In a bid to obtain clients, most mortgage brokers offer services that an individual home loan applicant might not be able to undertake themselves. Some of these services include the ability to compare interest rates, the potential to negotiate fairer terms and the option to source cheaper deals in general.
The benefits of a mortgage broker can be pretty compelling, especially when an applicant is keen to save money, but of the three services mentioned above, what are the specific advantages of each of them and are they really worth hiring a mortgage broker for?
Comparing Interest Rates
One of the most popular services offered by a broker is the comparison of rates of interest. Some banks will try to keep their rates as low as possible, while others might offer fairer terms in exchange for slightly higher rates – but in any event, a good broker will be able to find the best options out there and then present them to their clients for the borrower to take advantage of.
Negotiating Fairer Terms
Some home loan offers will be fairly mundane in nature, in fact the majority of banks will create standard deals that they present to their customers – and it’s these deals that can be negotiated on. A good mortgage broker should be able to pick and choose the types of terms that are proposed within a deal and then see if a bank is willing to modify their requirements to better suit their potential borrower.
Sourcing Cheaper Mortgage Deals
By comparing interest rates and negotiating conditions, a broker should be able to source even cheaper deals on mortgages in general – and this can be something that the majority of applicants will be able to take advantage of. With a cheap deal as a result of low interest rates and fairer repayment terms – the option to save thousands of dollars over the course of a mortgage will be far more appealing. This is something that only those that choose a good mortgage broker will be able to enjoy.