9 December 2022

Are more buyers using mortgage brokers in 2023?

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NEWS & INSIGHTS | MORTGAGE BROKERS | PALM CAPITAL

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Are more buyers using mortgage brokers in 2023?

According to recent data, a record number of Australian homebuyers this year worked with a mortgage broker.

A record-high 69.5% of all new residential house loans finalised in the first three months of 2022 were negotiated by mortgage brokers, according to a report produced by the Mortgage and Finance Association of Australia.

About 52.1% of all newly finalised loans were arranged via brokers in the previous two years.

Mortgage brokers provide extra options for borrowers.

Mortgage brokers are legally obligated to put their clients’ best interests first at all times under the new best interest legislation. Borrowers who work with a broker have a significantly greater chance of getting a loan that is a good fit for their unique situation and needs since brokers often have access to loans from about 30 different lenders. This can be done either by traditional methods such as banks, or through private mortgage lenders.

Mortgage brokers are trained to handle difficult situations

Brokers’ preexisting connections to their lending institutions allow them to provide creative answers to difficult questions.

For instance, brokers will be aware of which lenders will be more ready to work with borrowers who have bad credit, atypical income sources, or an irregular job history.

A customer would have a very hard time standing up to an unreasonable lender without the help of a professional.

Mortgage brokers may provide extra value even to the simplest loans

Even if you’re a seasoned borrower in good standing with simple financial needs, it’s best to work with a broker.

Brokers rely on word-of-mouth and repeat business to grow their clientele, so providing exceptional service is in their best interest. This implies that brokers pay close attention to their customers’ needs, are dependable, answer calls quickly, and go the additional mile for them.

In order to guarantee the loan is appropriate for the borrower’s future ambitions, a broker will often look beyond the immediate aims of the sale. They will also alleviate a lot of worry and trouble from the loan application process by handling most of the paperwork. Most importantly, brokers will guarantee that consumers’ loans are structured correctly to minimise interest and fees, which is especially crucial for borrowers who have many loans.