WHY IS SPEAKING TO A BROKER THE FIRST STEP?

Many people make the mistake of only speaking to one bank, the one they have been banking with since they were a child. It's a bit like comparing Aldi to Woolworths. When you shop at Aldi you have a handful of options to choose from but when you walk into a Woolworths you find shelves of the same product.

Brokers have access to hundreds of loans from a panel of 30–40 lenders. A broker can understand multiple banks and lenders application criteria for different loan products which can potentially speed up the application process. If you were applying directly through a bank, you may research different options, apply for a loan and then realise it’s not going to happen which can be frustrating. A bank has set criteria for its products which are hard to change if your circumstances don’t quite fit.

As you’d expect of any business, a bank will only promote its products, which can limit your options. Brokers, on the other hand, have access to banks and boutique lenders and thousands of products, you can potentially save

thousands in interest and, if your situation is unusual or tricky, there’s still a chance a broker can find a lender who’ll cater to your situation.

I recommend all my clients to speak to a broker, especially when purchasing an apartment. A few of the bigger banks finance developers to build the project and will therefore not finance the purchase of an apartment in the development.

There are many benefits of using a broker but the most important one is they guides you through various mortgage options and helps you compare rates, fees and features.

Brokers receive a commission from lenders, not borrowers, and they don't charge fees either. so essentially it's free advise. But always remember the lender you eventually choose may have its own fees.