From LMI to stamp duty, settlement and more, there are a number of terms and jargon you need to get comfortable with when entering the property market. If you have ever planned to buy a home or have a friend who did it, you have probably heard of a professional called a Mortgage Broker, right? But do you understand what their role is in the process of financing a property or how can it be beneficial for you?
Mortgage brokers act as intermediaries between lenders and borrowers. In order words, we understand the home-buyer profile and match it with the several different options of lenders out there, to help the buyer (you) find the best home loan for your needs. With a mortgage broker, you can finance a property all the more easier, from sourcing the right loan to sorting through paperwork and getting the keys to your new home.
Keen to learn more about how a mortgage broker can help you purchase your forever home? Let’s dig deeper into this process:
What does a mortgage broker do exactly?
Put simply, a mortgage broker is your trusted partner for financing a property in Australia. There are a number of steps to purchasing a property in Australia, and a mortgage broker is here to guide you through each and every one.
The first step to take when buying a house in Australia is to get a statement from the bank you are borrowing from, called pre-approval (please check this post to understand how the pre-approval works in detail). To be able to do that, you first need to find a bank that agrees on lending you the money.
And this is the point! There are more than 30 banks and other lenders out there offering home loans, and each one of them has their own policy and requirements to determine if they will lend you the money or not, and how much it would be. While this may sound like a dream, having countless lenders to choose from, it can actually make the process all the more difficult. From varying interest rates, fees, loan terms, features and more, think of the time you may spend hunting for the right loan. Not to mention that some lenders may ask borrowers for different sources of information during the application process, for instance:
- Some banks ask for genuine savings – Funds that you have been accumulating by yourself over at least the past three months to demonstrate your capacity to make the monthly payments;
- The amount you will have to give as a deposit will vary from 3%, 5%, 10%, 20%, according to each bank;
- The kind of visa you hold may change your rights. In general, you need to be a Permanent Resident to get access to the loan, but there are some banks that accept different visas, such as Partner Visas (or even the bridging visa for this subclass), Regional temporary Visas 491, Sponsorship visa, and so on;
- Some banks will also look into the kind of employment contract you have: do you work as a sole trader? Contractor or employee? Full-time or part-time?
- What documents you need to provide in order to get pre-approval from the bank.
So, finally answering the question: the mortgage broker is the person who will sit with you, analyze your situation, and based on your profile, recommend the best lender for you to work with, guiding you through the whole process of borrowing money to buy your dream house.
What is the difference between using a Mortgage Broker and going straight to the bank?
As an established mortgage broker, this is a question we hear all too often — and the answer is pretty simple.
Banks and other lenders will show you limited possibilities, based on what the company has to offer. From fixed and variable rates to additional loan features, banks will show you their top suite of home loans.
Using a mortgage broker gives you many more options. As they work in partnership with several banks, you have the possibility of choosing from different lenders, policies, requirements, and benefits.
Why use a Mortgage Broker?
After all that has been said, you should use a Mortgage Broker basically because it will make your life easier! Not only when it comes to best loan deals, but also for saving time and avoiding mistakes that might get your loan denied.
Imagine the freedom of being able to sit back and let the experts find you the perfect home loan for your circumstances. With a mortgage broker, you can look forward to a streamlined process where you can finance a property loan in no time.
How much does a mortgage broker charge?
Generally, mortgage brokers are paid by a commission on loans settled by the lender, which means you won’t pay a single cent to talk to us! Capta Financial does not charge anything additional to the client at any point and will rely solely on the commission received by the bank.
Work with experienced mortgage brokers, contact Capta Financial today
Financing a property loan can be complicated. But with Capta Financial, it doesn’t have to be. At Capta Financial, we guide you through your financial journey in both languages, English and Portuguese to help you find the most suitable lender for your needs.
We use a panel of lenders and financial institutions to source our loans while guiding clients through the entire purchasing process. We can also assist in refinancing and those looking to purchase an investment property.
Contact us today! We are Mortgage Brokers based in Sydney, but we also assist clients all around Australia.