New Home Building Finance . Mortgage Brokers vs Banks
When building a new home, should I use a mortgage broker or go directly to a bank?
For many people, home ownership is the biggest investment they’ll make in their lifetime! The statement rings true whether you’re a first home buyer or a seasoned property owner, and for most the need for finance is front and centre in those plans. In addition to visiting the bank, more Australians are turning to mortgage brokers to achieve their goals with that number now surpassing 50%. So, we thought you might like some general information about brokers to help you make an informed choice. Highfields Builder supports clients making their own choices around residential construction finance and we recommend doing plenty of research to work through the sea of options currently available.
The home lending market in Australia is very crowded with many lenders offering different products, rates, and loan features. It can be confusing with consumers looking for someone to be in their corner as they attempt to find finance that’s most suitable to their circumstances. So that’s where a broker comes into the picture.
There are plenty of loan options with similar interest rates, and it’s not uncommon to find two home loan products from different lenders with the same interest rate resulting in very different financial outcomes for the consumer, after the lenders fee structure is factored into it. Like many occupations, brokers often specialise in particular areas of finance, be it residential, commercial, personal (cars), or business. Some brokers specialising in consumer lending may also offer home lending, vehicle finance and personal lending as complimentary services so their customers can have all their needs met under the one roof. However, that’s not always the case so you need to ask questions to ensure you find the right broker for your needs.
When making contact with a mortgage broker they will discuss your goals and future life circumstances (e.g. starting a family). They’ll examine your financial position (income, assets, debts etc) to source competitive finance options from a range of banks and other lenders they have access to. Some brokers offer finance from a small number of lenders and others may have access to many. The advantage of dealing with an experienced and qualified broker is being able to explore multiple lending options through the one person.
If you’re clear about your short- and long-term goals, and provide the broker with accurate and timely information, then the chances of a successful outcome are greatly increased. The process of securing finance for your land purchase and home construction can be complex, but it doesn’t have to be that way. Using a professional mortgage broker can make the process seamless and potentially deliver positive financial outcomes.
This blog is intended to give you a broad understanding of mortgage broker services and is not intended to be a comprehensive analysis of the services offered by brokers or banks. Highfields Builder recommends discussing the services offered by individual brokers together with any fees and other commissions so you can make an informed decision.
Highfields Builder are your local home building specialists across Toowoomba and nearby regions. Check us out at www.highfieldsbuilder.com.au and LIKE us on Facebook @ www.facebook.com/highfieldsbuilder
This publication series covers home building, real estate, home finance and legal related issues in a general way. It is intended for general information purposes only and should not be regarded as legal advice. Highfields Builder Pty Ltd recommends that professional legal and/or financial advice should be obtained before taking any action on the basis of the general information presented in this publication.
Written and Published by www.presentprofessionally.com.au
Highfields Builder is your local home building specialist in the Toowoomba region
Scott, Bonni and the Highfields Builder team are focused on building strong relationships with customers and delivering outcomes that exceed expectations. The process of building a home can be complex and every customers situation is different. When you build with Highfields Builder you become part of a team committed to delivering the highest standards of excellence in residential home construction, from enquiry through to handover.
DISCLAIMER
This article may include information on home building, real estate, home finance and legal related issues in a general way. It is intended for general information purposes only and should not be regarded as legal advice. Highfields Builder Pty Ltd recommends that professional legal and financial advice should be obtained before taking any action on the basis of the general information presented in this publication.
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