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5 benefits of speaking to a mortgage broker

By ,| 5 min read

Whether you're looking to buy your first home, your next property or refinance your current mortgage, every borrower wants to know they’re getting a great deal on their home loan.

Whatever stage you're at in your property journey, having access to the right resources and getting help from the right people can make a world of difference. So, how can a mortgage broker help?

What is a mortgage broker?

A mortgage broker is a home loan specialist who is qualified to provide property and mortgage advice.

Mortgage brokers work as intermediaries between borrowers and banks (or lenders). They help borrowers search, choose and settle their home loans.

Is it better to go to a mortgage broker or directly to a bank?

It’s normal to be wary about who you turn to for your home loan needs. After all, you’re putting your trust into this bank or broker to find you a fair and honest deal.

What will work best for you will depend on personal preference, how much time you’re willing to dedicate to your home loan search and if you already have a product in mind.

Getting a home loan from a broker

Mortgage brokers will have access to a wider range of products than a bank or lender, who can only recommend their own home loans.

It could potentially save you time when you turn to a broker to compare products than do the research and comparisons on your own.

Plus, mortgage brokers are a great resource to have when you’re feeling confused or have any home loan-related questions.

Getting a home loan from a bank

On the flip side, you may be able to find more suitable home loan products from banks or lenders who aren’t included on broker panels.

This can often be the more time-consuming route, as you’ll need to speak to individual lenders and do comparisons yourself.

If you already know what home loan you want, going directly to the bank or lender may be the more suitable option.

1. Mortgage brokers are (usually) free

Brokers are typically paid a commission by a lender each time they connect a borrower to their product. So, it’s quite rare for borrowers to be charged a service fee by their broker.

If a broker happens to charge a fee for their services, they should let you know before you begin working with them. This is most common with independent brokers.

At Lendi, you won’t need to pay our Home Loan Specialists a cent.

Lendi doesn’t promote specific products and our experts aren’t incentivised to recommend a particular home loan or lender. So, you can be sure you’re getting honest answers and a home loan that could work for you.

2. Mortgage brokers can compare home loans from different lenders

Mortgage brokers will often have a panel of lenders from which they can compare and recommend products.

Searching for a home loan on your own can be a daunting task. This is especially true when countless products and lenders on the market are constantly vying for your attention.

Imagine sifting and sorting through thousands of different home loan products on your own. It would be quite a tiring and time-consuming endeavour – and that’s where a mortgage broker can step in.

At Lendi, our smart technology can filter through thousands of home loan products to provide a shortlist of home loans that will suit your needs. All you need to do is answer a few questions to give us a better understanding of your situation.

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3. Mortgage brokers do the legwork for you

Perhaps one of the greatest things about working with a mortgage broker is that they do the hard work for you. They can provide expert support during each stage of your property search or refinance.

Not only can they compare home loans and check your eligibility based on your situation, but they can also help align your needs and goals with a range of suitable home loans.

Does the thought of negotiating make you sink in your chair? Well, mortgage brokers are skilled and experienced negotiators who can do this on your behalf to secure a better deal.

Mortgage brokers can support you through the application process too. They can check you’ve submitted the right documents and haven’t missed anything that will slow down the process.

They can also provide expert advice and answer any general questions you have about the property market or specific questions you have about your home loan.

4. Mortgage brokers can help reduce impacts on your credit score

Your credit score is highly considered when it comes to applying for a home loan. So, each blemish can impact your likelihood of successfully obtaining a loan.

Each pre-approval and home loan application that lands on a lender’s desk will go through a credit check, which is recorded as an enquiry in a borrower’s credit file.

Not only will denied applications impact your file, but multiple submissions in a short period of time will not bode well in the eye of the lender.

This is because lenders view multiple applications in a short timeframe as a negative thing. They may think you’ve been declined by a lender and are scrambling to see what other home loans you’ll be accepted for.

A mortgage broker can help prevent this by checking your eligibility against the lender’s policy. For example, Lendi’s Approval Confidence™ lets borrowers know their chances of home loan approval across a number of Australian banks and lenders.

Brokers are home loan experts and have a better understanding of what banks require from borrowers. So, they’re more likely to direct you towards the loans you are more likely to be eligible for.

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5. Mortgage brokers can guide you through the home buying and refinancing process

There are so many different things mortgage brokers can offer support with.

If you’re a first home buyer or looking for your next home, they can:

If you already have a home loan and would like to refinance, a broker can help you:

If you’re interested in investing in a property, mortgage brokers have knowledge on:

  • Up and coming areas predicted to grow in value
  • Factors that affect and influence the property market
  • Whether it’s a buyer’s or seller’s market
  • When might be a good time to buy
  • Tax implications and tax-deductible expenses.

If you’re curious about how a mortgage broker can help, reach out to one of our Home Loan Specialists and book a time to chat that suits you.

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We're here to help. Get free expert advice at a time that suits you. Choose a time to chat with a Home Loan Specialist.

The information in this post is general in nature and should not be considered personal or financial advice. You should always seek professional advice or assistance before making any financial decisions.

Tags: mortgage broker, home loan, refinance, first home buyer, new home

Check today's low rates

Tell us what you are looking for and see if you can save.

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Check today's low rates

Tell us what you are looking for and see if you can save.

Search rates
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Important legal stuff

Lendi is the trading name of Lendi Pty Ltd (ACN 611 161 856), a related body corporate of Auscred Services Pty Ltd (ACN 164 638 171, Australian Credit Licence 442372). We will never sell your email address to any third party or send you nasty spam, promise.

# Quoted rate applies only to PAYG loans with LVR of 80% or less with security in non-remote areas. All applications are subject to assessment and lender approval.

Lendi is a privately owned and operated Australian business. Our mission is to change the way Australians get home loans by providing a faster, smarter and more secure home loan experience designed around the customer’s convenience and needs. Although Lendi compares over 1600 products (2,500+ products including feature and pricing variations) from more than 25 lenders, we don't cover the whole market or compare all features and there may be other features or options available to you. Lendi Group Pty Ltd, which is the ultimate holding company of the Aussie and Lendi businesses is owned by numerous shareholders including; banks such as CBA, 1835i (ANZ’s external venture capital partner) and Macquarie Bank, the Lendi founders and employees, and a number of Australian institutional investors and sophisticated investors including UniSuper.

*WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. The comparison rates are based on a loan amount of $150,000 over a loan term of 25 years. Fees and charges apply. All applications are subject to assessment and lender approval. Quoted rate applies only to PAYG loans with LVR of 80% or less with security in non-remote areas. All applications are subject to assessment and lender approval.

IMPORTANT INFORMATION: Loan terms of between 1 Year and 40 Years are available subject to lender and credit criteria. Maximum comparison rate will not exceed 14.99% (see comparison rate warning above). Any calculations or estimated savings do not constitute an offer of credit or a credit quote and are only an estimate of what you may be able to achieve based on the accuracy of the information provided. It doesn't take into account any product features or any applicable fees. Our lending criteria and the basis upon which we assess what you can afford may change at any time without notice. Savings shown are based on user inputted data and a loan term of 30 years. All applications for credit are subject to lender credit approval criteria. Top rates include lenders who are on our panel and are then defined by the circumstances provided by the borrower.

The Lendi Group Pty Ltd, which is the ultimate holding company of the Aussie and Lendi businesses is owned by numerous shareholders including; banks such as CBA, 1835i (ANZ’s external venture capital partner) and Macquarie Bank, the Lendi founders and employees, and a number of Australian institutional investors and sophisticated investors including UniSuper.

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