mortgage broker sydney
Sydney mortgage broker : What does a mortgage broker do?
What Does a Mortgage Broker Do?
By David Cannell
A few years ago getting a mortgage was easy. A lot of the time people didn’t even need a deposit, there were banks out there giving 108% loans! These days things are tougher. The global financial crisis has caused many banks to tighten their lending criteria. Also, many people are reading the fine print before they sign up for a mortgage a lot more than they used to.
If you are looking at getting a mortgage, it definitely pays to be savvy about how you apply for a loan and what product you apply for. Knowledge is most definitely power when it comes to home loans.
If you are unsure about home loans, a mortgage broker can help you with the task. There are many different ways that you can borrow money. Most people will shop around a few banks and choose the best rate. This does not always ensure that you get the cheapest home loan. The best bank is not necessarily the one with the best rate. Many banks which boast cheap interest rates have hidden fees and charges which actually have you paying more money at the end of the day.
A mortgage broker will begin with a consultation, they will discuss your needs and circumstances. Based on the information that you provide, the broker will consult with a panel of lenders to find out which bank is best for you.
A broker will not simply pick a bank for you, they will actually negotiate with the bank to get the best rate and the best package. When competing for your business, banks will often offer an interest rate cut and drop fees and charges. Mortgage brokers will often have relationships with business development managers within the banks that will help them get a good deal. If the manager looks after the broker, the broker will ultimately send more loans to the bank.
Once you have in consultation with your broker, decided on the right loan product, the broker will complete all the necessary paper work and send it off to the bank. You may need to supply some documents, but the broker will do the majority of the paperwork for you. Most banks will get back to the broker with a pre-approval within a few days. Formal approval takes between one and two weeks, depending on the bank, the broker and the work load both are currently under. If a broker has a good relationship with a bank, they often get faster response times from the bank.
Using a mortgage broker not only saves you time and hassle, but it can also save you a lot of money. If just thinking about battling the banks is giving you a headache, save yourself the stress and talk to a mortgage broker today. By David Cannell