Mortgage brokers are a type of financial expert that specialise in comparing interest rates, evaluating the differences between home loan terms and helping their clients to secure the right type of mortgage for their needs. Although their services can differ depending on the experience and expertise of the broker, their features are fairly similar – so here’s a closer look at the types of services a mortgage broker provides.
Interest rate comparisons
Possibly the most popular type of service offered by a mortgage broker are interest rate comparisons. These tasks are fairly technical and will rely on the broker’s ability to compare the key differences between banks and their rates of interest. Although most rates will be governed by the Reserve Bank of Australia – lenders are still free to keep them as close to these guidelines as they want and a good broker should be able to separate the fairest from the extortionate.
A commonly overlooked feature for those that already have home loans is the ability to re-mortgage for investment purposes or to get a cash boost. By doing so, the potential to save money can be very substantial and fortunately, the majority of home loan brokers will specialise in this type of service. These specialists should be able to approach banks and have them propose fresh terms, or even get in touch with other lenders to see if they would be willing to offer re-mortgaging options to their client.
In some cases a particular loan might seem beneficial, but may include any number of unwanted terms and conditions. In these cases the mortgage might become undesirable, but as some feature exclusive deals and benefits, it can often be worth hiring a mortgage broker to help to negotiate these terms with a bank. To do so they will typically propose fresh terms that still benefit the lender, without taking as much of a financial toll on the borrower.