Choosing a Mortgage Broker

Choosing a mortgage broker is one of the first steps for many people looking to buy or build a new home.

Mortgage Brokers are there to help you navigate the process of financing your new home effectively and efficiently. Here are a few helpful tips to choosing a broker.

What does a mortgage broker do?

A mortgage broker is a licensed professional who acts as an intermediary between you (the borrower) and mortgage lenders. They can help you find the best deal for you on interest rates and fees, and help you get pre-approval for a specific loan amount that allows you to act quickly when making an offer or purchase.

What should you look for in a mortgage broker?

• Experience ­­– Choose a broker who has plenty of experience within the mortgage industry and has built up strong relationships with lenders to help you obtain the best possible outcome.
  
  
• Good communication – Buying a home is a big step, so it’s important that you feel supported throughout the process. Choose a broker who is responsive to your needs and explains the different options available to you clearly, so you understand your obligations.
  
  
• Specialisations – Some mortgage brokers specialise in specific fields, such as investment properties or first home buyers. This additional support can come in handy when it comes to finding out more about things like available grants or tax deductions you can explore.
  
  
• Reputation – Before choosing your mortgage broker, ask friends and family if they have any recommendations. Your broker should be someone you feel comfortable working with and trust to have your best interests at heart.
  
  
• A strong lender network – Do your homework and look into the lenders your broker is working with. Make sure these lenders are reputable.

What types of loans are available?

Home loans are formed from two components. There’s the principal, which is the amount you need to borrow, and the interest that you pay on top of the principal to secure the loan. There are several types of loans available, which include:

• Variable home loan: This type of home loan has an interest rate that can change over time, so if interest rates fall, your repayments will reduce in line with this.
  
  
• Fixed-rate home loan: Allows you to fix the interest rates and repayments of your loan for a fixed period, usually around three to five years.
  
  
• Split loans: Allows you to fix the interest rate on a portion of your loan while the rest is variable, which can allow you to benefit if interest rates decline.
  
  
• Interest-only home loans: Loans that allow you to pay the interest only (not the principal). These loans have a limited term (up to five years) and can help you free up money at the start of your mortgage journey. Don’t forget that repayments will increase once the interest-only period ends, though!

Your broker is there to help you decide what type of home loan is best for you.

Ready to start your home buying journey?

At Ariella Private Estate, you can find a wide range of blocks and house and land packages to build your dream home at Ariella Henley Brook. Once you’ve chosen a mortgage broker, it’s time to make your dreams into reality.

There’s so much to look forward to – so why wait? Chat to our friendly team today to find out more.