LD Total's top tips for maintaining your new garden
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For most people, the journey of buying a new home begins with securing a home loan. And home loans, like any financial product, can get a little bit complex. It’s no surprise that a significant number of purchasers lean on the expertise of a mortgage broker to guide them through this potentially challenging process. The Mortgage and Finance Association of Australia (MFAA) and Finance Brokers Association of Australia (FBAA) often recommend seeking the advice of professionals in this field. At Satterley, we can assist you in finding a broker through our friendly Sales team.
Ideally, you should contact a broker before you begin your property search, because they can offer advice on your borrowing capacity. But if youve already found your perfect block of land, they can still be a huge help.
As for costs, many brokers in Australia offer advice without charging a cent. While there might be occasional fees, such as processing your loan application fee, brokers predominantly earn through an upfront commission. In essence, the financial institution, banks, or credit provider who furnishes the home loans, compensates them for their expert recommendations.
We wanted to find out more about what a mortgage broker does and how they can help you with the financial aspect of buying a property. We spoke with Ahmed Hossain, a Senior Finance Broker at Loan Gallery Finance. Ahmed was kind enough to share his knowledge and industry experience, and he provided us with some helpful information about all the ways a mortgage broker can lend you their expertise and the kinds of things to watch for. These can include: things such as lenders’ pay, which home loan options are the best for you and which mortgage choice might be most ideal, and more.
Ahmed told us that using a mortgage broker is similar to the role of a coach or an agent
Mortgage brokers educate consumers and help them navigate the complexities of the mortgage market. They help consumers obtain a mortgage product that meets their financial circumstances and needs”
He says mortgage brokers could help all sorts of people, but were often particularly helpful for those with little time to sift through the intricacies and fine print of the mortgage industry. This can often involve financial Australian securities that you might otherwise miss.
A broker will arrange a consultation and preliminary assessment which will give prospective buyers a guideline of their borrowing capacity, deposit requirements, lenders, products, fees, and so on. Also, the broker will set up a detailed plan for the purchaser to achieve their goal of home ownership”
When navigating the vast information available on home loans and all of the intricacies involved, one of the first things a potential homeowner may wonder is exactly how many lenders are out there. And of all of them, which is the best one to choose? The Australian mortgage market is vast, with plenty of lenders offering various loan products. Each of these comes with its own set of features relevant to different types of borrowers.
Choosing a particular lender can be a daunting task, especially when you’re given so many options. That’s where the expertise of a broker becomes invaluable. Their in-depth understanding of the market can provide much needed insights into the nuances of each lender’s offerings. Whether you’re looking for flexibility, competitive interest rates, or specific loan features, a broker can guide you to the lender that best aligns with your needs.
It’s also worth noting that while you may be inclined to use one lender over another due to past experiences or brand familiarity, other lenders in the market might be offering products that are better suited to your current financial goals. That’s why mortgage brokers are perfect for helping you explore the best options suited to your financial situation and goals.
Ahmed told us that financial information is difficult to digest at the best of times and that it’s becoming increasingly complex in the mortgage market. Especially when it comes to learning all of the jargon involved. It’s no wonder then that he’s found that the home loan application process can be daunting for many consumers. Ahmed says a central part of his job is easing anxiety.
One of the ways he does this is by saving buyers the time that they would otherwise spend updating their financial literacy, sorting through information and cross-checking offers and product details. This includes using an Australian credit license to check financial statuses and offering ongoing support to clients.
Mortgage brokers reduce search and matching costs for consumers by helping them compare deals across lenders. This helps those consumers that are information- and time-poor to avoid the costs associated with expanded choices Ahmed said. Based on a customer’s situation, their broker can negotiate a better interest rate prior to applying for approval. The mortgage market is very competitive, and lenders compete against each other for business.”
Ahmed has helped many clients buy land in new communities around Australia and says that although all purchases are different, he has seven general steps everyone should follow in this situation:
If you’d like help finding a broker our Sales Teams would be happy to help. You can find our sales office contact details here.
You can also contact Loan Gallery’s Victorian office (where Ahmed works) on 9495 5000.