Mortgage Broker in Bendigo
The 2016 Census of Population and Housing stated that there were about 8.3 million households in Australia, of which 35% had a mortgage.
A mortgage can help make the home-buying process more affordable, providing the social and economic benefits of home ownership.
However, purchasing a new home can be complex, especially for first-time buyers. A mortgage broker can help make the entire process smoother. What are the responsibilities of mortgage brokers?
What financial services can a mortgage broker in Bendigo provide?
Can brokers help you get a better deal on your new home?
What are the benefits of having a mortgage broker in Bendigo?
Should you consider a broker over a bank when purchasing a new home?
What are practical reasons to consider real estate in Bendigo over other Victoria (VIC) cities?
MyLocalBroker.com provides a guide to help supply peace of mind for finding the right mortgage for your new Australian home.
What Precisely Does a Mortgage Broker Do?
A mortgage broker is a go-between by dealing with lenders such as banks to arrange home loans. Mortgage brokers should be advocates for homebuyers when suggesting loans.
A mortgage broker can help home loan borrowers with the following:
- Comprehend your financial needs and objectives
- Determine how much you can afford to borrow
- Find lending options that suit your financial situation
- Explain how different types of loans work
- Apply for a home loan, and manage the entire process
When Bendigo local mortgage brokers search for a home loan, they can ensure they possess certain features, including:
Australian Business Number (ABN): An ABN is a number that identifies a business, such as a lender. The ABN doesn’t replace a company’s tax file number.
Mortgage and Finance Association of Australia (MFAA): The MFAA represents thousands of members and supports education, advocacy, and business-building.
What Services Can Mortgage Brokers in Bendigo, VIC Provide?
Some of the services mortgage brokers in Bendigo, VIC provide include:
- Home loans
- Refinancing loans
- Debt consolidation
- Investment loans
- Construction loans
- Building or construction loans
- Renovation finance
- Bridging loans
- Self-managed super fund (MSF) loans
- Loan protection insurance
- Personal loans
- Car loans
- Business and commercial loans
- Business equipment finance
- Commercial property finance
- Reverse mortgages (third-party referrals)
- Insurance (third-party referrals)
Can Mortgage Brokers Provide Homebuyers With a Better Deal?
Today, Australian mortgage brokers write a large percentage of residential loans for various reasons.
The broker team at brokerhouses can also access a wide range of lenders and loan products that help suit customers’ financial needs and situations.
Generally, mortgage brokers are more familiar with the high number of loan products than homebuyers are.
These brokers have years of experience dealing with such financial products. They are experts in loan applications with which loan applicants may be unfamiliar.
When selecting mortgage brokers, you should consider ones that meet the highest industry standards. Taking that step can help you find the best deal on home loans.
Is a Mortgage Broker or Bank a Better Option?
Here are some of the critical benefits of securing home loans through mortgage brokers rather than lenders such as banks:
Familiarity With Lenders’ Home Loans and Lending Policies
Mortgage lenders interact with particular lenders like banks. So they’re familiar with their lending policies and loan processes. Such knowledge can help offset the leverage lenders may typically have when dealing with homebuyers.
Access to Multiple Home Loans and Interest Rates
You’ll have fewer options when dealing directly with lenders like banks. Since brokers deal with multiple lenders, they’re more prone to help find a home loan that meets your particular financial situation.
Periodic Home Loan Reviews
Mortgage brokers may review your home loan occasionally to determine if you’re still receiving the lowest interest rates. The goal is to ensure you’re still getting the best deal on a home loan.
Online Applications
When applying for a home loan, you can often submit online applications. So you won’t have to visit a brick-and-mortar office, requiring more time and effort.
Point of Contact
You can contact mortgage brokers throughout the home-buying process. You can also receive less personal service from lenders.
Is It Worth Going Through Mortgage Brokers?
Homebuyers may wonder whether hiring the services of a mortgage broker is worthwhile.
Mortgage brokers often attempt to prioritise their customers’ best interests. Mortgage brokers are legally required to put their clients’ best interests first. This fact can help provide homebuyers with a greater peace of mind.
Meanwhile, suppose homebuyers go to banks or other lenders directly. In that case, the bank may act in its best interest rather than the borrower. A bank may focus on selling its home loan products rather than finding a loan with the lowest rates and best terms.
Benefits of Hiring a Mortgage Broker
Here are some of the potential benefits provided by mortgage brokers:
- Understanding what a borrower’s goals and needs.
- Finding the homebuyer’s best options based on their financial situation
- Providing a detailed explanation about home loans, including their mechanics, features, interest rates, and fees.
- Applying the loan for the homebuyer
- Helping the homebuyer manage procedures, frequently with a settlement.
Sometimes homebuyers aren’t required to pay a broker. The bank or other lender often pays the mortgage lender through a standard rate or commission. In some cases, a broker may charge you directly.
Before hiring a mortgage broker, you should inquire about issues like the broker’s payment scheme.
Key Reasons to Live in Bendigo
Victoria offers a wide range of cities and towns, including Echuca. When selecting a place to live in Bendigo, you have several options based on the particular lifestyle you seek. Examples include suburbs like:
- Golden Square
- Kangaroo Flat
- Kennington
- Maiden Gully
- Quarry Hill
- Strathdale
Here are some reasons you may wish to consider living in Bendigo:
Vintage Shopping
You can find vintage shopping venues in Bendigo. Most stores include products by innovative designers from Melbourne and Bendigo.
Do It Yourself (DIY) Beer
You can create your beer with a customised beer label.
Largest Regional Art Gallery
The Bendigo Art Gallery is the largest in the region, showcasing a wide range of contemporary and traditional art. It is located at 42 View St., Bendigo, VIC 3550 and is open from 10 am to 5 pm.
Hidden Laneways
You can find “hidden” laneways in Bendigo resembling ones in Melbourne. The laneways lead to locations like European-style restaurants.
FAQs
1. How much interest does a mortgage broker charge?
Select a loan and repayment type to view the average interest rate. One factor to consider is that the Reserve Bank of Australia (RBA) increased the official cash rate in May 2022. This fact may affect future average rates.
2. How much do mortgage brokers generally charge Australians?
Lenders such as banks often pay upfront commissions to mortgage brokers. The lenders pay out the commissions after the home buyer’s loan settlement.
The lenders calculate the commissions based on a particular percentage of the loan amount and the loan-to-value ratio (LVR). The LVR involves a lender evaluating the risk involved in conducting a loan.
The details regarding how and when brokers receive their commission vary among lenders.
3. How are mortgage brokers paid?
Lenders often pay brokers a fee for selling their products through mortgage broking. In such cases, the borrower doesn’t have to pay the broker.
Sometimes lenders pay brokers a standard fee regardless of the loan products they recommend. Other times they receive a higher fee if they offer particular loans.
In other cases, brokers charge home buyers directly. This compensation may be combined with or instead of a lender’s commission.
You can research online to learn what other mortgage brokers charge their customers.
4. Does a mortgage broker need to secure a licence in Bendigo?
A training mortgage broker must apply for an Australian Credit Licence (ACL) through the Australian Securities and Investment Commission (ASIC).
To learn more about affordable home loans through mortgage brokers, visit MyLocalBroker.com.au and contact our authorised representatives.
Our Helpful Calculators include our personal loan calculator, which can help you find the right personal loan for your particular financial situation.