 Mortgage brokers help put home owners
Independent research has shown that consumers are more satisfied when using a mortgage broker than when going directly to a lender.
The Mortgage and Finance Association of Australia (MFAA) concluded that borrowers who seek out accredited mortgage brokers get more choice and access to greater competition.
Whether it is a new home loan or a refinance loan, borrowers are urged to look for brokers who are MFAA accredited.
And with interest rates on an upward trend, with three official rate rises in as many months, home owners and potential buyers will be comparing loans very carefully and looking for the best deals. Mortgage rates have increased in recent months and with the Reserve Bank of Australia lifting the official cash rate again this week, home loans are set to increase again also. The RBA lifted the cash rate by 25 basis points to 3.75% and already Westpac has raised mortgage rates, with other banks saying they are reviewing their rates.
"Recent increases to interest rates may prompt consumers to shop around, but we’d encourage consumers to seek out MFAA accredited brokers," said Phil Naylor, CEO, MFAA.
Data from the mid-year Bankwest/MFFA Home Finance Index shows that those who use a mortgage broker were more likely to be satisfied with their home loan than going directly to a lender. Another outcome of the study was the trend of borrowers who administered their loan through a broker experiencing less difficulty repaying the mortgage.
Mr Naylor said because MFAA mortgage brokers held to a high ethical standard and have experience and training, they are the best option for a more competitive range of loans.
Most people decide to use a mortgage broker when looking for a home loan because they can do a lot of the hard work for you, research and comparisons. Brokers will also offer a wider range of loans than a bank will.
Respondents to the survey gave their primary reasons for using a mortgage broker, with 73 per cent saying it was because their broker did all the leg work. 68.9 per cent said it was because they offered a wider range of loans, and 68.7 per cent said because they are the experts on mortgages.
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