What Is A Mortgage Broker?
A mortgage broker’s primary job is to save you money on your home loan. This is how it works:
Lets say you are looking at two different home loans and one loan has an interest rate 0.5 percent less than the other loan. Decreasing your home loan interest rate by 0.5 per cent per annum on a $250,000 principal-and-interest mortgage would save you around $23,000 over the life of a 25-year loan. That’s a sizeable chunk of change back in your pocket over the long term, but there are usually up-front costs associated with switching loans, especially if moving to a new lender, not to mention the difficulties in finding a loan with the right features for your present situation. Navigating your way between the multitude of loan offerings that different lenders provide is a challenging experience, and that’s where a mortgage broker comes in. A mortgage brokers’s job consists in helping you find the loan which takes the most money out of the bank’s pocket and puts it in your own.
Mortgage brokers specialise in providing financial advice on how to fund your home or your next project, obligation free and at no cost to yourself. So how do mortgage brokers get paid? The bank pays the mortgage broker when he presents them a loan application on your behalf. That means a mortgage broker can help you find the right loan from thousands of offerings and the services he provides to you will be entirely free. Using mortgage brokers is also healthy for the market because they keep the banks honest by making them compete for your loan. Mortgage brokers can give guidance in the areas of first home buying, mortgage refinancing, building loans and effective investment property loan tax restructuring, among other things.
This article is written by Multi Choice Mortgage Brokers from Brisbane, Australia.
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