Refinancing your home? Or looking for the best possible home loan as a first-home buyer? When you’re hunting for a great mortgage deal, there are many options available.
Some people are happy to stick with the bank they know and trust, but for others, the value of being able to shop around and find a product that is tailored to suit your unique circumstances and budget offers more flexibility.
By understanding the difference between securing a mortgage with a bank, or using a mortgage broker to find your most suitable home loan, you can potentially save time, money – and stress.
Choice
Choice brings opportunity. When you ask your bank about a home loan, you are limited to the specific mortgage deals they have on offer, with restrictive opportunities to negotiate a competitive interest rate.
You are also less able to access flexible terms and conditions that might be able to trim years off your loan.
Better Interest Rates
We compare prices on everything from milk, bread, petrol and cars – so why should we take the first offer of an interest rate?
While banks may offer access to a small range of home loan products with different interest rates, asking a mortgage broker to find you a great home loan deal gives you access to a wide range of lenders – and a wide range of varying interest rates.
A Better Credit History
When you apply for a home loan at your bank, it may turn out that you do not meet their precise criteria for approval. And if they turn you down? It shows on your credit record that you have been declined for a home loan. Because mortgage brokers understand the finance offerings from a diverse range of lenders, they understand the different lending criteria and can assess where you are best likely to fit for approval. Rather than apply for a loan you may not get at a bank and diminish your chances of subsequent successful loan applications, trusting a mortgage broker to shop around for you means you can focus on applying to the lender you are more likely to be approved by – something that can protect your credit history for future finance applications.
Experience
That home loan ‘specialist’ at your local bank? Often bank staff may not have comprehensive training and experience in one specific area, whereas mortgage brokers, who often own their own businesses, bring years of experience to their profession. A great mortgage specialist at a bank? They do exist but banks are big companies who often reward hard-working staff with promotions that move them into other areas – away from their customers.
Long-term Loyalty
When it comes to your other trusted financial advisors, such as your accountant, financial planner or bookkeeper, most people understand the value of building trust in long-term relationship. So why treat the most important purchase of your life – your investment property portfolio or first home – any differently?
While banking staff may come and go and may not even be on-hand to deal with issues by the time of your property settlement date, a mortgage broker can be there for years and years of your investment journey and will have an in-depth knowledge of your financial goals and circumstances.
Specialised Knowledge
As your home finance journey continues, you may want to find a mortgage broker who specialises in property investment, or purchasing property within SMSFs. By choosing a specialist, reliable mortgage broker with years of proven experience and a brilliant customer service track record, you can benefit from knowledge that can help you turn your financial dreams into a tangible reality.
Customer Service Follow-up
Personalised service from people who really know you and your individual circumstances can be the difference that saves you money, time and worry. Choosing the right mortgage broker can help you have the peace of mind from knowing that potential issues can be dealt with quickly and efficiently by someone who knows you are more than just a number.
A great mortgage broker will follow-up with your finance transaction at every step of the way to make sure that every aspect of your finance application is being dealt with efficiently and effectively. Friendly, personalised customer service is something that can turn a potentially stressful time into a smooth, happy home-buying experience. It’s possible to find at a bank too but with so many other variables that may mean the lender you originally dealt with is no longer in the same position, the risk of missing out on truly personalised service is much higher.
The best tip of all? No matter who you choose for your next finance application, ask the right questions to ensure you enjoy a mortgage product that suits your needs – and your budget.
To find out how refinancing your mortgage could help you access equity for home renovations to your existing property, talk to Lending Specialists, the expert mortgage broker in Melbourne today.
