In Australia today, more than 50% of loans are facilitated through the use of a mortgage broker but that isn’t the case in all countries. Why more loans are facilitated in Australia than in many other countries is probably due to the fact that Australia is one of the few countries where the seller pays for the services of the broker, not the buyer. Obviously as you, as a buyer, do not have to pay any extra to use a broker, then why not?
What exactly is it though that a mortgage broker does?
The answer to that is that a Mortgage broker 2015will basically take the time and effort of buying a house, away from you. The broker will do this by evaluating exactly what it is you need, they will evaluate your buying power and be able to advise you as to what price range you can best afford, they will evaluate who would be the best source for your loan and then hopefully obtain a pre-loan agreement ready for your approval. Without the expert advice of a mortgage broker you may have to spend considerable time in different banks or other lending establishments, until you find one that will afford you a loan that you can afford and which is enough to buy a house that fits your requirements.
Although the brokers are obviously experts and so can more easily communicate in the language that bankers like to use, there are perhaps some terms which will possibly be used and that you should at least know something about and among these are:
An Offset Account – This is a deposit account from which you can make deposits and the balance will be used to offset interest payment calculations.
A Withdraw facility – This facility will allow you to draw any extra payments you may have made towards the loan.
Refinancing the Loan – This is something which you should have the broker explain to you prior to signing any agreement.
Debt Consolidation – This is where all your outstanding debts can be placed into one loan which often results in a lower interest rate overall.
There are many other terms and details that if you were receiving the loan without the assistance of a broker, may take some difficulty in fully understanding but a broker and quickly and easily explain all of them to you and guide you as to which are the best options to choose, when there is a choice.
Many people mistaken believe that although they, as a buyer, do not actually pay or the services of a broker, the lender will add those expenses to their loan but that is not at all what happens. When a broker is used, all their payments are absorbed by the lender who is glad to pay them as it is the broker that brings them the extra custom. If more people were aware of that fact, the percentage of loans facilitated by brokers would probably greatly increase still further.