Why You Should Always Use Mortgage Broker For Your Homeloan

   

When it comes to selecting home loan or mortgage, doesn’t matter if it’s a new loan or a refinance / remortgage, I without hesitant will recommend all of us to get a service of mortgage broker. A mortgage broker can be “‘disguised” as “financial planner”, “loan advisor”, “property consultant”, “property strategist”, etc… But as long as  they offer you home loan product from various lender, they are mortgage broker.

Why We Need A Mortgage Broker?

1. Contrary to popular belief, deal directly to a bank or lender will not get you cheaper home loan. Why? Mortgage is highly competitive market and commission based. Even you directly go to the bank, the employee that serve you will be the one receiving commission.
2. Mortgage Broker allows you to compare directly among various of product and lender and then make a (close) match to the best available product that he/she carries into your need/situation in very efficient and fast manner. This will save you tremendous time avoiding the trip to every single bank or lender that you want to inquire (even if it’s only their website). They also will know which lender give “discount rate” or any other special offer at that time.
3. Mortgage or home loan transaction is not simple and straight forward. Many nitty gritty that we don’t want to know about (and we don’t need to) that can be resolved without any doubt if you have a mortgage broker. Simple example: how much exactly you need to prepare for the settlement? This can be a very tedious exercise if you want to do it yourself. You don’t want a simple innocent thing become big problem just because you are not sure about it. As illustrated below, without mortgage broker, it’s only you and your solicitor/conveyancer that deal with the rest of the flock. Having one additional army is always nice to have.
   
4. Mortgage Broker will help you tremendously with all the paper work and forms that you need to fill. Some of those form is as cryptic as it could be.  Having someone that really help you with the paperwork will prevent you to become overwhelm with the whole process.
5. It’s “free” service. Your mortgage broker will receive some commission and usually residual payment as long as the loan is still be maintained, but you should not be charged for their service. If you have been charged then your mortgage broker is “double dipping”

What’s the criteria of Mortgage Broker ?

Having recommend a mortgage broker, I then need to give you a hint how to select a mortgage broker:

1. Your mortgage broker should not be employee of a bank/lender. In other words “independent” mortgage broker.
2. Your mortgage broker carries a lot of product from various lender
3. Your mortgage broker should be member of the official body.
4. You are comfortable with him/her. Remember after the inquiry, he/she will know your exact financial situation. If your gut feel say no, just find another one.

Recommendation

1. Make a good relationship with a mortgage broker. If you don’t have one, ask friend or just go to the mortgage broker shop and when you find some one that your feeling said he/she is alright, stick with him/her.
2. But every time you want to engage to a new loan or refinance/remortgage, always go to at least 2 mortgages broker to get the better market selection of product at that time.
3. Every 2 or 3 years, make your regular call to your mortgage broker to review the market… Maybe it’s the time to refinance/remortgage….

OK, hope this helps and maybe it’s time for you to check your home loan!

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Denis Kristanda  

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