Purchasing a home is a big commitment and with the home loan market becoming increasingly complex, more people are turning to mortgage brokers.
It’s important to ensure you have a trusted advisor in your corner. However, there is still a lot of confusion about what brokers do and how their service compares to going directly to the bank. Let’s debunk some myths! Read on to find out the truth about how a mortgage broker works.
There is no fee! Mortgage brokers are remunerated by the banks through commissions. This fee is not built into consumer rates or loan fees, meaning a broker’s service is free to you as the client. As an objective, independent third-party who shops around on your behalf, a good broker could save you thousands.
“Mortgage brokers work for the banks”
Since mortgage brokers receive commissions from the bank, they work for the banks, right? Nope! Brokers are paid similar commissions rates from the banks, with minimal variations, keeping us vendor agnostic. Our objective is to find the best solution for you as the client, as we are your lending representative throughout the loan process. We continue to support you for the life of your loan, so ensuring your satisfaction is our top priority.
Staying loyal to your bank won’t guarantee that you’ll receive special benefits for your home loan. Research conducted by ASIC in 2019* found that home loan consumers were disappointed that their lender did not offer any rewards for their existing relationship. Credit policies can also vary bank to bank, which may mean your everyday bank will not necessarily be able to provide you with the outcome you’re looking for. Mortgage brokers can canvas over thirty lenders to find a solution that best suits your needs.
Chat to the Legal Home Loans team today to start your property journey.