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The Benefits of a Mortgage Broker when Purchasing Property

Monday, July 28, 2014

The Benefits of a Mortgage Broker when Purchasing Property

 

property investment advice 

 

“How to be confident that you have found the right loan and structure so that you can meet long-term financial goals and avoid serious costs – potentially saving 1000’s of dollars in long-term exit fees and interest rates”


Property Investment Advice

“Finding the right loan to meet your needs can be a very daunting task. With so many lenders to choose from and so many products within each lender, it is almost impossible for the average person or investor to sort between the products (including all the fine print). It is important that you are sure the finance you are choosing is the best one for your circumstances.’

 

Property Investment Advice | Example

 

For this bit of property investment advice we would like to use the example of buying a car.

 

If you walk into a Ford car yard and describe all of the features you want in a car and the salesperson thinks to themselves, “Gee, the latest Holden Statesmen would be the best,”– will he tell you that? No! He will convince you that the latest Ford something-or-other meets your needs. It’s the same with the banks. If you walk into a bank, any bank, you will only be sold that bank’s products.

 

We would recommend that everyone who wants to take out a mortgage should use the valuable services of a mortgage broker. Whether you are buying your first home or investment property or whether you are building a huge investment portfolio you should consult a mortgage broker. The advantages of using a broker are twofold. Firstly, it is free – the bank pays the broker the commission – and secondly, the broker is aligned to scores of banks and will find the best for you. It is in the broker’s interest to find the best product because they want your continued business.

 

Brokers have access to over 30 banks and lending institutions, including all of the majors (CBA, St George, NAB, Westpac, etc) and many popular smaller and non-bank lenders (ING, Bankwest, Rams, Suncorp, etc). Mortgage brokers will help you find your way through the complex maze of product choices and help you decide the best one for you. Everyone’s situation is different and different products suit different circumstances.

 

Mortgage brokers also assist you with all of the paperwork, submit the loan, handle all the bank’s annoying questions, co-ordinate the process with your solicitor and real estate agent and basically take all the stress and pressure from you. They’ll ‘hold your hand’ the whole way through and deal with any complications that may arise.Mortgage brokers are one of your main sources for property investment advice.

 

Pros

  • May save you time in shopping for loans.
  • May save money if fully independent.
  • Usually free.
  • Sometimes, given the broker-lender relationship, a bank will accept a loan application that they would otherwise have rejected.

Cons

  • You may pay more for your loan than necessary if the broker is not independent.
  • They may charge excessive fees or undisclosed commissions.
  • You may be persuaded to borrow more than you need, as this will boost their commission.

The cons can be easily overcome by using a broker who can correctly answer the questions above.

 

Check out the video below for more advice on investment properties

 

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