You are ready to buy a house. You have the deposit saved, your area picked and appointment booked with the bank you have had your accounts with since you opened up your first Dollarmite account at the of 6. Mmmm... stop right there!

While loyalty is rewarded in everyday life, your 20-plus year account means little to your bank. They are loyal to your money, not you.

Shock horror! A bank in it for the money… well, I never. (Note: heavy sarcasm)

Your home purchase and subsequent mortgage should be treated the same as any other purchase. It should be the best fit and cost to you, the same way we shop around for the best cost and quality on say a TV or a car. Unlike a TV though, there are literally hundreds of variations and you could spend hours researching all possible mortgages and still have no luck.

This is where a mortgage broker can make life easy.

What is a broker?

A mortgage broker is the middle person between you and the banks. That’s “banks”, plural. Brokers can have accreditations with many different lenders, from your “big 4” banks to your smaller lenders that aren’t readily assessable to you as the borrower. Brokers do the research to offer a number of different options that may best suit you.

Mortgage brokers also know what each bank is looking for when it comes to who they lend money to. Not all banks operate the same and while one bank may be willing to hand over the dollars, another may not even consider your application. 

In essence, mortgage brokers are your own personal shoppers. They do the footwork, provide you the best options based on your circumstances, and then allow you to make the final choice on what works right for you.

Brokers don’t only save you time on the tediousness of doing the research. It’s the whole dealing with the banks thing that brokers save you from. Banks love paperwork - I’m not talking a couple of payslips and then they’re done - I’m talking they want every bit of information they can get from you down to the brand of dishwashing liquid you use or the colour of your socks. (Okay – maybe a slight exaggeration - but you get the idea.) 

While the broker still needs to get the same info from you anyways (minus the sock colours and dishwashing liquid preferences), they will at least explain the purpose of why the banks need what they need and they will provide it to the bank for you. The broker will then regularly follow up with the bank to see how your loan application is going, updating you at every stage and saving you from having to deal with the horrible “on hold” music banks tend to use. (Not an exaggeration, unless you have a taste for elevator music)

A mortgage broker is there to fight for you and to make sure your dream of home ownership is achieved. As an added bonus, there is generally no charge to you for using one - the bank foots the bill on that one. 

So before you book that appointment with your regular banking institution, consider a chat with a broker first. It might save you a lot of time, energy and in the long run money.