Mortgage Finance Broker
When buying property there is no guarantee that the bank you are currently with will provide you with the best possible interest rate. A mortgage broker can find the best interest rate available for you to purchase your new home or investment property.
Mortgage brokers specialize in finding the most competitive interest rate in the marketplace for your current financial situation. Just because you want to borrow x amount of dollars to buy a property doesn’t mean the banks will give you the money.
Each Australian financial institution has different criteria in relation to security or a loan guarantee and what one bank will not take into account another bank may.
For example, If you want to buy a residential property to live in and seek home loan finance from your bank and want to put up a farming property for security that has a water entitlement (which is worth $100,000) one bank will not consider the water entitlement as part of the property value while another will take it into consideration.
Without the water entitlement the farming property value assessed by the bank would be next to nothing, with it included as part of the property value will see your loan application approved with a minimum of fuss for the $250,000 home loan you are seeking.
Do you know what bank would have that information? It seems like a lot of running around, calling every bank in the phone book and waiting on hold for someone who actually knows what they’re talking about to get back to you.
However, a mortgage broker will be able to help you find finance for the purchase of your property and will save you a great deal of time in doing so. Everyone’s financial situation is different and it can be very time consuming trying to find not only the right loan that meets your financial situation but also a financial institution that will agree to grant you a home loan.
One reason why more and more people are seeking mortgage brokers when they are in the market for a new home is that a mortgage broker is paid by the lender. You do not have to pay for the service of using a mortgage broker with the lending bank or financial institution already paying the mortgage broker a commission.
If your mortgage broker charges you for their services then you should inform the Finance Association Brokers of Australia as it is not standard industry practice for a mortgage broker to charge a customer for their services.
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