Why Do You Really Need a Mortgage Broker?
We’ve spoken in earlier blog articles about the benefits that a mortgage broker can offer and even how to choose the one who is right for you. The question still remains for many people however, do I really need to use a mortgage broker? What do they bring to the table?
The ideal place to start with this is to ask the right question – what do you need in order to maximise your return when investing in property? Your investment property mortgage is the entrée to the main event – a healthy investment return. Let’s face it, no one wants to owe thousands of dollars of debt, that’s not the point of owning property – so by definition you don’t want a mortgage broker who increases your liabilities – you need someone knowledgeable in property who can help you achieve the returns you want. When you engage a broker you’re really looking for the following:
Do they understand the market and are they in a position to help? Do they get the purpose of what you are after? Do they think you want a loan or do they really understand you are seeking financial security and wealth? They need to understand your motivation, your fears and your objectives if they are going to support you fully. The advantage that a mortgage broker can bring to the table is that they don’t really have skin in the game – a vested interest in your decision in terms of putting their own money on the table – which could influence the opinions they might express. They can act in your interests without the direct conflict of the profit motive that the lender will have.
Options mean choices, and ultimately choice means control. The mortgage broker who can present you with options and alternatives understands that control provides less risk, greater security and better peace of mind. It also maximises the potential return from investing in property. Your bank will only present the options that are available in their range of products, whether this suits your situation or not.
Some brokers are one-size-fits-all types, but your situation is different. If you are seeking an investment property mortgage you aren’t looking for the same thing as a young couple buying their first house. Your broker needs to understand this, not try and shoehorn you into a type of loan that doesn’t recognise the tax issues, income factors, timeframe and ownership considerations that an investment property uniquely has.
Are they there when you need them? Most brokers will be – and they can come to you, an advantage over the need to visit a lending institution only when they are open for business. Plus the relationship becomes personal. You know who you are dealing with and don’t become a number in the system.
Their advice and help can be ongoing. Seldom will a lender suggest you refinance to improve your situation – they have nothing to gain and usually risk losing your business if you go elsewhere. Your broker doesn’t have this issue.
It’s important that the support and advice you receive from your mortgage broker isn’t shaped by their own financial gain, and given that many brokers receive different commissions from different lenders this can be a very real issue. At Aligned Finance our brokers receive the same commission regardless of who we recommend, returning any surplus we receive from lenders to you, the client. To find out more about the unique way our charges are structured and how we can help, talk to us today.