These days, a whopping 65% of home loan applicants go through mortgage brokers when approaching banks and applying for loans. With this percentage on the increase (according to an Australian survey agency), is it any wonder why more and more of these finance experts are popping up throughout Melbourne and across the country?
But many people find themselves wondering if these types of brokers are a necessity to use – and if they could mimic the same types of results if they decided to go it alone when applying for a loan.
The truth about brokers
Although it can be possible to compare interest rates, get a grasp of the latest financial data proposed by banks and secure a loan without the aid of a broker; there’s no denying that these specialists can bring a lot to the table. For a start, attempting to compare the rates of interest offered by lending agencies can take an individual months.
Why is this?
The reality is that banks don’t often go out of their way to showcase their interest rates, simply because of their competitors. There are four ‘big banks’ in Australia and each of them want to secure as many new clients as possible. The best way to do this is by withholding certain pieces of information – and in some cases, interest rates can be concealed.
This is where brokers can come in handy. As they often have access to their own channels when it comes to sourcing the most up to date rates of interest, they can bypass the need to approach banks directly. This can help by saving you time and effort – not to mention by minimising the obligation that you might feel by approaching a bank on your own and finding out about their services directly.
Is this all that they do?
Certainly not! In fact most modern brokers will also offer extensive financial advice services, as well as mortgage application features, home loan comparisons and even negotiations. They might not be a necessity to use (or an obligation), but time has demonstrated that they are some of the most capable and effective finance experts in their field – offering the potential to increase the likelihood of a home loan approval several times over (according to statistics).