Why You Need a Mortgage Broker to Buy Property in Sydney

Remember that crazy days when over 200 interested parties turned up for a rental open day in Hinchinbrook?

Well, guess what? The market for buying homes in Sydney is just as competitive. 

That said, if you have enough capital to purchase a property outright, then you are in a strong position. But if you only have enough savings to cover a 20% deposit (or less), then you are going to need all the help you can get.

That is where a mortgage broker could be worth their weight in gold.

Mortgage brokers not only help you navigate the minefield that is dealing with banks and lenders, but also save you thousands of dollars of interest in the process too.

Best of all, they won’t cost you a cent for their services. So, you really have nothing to lose!

Still not convinced?

Here is why you need one to help you buy a property in Sydney.

What exactly does a Mortgage Broker do?

Essentially, a mortgage broker is an intermediary who liaises between someone who is looking to buy property and a bank or financial lender.

Mortgage brokers can be individuals who work for themselves or a company, such as Get A Better Rate.

Typically, they work with potential homebuyers to understand their goals and needs and establish how much they can afford to borrow.

They will give you the rundown of the various home loan types open to you and outline how each one works and what it will cost you in weekly, fortnightly or monthly payments.

A mortgage broker will also put your application forward to their network of banks or lenders and advise you on how you can make your application stronger.

If your mortgage application is a success, they will also help you manage the entire process until settlement.

How Much Do Mortgage Brokers Cost

If you are wondering what the cost of a mortgage broker is, then you may be surprised to discover that their services won’t cost you a cent!

That is because mortgage brokers get paid by the banks and lenders, not the home buyer. Consider them commission-based salesmen who bring already qualified customers to these institutions.

As they only get paid by the banks when their clients have a home loan application approved, it is within their interests not to have their time wasted.

Therefore, a mortgage broker will only take you on as a client – after initial consultation – if they have a strong inclination that your application will be successful.

What are the main benefits of a mortgage broker?

A mortgage broker can provide you with several benefits as a home buyer.

First of all, they can save you the time and hassle of having to contact several different lenders and going through the rigmarole of explaining your financial situation every time.

More importantly, they can also potentially save you thousands of dollars through their expert knowledge of the different types of home loans available, such as bridging loans.

At the same time, they will also present you with options from organisations who offer the cheapest currently available interest rates on the market.

When should you use a mortgage broker in Sydney?

Mortgage brokers can help you to achieve your home ownership goals, whatever they may be. But here are some specific situations where they come in especially useful.

Buying Your First Home 

 If you are a first-time homebuyer, the prospect of securing a home loan might seem extremely daunting. So, a mortgage broker can be an excellent mentor in the process. They will advise and educate you on the steps involved in submitting a home loan and getting it approved.

At the same time, they will also help you to determine what kind of loan is best for your personal situation, evaluate your strengths and weaknesses as a candidate based on your financials, and be honest with you about how much money you can afford to outlay in terms of repayments.

Should you have an offer accepted for a property, they will draw upon their knowledge and professional network to source and negotiate the best home loan terms for you and also complete and submit the paperwork.

They will also provide you with regular updates, as and when they receive them, and help you apply for the First Home Owner Grant – should this be something you are eligible to benefit from.  

Buying your next home 

If you intend to sell your existing home and purchase a new property, a mortgage broker can help you do this by predicting your financial position when you sell your home.

They can also provide you with property reports that will outline what borrowing capacity you will have and establish how much you can borrow for the purchase of the new residence without putting yourself under financial strain.

Purchasing an investment property

Those looking to purchase an investment property should also consider contacting a mortgage broker, as they will be able to advise on what you need to prepare for it.

Whatever loan you choose can have a huge impact on your ROI. Therefore, it is vital to seek the expertise of a mortgage professional who can help you identify the most beneficial loan terms and repayment options.