Mortgage Broker in Geelong
The Australian government reported that two-thirds of the population owned homes in 2016. A home is often one of Australians’ largest investments, so they may need to finance it through a home loan. Have you considered employing the services of a mortgage broker? Can they help you find the right home loan with low rates and favourable terms?
Selecting a mortgage broker can seem like an overwhelming experience, especially if you’re a first-time home buyer. Can a mortgage broker help you secure an affordable home loan?
You may also be asking some questions such as:
- What’s the difference between a financial broker and a mortgage broker?
- What services can a mortgage broker in Geelong, Victoria (VIC) offer?
- How much does a local broker in Geelong VIC generally cost?
- What are some of the best Geelong areas to consider for buying real estate?
Finance Brokers and Mortgage Brokers: What’s the Difference?
When purchasing a new home, you may opt to consider a “financial broker” or a “mortgage broker.” While the terms sound similar, how do they vary?
A financial broker can typically perform the same services as a mortgage broker. That’s due to both professionals generally having the same qualification requirements.
For example, both brokers can help determine how likely credit representatives may provide approval or pre-approval for your application.
However, a mortgage broker may not be qualified to provide all the services a financial broker can offer.
A financial broker and mortgage broker should both be able to find a home loan for you.
Mortgage brokers tend to work through bank-assisted business development managers (BDMs), which can be ideal for mortgages. However, a financial broker may be a better option if you need additional financial services.
What Does a Mortgage Broker Do?
As a homebuyer, you may wonder whether purchasing a new home through a bank or broker is better.
A mortgage broker is simply a “middleman” between a homebuyer and lenders or banks. Lenders may pay brokers through commissions from the bank or other lenders.
As a result, mortgage brokers can often help homebuyers find the best home loan when purchasing a house. That’s because the lender, rather than the borrower, pays them.
What Services Can Local Brokers in Geelong, VIC, Provide?
Mortgage brokers in the Geelong VIC 3220 zip code can supply various services, including home loans and other financial transactions, including:
- Home loans
- Car loans
- Bridging loans
- Renovation finance
- Self-managed super fund (SMSF) loans
- Reverse mortgages (third-party referrals)
- Business and commercial loans
- Building or construction loans
- Personal loans
- Insurance (third-party referrals)
- Refinancing loans
- Loan protection insurance
- Business equipment finance
- Commercial property finance
- Construction loans
- Investment loans (for example, for investment property)
Moreover, mortgage brokers in Geelong can help ensure lenders are legitimate through criteria such as:
Australian Business Number (ABN): The ABN identifies your business. However, it doesn’t replace a company’s tax file number.
Mortgage and Financial Association of Australia (MFAA): This is one of the leading associations in Australia.
How Can I Understand the Borrowing Capacity?
“Borrowing capacity” refers to the amount of money you can borrow from a lender. You can find helpful online calculators to estimate your borrowing capacity.
Mortgage brokers can sometimes help provide more detailed reviews of individuals’ borrowing capacity upon request.
What Grants Are Available to Homebuyers?
Homebuyers searching for a home loan can access various grants. A grant is an award a company, organisation, or government gives a person or company for a particular purpose.
The available grants in states like Victoria and New South Wales (NSW) differ. You can contact mortgage brokers to determine grants for which you qualify.
An example is the First Home Owner Grant (FHOG) scheme that the Australian government introduced in July 2000. States and territories fund this national scheme for first home buyers and administer it through their legislation.
This one-off grant is payable to first home owners satisfying all eligibility requirements.
What Are the Other Service Areas in Geelong, VIC?
Mortgage brokers in the Geelong area offer services and consultations to homebuyers in nearby suburbs. Some surrounding suburbs may include:
- East Geelong
- Geelong West
- Manifold Heights
Benefits of Having a Mortgage Broker
Homebuyers may wonder whether securing a home loan through a mortgage broker is worth the effort.
Some of the top reasons to consider securing a home loan through a mortgage broker include:
Flexible appointment times: Mortgage brokers are generally more flexible with work hours and may be available on weekends to help you find the right loan for homes.
Fast and easy loan comparisons: Mortgage brokers can access home loans from several lenders, including banks and credit unions. Thus, they can help locate a suitable loan for your financial situation.
Pre-qualification: A broker can review lenders’ policies to determine if you’re a good fit. This process can help avoid formal loan applications that are likely to be rejected.
Less legwork: Mortgage brokers can help sort through dozens of Australian lenders. This process can help you find a loan that meets your goals and objectives.
Home loan experts can offer valuable experience and advice with knowledge of the loan market-Geelong. They can help explain different finance options related to lenders and loans. This feature may help you pay lower interest rates on your home for the whole process.
Cost-effective mortgage advice: Lenders rather than borrowers often pay brokers. Thus, home loan borrowers can access independent mortgage advice and often avoid upfront costs.
Top Reasons to Consider Living in Geelong
Some of the crucial reasons you should consider purchasing a home in Geelong compared to other cities or towns include:
Proximity to Melbourne: Greater Geelong is less than an hour away from Melbourne, Victoria’s largest city by population.
Lifestyle options: Greater Geelong options include inner-city, suburban, coastal, and rural regions. Examples include the suburbs of Highton and Belmont and the 13th Beach surf coast.
You can enjoy environments like cosmopolitan cities, natural bush, and surf beaches.
Sports, leisure and cultural options: You can select from several leisure options in Greater Geelong. Local sports teams include Geelong Football Club and Geelong United Basketball. You can also visit the Leisurelink Aquatic and Recreation Centre and several museums.
Frequently Asked Questions
1. How much does a local broker cost in Geelong, VIC?
Mortgage brokers in Geelong, VIC, often don’t charge customers for their financial services. Lenders often pay mortgage brokers a commission after you secure your home loan. The bank or other lenders pay the commission after finalising the home loan. Lender fees and charges may apply.
2. What rates do mortgage brokers typically charge?
These are the main ways mortgage brokers receive payment:
Upfront commissions: An upfront commission is payment that a lender pays a broker after signing up a customer for a mortgage. The commission amount varies among different lenders.
Trail commission: Lenders pay this commission to mortgage brokers for each year borrowers stay on a loaned home.
Soft dollar benefits: This compensation includes non-monetary methods that lenders reward mortgage brokers. An example is a loyalty program offering perks like more favourable commission rates.
3. Is it worth going through a mortgage broker?
A mortgage broker can make it easier to sort through Australia’s thousands of home loan products. They have the knowledge and experience to help find a home loan that meets your particular needs.
4. When is the ideal time to see a mortgage broker when first considering buying a home?
A mortgage broker can assist in locating the best loan and answer any questions. Therefore, starting the loan process as soon as possible is ideal to leverage a brokerhouse’s knowledge and experience.
5. How much can I actually save through a mortgage broker?
Various factors determine the answer, including:
- Type of home loan
- Amount you borrow
- Current market conditions
A large per cent of homebuyers may be overpaying interest rates on home loans. A mortgage broker can help you save hundreds of dollars per month in repayments. The savings can be quite high when calculating annual repayments.
6. Where’s the best place to buy a Geelong home right now?
Geelong and surrounding regions are suitable places to live, work, and invest. Local brokers can help you find the property and mortgage broking you need at a price you can afford.
To find lower-priced home loans through mortgage brokers, visit MyLocalBroker.com.au and connect with one of our authorised representatives.
You can also discover some of Australia’s most valuable home loans.