The Value of Mortgage Broking
Why use a Brisbane Mortgage Broker?
The challenges of COVID-19 have only added to the complexities in the requirements of Australia’s lending institutions. At Astute East Brisbane, we’re used to navigating the obstacles that come with paperwork requirements and approval processes.
We understand that buying a house is one of the biggest decisions you'll make and that decision will affect you financially for much of your life.
We will partner with you to understand first your needs and then source a Brisbane home loan that is right for your circumstances. In doing so we'll make sure we articulate your finances in a way we know the banks will understand. For us, it's not just about securing the finance for this property but for your future portfolio as well.
For more on why it pays to use a trusted Brisbane mortgage broker, click the link below:
At Astute East Brisbane, we're confident that we can make a real difference in the purchase of your home but don't take our word for it. Learn here about an industry report that provides an insight into why it pays to use an experienced mortgage broker when securing your property.
In 2018, a report was commissioned with Deloitte Access Economics by the Mortgage Broking Industry of Australia to provide more information about the role played by the mortgage broking industry. It was acknowledged out of this report that the industry role is very important in driving competition and choice with the major lending institutions in the country.
By definition, a mortgage broker is an intermediary between a financial lender and the home buyer for what will likely be the most significant purchase of their life. It’s one that is important to get right. It’s a complex process and mortgage brokers help borrowers through that process. Most importantly, they put more loan options in front of the home buyer.
Mortgage Brokers are responsible for over half of all loans written.
Of all the home loans that exist in Australia, over 56%* are arranged by Mortgage Brokers. That’s even more than the number of loans that come directly from financial institutions.
Mortgage broking has been important for competition. It has reduced the net interest margin, which is received by financial institutions by around 3 percentage points, putting that money directly back in the pocket of the homebuyer.
On average a home buyer can get access to up to 34 different lenders as well as the different financial products and services that they offer. That’s going to flow through into a deal that’s likely to be more suited to their circumstances. Over 25%* of all loans written are for first home buyer’s.
Over 28%* of loans written by mortgage brokers go to lender’s beyond the banks and their affiliates so that drives a lot of change in the market place.
For more information on the report, click here.