If you’re looking to take out a home loan or refinance an existing one, your first move might be to make a beeline for your local bank to find out about their product options. But banks won’t be able to offer you as wide a range of products as a mortgage brokerage, which means that you won’t necessarily be guaranteed to get the best bang for your buck in the long term. This is why we recommend you enlist the help of a mortgage broker.

What is a mortgage broker?

Mortgage brokers specialise in home loans. They are trained and accredited to act as intermediaries between loan applicants and a wide-range of lenders and to negotiate the best home refinance deals possible for their clients. When it comes to sourcing and applying for mortgage refinance, a mortgage broker does all the legwork on their clients’ behalf, comparing home loans from various lenders to find the best and most competitive rates and deals. A broker supports their clients right through the application process until the loan settles.

What are the added benefits of using a mortgage broker?

1:A mortgage broker has dedicated the time to explore your financial goals and circumstances

A mortgage broker is also more likely to take you on as a client, regardless of your credit score, because they are in a better position than a bank loan officer to negotiate a loan for you.

2: A mortgage broker’s services don’t usually cost a cent

Mortgage brokers don’t generally charge their clients a fee – instead, the credit provider whose products they sell pays them commission. That being said, before enlisting the help of any mortgage broker, we advise that you first confirm their fee structure so that you are fully informed of what their services might cost you.

Every mortgage broker should be able to provide you with a Credit Guide and a Credit Assistance Quote that outlines all the fees payable. Steer clear of any mortgage broker who can’t provide you with either of these.

3:Using a mortgage broker reduces the chance of getting a mark against your credit history

Did you know that rejected home loan applications are reflected on your credit history? Enlisting the help of a mortgage broker can greatly reduce the chance of this happening, as a broker is better positioned to assess available loans against your borrowing power (or capacity) and identify lenders with whom your application will be most successful.

Check out our home loan calculator to compare your current loan with other available options.

The mortgage brokers at Collins Home Loans can help you better understand the different types of loans available and the pros and cons of each (including the cost of transferring to a different lender if this becomes a viable option), so that you can make an educated decision about a home refinance loan that’s the right fit for your current financial goals and circumstances.

Feel free to contact one of our mortgage brokers today to chat about the best way to free up some of the equity in your home loan.

Disclaimer: The information provided in this is article is general in nature and is not intended as financial or investment advice and should not be relied on as such.  You should always seek your own independent advice from qualified specialists as per your own specific circumstances.