If you have ever planned to buy a home or have a friend who did it, you have probably heard of a professional called 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.
Let’s dig deeper into this process:
What does a mortgage broker do exactly?
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:
- 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?
Banks and other lenders will show you limited possibilities, based on what the company has to offer.
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.
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.
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.
Contact us today! We are Mortgage Brokers based in Sydney, but we also assist clients all around Australia.