All the latest news, facts and tips from the team at Pioneer Credit Connect

Feb 18

The benefits of using a mortgage broker!

by Christina Lane
Why use a mortgage broker

When it comes to buying a home, I think we can all agree that the technical finance language used can start to get confusing. Lucky for us, mortgage brokers exist as translators and specialise in all things home buying and loan products. Today you get to sit down with Christina, one of our experienced mortgage brokers, to hear about the benefits of using a broker instead of doing it yourself.

Finding the right lender for you.

Lenders and banks come in different shapes and sizes. Some favour established customers whilst others love helping first home buyers. The key is knowing where you fit into the equation and whether the right lender can tailor a solution for you. Unfortunately, it’s not as simple as just having a deposit, there are specific factors that a lender will look at when deciding whether or not to approve your home loan and this is where using an experienced mortgage broker will play to your advantage.

Not only will a mortgage broker have access to a number of different lenders and interest rates through one point of contact, they will ensure that you meet the lending criteria before making an application in your name. Your mortgage broker will match you with the lender and home loan that best suits you, depending on your individual situation and your financial needs.

Often, customers will use comparison websites and complete their own extensive research. That’s a great place to start and can really open you up to the world of financial lending. The most valuable piece of advice when tracking this route is to err on the side of caution. Relying on a combination of your own knowledge and the banks won’t always present your best option.

It's not just about the most competitive rate!

Surprisingly, more often than not the decision to go with one lender over the other is not rate driven. Although rates still play a big part in the decision, an experienced mortgage broker knows there is no point making a rate driven choice if there is no way the loan is going to be approved. Your financial goals will also influence the lenders that your mortgage broker presents to you and will be impacted by your:

  • Credit score
  • Borrowing capacity
  • How long you plan to hold onto the property
  • Foreseeable changes to income and expenditure, and
  • Your exit strategy.

There is little to be gained from securing the most competitive rate if you’re then sacrificing your freedom to refinance, or become subject to interest rate increases during a fixed period. Lenders will also consider factors such as your:

  • Employment duration
  • The size of your deposit
  • The suburb in which you live
  • The suburb you’re looking to purchase a house
  • Whether you’re single, married or have children
  • If you plan to live in the property or use it for investment

A mortgage broker will help you to funnel these choices to find the right solution and hopefully save you time and money in the future.

It’s a complex process for most people. Buying a home is as much a learning process as it is a financial decision. If you have any questions, Christina is here and willing to assist where possible.

Speak to a mortgage broker →