A mortgage broker is a home loan specialist who acts as an adviser and intermediary between the homebuyer and the bank. Although it is not necessary to hire a mortgage broker, foreign investors are advised to do so to make the real estate property purchase process easier and smoother.
Benefits of Hiring a Mortgage Broker
There a multitude of benefits of using a mortgage broker:
1. They are accredited by financial institutions.
Brokers are accredited with multiple banks, non-banks and other finance companies, therefore brokers have access to a much larger variety of home loan products. This ensures that the property buyers benefit from the best value products and the most suitable home loans depending on the borrower's needs and financial situation.
2. They can simplify the process.
A homeloan application can often be complex but mortgage brokers do all of the heavy lifting for the home loan applicant.
3. Their service is free of charge.
The best part about the service a mortgage broker offers is it’s completely free for the home buyer! How come? It's because they are paid on commission by the financial institutions who have approved your loan. Commission models are generally the same for all lenders although some banks have offered soft incentives to encourage brokers to right more loans with them.
4. They offer exceptional service.
In general, a broker will offer clients exceptional service; the majority of a broker’s business comes from client referrals and repeat business from investors. The better the service they deliver for a client the more likely a client is to refer their service to a family member or friend who are looking for a home loan. It is in the brokers best interest to have a satisfied client.
5. They offer great help for foreign investors.
There are Australian brokers who specialise in writing non-resident homeloans. They are adept at finding the right credit fit for overseas borrowers. Their ability to speak Manadarin and Cantonease proves invaluable for some clients with limited English.
6. They will give you the right options.
One of the best things about hiring mortgage brokers is that they will offer you loans based on the on your needs. Mortgage brokers will study your financial status and find a loan that would best match your financial capabilities. It’s important they do because their trail commissions also depend on it. If a buyer fails to pay their mortgage as needed, the mortgage broker’s commission stops as well. So it is as important for your broker to match the right loan for you as it is for you as the buyer.
Mortgage brokers are an invaluable asset to foreign investors, especially since foreign property investment in Australia is getting stricter by the minute. They will make things easier for you to get a loan and have it processed. Of course, you also have the option to go directly to the lender you are eyeing. Read our comparison on hiring a mortgage broker against going directly to the bank.
If you need help with finding the right mortgage broker, you can contact us for assistance.