Have you considered using a mortgage broker to access a suitable home loan? Getting onto the property market can be tough, but finding the right broker can be even tougher, with IBISWorld reporting there are 6,850 individual businesses to choose from.
There might be a lot of choice, but is choosing one of these businesses the right option? Here at CAPE, we offer competitive home loans and repayment schedules, and we don't operate in the same way as a mortgage broker. What aren't they telling you?
Your mortgage broker won't show you the whole market
You might think that by going through a mortgage broker, you'll get access to the best available deals. However, that isn't necessarily the case, as stated in a report by Mozo on January 25. Mortgage brokers often use a third-party to select appropriate home loan options for their customers, but they don't give you a whole picture of the market.
"These aggregators only compare a select number of providers and home loan packages, which means when you use a broker you won't have access to the entire home loan market and the lowest rates in the market," explains Mozo property expert Steve Jovcevski.
What's more, some home loan providers will pay a commission to a mortgage broker for getting a customer to sign up for a certain loan. Is it possible that the home loan your mortgage broker recommended isn't the most suitable option for you, and that they're just trying to get a better commission?
You don't need the help of an 'expert' broker
Mortgage brokers are simply there to facilitate your home loan from a third-party provider.
Mortgage brokers are not professional real estate advisors – they are not experts in the field of choosing a home, or even financial experts who can give you appropriate advice. Often, they are simply there to facilitate your home loan from a third-party provider, which is fine if that's all you need them for.
However, if you want advice about what sort of property to buy, you should talk to a real estate expert. If you want advice about the most suitable ways to handle your finances and your home loan repayment schedule, you should talk to a banking expert.
Here at CAPE, we have the right people onboard to help you get into the property market, and go on to handle your finances correctly while you're repaying your home loan. For more information about the process, get in touch today.
