Here are 7 great reasons:
When you buy a drill bit, you don’t really want the drill bit, you really want the hole it will make you. Mortgages, Home Loans, Investment Loans, Lines of Credit fall in the same category – you really don’t want the debt, but you certainly do want what the money allows you to obtain – a home, an investment property, renovation, car etc.
Add to this that a mortgage or loan is a high cost item and you can start to see the real importance of seeking professional help to make sure you make the right decision on the right loan for you. That’s why we have produced this special report: The Top 7 reasons to use a Mortgage Broker / Finance Advisor.
1. Trained and Qualified Specialists:
Mortgage brokers operate under strict licensing regulations controlled by Australian Securities and Investment Commission (ASIC). Known as the National Consumer Credit Code (NCCP), this legislation is designed to ensure consumers are offered enough information to make an informed decision about credit and from the Mortgage Broker / Finance Advisors point of view, the credit being sort is within the means of the consumer to afford and repay.
The benefit of having a regulated industry is that it ensures the practitioners within that industry are adequately trained and qualified to provide information and possible advice to consumers. So when it comes to home loan, refinancing a loan, securing an investment property loan, if you are working with a qualified and licensed broker or brokerage business, you know they have in-depth knowledge of the banks and other non bank lenders home lending products, criteria and processes far beyond that of a general consumers knowledge. From a consumer protection point of view they are bound by laws work in the best interest of the consumer.
2. Choice:
When a consumer chooses to speak to a lender directly, they are often given a couple of loan options choices with the one lender. Whereas a Mortgage Broker / Finance Advisor may have as many as 30 or more different lenders as part of the panel of lenders they are authorised to work for. So instead of getting a couple of choices, most mortgage brokers / Finance Advisor will be able to offer hundreds of lending product options, all in the one location. This makes it a lot easier to compare lenders and home loan products options.
3. Convenience:
Offering consumers a variety of lending options through one source is a great way to save valuable time. If a consumer was to make several appointments with different banks and / or make extensive investigations via the internet, call centresetc, all this would amount to a very time consuming process. Using a Mortgage Brokers / Finance Advisor will save time.
4. Clarity:
With so many loan products on the market it’s easy to get confused about what is the right product. Think about the decision and investigation that goes into a mobile/smart phone contract, which is a monthly cost of less than $100. When it comes to monthly costs in the thousands and a large amount of debt, there is much at stake when choosing the best lender and loan option.
If you deal directly with a lender, they are going to tell you that their products are the very best suited to your needs, because they are paid to sell loans. A professional Mortgage Broker / Finance Advisor works on behalf of the client, not the lender, so they just want to ensure the consumer gets the best outcome, irrespective of the lender. They are not there to sell a loan product, but rather help clarify the lending options and help you make a more informed decision.
5. Handle Paperwork:
Getting a mortgage on a property is a big deal. It requires several stages within the application process, from the initial loan application right through to final settlement of the property and subsequent establishment of account details etc. By engaging a Mortgage Broker / Finance Advisor you benefit from them assisting with explaining and completing the extensive paperwork that is required.
A simple innocent error on a loan application could result in the application being declined and credit assessor rejecting any further changes to your original application, as they may see the change as only occurring to get the loan approval, instead of an innocent mistake or misinterpretation of the questions being asked. A trained and experience Mortgage Broker / Finance Advisor, has excellent knowledge of these forms and also the subsequent and additional paperwork involved in the entire process, which can greatly benefit a customer in securing a the loan they want.
6. Increase your chances of getting a loan:
It’s often the case that some consumers go directly to their day to day bank to get their first home or investment loan and on many occasions their bank will not allow them to borrow the money they may be seeking because of their set lending criteria. So the borrower simply resigns themselves to the fact that no-one will lend them money.
This couldn’t be further from the truth. By seeking out the service of a Mortgage Broker / Finance Advisor, consumers greatly increase their chances of securing a loan to help them obtain the outcome they want, this is because all lenders have different criteria in the way in which they lend money and in how they assess applications.
7. Increase your chances of getting the amount you want:
Not only is there a greater chance of getting a loan by working with a broker, given they have so many lender options, but getting the amount you want to borrow also increases when you choose to work with a Mortgage Broker / Finance Advisor. The reason for this that again different lenders use different affordability assessment measure, which is simple terms, it means that some lenders are willing to lend more money, based on a customer’s financial circumstances.
A simple example might be that a customers existing bank will lend them $300,000, but another lender will lend them $350,000, which could be the difference of buying a 3 bedroom house or a 4 bedroom house, when they really wanted a 4 bedroom house to start with.
Invitation for a FREE Appointment
If you would like a free no obligation appointment with one of our qualified finance Advisers all you need to do is call 1300 586 585 or email us at info@orangefinancial.com.au and one of our team members will be in touch with you to organise a convenient time to talk over the phone or meet with in person.