Understanding the roles of your mortgage broker
Thursday, 2 June 2016 11:38 AM
When you start on the building journey, it's important to think about how you're going to fund the creation of the place you and your family will one day call home. That's why understanding how important a mortgage broker is, and what their role actually entails, can be very helpful to you in your home building journey.
There are plenty of home designs to choose from with G.J. Gardner Homes, and customising them anyway you need is one of the most exciting steps when you're building a new home. However, you'll need to know how much you can afford to spend on the customisation out of your total budget, and so having the right information from your mortgage broker is of the utmost importance.
So, what exactly is your mortgage broker there for, and how can you help them to help you?
A mortgage broker by your side
Having the right information from your mortgage broker is of the utmost importance.
IBISWorld reports that mortgage brokers bring in $2 billion in revenue every year, which is a huge amount considering they're a loan provider with access to lenders - clearly a lot of people find them useful.
In fact, a media release from the Mortgage and Finance Association of Australia (MFAA) reports that the CoreLogic subsidiary, comparator, found financial brokers to have provided $43.4 billion in loans for the March 2016 quarter. This is a serious amount of money, and is significantly higher than the $40.3 billion from 12 months prior.
A mortgage broker is there to provide the finance for your home building dream, and they can often offer more competitive repayment rates than bigger banks allow. This is especially true in the current low cash rate environment - if you're thinking about starting the build on your new home, contact your mortgage broker first to see what the most optimal borrowed amount for your needs is.
Many Australians are using mortgage brokers to help them get into their own homes, and you could do the same.
Who uses a mortgage broker?
According to the IBISWorld Mortgage Brokers in Australia report from March 2015, a huge 40.5 per cent of property investors use a broker to fund their purchase. Slightly down on that figure, 37 per cent of owner-occupiers use the services, and just 14 per cent of first home buyers contact a mortgage broker for a loan.
When you're planning on designing your own home with G.J. Gardner Homes, think about the best way for your family to have access to the funding required to do so, and put a mortgage broker at the top of your list. They aren't such a popular option for no reason.