The Advantage of Using a Mortgage Broker

A mortgage broker acts as an intermediary between the borrower and the lender. They are industry experts who are capable of advising prospective borrowers and guiding them towards loans that are best suited to their needs.

A good mortgage broker will assist you through every step of the process. From handing in your application to explaining the intricacies of various loan options to you, a mortgage broker is essential.

The Advantage of Using a Mortgage Broker
The Advantage of Using a Mortgage Broker

5 Benefits of Using a Mortgage Broker

They can safely guide you away from murkier waters, where you can find credible lenders or bad loan rates. Instead, they’ll help you find the right loan and assist you to complete the required loan application forms.

Here are the advantages of hiring a mortgage broker.

1) Protect Your Credit Score

Any time your loan application fails, it negatively affects your credit score. Maintaining a good credit score can be useful in many situations. You can apply for future loans, use credit cards, and enjoy other financial incentives.

A common reason as to why some loan applications fail is that borrower made a mistake in filling out the form or skipped a part of the process. Not knowing what to do next can lead to this, and this is where a mortgage broker may be able to really help you.

A mortgage broker deals with lenders for a living and knows how to get a loan passed. You’re more likely to get your loan approved if you apply via a mortgage broker.

2) No Legwork for You

Finding the right loan involves doing a lot of research. This research includes gathering data on the various loans available, mortgage rates, lenders and more. You also have to fill out various forms for various lenders. The whole process can be time-consuming and even confusing.

If you approach a mortgage broker, then they’ll handle all the legwork for you. You don’t even have to submit multiple applications to various lenders anymore. You can just give your mortgage broker a single application, and they’ll take care of the rest.

3) Specialized Industry Knowledge

A mortgage broker has various connections with lender organisations. They compile data on the available loans and always stay up to date with the latest in their industry.

They are essentially experts in getting loans processed and approved. Some lenders also work exclusively with mortgage brokers.

A good mortgage broker first carefully understands your financial situation and then shows you various loan options that can suit you. They can easily explain the ins and outs of those loan options and will even pore through the terms and conditions with you.

4) Find the Best Rates

Mortgage brokers can be privy to information not easily accessible to you. This knowledge comes from regularly interacting with lenders and being informed about the various property and home loans available.

They can also use software to compare rates among various lending firms instantly. This data gives you the best chance at finding the right loan and securing manageable repayment terms.

They can also tell you about wholesale rates on loans. Retail rates on loans are typically accessible to the public, but a mortgage broker has access to more data.

5) They Probably Won’t Charge You

Mortgage brokers make their money from one of two sources – either the borrower by charging you a fee or the lender, by earning a commission.

Most mortgage brokers make their money through the lender by way of commission payments. This means that you can enjoy the benefit of their expertise and guidance and also get your loan approved without paying anything.

Mortgage brokers are professionals that help people with their loans all the time, but they can make mistakes. Ensure that your mortgage broker has Professional Indemnity insurance*.

Mortgage brokers Professional Indemnity insurance covers losses claimed by third parties and defence costs due to alleged or actual negligence in providing a professional mortgage broking service.

Mortgage brokers can get Professional Indemnity insurance from BizCover today. You can check to see if your mortgage broker has this insurance, as it can protect you too.

*As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. The information contained on this web page is general only and should not be relied upon as advice.

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