Can you do me a favour?
Close your eyes, and imagine that you’re walking down the streets of a city you’ve never been to before. The locals are jabbering away in their native tongue, and you really, really need a latte.
So you saddle up next to a kind-looking stranger, and you ask them where to go.
Hallelujah! They speak English. And the next cafe is just one block away. Real cheap coffee. You’ll love it, they say.
Sweet relief. Until this random asks for $2.
So rude, right?
Why would a stranger ask you for money? If you’re in France, you’re likely going to have to cough up another $5 for a latte.
Now imagine another scenario. You ask for advice on where to get the finest espresso, and this stranger asks you exactly what you want. Do you want to sit down and soak up the ambience? Maybe you need free wi-fi? They direct you to a few cafes, with one prime recommendation…then they let you walk away without paying a cent.
Later on, while luxuriating in the warmth of an open fire and a great atmosphere, you see them enjoying a free muffin outside your chosen coffee house. Clever.
You don’t need to pay for advice you can get for free
Like the second scenario, the majority of people who ask for help from a mortgage broker won’t have to pay a fee. The majority of people who hear this are incredibly surprised. This is because we’re so used to coughing up our savings for premium advice. Physiotherapists. Life coaches. Dentists. Hairdressers. If you want the best, you generally have to pay, right?
When you work with a mortgage broker, you get a premium service without financial whiplash
Too good to be true? That’s where many people are mistaken. Let me explain mortgage broker fees.
Mortgage brokers typically get paid a commission by the lender after the finance settles. As a house hunter, you’ll never actually see or pay this bill.
This also encourages your broker to go above and beyond. Because if they don’t help you get approved for a loan, they won’t get paid.
Simple.
Going to a mortgage broker vs going to a bank
So I bet you’re thinking mortgage brokers sound a bit like an Avon Lady.
Well, unlike an Avon Lady – and the banks for that matter – we can:
- Save you time. Banks can only offer you their products. This means if you want to compare loans, you’ll need to set up multiple appointments with different banks. Choose one mortgage broker, and they’ll offer you the right options for you. You’ll save on time spent hunting. And as they say, time is money.
- Save you from home loan black holes. Buying a house isn’t a straightforward process. Typically, first homebuyers get sucked in by low interest rates…and then get burned by a whole slug of hidden fees down the track, burning a huge hole in your savings. Ouch. A mortgage broker will know what home loan will suit your lifestyle in the long term, saving you from heartache down the track.
- Save you from doing the ring around. Ever called up your phone company, and been passed from person to person? It’s infuriating, right? Unfortunately, the same thing often happens with banks. People move around a lot more, meaning you have to deal with strangers who haven’t taken the time to get to know you. When you work with a mortgage broker, we’re your single point of contact. It’s unlikely we’ll get retrenched anytime soon, because we often own the business ourselves. We’re here for you on weekends and weeknights, unlike the big banks who shut at 3:58pm just as you’re rushing through the door.
- Save you from getting your hopes dashed. Not all lenders treat loans the same. We know the criteria that our lenders are looking for – income, probation, maternity leave – so we won’t make you lodge applications just for the hell of seeing who’ll accept you.
Why should I use a mortgage broker?
By choosing the right mortgage broker – one who’s transparent, independent and qualified – you’ll end up saving both on time and money. Ultimately, you’ll get the keys to your dream home a lot sooner.
Did I miss anything? If you’ve bought a home, how has your mortgage broker been of the most help? If you haven’t, what’s the number one thing you need help with? Answer in the comments below, and I’ll respond with my two cents.