As the old saying goes: “Once you’ve settled down, you can start to build your career”.
This is always true. Indeed, owning a house will allow you to focus on career development and not worrying about pay rent, or moving house, or whatsoever. People in Australia in general, and Vietnamese migrants in particular, often hear of the term “home mortgage” or “home loan”, it means people who need to borrow money to purchase for their house, have to pay it back (with interest) for a given period of time. Usually, they would have two options:
- Go directly to the bank
- Through a Mortgage broker
When it comes to this question, many people would think: “Why don’t they just go directly to the bank? Will borrowing money from the bank has higher security?”. In fact, more than 55% of Australians are choosing Mortgage broker instead of borrowing money from a bank. So, what were the reasons behind this?
A broker is a representative for many banks or Non-ADIs (Non – Authorised Deposit-taking Institutions). If you come to a particular bank, your choices will be limited within that bank’s services and products. If you want to have more information from different banks, it will consume more of your precious time. However, with a mortgage broker, you can get access to a wider range of products that suitable for your current financial situation, especially when you have a complicated one.
The broker collects all of your information to prepare application for you, so you will not have to do anything. All you need to do is reviewing and signing the application. The broker can also assist you to fill in the information in the official loan contract if required.
All of broker’s services are free! Normally, the lenders will pay commissions to brokers, therefore, you do not need to spend a penny on any services. Besides, you can get free consultation about other related services such as property purchasing process; stamp duty; building contracts; or even immigration.
You will get the best financial products that suit your situation. With the experiences of lending processing and knowledge of products in the lending market, brokers can easily choose the most suitable product for clients. As a success mortgage is not only about having good rate but also involves other criteria, such as borrowing capacity; processing time and income assessment from lenders. Especially, for bad credit history clients, brokers also can help to find smaller lenders or Non-ADIs (the interest rate will be higher in these cases). If you are not yet an Australian citizen/ PR holders, brokers can also help to find suitable lenders for you.
Faster refinance with brokers! As brokers have all of the information from clients in the past, it will be faster for them to do refinancing for clients in the future. The broker also gets updated promotions from banks or Non-ADIs (such as cashback bonus when refinancing) which save time for clients in searching these promotions and refinding all the documents.
Brokers can also negotiate the interest rate with banks, and escalate the processing time. They can ask for the matching rate to get a better rate for the client. Sometimes, the broker can deal with banks to escalate the processing time to meet the required settlement date.
Brokers help to push the property purchasing process faster. Your purchasing process will be faster as the broker connects directly with all related partners until successful settlement (such as real estate agents; solicitor/conveyancer; building inspection; architecture; insurance provider).
Last but not least, a broker can provide a valuation report from the bank as a price reference before your purchase.
If you are buying a house, would you consider going to a broker with all of the above benefits? The choice is yours.