieve your goal.
