Why are more people using mortgage brokers?

We’re seeing more and more Australians working with a mortgage broker when they’re purchasing property – in fact more than 50 per cent of home buyers choose to use a broker. Many industry experts – including our chairman, Sam White – have predicted this will continue to increase in 2016. Here’s why.

Changes in lending

There’s no doubt that 2015 was a transformative year for lending with the Australian Prudential Regulation Authority (APRA) implementing rules around investment lending, and many banks responding to the regulation by increasing interest rates on certain home loans.

After seeing so much change in the past 12 months, the goalposts may have moved for many buyers and they’re going to brokers to understand what these changes mean and how it impacts them. There’s also a question some people are asking, and that is: are more changes coming?
Working with a broker educates borrowers and gives them peace of mind when making one of the most significant decisions of their lives.

Australians are time poor

Let’s face it – we’re all busy and we’re only getting busier. So when it comes to finding a home loan that works, many Australians choose to use a broker to save themselves time.

Having someone there to do all the research, paperwork and negotiation with lenders means that borrowers not only save countless hours – they also get access to more options. And the reality is, brokers do this for people every day – they know what’s happening across dozens of banks. And their clients benefit because they’re more likely to get a package that suits them better than if they were to do it themselves.

We can simplify

When you dive into the world of lending, you can easily get lost. Why wouldn’t you want someone who knows the landscape working on your behalf?

When borrowers first start out, financial jargon can be confusing and, let’s be honest, downright intimidating. Some people can be hesitant to enter into something they don’t fully understand – and you can’t really blame them. One of the most important things a broker can do is break down all the complex terminology into everyday language, making it easy to understand.

That means Australians can be armed with more information to make a more informed decision. So, the only question we really want to ask is: why wouldn’t more Australians choose a mortgage broker?

We are proud to have Mehdy Asady from Loan Market as part of our Ray White Runaway Bay Group team.

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