More and more Australians are using mortgage brokers to help them into a new home.
In 2016, I wrote about the increasing mortgage broker trend in Australia. At the time, we were seeing more Australians turning to brokers to assist them in purchasing property – more than 50% of home buyers chose to use a broker, in fact. We, along with other industry experts, predicted that this trend would continue. We were right. Mortgage brokers are trending.
During the period of January through March 2019, brokers settled 59.7% of all residential home loans. This is 4.4% higher than the same 2018 quarter and 6.1% higher than 2017. Borrowers are increasingly relying on mortgage brokers despite tough market conditions.
So, should you use a mortgage broker? Here’s why more Australians are turning to brokers than ever before.
When I originally wrote this article in 2016, the Australian Prudential Regulation Authority (APRA) had just implemented rules around investment lending. Many banks had responded to the regulation by increasing interest rates on certain home and residential investment loans.
In 2016, buyers were confused and turned to brokers to understand what these changes meant and how it impacted them. With the release of the final Royal Commission report in 2018, we entered into another period of tough market conditions, where borrowers were struggling to understand how the recommendations would change the face of lending and how this would impact them personally.
Just as it did in 2016, borrowers want peace of mind when making one of the most significant decisions of their lives and working with a broker gives them that. Brokers can educate, inform and drive competition and choice. They step in to find solutions and provide assistance at critical moments in a borrower’s journey. And a broker is with you for today and for tomorrow.
In 2016, Australians were busy and only getting busier. It’s 2019 and, surprise, surprise, nothing has changed. Data coming out of the Australian Bureau of Statistics, and other surveys, clearly show that we are working longer hours in both paid and unpaid work. So, when it comes to finding a home, investment or commercial loan, more and more Australians are choosing to use a broker to save themselves a little precious time.
Brokers do all the research, paperwork admin, and the take on the negotiation with lenders, saving borrowers countless hours. And brokers do this for people every day. That means they have built in knowledge about a portfolio of lenders and are able to efficiently and quickly drill down to the best options for a client – saving even more time in the process.
As always, brokers offer customers more choice. Banks can only ever offer their own products – and while these may be great, it’s hard to know without comparing them to every other product available (something most people don’t have the time or inclination to do). But brokers can offer you over 50 products from a panel of only 10 lenders. And if they have access to more lenders (as we do), they can show you exponentially more.
Brokers are also far more flexible. We aren’t limited in the same way banks are and can almost always find an option that suits a client’s specific needs. This flexibility is important, especially if you are self-employed, an ex-pat or another borrower that doesn’t fit the traditional mould.
When someone dives into the world of lending, it is easy to get lost. Financial jargon can be confusing and, let’s be honest, downright intimidating. Some people can be hesitant to enter into something they don’t fully understand.
But a broker is a specialist that is working for you. We break down the complex terminology into everyday language, making it easy to understand. But even more importantly, a good broker will make an effort to get to know the customer. We will assess your unique situation and identify the factors that are most important to you. This includes financial factors, of course, but also other things that banks may not take into account – such as your preferred timeframe or the lender’s customer responsiveness.
When you work with a broker, you are armed with more information to make a more informed decision.
By using a mortgage broker customers save time, have greater choice and flexibility, are more informed and, ultimately, can find a finance package that is best aligned to their individual needs. And at the end of the day, that means time and money saved.
In 2016, clever Australians were already choosing to use mortgage brokers. In 2019, with more and more Australians turning to brokers, it looks like Australians are just getting more and more clever.
If you’re ready to see how jumping onto the mortgage broker trend can work for you, get in touch. We’re here to help you. Book Now or call me on 0426952385.
You found the perfect property, and then discovered it was going to auction. Does the prospect of buying at auction feel thrilling? Or does it feel overwhelming. Either way, if a property is going to auction and you want to have a chance at it, you need to know what you’re going to be dealing […]
Read MoreAre you dreaming about purchasing your own home but have no idea what the financial process is? You’re not the only person to feel lost when it comes to understanding what actually happens when looking to secure a home loan. In fact, we regularly field calls from first-time home buyers asking about the home finance […]
Read MoreWelcome back to this third and final instalment of our First Home Buyer’s Guide for 2024. In parts 1 and Part 2 we covered a lot of considerations that could help you achieve your goal of buying a home in 2024. From understanding the government schemes available, to finding ways to increase your savings, our tips […]
Read More