Finding the right home loan is hard. Banks and non-bank lenders in Australia offer nearly a thousand different home loans. They’s a lot of information to get your head around, no matter if you’re a first homebuyer or a seasoned investor. One would assume that competition would be fierce, but finding the most suitable loan for your individual circumstances is harder than you’d imagine.
One reason for this is that the Australian loan market is strictly regulated. This is great in terms of protecting borrowers, but – when combined with the power of the Reserve Bank to set the cash rate (basically, the cost of money that banks and lenders pay) – it also means there isn’t a lot of room for lenders to offer big discounts.
Interest rate choices made by the Reserve Bank impact all lenders. It follows that it is very improbable that you will find house loan offers that significantly deviate from the norm.
However, there are typically better offers out there. Some loans suit some borrowers and not others. It’s vital that a borrower understands the difference between different loans. But, as we said at the beginning, it’s hard! Mortgage Broker Group is here to demystify the process of filtering and finally choosing the best loan for you. Here’s how…
Brokers or banks?
In December 2023, a survey revealed that over 85% of borrowers had greater trust in brokers than in banks to find them a home loan. Brokers assist borrowers with over 70% of all mortgages in Australia.
The worst thing you could do if you’re looking for a better home loan offer is to visit a branch of your existing bank, pick up the brochures, chat to a lender, and sign up for a loan. No matter how long you’ve had accounts with a bank, chances are you’ll find a much better deal elsewhere. Why should you be loyal to banks? Are they loyal to you?
Any single lender will have a small number of loan products available. Should you choose between four or five loans, or consider the hundreds of loans in the market?
Best Interests Duty (BID)
Our team of mortgage brokers searches for the best loans for borrowers based on their individual circumstances. As well as hundreds of different loans, our brokers can sometimes negotiate on terms and conditions to secure a loan that’s better than any offered to the public.
A big distinction between Mortgage Broker Group and any single bank or lender is that we are required by law to find and suggest the best deal for you. Lenders are only marketing their own goods; they are not legally required to provide you with the best loan possible, since that’s probably with another lender.
It is our responsibility to take your situation into account and identify suitable home loan options by looking through a wide range of loan options offered by both bank and non-bank lenders.
Talk to us
For more than 20 years, we have been offering our clients professional home-loan services. When using Mortgage Broker Group, there is no hard sell. There isn’t any obligation, and there are no costs to you for our services (your lender will still charge you fees if you obtain a loan). We assess your loan needs and financial situation, check the market, and find you a choice of loans that suit you best. We’ll even help with the paperwork and lodging your pre-approval application.
Speak with a mortgage broker specialist today. You’ve got nothing to lose.