4 Reasons Why Homeowners Can Trust Mortgage Brokers
Mortgage brokers are home loan specialists who are trusted with many people’s most significant financial decision of their life – buying a home. Mortgage brokers must be licensed under Australian credit laws and are able to negotiate with a range of lenders and mortgage providers for you to find the best deal for your situation. Please read on for the 4 top reasons homeowners can trust mortgage brokers.
1. Mortgage brokers provide professional support
With mortgage interest rates at record lows, Australians are taking the opportunity to secure the best home loan deals and they often turn to mortgage brokers who provide sound advice and professional support during the process. Mortgage brokers help you understand your financial situation and compare loan options, rates and features from a range of lenders in order to find the right loan for you. A mortgage broker will save you time and the hassle of researching all of the options available. By understanding your financial situation and your property goals, we can give you the best professional support.
2. Banks don’t have an in-depth understanding of competitors’ products
One of the biggest advantages of using a mortgage broker is the information they have available for a range of products and services from many different lenders. Homeowners are rightly wary of banks not advising them of similar or better home loan deals from competitors. Because a mortgage broker works for you – the homeowner – not just one lending option like a bank you may visit, they will advise of a suitable option by comparing what is on offer to suit you.
Banks can provide information on their own products and services, however, they do not have an in-depth understanding of competitors’ products. You cannot be sure you are getting the best deal, the lowest rate, or the most suitable home loan features unless you take the time to do your own research. An experienced mortgage broker will help you understand what is on offer and they can match deals, interest rates and home loan feature requirements on a case by case basis.
3. Mortgage Brokers take the time to explain why a particular loan is being recommended
Further to having access to a variety of loans across a range of lenders, an experienced mortgage broker will take the time to explain why a particular loan is being recommended to you. Homeowners worry a bank will not have their best interests in mind when recommending their own product. Homeowners trust mortgage brokers because they consistently demonstrate an in-depth understanding of a range of products and can explain why something would be suitable or not for your situation.
Taking the time to explain why a particular loan is the most suitable option ensures you understand the contract you are entering into, all the features available to you, and rights and responsibilities for both the lender and the homeowner.
4. Mortgage Brokers work in the homeowners’ best interest at all times
A legal duty has officially come into effect in January 2021 called the Best Interests Duty. This duty is a statutory obligation that means mortgage brokers must act in the best interests of consumers and to prioritise a consumers’ interest when providing credit assistance. Along with the well-established reputation of mortgage brokers providing professional support tailored to your situation, this legal duty gives you the peace of mind that mortgage brokers are legally required to act in your best interests, and to put your interests first.
Importantly, the Best Interests Duty does not apply to banks! Mortgage brokers must act in your best interest by recommending a home loan suited to your personal circumstances whereas banks can act in their own interests recommending only their own products. Banks have no obligations to give you the full picture of what is available in the market. You can trust a mortgage broker to act in your best interest at all times.
Trust North Brisbane Home Loans with your home buying needs and we’ll walk you through your options tailored to your financial situation and property goals. We will make a recommendation that best matches you, and we will keep you informed about each step of the process so you know exactly where you stand.
Contact us today and start the process of finding the right home loan for you with a specialist mortgage broker.
Patrick Cranshaw, a Certified Mortgage Professional for over 21 years, founded North Brisbane Home Loans in 2002. His career began with ANZ Bank in New Zealand, where he progressed over 16 years to a Business Banking role in Virginia. After moving to Brisbane in 2000, Patrick led the QLD market for a home loan agency, helped set up the REMAX Real Estate Finance division, and practiced as a broker.
