Is it worth using a mortgage broker?

If you’re in the process of working out finance for your new home, it’s likely that you’ve come across the term “mortgage broker” before – though you may not be sure what they do or whether it’s even worth using one. Mortgage brokers are essentially third-party home loan experts that are there to guide you through the process of obtaining finance for your new home. They know everything there is to know about what it takes to get approved for a home loan, and what’s amazing is that they offer their services to borrowers free of charge!

One of the best reasons to use a mortgage broker is that they’re completely focused on establishing which of the many home loans available in the market are a good fit for your financial position. And because mortgage brokers are accredited with a wide variety of banks and lenders, they’re able to offer you advice on a whole host of loan products (as well as their interest rates) and can easily identify the options that will tick all the boxes. That’s the sort of personalised and comprehensive advice that banks and lenders can’t provide because they’re generally limited to discussing their own products and services.

That expert-level knowledge of the banks and lenders is another good reason to go with a mortgage broker. A mortgage broker will do all of the hard work for you in comparing the banks and their loans, which will save you a ton of time, work and stress in the process. For example, if you’re looking for the lowest interest rate you can possibly get, a mortgage broker will be aware of all your available options, including some you may not have discovered without their expertise. And their accreditation with banks and lenders means mortgage brokers are able to procure optimum lending solutions that you may not be able to access otherwise.

What’s also great about using a mortgage broker is that they’ll work with you to develop strategies around getting your home loan approved. This includes assessing your financial situation so they can give you clear guidance about your next steps, as well as helping you to create a positive position to improve your chances of success. They’ll also point you to the banks or lenders that are best placed to approve your home loan and give you advice on the size of deposit you’ll need. This can be especially helpful if you’ve had any issues with getting finance in the past or if you’re not sure whether your financial position is strong enough to get approved in the first place.

Think about it this way: if you’re working out finance for your new build, it’s definitely possible to find options on your own with the major banks. However, it’s also incredibly time-consuming, and it may require you to disclose your financial position before you’re properly prepared – which could potentially jeopardise your borrowing power. Considering that banks and lenders are mainly interested in seeing whether you meet their requirements for a home loan, having a mortgage broker to guide you step-by-step could make all the difference between getting approved for the right home loan or being rejected and back at square one.

So there you have it! If you’re still in the process of arranging finance for your new build, using a mortgage broker could help you get the best possible deal. Of course, whenever making major financial decisions like building your own home, it helps to get advice from the experts – especially when there are zero up-front costs. SOHO Living now offer a number of financing options and we’re here to help. If you’d like to know more about how we can make your home ownership dreams come true, our New Home Consultants are ready to guide you through the process. Get in touch and begin building your new home today.