Just like fax, floppy disk or VHS, even the word broker feels out-dated these days.
Armed with nothing but Google, we’re accustomed to sniffing out great deals and getting things done ourselves. Travel agents are predicted to go extinct soon, so why would we even bother with a mortgage broker?
The mortgage hunting blues
Unfortunately, finding a loan is much more complicated than snagging a flight online. This is due in large part to the fact that the process is still stuck in the paper loving 90s. Especially helpful for the first homebuyer, accredited brokers are experienced in the art of the mortgage. This means they may be better placed to find the best deals, which will help save you cash over the long-term.
Brokers do boring best
Brokers basically take care of all the boring stuff for you. They’ll research the market, compare rates of banks and lenders and negotiate the loan on your behalf, working with you all the way through to settlement. They handle the details, read the fine print, translate the jargon, and are obligated by duty of care to never recommend an unsuitable loan to you. Which can be good news for those who don’t have the time, skills or confidence to do the leg work themselves.
The choice is yours alone
Keep in mind; brokers do take a commission off lenders, which might affect who they recommend. Before you decide to go with a broker, make sure you do your homework, check them out thoroughly, ensure they’re properly accredited and consider asking your friends and family for recommendations. ASIC’s MoneySmart website has lots of info about what brokers do, who pays who and what to look out for when using a broker, which you can read here.
At the end of the day, the choice is yours as to whether you go with a broker or go it alone. It’s possible to find yourself a great deal, but for those of us less inclined to wade through the reams of paper the mortgage process entails – it’s good to know there’s someone out there we can handball the hard work to.