Purchasing a new house is an important investment for everyone. Thus, it is necessary to get support from an experienced mortgage broker who can guide you through the whole process. Here are a few things you need to know before deciding to hide a mortgage in Adelaide.
What does a mortgage broker do?
A mortgage broker is simply a financial advisor who specialises in home loans. Their job is to choose the right mortgages for you with suitable rates that suit your planned budget. With a good understanding of the real estate market, they would know which will be the best lenders or mortgage deals for you.
Mortgage brokers often base their recommendations on individual circumstances. Some major factors include:
- Your deposit size
- Your repayment preferences each month
- Personal info like outgoings and credit history
- Interest rates
What are different types of mortgage brokers?
In general, mortgage brokers can be divided into 2 main types:
- Tied mortgage broker
A tied mortgage broker is either directly tied to a single or a group of lenders. Thus, they can be limited in the forms of home loan which they would recommend. On the bright side, their close relationships would give you many exclusive incentives and deals.
- Whole-of-market mortgage broker
As the name suggests, this type of mortgage broker will cover most of the market. These are often independent advisors without any links to any mortgage lenders. Thus, you can have much more options to choose from with impartial advice.
What are the benefits of hiring a mortgage broker?
There are many advantages to hiring Adelaide Residential Mortgage Brokers:
- They are qualified, highly trained professionals with thorough knowledge of the market. Thus, the can guide you through the whole process and choose the right mortgage for your needs.
- They will save your time by making comprehensive comparisons between different options.
- They can also save you a lot of money. They often have special links to many lenders, thus ensuring give you special incentives and deals.
Is there anything you should be cautious?
Whether you choose a whole-of-market or tied mortgage broker, you always have to pay for the services. Most tied mortgage brokers are often paid through commission, which is a specific percentage (around 1%) of the loan that you get. You can directly pay this to the lender, who will send the commission to these brokers later. Most independent advisors often charge a flat fee upfront, which is often around $500. Thus, keep in mind to ask them in advance about this amount.
How can you select the right mortgage broker?
These days, the market is full of mortgage brokers in different levels. Thus, it can be a challenging task to choose the right professional who can give you the best advice. Here are a few simple ways you can use to make a good decision:
- Ask for references from your friends, family, or colleagues
- Use your social connections such as estate agents, banks, or financial institutions.
- Do online research
- Check their credentials such as qualifications, licenses, and experiences before hiring