Historical low interest rates and more loan products call for a second look at the role of a finance broker. Considering these changes in the economy, a first home buyer, for instance, might get overwhelmed with choices of interest rates, terms, conditions, fees, and application criteria to sort through. Then there’s fixed rate versus variable rate, interest only versus principal plus interest, and whether a package is worthwhile.
A finance broker negotiates with banks, lenders and non-lenders on your behalf in securing a loan. Since they have access to a variety of credit providers, finance or mortgage brokers can offer you a wide range of loan options. They can help you select a loan and manage the process through to settlement and will get you the most favourable mortgage rates and terms for your situation. It saves you the groundwork of looking for the most competitive deal in the market.
Instead of going directly to a bank (where you will only be offered with the deals they offer), finance brokers are able to assess your specific needs and find a lender that suits you personally. They can also discuss a most competitive interest rate.
Doing it yourself, on the other hand, when you go online and searches for loans, you have to start comparing. Chances are, you will get overwhelmed with so many products. Your knowledge might not be as extensive as the professional who works full time in this market. They are called professionals for a reason and their experiences can potentially help them in assessing your situation.
Today, many smart home buyers do not undergo the trouble of finding a lender/credit provider on their own. Instead, they turn to finance brokers for obtaining a home loan. It is because finance brokers are home loan experts. They have the qualifications, knowledge and experience to guide you through the entire process of finance and insurance arrangements.