According to The Mortgage Store's Director, Mr Glenn Maynard, it's not surprising that the number of new lending services and products available today confuses homebuyers. But what's worse, he warns, is that some lenders offer products that in the long term will only burn holes in their pockets.
"Take the online lenders for example. Obtaining a home loan over the web may look like a smart option if the lender has a flash website, in-built loan calculators, and accepts electronic applications to remove the paper work trail."
"In reality the borrower has little or no idea who is behind the online service, what financial backing the company has, how many products are available, the number of staff employed, or even who is handling their application. What the borrower is missing out on is the consultative approach a mortgage broker like The Mortgage Store can offer."
"When searching for the right home loan it's important to be able to talk to staff who have financial expertise and in-depth knowledge of the products on offer. You need access to staff who understand all the financial jargon but can also explain the pros and cons of each product in simple non-technical terms."
"Why anyone would make their biggest purchasing decision without being able to meet face to face with the lender is beyond me," says Mr Maynard.
Competition from banks in the home loan department is also creating additional confusion with many homebuyers still believing that their loyalty will be rewarded with cheaper mortgage deals.
"Not only are the rates of the big banks nearly always higher than the smaller players, they rarely offer advice on reducing home loans quickly, refinancing or are frank about bank fees and charges," says Mr Maynard.
Using a mortgage broker takes the time-consuming 'shop-around' out of the home loan finance dilemma. Instead of calling each bank and non-bank lender to check what rates and products they can offer, and then trying to compare all those facts and figures, homebuyers can use a mortgage broker to find the right home loan for them.
"Most people shop around for a green slip for their car insurance in order to save a few hundred dollars. Finding the right home loan can save people thousands of dollars. The Mortgage Store offers the homebuyer a wide selection of financial products from a variety of lenders to ensure the most suitable product is found.
"What's more because mortgage brokers receive their remuneration from the lender not the customer, unlike a bank or non-bank lender, a mortgage broker offers truly independent home loan assessments and financial advice," says Mr Maynard.
The Mortgage Store, one of Australia's leading mortgage brokerage companies, lends in excess of $25 million in new home loans and obtains approval for more than sixty home purchasers per month, with an average of $360,000 per home loan. The company specialises in determining an individual's needs before offering a range of home loan products that best suit the individual's circumstances.
If you would like help arranging your finances, simply complete our online mortgage form.
KB: Q0002
Last Updated: 26 Sep 2006
