Mortgage brokers should be the go-to

Buying a home can be overwhelming at the best of times, particularly if it is your first home, and the best place to start is to sort out your finances.

Discovering what your borrowing capacity is makes for a more enjoyable and stress-free experience, so the big question is – to mortgage broker or not to mortgage broker?

The Agency Perth Property Partner Joshua Leader believes a mortgage broker is the way to go.

“I would encourage all buyers to speak with a mortgage broker, as they have a range of lenders they can work with and this allows them to find a finance solution that is best suited to the client,” he said.

“This gives the client choices on who they lend with instead of being stuck with one option, as certain buyers’ requirements may not suit a certain bank due to their lending criteria.”

Ray White South Perth Sales Associate Curtis Multari also thinks a mortgage broker is the better option because their knowledge cannot be underestimated.

“Mortgage brokers are a wealth of knowledge when it comes to lenders mortgage insurance, fixed versus variable rates, offsets, redraws and borrowing capacity,” he said. “It can all be quite confusing, therefore having someone who can explain it to you is a big advantage.”

There is a trend in certain demographics opting for a mortgage broker over going straight to the bank, according to Mr Leader.

“We tend to see the younger to middle-age demographic using brokers more frequently, as they aren’t loyal to a bank and are more interested in the best interest rate or lending solution that suits their needs,” he said.

“Generally, buyers who have banked with one lender for many years will go directly to the bank as it’s an easier option for them.”

Apart from the demographic trend, Mr Multari said a lot of the time it came down to the lifestyle of the buyer opting for a mortgage broker.

“We are finding people are increasingly time poor these days and using a broker will help the borrower find the best deal because all the research, paperwork and follow-up with the bank is done for them,” he said.

Finding a good mortgage broker is important and Mr Leader suggested checking with your trusted network and finding out who they have used and what their experience was like.

“It’s also very helpful to research the companies and look at the reviews and feedback from previous clients,” he said.

Mr Multari said he couldn’t see a reason why a buyer shouldn’t approach a mortgage broker for help with their finances.

“Most brokers do not charge a fee for their service, as they are remunerated by the bank or lender, so you’ve got nothing to lose by speaking to a mortgage broker and there are no hidden costs,” he said.