How to use a mortgage broker to find the best refinancing deal.
Refinancing at the right time is a great way to save money. But when you’re looking at your home loan options, should you take advantage of the help an experienced mortgage broker can provide?
If you’re considering refinancing your home loan and don’t have the luxury of time to weigh up competing loans, getting in touch with a mortgage broker can help you identify your options quickly and easily.
Mortgage Brokers
Broker
Details
Number of Lenders
eChoice Mortgage Broker
When you do business with eChoice you will be given your own home loan manager to help you select. With the help of eChoice's skilled mortgage professionals and the company's state-of-the-art technology you will be able to choose from a range of hundreds of Australian home loans.
25
1300 Home Loan
1300 Home Loan has a range of lenders and over 200 mortgage brokers available for potential borrowers, meaning they have a huge amount of experience and knowledge available to help find you the right loan.
30+
YBR Wealth Management
Yellow Brick Road is a Wealth Management company who will work with a range of lenders to get you the best deal possible for your mortgage. They can offer you a free, no obligation consultation.
45+
Aussie Home Loans
Aussie today is recognised as one of our country's leading financial service providers. The company was established in 1992. Having won Australia's Best Mortgage Broker Awards for the last three years, Aussie is proud to serve the nation with its no-fuss approach to lending with over a dozen home loan providers to choose from, as well as their own services.
16
Choice Home Loans
Choice Home Loans has a wealth of expertise and knowledge in the home loans market. They have a wide range of lenders on their panel to help you get a home loan for a range of purposes.
30
What is a mortgage broker?
A mortgage broker is someone who specialises in helping people find suitable home loans. Mortgage brokers remain in touch with multiple banks and non-bank lenders, and while they don’t work for these institutions, they work with them in offering customers an array of home loan alternatives. These professionals know exactly what the borrowing process entails, including everything from comparing home loans to applying for them and the settlement process.
However, the role of a mortgage broker is not limited to finding people new home loans; they also help people with existing loans to look for suitable refinancing alternatives. The fact that you don’t have to pay fees to your mortgage broker— the lender instead compensates them—is a definite plus. Besides, you don’t have to worry about visiting a mortgage broker, as you can arrange for one to visit your home or any other place which is convenient for you. At the same time, it’s important that you review the commission structure your mortgage broker uses, to ensure they are going to find the best deal for you.
How can a mortgage broker help when refinancing?
When it comes to refinancing home loans, comparing your loan with the alternatives on offer is the obvious starting point. This requires that you compare interest rates as well as a range of loan features. While this process might sound simple, once you realise how many options there are for you to go through, you may be confused and a little overwhelmed. Comparison is by no means a difficult procedure, but it can be time consuming. With so many alternatives to choose from, you might end up missing some great options.
Getting in touch with a good mortgage broker ensures that you’re aware of the best possible options for your needs, while your mortgage broker presents loan options to you only after taking your needs into account. This can save you a lot of time by removing the need for you to go through products that don’t suit you, plus you also benefit from the expert opinion your broker imparts.
How to compare mortgage brokers when refinancing
Not all mortgage brokers are as qualified or reliable as others, so this requires you to compare the services offered by a few brokers before picking one. To start, look for ASIC registrations and Mortgage & Finance Association of Australia (MFAA) or the Finance Brokers Association of Australia (FBAA) membership. The former is a prerequisite for mortgage brokers to operate in Australia, and ASIC enforces a strict level of education and experience amongst the nation’s mortgage brokers. MFAA or FBAA memberships show that the broker in question follows high standards in regard to legal requirements and that they offer thorough transparency in everything they do.
The number and quality of lenders on the panel of one mortgage broker is not the same as another’s, so you will need to look into this. When you have narrowed your choice down to a few mortgage brokers, you can use feedback and online reviews from previous customers to make a decision.
Pros and cons of using a mortgage broker for refinancing
Pros
Save time as well as money. Given that your broker does all the groundwork for you, you don’t have to worry about carrying out extensive and time-consuming research.
Find special deals. Your mortgage broker can also help you find deals you wouldn’t be aware of otherwise, which can lead to big savings over the life of your loan.
Insider knowledge. Brokers know which lenders are likely to approve your application after taking your circumstances into account, helping you determine which lender to approach.
You don't have to pay. The fact that you don’t have to pay for a broker’s services serves as icing on the cake.
Cons
You won't learn as much. There’s a good chance you won’t get to learn as much about the products available and the features your lender is including.
Higher commissions may steer brokers. Since mortgage brokers work on commissions they receive from lenders, you need to be wary of any brokers that tend to push products that offer them better commissions.
Things to remember when using a mortgage broker
Make sure you check for ASIC registration and MFAA or FBAA membership at the very onset, as the absence of these can translate into a lack of professionalism and ethics. Next, don’t hesitate to ask your broker exactly how much he or she stands to receive as commission on any given product.
A good mortgage broker should use technology to find the best deals for you, which normally requires the use of suitable software. Make sure your broker takes the time to explain all the details of your new loan, from interest rates and costs to fees and features. Expect high levels of customer service even if you’re not paying your broker—because someone is.
Refinancing requires you to look for a home loan all over again, so if you want to save some time you should think about using the services of a mortgage broker. A good mortgage broker brings expertise to the table and can also help you save money.
What's next?
Learn more about mortgage brokers
Compare refinancing home loans
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