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Collins Home Loans Blog

Get the full home loan picture by speaking to a Mortgage Broker!

Posted by admin on Jan 28, 2018 11:41:00 AM

The home loan landscape continued to evolve in 2017 with NAB, ANZ and ComBank and other lenders such as AMP, appling a range of restrictions on interest-only lending in response to the banking regulator’s attempt to slow the pace of record growth in investment lending. As a consumer, keeping up with the changes in the home loan market is difficult and it is fair to say that going directly to a bank or lending institution wont get you the full picture. Which is why consulting a Mortgage Broker has never been more important. As a mortgage broker, Collins Home Loans is in touch with the latest changes occurring in the industry and can seek out the best options to suit your particular needs. Read on to get the full picture.

A Broker’s ability to keep up to date with product changes as well as match the product to the customer’s needs - is not what you will get when you go directly to a bank.  In fact 30.2% of broker initiated home loans go to smaller lenders, demonstrating that brokers offer consumers real choice and have access to a wider range of mortgage products than banks or other financial organisations.

So what will a Collins Home Loan Mortgage Broker do for you?

  1. Evaluate your needs and give you expert advice.
  2. Calculate your borrowing power (including arranging a pre-approval)
  3. Match you needs to the best home loan options from a range of lenders.

It is also worth noting that a Collins mortgage broker will not charge you for their service and will base their advice on the best option for you. Our commission rate is consistent across all our lenders.

According to a recent survey commissioned by the Mortgage and Finance Association of Australia (MFAA), mortgage brokers are responsible for writing over half of Australia’s home loans and are valued for their choice, expertise and convenience.

From a 49.9% share of the market in the March 2014 quarter, total new home lending to mortgage brokers increased to 51.9% in the March 2015 quarter. Over this time there was a $44.2 billion increase in mortgage lending across Australia and brokers were responsible for 71% of this increase, Australian Bureau of Statistics data reveals.

With the limitations now being placed on investment-lending, the value of the mortgage broker has never been more important - with research showing that 40.5% of broker originated loans are from investors. Owner-occupiers follow closely behind at 37% of broker-originated loans, then first home buyers at 14% and commercial borrowers at 6%.

On the other side of the ledger, lenders are also complimentary of the role of mortgage brokers. Those interviewed for the MFAA study said lenders identified a broker partnership model as being important, whereby both work together to provide customers with the most appropriate proposition. Great news for customers!

Please feel to contact our qualified Mortgage Broker, Carissa Louca at Collins Home Loans for all your home loan needs.

 

Topics: blog