Mortgage broker myths busted

You wouldn’t sell a home without getting professional advice and when it comes to buying a home, the same principle applies.  Buying a house is one of the biggest financial commitments you’ll ever make and The Home Loan Specialists Mackay are here to run that financial gauntlet with you.

It’s time to address 5 of the most common mortgage broker myths, clear up some false facts and get you on track to finding the best mortgage solution for you and your family.

Mortgage brokers cost money
It’s often thought that engaging with a mortgage broker means you’re expected to cough up more money, either from your own pocket upfront or hidden costs built into your loan that the lender will then pass on to the broker.

In actual fact, that’s just not true.  The Home Loan Specialists Mackay cost you NOTHING!  No upfront or hidden costs for you to worry about.  Well, how do brokers make their money then? They receive a commission or “referral fee” from the lender.  Let’s not jump to conclusions now. This does NOT mean the mortgage rates are higher when using the broker’s services; the rates remain the same and the commission is taken out of the existing cost of the loan.

To sum it all up – you will not pay more or be charged a single cent for The Home Loan Specialists Mackay services; the lender pays them a portion of their own profit from the loan.

This leads us to our next myth…

Mortgage brokers take care of the lender, not the customer
Because mortgage brokers get paid by the lender, they must have secret deals in place.  To encourage the broker to send business to specific lenders, right?  WRONG!

Aside from being a heavily regulated industry, Mortgage Brokers have a duty of care to their clients to find them the best deal possible.  Higher commission or not.  Expect a good broker to offer options from multiple lenders with explanations on why that loan would be a good fit for you. Lining their own pockets with no regard to their clients’ needs would actually be harmful to their business as most build their brokerage by having a good reputation, customer referrals and repeat business.

Mortgage brokers take care of the customer, not the lender.

Mortgage Brokers only offer the lowest rates
If you were going it alone and decided not to use a mortgage broker, what would be the biggest consideration in deciding if that loan is right for you?  The interest rate?  While that’s completely acceptable, mortgage brokers look at your situation with a more holistic view.

Applying for a loan isn’t the easiest thing to do.  It requires a lot of time and even more documentation!  Made even trickier if it’s your first time round the block or your financial circumstances aren’t black and white.  Mortgage brokers will factor in things like your income and savings and balance out your expenses and which loan are you more likely to get approval for. They also understand home loan structuring and can provide advice on the best loan type which may even lead to you saving money.

There you have it folks, mortgage brokers will find the right solution for you.

I’m better off dealing direct with the lender
Cutting out the middleman means a better deal and quicker approval.  That would be absolutely true if you thoroughly know the industry, home loan structuring, current government incentives, all the latest deals and were familiar with the application process.  Sorry to say, that’s not most of us. Even worse, the loyalty to your financial institution may not mean a lot anymore either.  Aligning yourself to one lender could mean limiting your options and potentially missing out on a better mortgage solution and possibly paying thousands more in interest and fees than you need to.

Let The Home Loan Specialists Mackay do all the hard work and running around for you.  They source multiple offers from multiple lenders, fill out all the paperwork, generally have quicker turnaround times, understand the jargon and happily liaise with the lenders on your behalf.  All at no cost to you.   Apart from signing on the dotted line, all you need to worry about is hearing those magic words “you’ve been approved”.

Mortgage brokers are the best middlemen you’ll find.

Using a Mortgage Broker if you have a bad credit history
Let’s debunk 2 myths here relating to poor credit history.  The first being that you only need a mortgage broker if you have bad credit history and the other; a mortgage broker can’t help me because of bad credit history.  Well, you’ll be pleased to know that both of these aren’t necessarily true.

As we’ve established above, the role of a mortgage broker is to source the best loan for you and your family based on your circumstances, regardless of whether your credit history is good, bad or indifferent.  Bad credit history doesn’t mean giving up on owning your own home; it simply means finding a lender that’s willing to work with you.   Financially, if you think the time is right, a mortgage broker can use their extensive network to find a lender that is right for you.  Another benefit of engaging a mortgage broker when you have a less than desirable credit rating is the ability to work with them to develop a strategy to improve that credit rating so when the time is right, you’ll be ready!

Good or bad credit history, it’s always good to talk to a mortgage broker about your options.

If you have any further concerns or queries about why you should use a mortgage broker, or just want to know more about the process, then it’s time to talk to the experts.  Gail, Treena and the team at The Home Loan Specialists Mackay are here to help.  They’re qualified, they’re experienced and they’re ready to listen.  Call them today on 4957 5244.